Monday, January 30, 2006

South Carolina is old fashioned, a little behind the times. "The times'' have long since rendered so many neighborhoods in the United States unlivable, people are flocking to South Carolina, giddy at the prospect of joining us in Aiken. They can't believe their good fortune - this is paradise. We are amused to see the exorbitant prices they are willing to pay for property. Feeling flattered, and in a hurry to accommodate our new friends and their wallets, Aiken has sold itself short. The foolish said, "If Aiken's not growing, it's dying." How about a little foresight? Couldn't they hear the approaching stampede? Did the bulldozers drown out the sound of the hoofs?

Now what? Can we slow down, plan, and more importantly, pay for all this growth? Builders, developers, and even some city officials, who brag that they "attracted" this phenomenal growth, repeatedly claim that property taxes and increased revenues will pay for the necessary roads, schools, fire, police, EMS, parks and recreation to support all these newcomers.

Although they may not like to admit it, surely some are beginning to see the error in that claim. If that formula still worked, communities across the country whose growth and lack of planning started 10 or 20 years ago, wouldn't be putting the brakes on, seeing the error in unbridled growth, and using new formulas to let growth truly pay for itself. Newcomers who have witnessed the of ruin other towns, need to step up to the plate and help us implement practical solutions, before the roads to their expensive new property are choked to a standstill.

Although I don't have a house or a horse to sell them, I count many recent arrivals in Aiken as my new best friends. In their excitement to become a part of Aiken, newcomers are dramatically driving up real estate prices.

Poor neighborhoods are being gentrified, and the city replacing old rentals with new affordable housing. These worthwhile programs are expensive. As land prices escalate, the city (we) will be unable to afford land to build replacement homes or to designate green space, parkways, parks and recreation areas to complement them. Open space has historically made Aiken unique and attractive. How can we afford to provide the open space to accommodate our newcomers? We could ask them to pay for it.

All over the United States old-fashioned places like Aiken are hiring planners and consultants to calculate the true cost to the taxpayers for each new residence and rather than have that cost paid by long-term residents, impact fees are charged. Impact fees are onetime fees on new home construction to raise money for local governments to pay for new public infrastructure. Impact fees, paid by the builder and then tacked onto the price of a new house are charged at the time the building permit is issued, and can range from the $750 that I believe Aiken charges for sewer and water hook-up, to thousands of dollars. Of course, affordable housing can be exempted from the fees. And with an additional Affordable Housing Impact Fee, homebuilders can be charged a fee, which can be used to finance more affordable housing.

For example, a recent Dorchester County subdivision development agreement includes a new $100 yearly tax per residence to offset the traffic burden.

Hardeeville is poised for dramatic growth and stands ready to charge a developer fee of more than $ 6,000 per new home. Kent County, Del., has passed a Public Facilities Ordinance to restrict growth until infrastructure is in place to accommodate it. The ordinance sets minimum acceptable levels for public services and infrastructure, as a precondition for approving new development.

Unfortunately, lobbying by South Carolina developers a few years ago has made it difficult to charge effective impact fees. It is time for legislators to empower local governments to enact adequate impact fees for infrastructure. And instead of fighting it, builders and developers ought to embrace the idea and work for results that are mutually beneficial.

Let growth pay for growth.

Jenne Stoker
Aiken