CC - Agendas - City Council - REGULAR - 11/4/2008

Home

{ Prescott City Council Regular Voting Meeting — October 28, 2008 Page 17 Howard Mechanic, 309 Bloom Place, said that growth should pay the full cost of what it takes to provide the infrastructure and by delaying they are saying they don't have to pay the full cost, on the backs of the ratepayers. He said that if he thought that cutting the impact fee by $2,300 per home would jumpstart the economy, he would probably be on their side. He talked with Dr. Danforth who is a Ph.D in Economics, about a six-month delay. During that six-months they may get 50 homes. He asked how many more homes they will they get if they reduce the impact fees $2,300. According to the theory of elasticity, when prices are dropped there is increased demand but this is so much of small drop and the market is so overbuilt that they will expect one home or less. They would reduce the impact fee for 50 homes, losing $2,300 per home, over $100,000 to get one home, maybe. He said that the Courier last week said that the construction industry needed a shot in the arm and this was the way to do it. He said that is like having a jogger running down the street that gets hit by a car, and they give them a shot in the arm expecting it to keep him running. It is a way to lose money and have ratepayers cover the cost of growth. It will not stimulate growth. He said this is not the time to start looking at other alternates; they would have to throw the study out. They can look at it for the next study. John Danforth, 2737 Lookover Circle, said that he wanted to endorse what Councilman Lamerson said regarding the impact fee. It is a clumsy tool, but the problem is a lack of alternative right now. He would recommend highly that the Council take this seriously. He spoke with Councilman Lamerson about the possibility of coming up with a magic bullet and it is difficult. The sooner they start to take this seriously and try to find alternatives that are less clumsy, are equitable, and achieve the objective they have in mind, the better. He does not think that is going to happen within the next few days or even in the next six months. A year or so might give them enough time. For the time being, he would wholeheartedly encourage passage of the recommendation as is, without delays. Tammy Linn, 1401 Claiborne Circle, said that she has a banking and business background, and the thing that concerns her the most is not the residential impact fees. It is a 98% increase for 2" meters. She asked how many have been to Sam's Club, Cracker Barrel, Hamton Inn. They are going there because they don't have the level of impact fees and they are making the environment more positive. By increasing the impact fees for the large meters is going to be a huge detriment. She has been driving by the potential Chili's location for year wondering if it is ever going to come here. Her common sense says that they need jobs, sales tax, and they should not be putting another $50,000 impact fee on those businesses when they can go to the Reservation, Chino Valley, or Prescott Valley. This is a big decision. She thinks they should vote it down.