A blog about Politics and News.
About citybeat


Real Name:
Gretchen Wenner
Address:
1707 Eye Street
Bakersfield, CA 93301
Member Since:
November 01, 2007
Last Signed In:
November 18, 2009
Profile Views:
1859
Blog Views:
37860
View Profile
Send a Message
Send To A Friend
Sign Guestbook
Add as a Friend

Previous Posts
Wednesday night meeting
Bike riders: Watch for drilling rig on bike path!
Canyons meeting under way... Bldrs Exchange drama...
Recycling wackiness
State's property values decline for first time since 1933...
City seeking applicants for Board of Building Appeals
Homebuilders v. city (and county): Latest buzz
Council, Weds night: development "freeze?"
Suing Bakersfield: Pork hits fan?
And they're off! City Council seat beckons...
Archives
November 07
December 07
January 08
February 08
March 08
April 08
May 08
June 08
July 08
August 08
September 08
October 08
November 08
December 08
January 09
February 09
March 09
April 09
May 09
June 09
July 09
August 09
September 09
October 09
November 09
Get e-mail updates from this blog, and download to print on the go with the
City Beat Printcast.

Subscribe!
RSS 2.0 feed RSS 2.0
Add to My Yahoo
Add to My Google
Add to Bloglines
Add to My AOL

Share!


citybeat - > City Beat -> Let the media blitz begin: Homebuilders vs Thomas/Tandy-fees
Let the media blitz begin: Homebuilders vs Thomas/Tandy-fees

Got an e-mail this morning sent to moi and a bunch of other local media folks — including Inga and Jim Scott — from the local Home Builders Association. (Full text below.)

As we've been scribbling, the HBA is saber-rattling over proposed development fee increases on the way to a probable lawsuit.

The politically interesting bit of red meat here: The building industry is ramping up rhetoric against the Thomas roads money ($630 million for the city):

"...the City of Bakersfield has a unique problem. Bakersfield must prove that it can match funds allocated to the Thomas Roads Improvement Program ..."

The association is no stranger to politics. (If anyone has forgotten the anonymous smear ads of the 2006 era, when it went by the BIA moniker, I'll post more background.)

Back in those days, though, the pro-Thomas contingent were the building industry "good" guys. Now, the HBA is bucking against Thomas-necessitated fee increases.

Strange world.

- Gretchen Wenner, staff writer

Here's the full text of the HBA e-mail:

 

The City of Bakersfield is proposing a near doubling of its Traffic Impact Fee later this month from $7066 to $12870.  That’s reality.  The City will say its reducing its fee, but a simple phone call to the Building Department will correct that misinformation.  The adoption of this fee increase in the midst of a Housing Market Depression is critically bad timing.  Numerous other communities throughout California have attacked impact fees over the past few months and made drastic cuts to attempt to provide an economic jolt to a struggling housing sector, yet the City of Bakersfield has a unique problem.  Bakersfield must prove that it can match funds allocated to the Thomas Roads Improvement Program.  Despite a nine-point plan published by our City Manager to explore various methods to match these funds, the City only plans to rely on one…the Metropolitan Bakersfield Traffic Impact Fee Program.  After all, if they simply double the fee, they’ll capture double the fee revenue and all will be right with the world…right??  Wrong.  Raising fees means fewer building permits, less construction and even more layoffs…and oh yeah, less fee revenue to the City.

 

The City contends that it needs to raise the fee in order to expand its bonding capacity five years from now, when TRIP is ready to break ground.  Well you only expand your bonding capacity if you expand the revenue base used to pay the debt service on the bonds.  No expanded revenue – no expanded bonding capacity.

 

The City also says this program is needed to address the impacts of new development?  Fair enough, that after all is the only allowable use of impact fee dollars per the State’s Mitigation Fee Act.  The problem is that not only has the City failed to prove their argument, by failing to address the purpose of no less than $600 million in facilities included in the program, but they also haven’t provided any transparency to the system. After several attempts, the City can’t even produce the mandated annual reports of the current Traffic Impact Fee Program.  Aren’t we entitled to a functioning, transparent program before even more money is channeled into the program?

 

The members of the Homebuilder’s Association of Kern County are willing to mitigate the impacts that their projects have on the City’s roads. We’ve been accused of “asking questions as a mechanism to bog down and delay the process”.  Well I’m sorry, but when you’re asked to fund a two billion dollar, opaque government program, when is the appropriate time to stop questioning?

 

Sincerely,

 

 

 

Bob Decker | Executive Officer

 

Homebuilder's Association of Kern County

PO Box 1848 | Bakersfield, CA 93303-1848

1701 G Street, Suite 2 | Bakersfield, CA 93301

 

info@kernhba.com | www.kernbia.com <http://www.kernbia.com

 

Posted in these Groups:
Topics:
posted by citybeat on Monday, June 15, 2009 at 02:09 PM
Report a Violation
Viewed 358 times
3 comments from 2 users

1

posted by reformer on Jun 15, 2009 at 04:36 PM

For at least 15 years the development and growth  machine has been steaming along with carte blanche approvals for the plethora of sprawling and leapfrogging projects that made them a bundle of profit ('course they didn't save enough of it to cover these bad economic times). With greed and avarice directing the show, developers and builders made a minimum of $100,000 per house and they were able to keep the prices under what should have been the correct market  price because the development impact fees across the board were dirt cheap.  That helped the complicit mortgage industry with loan approvals for people who couldn't afford it, and everybody made out like a bandit.  The City and County were giddy with growth but the taxpayers will end up subsidizing those development and growth profits.   And now, when it is far past the time when the City and County should have correctly assessed fees that would have kept their transportation deficits to a reasonable amount they cry and threaten legal action.  The big impact fee nest egg that should have been collected and reserved to compliment funding like the TRIP money never materialized.  Then came the genius to ask the already overtaxed populous for its blessing on a 1/2% increase to our sales tax, and you all know the rest of the story.  I say, OK, give them crying towel and let 'em sue like General Holding.  It's time to call their "bluffs."

 

posted by citybeat on Jun 15, 2009 at 05:25 PM

Observer-

 

Good question; I'm going to be fact-checking both sides' statements in coming days (or weeks or months, depending on how long this plays out!)

The "near doubling" of fees isn't quite that simple, for example. The $7,066 current per-home fee in the city doesn't include all scenarios: if an "added mitigation" such as a general plan amendment was involved, the fee stands at $9,553.

 

- Gretchen

 

 

posted by citybeat on Jun 15, 2009 at 05:51 PM

you don't have to sensationalize your stories ;) 

Ha!! So true...

 

One other small thing already...the HBA letter says the city "plans to rely on only one"  method to match TRIP funds. Not quite right there either: the city put in place that pesky little Utility Franchise Tax (on your PG&E bill) already. That's supposed to bring in close to $8 million this year.

 

NOT to knee-jerk defend the city...it's like pulling teeth to nail down funding streams.

 

This could be a classic exercise in industry propaganda versus government opacity. Fun for all!

 

- Gretchen

 

 

 

1

  (You need to be signed in to leave a comment)

Advertisement