Arguments Against Impact Fees Are Fallacious

The issue of impact fees is again before City Council and the citizens of El Paso as well as the ratepayers of the water utility. Please mark March 4th on your calendars. That is the day that City Council will decide about increasing the impact fees. This post is just the first in what will be several on this subject.

I begin by sharing with you an email that I received from Charlie Wakeem on the subject. Most of you know Charlie as the recent past chairman of the Open Space Advisory Board. However, Charlie has served the City as a member of many other committees including the Capital Improvement Advisory Committee (CIAC) which advises the CPC (City Plan Commission) and City Council on issues such as impact fees.

Before sending me the email, Charlie told me that the impact fee issue has nothing to do with economic growth or sprawl. It has everything to do with basic fairness. If you use something, you pay for it. If you don't use something, you don't. I'll be exploring that theme in the next few posts on impact fees. Today, here is the opener from Mr. Wakeem:


Hi Guys,

On March 4 as many citizens as possible should go to City Council (CC) and speak in support of a major issue: Impact Fees.  This is important for all of El Paso because the developers are not only trying to stop justified increases of those fees but they are also arguing for the roll back of those fees, the sale of city owned land held by the PSB and the end of Smart Growth and SmartCode. In short, they want more destructive sprawl.  

Before I continue, I suggest you watch the video stream of the February 18th CC meeting starting from 39:20 into the video.  This is the link: http://home.elpasotexas.gov/video.php.  With the exception of Lisa Turner, no one else spoke on behalf of the rate payers. 

I've been on the city's Capital Improvement Advisory Committee (CIAC) from the start, which was set up by City Council six years ago and makes recommendations to the CPC and CC.  I was term limited at the end of 2013, but I still follow them.  At the beginning CC appointed 5 developers and 4 non-developers to CIAC.  I was the last original non-developer.  There are now 7 developers and 2 non-developers on the committee.  The 2 non-developers are relatively new and are still learning.  Originally, the Impact Fees approved in 2009 were 75% of approximately $2,000 per new home built, or about $1,500. The developers persuaded CC to make the rate payers pay the other 25%. Due to needed new capital improvements, mainly to the Bustamante Water Treatment Plant, which serves the East and NE service areas, the impact fee would double if approved.  The NW service area would have no significant increase.

So much for the background.  At the January, 2013 CIAC meeting, the vote was unanimous not to recommend the increase.  Later, the CPC voted 6-0-1 to recommend the increase (which I repeat is justified).  Ray Adauto (who I might add has also been term limited but is currently serving as CIAC chair) is the Executive Director of the El Paso Association of Builders. He spoke on behalf of the developers at CC this past Tuesday - Feb. 18.  Greater El Paso Chamber of Commerce Director Richard Dayoub did the same.

Here are the arguments they made and my rebuttals [in bold red]:

1.  Impact Fees raise the prices of homes and more people will be priced out of the market.

Answer:  This is a bad arguement.  Impact fees are part of the cost of doing business.  If a buyer can't afford an additional $3,000 or $16.00 per month for a home [loan amortized at 5% over 30 years], they have no business buying one.  They are getting the benefit of the Water/Waste Water CIPs (Capital Improvement Projects), not the current rate payers.

2.  Impact Fees encourage sprawl.  Developers don't have to develop in the city, setting up bedroom communities.  They can go outside the city and not pay the impact fees and the home buyers will still use city services.

Answer:  This true, but the home buyers outside of the city pay higher water utility rates than city residents. Socorro is an example.  Horizon City has its own MUDD.  Nevertheless, what do the developers care what they're customer's utility bills are?  They already made their money without  having to pay the fees outside of the city.

3. Another source of income in lieu of impact fees is the city's sale of its land held by the PSB to developers. It will generate income from the sale of the land and will generate more income with the new home buyers on that land paying property taxes.  Developers aren't buying the land, because the city has placed too many restrictions on its development, such as Smart Growth and SmartCode.

