Thursday, July 3, 2008

Battered Bend Builders Beg Bend for a Band-Aid

Builders in Bend want the city to kick-start their stalled industry by giving them a break on Systems Development Charges.

Posted By on Thu, Jul 3, 2008 at 12:50 PM

Builders in Bend want the city to kick-start their stalled industry by giving them a break on Systems Development Charges.

As reported by KTVZ, the Central Oregon Builders Association came before the city council last night with a proposal to defer SDCs on new home and business construction for nine months, interest-free, to help stimulate more building.

SDCs are supposed to help offset the infrastructure impacts of new construction by paying for things like sewer, water and road improvements. There was no word on how much SDC revenue the city would lose if it adopts COBA's plan - which, unsurprisingly, is also supported by the Central Oregon Realtors Association (CORA).

"Bend City Manager Eric King says it's an attractive proposal," KTVZ reports, "but the city will be cautious in its decision, so it doesn't end up with a financial burden.

"King also says officials will have to find other places to get money to pay for the SDCs, until the builders deferment period is up. That would [mean] stretching the budget in the near future, but possibly bring in more revenue down the road" if the SDC deferral results in more construction, which would mean more building permit fees and property taxes.

"If the stimulus package is adopted, it would be in place for the next 12 months, in hopes the market will pick back up by then," KTVZ adds.

The Eye doesn't claim to have any great economic expertise, but ... isn't the COBA/CORA proposal sorta like prescribing aspirin for somebody with bubonic plague?

The building industry here - and all over the country - is in the tank because developers aren't building new houses. Developers have stopped building new houses because people have stopped buying them and there's a huge glut of already-built houses on the market. People have stopped buying houses because lenders have stopped lending money. And lenders have stopped lending because they're struggling under mountains of bad debt accumulated back in the days when it seemed home prices would keep rising at 25% a year forever and they were giving no-money-down mortgages to anybody who could fog a mirror.

The Eye doesn't see how deferring SDC payments will change any of that. What The Eye does foresee is that if the housing market doesn't turn around in a year, the builders and realtors will be back asking for another year - and the city's budget, which already is stretched tighter than a size-32A brassiere on Pamela Anderson, will snap like a worn-out rubber band.

But The Eye could be wrong. Would anybody from COBA and/or CORA like to point out how?

  • Pin It

Comments (11)

Showing 1-11 of 11

Add a comment

Subscribe to this thread:
Showing 1-11 of 11

Add a comment

More by H. Bruce Miller

  • Who is John Galt? Who Gives a Crap?: Atlas Shrugged's tea party flops hard

    Members of the Ayn Rand cult have waited 54 years for a movie version of her magnum opus, Atlas Shrugged. They finally have one that's true to the letter and spirit of the book. And that's the problem.
    • May 11, 2011
  • LandWatch Goes to the Mattresses Over Resorts

    The fight over Deschutes County's new destination resort rules isn't finished yet: Central Oregon LandWatch has put the county on notice that it plans to challenge them. LandWatch filed ìnotices of intent to appealî Thursday with the state Land Use Board of Appeals, charging that the county's new rules for determining what lands are eligible for resorts ìactually increase the development potential in the county.
    • Aug 23, 2010
  • Waste and Fraud: Walden Goes After the Big Game

    Eastern Oregon's own Rep. Greg Walden and a couple of other Republican congressmen have unleashed their righteous wrath on a federal program that helps low-income folks heat their homes.
    • Jul 2, 2010
  • More »

Latest in The Wandering Eye

  • Moonshine Magic in Bend Still on the Down Low

    Get ready for our great close-up on the home distilling community out next week in our "Best of" issue. We interviewed a mixed bag of legal and anarchist distillers in Bend to find out why distilling is so very, very against the law in one's home.
    • Aug 9, 2012
  • The Eye Wanders Off Into the Sunset

    I’m really sorry to break the bad news to them during this season of peace and goodwill, but after this week the right-wingers in Bend and vicinity won’t have The Wandering Eye to kick around anymore. The decision to stop writing this blog was my own, and it was prompted by several factors.
    • Dec 26, 2010
  • DADT, Gay-Bashing and the "Icky-ness" Factor

    For the past week or so, “Zeo” of the NW Republican blog has had his jock strap in a knot over the prospect of Congress repealing the military’s “Don’t Ask Don’t Tell” rule. To hear Zeo tell it, if DADT is repealed and gays are allowed to serve openly in the US military it will mean the end not only of our armed forces but of America, its economic system and civilization in general.
    • Dec 19, 2010
  • More »

© 2016 LAY IT OUT INC | 704 NW GEORGIA, BEND, OREGON 97703  |   Privacy Policy

Website powered by Foundation