Impact fees a key to stimulate economic growth in the area
Editor’s note: This is the second of three parts
Last week’s essay in the Pinnacle discussed the critical need to
dramatically lower impact fees and the importance of a human-scale
redevelopment of San Benito Street. These actions will spark
building, attract new businesses and industries, create jobs, and
set us on a course to greater financial stability.
Fortunately, two supervisors, Margie Barrios and Anthony
Botelho, have been given the task of reviewing impact fees and
making a recommendation to the rest of the Board of Supervisors.
Unfortunately, the City Council has been timid in severing San
Benito Street from Caltrans and demanding funds for the
redevelopment of downtown.
Impact fees a key to stimulate economic growth in the area
Editor’s note: This is the second of three parts
Last week’s essay in the Pinnacle discussed the critical need to dramatically lower impact fees and the importance of a human-scale redevelopment of San Benito Street. These actions will spark building, attract new businesses and industries, create jobs, and set us on a course to greater financial stability.
Fortunately, two supervisors, Margie Barrios and Anthony Botelho, have been given the task of reviewing impact fees and making a recommendation to the rest of the Board of Supervisors. Unfortunately, the City Council has been timid in severing San Benito Street from Caltrans and demanding funds for the redevelopment of downtown.
Clearly, lowering impact fees is a significant factor in promoting a healthy community. And, impact fees can become a major tool in smart-growth planning while providing what is in everyone’s best interest. However, an understanding of how we have arrived to the current unacceptable situation is essential.
The idea of impact fees originated in Florida but became a major source of income in California. Why? Proposition 13 passed in 1978 by the voters, forced municipalities to find other means other than property taxes for needed infrastructure. Unfortunately, San Benito County and the City of Hollister had not developed a retail and industrial base and had no place to turn. Therefore, we were caught behind the eight ball. This was the beginning of a slow but accelerating tailspin. It merits repeating that the average impact fees nationally are $8,328, in California $21,649 and locally between $45,000 and $65,000. Over 50-plus municipalities in California have deferred and/or cut their impact fees. Our fees have paralyzed the local building industry. With the current local economy, we have lost the fees and our ability for advanced planning.
Other than a decent economy, a community needs and requires certain life quality amenities. A modern library, parks, decent schools, a performing arts center, safe streets, a YMCA, and providing for life-style choices are a few examples. These amenities are expensive to implement and sustain and it requires a healthy scale of economics. An appropriate population to pay the bills is critical. Appropriate is an abstract notion but the bottom base is around 60,000 population for a small city and a significant and clustered increase in the county. Accomplishing this without destroying our rural character can and must be achieved.
Many other strategies for progress must be implemented other than the two suggested. We need to design and build a sustainable and healthy community. A progressive design will cut future maintenance costs. Partnerships between multiple agencies and private investment should always be explored. And, our elected leaders must be more proactive and adamant in getting the State of California and the federal government to work for us.
Our next and final essay will present research on the specifics of building a sustainable community that promotes health and happiness. It will further explain why now is the time.
Tony Ruiz is chairman of the Hollister Independent New Urbanism Research Group.