Answer:  WOW!!  Speak of sprawl!!  There are several parts to this answer. First, City Development Director Matthew McElroy, told me that the City owned PSB land is only 2% of the total land acreage.  The PSB generates little income from land sales and would not be useful in defraying CIP costs.  

Second, the land won't be sold for many years, since growth won't occur in those areas for a long time.  Declaring the land inexpedient now would bring pennies on the dollar.  Also, most of the PSB land is being held for its water storage and recharge, and not for its commercial use. That was the original intent of setting up the PSB in the 1950s.  

Third, it's a proven fact that no matter how many new homes are built, the property taxes from them never pay for all of the city services and infrastructure needed.  That's why our property taxes NEVER go down. 

Fourth and finally, the city has worked for years to improve the quality of development through Smart Growth.  It's a major part of the Comprehensive Plan that was fully vetted 2 years ago.  If the developers don't want to buy city land with Smart Code, they don't have to.

4.  The water utilities replaces old infrastructure in the city, such as replacing pipes on Country Club Road.  There are no impact fees imposed on that. Yet the home buyers in new growth areas are billed for those improvements.

Answer: Water and Waste Water CIPs are built to last at least 50 years. Some have lasted for nearly a century.  Old infrastructure wearing out is normal and should be a cost shared by everyone.

That's all for now.

Charlie  
             

Dr. Noe Likes Walmart but not People NOT in His District

At the NW corner of Montana and Chelsea with Trowbridge defining the northern boundary sits some land that now has a Vet clinic and a Chico's and once a Baptist church now torn down.  Adjacent to this land is a quiet neighborhood. On the other side of Montana is old Chelmont Center and an Albertson's.  Walmart is hell bent on obtaining the land.  The neighbors do not want the added traffic congestion which will surely come with semis delivering products to the store and thousands of customers forced to go around the block - i.e., through the residential areas. 

It was a concern during the recent campaign in which I was a candidate.  Early on I opposed the project - the rezoning for the benefit of Walmart.  My opponent, Larry Romero who was subsequently elected, favored Walmart until he realized that his position could cost him one or more precincts.  Flip-flopping he changed his position and came out against the Walmart. (At the City Plan Commission meeting he sat silently as people spoke out against Walmart.  He sat opposite of the neighbors in the chambers of Council.  He did send his surrogate from the Hispanic Chamber of Commerce to speak in favor of Walmart.  That was two weeks before the election and days before he had his convenient conversion.)

Besides knowing that it would be a huge stress on the neighborhood, I opposed the project because I was aware that the Parks and Recreation Department at one time looked at the land as a place to move the now-closed Chelsea Street pool.  There is money in the quality of life bonds just for purchasing new land for that pool.  Somewhere along the way, that plan got moth balled in favor of supporting Walmart.  Obviously, some in the City hierarchy were persuaded by Walmart to let them go after the land. Many neighbors favor the idea of a park and pool.  Fred Borrego has a very special vision of what that park and pool should look like.

There were close to 70 neighbors - maybe more - at City Council today.  The plot to rezone the land had been turned down by the CPC earlier largely because of neighborhood opposition.  Walmart appealed to the City Council and today the matter was to have been heard.

Homeowners within 300 feet of the proposed site had signed a petition in opposition to the Walmart.  There were enough of them who signed to force what is called a 211 - in order to pass Council there needs to be a super majority.  5-3 for does not work.  It must be 6-2.  Dear Dr. Noe questioned the validity of the petition and asked for a two week postponement.  This in spite of the fact that 70 people (maybe more) were there in opposition - 35 of us had signed up to speak against it.  This also in spite of the fact that Sylvia Firth issued an opinion that the petitions gathered constituted the 211. Citizens had already tolerated nearly two hours of special accolades and recognitions before Council even got to the regular agenda.

Courtney (whatever business wants business gets) Niland seconded the motion.  It passed with the help of Lilly and Acosta who had promised to vote against the Walmart.

