Not all development patterns have the same price tag

And for my last Council meeting, the business park is on the agenda for discussion…so here’s one more attempt to ask questions about the cost and scope of this project.

The background as we know it: 530 acres annexed west of the hospital to be master-planned and developed as a business and residential development.  Required improvements include roads (to TH 19, North Avenue, Decker Avenue, 320th Street, “Cedar” Ave. and new interior roadways), sewer (including lift station), water (including elevated storage tank) which “should not be assessed to business park property, increasing the cost of development.”  Phase I is estimated at about $14 million in improvements; Phases II-IV would add another $15 million. The breakdown of the development expected includes not just the commercial/industrial development we hear about most, but a substantial amount of housing and retail.

That cost of development issue should make everyone pause…

Of course, it would raise the cost of development to completely prohibitive levels if the costs were assessed to the property.  But, if the costs are not assessed to the property, that burden will fall to the City taxpayers (and state and perhaps federal taxpayers depending on the package of aid that’s cobbled together).  Further subsidies to attract business like tax abatement, TIF, etc. will further increase taxpayers’ costs and decrease the tax benefits.

1. My general question: how can we grow the tax base and add jobs without massive subsidies (which is what those infrastructure improvements would be) which would effectively shrink tax revenue to pay off the improvements.

2. My more specific question: how can the Council, staff, business community and taxpayers learn how much it is likely to cost them (and what assumptions about the rate of growth and the economy underlie those projections) and will that cost ever be recouped through tax revenue.

3. I also have question the wisdom of master planning an area which will take decades to build out.  My experience on the planning commission with residential development was that the master plan would be drafted, but within just a few years changes would be requested to adjust densities, change housing styles, subtract roads, change stormwater management, etc.  Is it likely that the lot layout, use designations, environmental/landscaping/natural features, etc. in the business park will help development or will the plan constrain business development over time?

My bottom line: Northfield has not evaluated the cost of this project for taxpayers over the long term and has not explored meaningful alternatives to reduce cost.  Indeed, the entire process has been conducted backwards with questions about feasibility, cost, location, etc. happening after the plan has been drawn without considering that not all development locations and patterns come with the same pricetag.

I am advocating for 2 things:

  • maximizing use of current infrastructure before building new (because we’ve already paid for it and are maintaining it). Extending infrastructure in the hope of development is a gamble with tax money I am not willing to take.
  • building in patterns which support density (to put more taxpayers per acre or per foot of pipe to support the infrastructure), but not for a particular look and feel.

A little digest of other things I’ve written and where I get my information:

From this blog (with links to many places):

From other places:

 

 

 

 

Different debate questions

Presidential debates usually make me think about moving to Canada since the likelihood of either candidate actually answering a question is abysmally low and the only excitement comes from the random zinger of a comment, factual screw up, or public speaking trainwreck (I depend on the Brits for the most entertaining and pointed commentary and American media for the transcript).  I’d like to believe, however naively, that the President of the United States does more than repeat familiar phrases or score points for verbal jabs in the course of his employment.

I would like some answers from candidates, though, and Chuck Marohn has a different list of questions over on Strong Towns which get at some of the issues I care about. It might be fun to ask them on the local level, too, and see if we can get beyond repeating the usual answers and catchphrases about growth, infrastructure, regulation and the like to ask what would really work and what it would cost.

 

New CommunityMatters partnership

Community that matters

Some of my favorite organizations have formed a new CommunityMatters partnership dedicated to the idea that people have the power to shape and strengthen their communities; CommunityMatters plans to provide some tools to help do it.  Strong Towns, Project for Public Spaces plus 4 other partners and supported by the Orton Foundation form the partnership.  One of the first projects is the Citizens’ Institute for Rural Design which brings together the CM partners plus the USDA and NEA to convene workshops intended to help rural communities enhance economic vitality and quality of life.  Bill Roper of the Orton Family Foundation said:

Over recent decades too many small towns have gone from the unique to the uniform, subject to cookie-cutter design and development.  But people have the power to weave a new community narrative for the future, one that enhances their town’s unique heart and soul. This uniqueness is core to small towns’ lasting economic success built on local assets. We are excited to bring all the knowledge, skills and resources of this partnership to aid America’s rural communities and help them thrive.

Sounds a lot like recent economic development conversations in Northfield highlighting local assets and unique features – I’m looking forward to learning more.

Northfield, a resilient town

Ooh, what a nice little surprise in my Facebook newsfeed this morning – Strong Towns posted a link to their blog post about a recent conference on Back to Basics (of building strong, engaged communities) in Pine River, MN with this comment:  “Video from the Back to Basics Q&A, including Chuck Marohn expressing his affection for Northfield.”   Watch this video and hear Chuck tell everyone what a great place we have here.  Thanks, Chuck!