Smart Growth The Rest of the Story: How Growth Management Regulations in the Name of Smart Growth Ha

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Smart Growth The Rest of the StoryHow Growth
Management Regulationsin the Name of Smart
GrowthHave Backfired
October 3, 2006 Triangle Community
Coalition Raleigh, NC
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Mark Friis President Rodgers Consulting
Mark Lancaster President Lancaster
Craftsmen Builders
www.rodgers.com
www.lancasterbuilders.com
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• Smart Growth Principles the Inherent Conflict
  with Growth Management Regulations
• The Unintended Consequences of Growth Management
  Regulations
• Our Local Situation Frederick County, Maryland
• Personal Observations

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The Visions of the 1992 Planning Act

• Development is concentrated in suitable areas
• Sensitive Areas are protected
• In rural areas, growth is directed to existing
  population centers and resource areas are
  protected
• Stewardship of the Chesapeake Bay and the land is
  a universal ethic
• Conservation of resources, including a reduction
  in resource consumption, is practiced
• To assure the achievement of the above,
  economic growth is encouraged and regulatory
  mechanisms are streamlined
• Adequate public facilities and infrastructure
  under the control of the county or municipality
  are available or planned in areas where growth is
  to occur
• Funding mechanisms are addressed to achieve these
  visions

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APFOs / Growth Management Regulations

• Zoning and Subdivision Regulations control the
  type of use and density of development (the
  what and how much)

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(No Transcript)
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APFOs / Growth Management Regulations

• Zoning and Subdivision Regulations control the
  type of use and density of development (the
  what and how much)
• Adequate Public Facilities Ordinances (APFO)
  control the timing of development (the when)
  based upon the availability of infrastructure
• Other tools of Growth Management Capital
  Improvement Programs (CIPs), Impact Fees, Excise
  Taxes, Development Exactions

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MD Department of Planning - APFOs

• In plain English, an APFO says that
• if the roads are too congested, or
• if the school classrooms are too crowded, or
• if the water system cannot provide enough water,
  or
• if the sewer pipes or treatment plant are full,
  or
• if there are not enough playing fields for
  recreational use,
• then, development cannot be approved until the
  problem is corrected.
• At the same time, however, an APFO is not the
  appropriate tool to stop growth that is otherwise
  consistent with local zoning. The application of
  an APFO must be associated with a funding source
  to remedy whatever the constraint on growth
  approval might be.
• MDP Models Guidelines 24

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Whats the Conflict ?

• Smart Growth is all about directing development
  and encouraging compact communities,
  unfortunately, often in designated growth areas
  which have significant infrastructure deficits
  (roads, schools, utilities).
• Common Reality
• In most communities, the only land use policy
  opposed more vehemently than sprawl is increased
  densities.

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How / Why Did We Get Here ?

• Inadequate infrastructure to support
• planned development and projected growth
• Civic and political opposition to development
• Proliferation of restrictive growth policies
• (growth boundaries, APFO concurrency
  ordinances)
• MORATORIUMS

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• Regional Progression of Growth Management Policies

1970-80s
1990s
2000s
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National Center for Smart Growth Research and
Education, University of Maryland

• Study finds that APFOs in Maryland are often
  poorly linked to CIPs and moratoria can last for
  indefinite periods of time.
• Further, the consequences of APFOs in Maryland
  are often unintended and their effects frequently
  contrary to the broader land use policies of the
  State.

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The Unintended Consequences of Growth Management
Regulations

• Restricted housing supply and skyrocketing
  housing prices
• Inadequate workforce housing
• Constrained supply-induced sprawl
• Potential decline in economic growth

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GMU Future Housing Supply Demand Analysis for
the Greater Washington Area

• Region-wide study of Job and Household growth
  from 1970 to 2000 and projections for the next 25
  years.
• As of 2000, Regional deficit of 43,200 dwelling
  units
• Based upon Washington Council of Governments Job
  Household projections Regional deficit of
  218,200 dwelling units by 2025
• Implications Inadequate workforce housing,
  higher prices, constrained supply-induced sprawl,
  potential decline in economic growth

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Our Local Situation - Frederick County, MD

• Local / County Government Policies 1991-2005
• APFO for Schools, Roads and Water Sewer
• Impact Fees for Schools Libraries
• Excise Tax for Transportation
• Recordation Tax for Parks Agricultural
  Preservation
• Water Sewer capacity fees

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Frederick County, MD (cont.)

• Primary / Direct Impacts in Frederick County
• Severe restriction on new subdivision approvals
  and declining pipeline of available buildable
  residential lots
• Increased developer funding of infrastructure
  plus 30-35,000 fees per dwelling unit
• 52 decline in residential permits issued over
  the past 5 years
• New home prices have approximately doubled in the
  past 5 years
• Property assessments for existing homeowners rose
  56 in 2005

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While the nations housing stock exploded,
Frederick Countys lagged
Housing Permits Issued Yearly
U.S.
Frederick County
Source U.S. Census Bureau Frederick County
Division of Planning
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The myth New homes dont pay their way
The reality is that new residential development
not only pays its way, but is subsidizing
existing residential homes in Frederick County.
Home built in 1990 Spring Ridge Property Taxes
in 2006 4,570 Impact Fees Paid 0 Excise Tax
Paid 0 WS Tap Fees Paid 3,000 Recordation
Fees Paid 1,947 Total Fees Paid 9,517
Home built in 2005 Villages of Urbana Property
Taxes in 2006 6,600 Impact Fees Paid
10,487 Excise Tax Paid 768 WS Tap Fees
Paid 10,540 Recordation Fees Paid
6,500 Total Fees Paid 34,895
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Frederick County, MD (cont.)

• Secondary / Indirect Impacts from Frederick
  Countys Policies
• Residential growth is pushed further out
  (Washington County, MD Jefferson County, WV
  Southern PA) fostering building boom in outlying
  jurisdictions
• Employees are driving greater greater distances
• Employers are being pulled out towards their
  employees

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Personal Observations

• Impacts on the Homebuilding Industry
• Impacts on our own Businesses
• Impact on the Local Economic Development Climate
• Who Wins / Who Loses