Why was Noe so eager to postpone when the proposed Walmart is not even in his District but in outgoing Rep. Byrd's district?  Here's the scoop so pay attention: Joe Lopez, Noe's campaign operative, does the local advertising for Walmart.  Need I say more?  Noe and Walmart are betting on the new City Council to support the retail Leviathan.  The matter will be heard again in two weeks - July 2nd.  We will see if Romero is true to his word or will find a reason to flip flop again.

The vote may also be an early sign of just how reactionary and bourgeois this new Mayor and City Council will be.

City Planning Commission Approves Plan El Paso

The CPC with just a bit of editing approved the Comprehensive Plan Re-Write this afternoon by a unanimous vote. Chairman Larry Nance guided the process which included an inspirational message from City Planner, Carlos Gallinar, and a presentation by Victor Dover and Jason King of Dover Kohl, public comment from the conservation community, Chamber of Commerce persons and EPWU staff as well as a lengthy and active discussion by Commissioners.


Although the CPC's approval was a major step toward final City Council approval set for March 6, there is still over a week to go with Council's Legislative Review Committee meeting next. Here is the schedule of upcoming critical meetings:

Legislative Review Committee

Thursday, March 1, 2012, 1:30 p.m., 2^nd Floor City Hall

Public Service Board (PSB)

Monday, March 5, 2012, 5:00 p.m. 1154 Hawkins Blvd. (Map)

Not only will they discuss the Comprehensive Plan Re-write (Plan El Paso) but the NW Master Plan/Scenic Corridor issue.

City Council

Tuesday, March 6, 2012, 8:30 a.m., 2^nd Floor City Hall

CPC Meets Tomorrow at 1:30 City Hall 2nd Floor

It's hard to get people to a daytime meeting since so many people have to be at work.  I'm hoping a few folks can show up at tomorrow's CPC and/or the other meetings coming up. Here's what I sent out to a large group in the conservation community just now:

Most of you probably read my e-letter yesterday. I’m just reminding those of you who are top leaders to try to attend tomorrow’s CPC meeting and other upcoming meetings regarding the City’s Re-Write of the Comprehensive Plan: Plan El Paso. It is crucial that the CPC, City Council and Public Service Board see us as well as receive our messages and hear some speak. Be clear: we are talking about Plan El Paso, the new Comprehensive Plan for El Paso and not at this juncture about the NW Master Plan and the Scenic Corridor. Below are some points that you may want to make. If you cannot make the CPC meeting, you can email your thoughts to acostamd@elpasotexas.gov.  Please copy or send another email to Carlos Gallinar, Comprehensive Plan Manager .
 Again here is the schedule of upcoming meetings:
 City Plan CommissionThursday, February 23, 2012, 1:30 p.m., 2^nd Floor City Hall Legislative Review CommitteeThursday, March 1, 2012, 1:30 p.m., 2^nd Floor City Hall Public Service Board (PSB)Monday, March 5, 2012, 5:00 p.m. 1154 Hawkins Blvd. (Map)Not only will they discuss the Comprehensive Plan Re-write (Plan El Paso) but the NW Master Plan/Scenic Corridor issue. City CouncilTuesday, March 6, 2012, 8:30 a.m., 2^nd Floor City Hall It is critical that as many of us who care about key environmental, conservation and sustainability issues make these meetings. It has been emphasized to me that turn out is the key. Bodies if not voices are very, very important.   Here are some points if you speak or email:  Rather than a focus on the negative and outdated ideas of a very few, let’s stress the positive.  Plan El Paso encourages infill over sprawl. It encourages preserving our green and natural open spaces. It proposes neighborhoods where you are near to parks and shops and work and where you are connected to your neighbors – where you have community. It “incentivizes development projects of exemplary location and design throughout the City.” It calls for revitalizing downtown. It calls for us to be the most sustainable, walkable, livable and least automobile-dependent City in the Southwest. And, it  sets a goal for us to “provide community services and facilities that meet the physical, educational, and recreational needs of all segments of the City’s community.” Imagine connected, affordable, quality neighborhoods for El Paso. Plan El Paso plans for prosperity, the preservation and usefulness of our historic areas, sets a goal to improve our overall health and quality of life, seeks to protect our environment and the plants and animals of our region all the while building a prosperous, International City.
 I hope that I see you tomorrow and/or at one of the other upcoming meetings. Let’s try to sit together so they see us as a group. Thanks. Jim H. TolbertPublisher, El Paso Naturallywww.elpasonaturally.blogspot.comEasy to subscribe to the elpasonaturally e-letter.
Just email and say “Subscribe elpasonaturally”

