Sunday, June 14, 2009

As I See It - "It's Time to End the Developers Incentives"

When I was first approached about establishing Developers Incentives in Wellington, I thought it was a good idea. The City takes care of the infrastructure which allows the developer to sell lots at a lower price (hoping to recruit new dwellings), and pass the cost of the infrastructure on through Special Assessments. Deferring the assessments for three years would allow a new property owner time to "get on their feet" before the special tax kicked in.

But then I was told that Wellington was one of the fewest towns around that did not offer some type of incentive to developers. "Incentives are why Derby, Andover, and Mulvane are growing", I was told. So I checked with those communities and found that, like Wellington, they offered no incentives to developers at all. The cost of the infrastructure was paid for totally by the developer and passed on through the price of the parcel or lot. In fact, Derby told me the only thing they offered was "good parks and recreation."

I supported the Settlers Creek Addition through the developers incentives because it was filling a void already within the City of Wellington's City Limits. I thought it would be a good test to determine if the incentives would work or not. I subsequently voted against Coyote Ridge and Crestview Heights Developments, and have been opposed to the Developers Incentives since.

The Settlers Creek Addition is the perfect example. The City paid for the infrastructure for over 30 lots, and to date, less than half a dozen have sold. In the event the developer/property owner fails to pay the taxes and special assessments for the infrastructure, the property will be sold at tax auction and the City could be on the hook for the infrastructure costs. Likewise, Coyote Ridge, a 24 lot development, has only sold ten lots. We are now being told the special assessments are too high, and that likely no more lots will be sold because of the high taxes. If the Coyote Ridge developer/property owners fail to pay their taxes, that development too could be sold at tax auction, again leaving Wellington on the hook for the infrastructure costs.

Even before the economic crisis last fall, it was obvious that lots in these developments were not going to sell like "hotcakes". And now the future of these developments are up in the air.

The City cannot risk any more of your tax dollars gambling on future developments. If the developer wants to risk their money, that is what private enterprise is all about. I will continue my attempts to stop the Developers Incentives, and continue to vote against developments that are built on them.

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