Following is a copy of a memo and comments by Dr. Emil Malizia made to Raleigh City Council on April 4, 2006 about the proposed impact fee increase:
The Triangle Community Coalition retained Miley, Gallo & Associates, LLC to conduct a review of the facility fee study recently completed by Duncan Associates for the City of Raleigh. We were very interested in this work because we believe that cities charging impact fees should be confident that fee schedules are fair and based on careful analysis. You have received a copy of our report.
We concluded that the consultant did not estimate the levels of service for new development with sufficient care. As a result, the proposed fees for both thoroughfares and open space appear to be overestimated. More analysis is needed to calculate levels of service rigorously given the objective of compliance with rational nexus tests.
As you know, the City ordinance imposes a 50% limitation on the use of facility fees to cover the capital cost of thoroughfare and open space projects. The consultant’s fee estimates for thoroughfares reflect this limitation; the open space fees do not. This oversight also leads to the overestimation of open space facility fees.
Because we have conducted impact fee studies, we fully appreciate the constraints of time, resources, and data faced by consultants doing this work. We are committed to productive dialogue about proper methods of impact fee estimation in order to improve the state of practice in this important area.
Again, the bottom line: The numbers that Duncan used are run the risk of being inflated. Our previous post outlines the details.
{ 3 comments… read them below or add one }
Last night’s City Council meeting discussion of the impact fee increase was quite entertaining to say the least! It was a packed house with a heavy lean toward the side of non-development-related (i.e., honest and knowledgeable)citizens. On the one hand, we had the (evil) developers, unquestionably parasitic, not yet ready to jump off the gravy train they have been riding lo these many years, who presented facts (smirk) and real-life anecdotes (wink) on the impact of raising fees. With each developer that slithered to the microphone, grew a thickening trail of slime oozing from their greed blisters.
A yankee scoundrel from a rival town, no doubt hired only for the shiny suit he sported, spun a tale of unspoken horror that befell his community when a guardian angel named Lang, who only wanted to help his people, cast darkness upon the halls of the Planning Department by increasing impact fees to the arbitrary level he desired, the one he felt would win re-election. The Town staff earned a much needed and extended break from the drudgery brought on by success and accolades from beyond, and Lang’s people smiled. Free from outside interests desiring to invest burdesome dollars in their town, villagers, both long-time and newly-settled, could now get their coffee without waiting in line, could ride from one end of town to the other without seeing unsightly new construction, and no longer had to tolerate those who might aspire to live in their fair, but over-populated, town. Time stood still.
Fortunately as if riding in on a ray of sunshine, the white knights of Raleigh’s citizenry, expertly informed on the art of development, exposed the lies spewed by the evil developers. Line by line, the knights carefully picked apart the heathens’ portrayal of the contributions made by developers, confounded their ingeniously crafted drivel about how growth is good, and with uncanny accuracy, portrayed the evil ones as nothing more than entreprenoooorial (most of the knights couldn’t spell the word either)businesses who want to make (hide the silverware!)……a profit! The infirmed and elderly fell out in the aisles, mothers rushed to cover their childrens’ ears, and angry men lined up at the podium to take a shot at the reeling devils. Sound bites were lobbed like so many grenades and emotion hung in the Chamber air like a layer of life-giving oxygen, providing vigor and zeal to the growing throng of emboldened commoners. Soon, the fires were lit, the evil ones had been cornered. Rational discussion was the first to fall. The crowd roared as the evil ones were pummelled with one-liners and unfounded facts (facts?! we don’t need no stinking facts!). A hush fell over the room as a wizened, bespectacled man, picked his way through the mob. “It is the Wise One”, the crowd whispered reverently. “He will speak for us all!” The Wise One took to the microphone, declared his ignorance of the issue, then, confidently, analytically, almost magically, reached into the air and grasped the answer that had eluded the masses and the Council. “Double or triple the current fees is not enough!” he shouted. “The fee shall be set at ten times the current rate! It’s time to stop development in Raleigh!!” he commanded. The citizens loosed an eruption of cheers heard in the next town over.
A couple of town leaders knowingly shook their heads in agreement and smiled as they scribbled re-election doodles. “We’ll go for the max” they thought to themselves. With the evil developers already fleeing the bonfires, one Town Leader pondered, “I wonder what I’ll do with all this free time now?”
Wow, David, very cool writing. Your point is what–that citizens are ignorant, and the proof of it is the guy with the flip-up glasses? I moved away from him myself. On your other point, I think it’s “entrepreneurial.” Chris can correct me if I’m wrong. Or if a study commissioned by TCC says it’s spelled some other way.
Thank you, Bob. It’s nice to hear from those who recognize and appreciate satire. Thank you also for providing the correct spelling. I sometimes let my sense of humor get the better of my NC State edyoocation.
All kidding aside, the point I was making, albeit sophomoric humor, is that we should not accept, carte blanch, a study conducted by people who sell such studies to towns whose specific reason for commissioning the study is to raise fees. Does it not make sense to, at least, make the sure the “study” passes the rationality test and can withstand scrutiny? Why do people get so upset when their ideas are challenged? In my experience, whenever one feels he is losing ground in a discussion, and has no firm foundation for making his argument, the discussion becomes emotional. Rational discussion gives way to increased volume. THAT is what I saw happening at the Council meeting by the majority of the audience that supported the increase.
It may interest you to know that I,too, recognize the increased burden that our success has placed on the City of Raleigh. But let’s apply a good measure of reason and caution to the fee structure. And let’s not propose to tax only a small segment of our society for the success we all enjoy…and profit from (ALL of us are in this boat whether we develop land or are just the recipients of nice homes, stores, roads, water, sewer, wages, etc).
See you at the mall…
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