Thursday, July 15, 2010

More of this kind of analysis, please

I've read now & then individual articles on how some costs are hidden-for example, residential development out in the "country" often cost more than is realized in terms of infrastructure, extension of service area for emergency services, etc.

But this analysis really pulls it all together.  Surprisingly, big-box developments aren't the gold pot that communities assume they are. 
Big box stores such as WalMart and Sam’s Club, when analyzed for county property tax revenue per acre, produce barely more than a single family house; maybe $150 to $200 more a year, Katz said. (Think of all those acres of parking lots.) “That hardly seems worth all the heat that elected officials take when they approve such development,” he noted in a related, written presentation.

Mixed-use developments in towns brought in the most revenue, although admittedly there's a limited market for that kind of development even if there were no NIMBYism.
Potential tax revenue shouldn’t be the only factor in determining appropriate development for any community, of course — especially not flawed assumptions about which type of development brings in the healthiest tax revenue.

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