Comp Plan Action Postponed to February

There has been a sudden development. The CPC will not discuss or take action on Plan El Paso (the City’s Comprehensive Plan Re-Write) at 1:30 p.m. today. Instead that item will be moved to a meeting in February. I will keep you updated.

There is nothing “going on” – just a need to let a few more organizations have time to weigh in on the plan first.

There still will be a Community Presentation of the comp plan re-write tonight from 6 to 8 p.m. in the Foundation Room on the 1^st Floor of the El Paso Community Foundation, 333 North Oregon. (Map)

Get to CPC Meeting Tomorrow (Thursday) at 1:30 p.m.

Long note but please read. Bottom line: El Paso needs to adopt Plan El Paso, our new Comprehensive Plan.

Please make every effort to attend tomorrow’s (Thursday, January 26^th) meeting of the City Plan Commission at 1:30 p.m. in City Council Chambers. (Map and Directions to City Hall) This meeting is far more important, critical and consequential than last night’s hands-on session (although that was very important).  It is imperative that as many of us who can will make this meeting.

I've also learned that the item to take action on the Comprehensive Plan may be moved to the front of the agenda - 1:30 p.m. sharp!

The CPC will take action on the Comprehensive Plan Re-Write (Plan El Paso).  It is CPC and the City Council who make the final decisions about Comprehensive plans . . . not Dover Kohl and not you and me except as we impact our elected Representatives.  All the work that you did at charrettes last year will be worthless if some powerful interests have their way. They hate Smart Growth; they hate walkable communities; they hate open space; they hate the new Landscape Ordinance. They love little or no landscaping. They like big box stores and disconnected neighborhoods and concrete and asphalt.

We have learned that they plan to come out en masse tomorrow to the CPC meeting. They know that they don’t need to “waste their time” engaging in a public process through charrettes. They will focus on the CPC and on Council. You should too. (Did you see any of them actively engaged in last night’s hands-on session for instance? No. They are sharpening their swords for CPC and the City Council and they have done so with the Comprehensive Plan and they will do so later with the Westside Plan.)

The Comprehensive Plan has been vetted for over a year. More than 2500 people participated in 100 meetings and 20 hands-on-sessions. Plan El Paso has been discussed by numerous groups, stakeholders and the press. Nobody can say that we can’t make a decision on it now.

Plan El Paso is comprehensive and addresses a wide range of issues: transportation, livable/walkable communities, health, historic preservation, transportation, downtown development and much more.

Please plan to be at the meeting tomorrow. Let the CPC know that there are numbers for the Plan. You can sign-up to speak on Agenda Item #9 prior to the start of the meeting at 1:30 p.m.

Let me be clear: the meeting tomorrow has to do with the City’s new Comprehensive Plan. It is a separate item from our current work to re-do the Westside Master Plan and preserve the Scenic Transmountain Corridor. However, the Comprehensive Plan has everything to do with the quality of life in El Paso, our economic development and our El Paso’s ability to be competitively tough in the 21st Century.

You can read the complete draft of volume 1 and volume 2 of the Plan El Paso document online. (The Comprehensive Plan Community Presentation is scheduled for Thursday evening at the El Paso Community Foundation at 333 N. Oregon in the Foundation Room on the 1st Floor. (Map)  This is another very important meeting to make if you can.

Time is very short. We need a big turnout.  Tell your friends, neighbors, neighborhood associations, organizations and everyone you know who has worked to make Plan El Paso a dream come true.