Times are tough all over, and they’re even tougher in Central Oregon than in a lot of other places. So we don’t blame Bend realtors and builders for being scared.
We don’t even blame them for trying to use these tough times to push their own agenda. But when they do it with bogus statistics and misleading rhetoric, that’s a different story.
The Bend Metro Park and Recreation District is taking a look at the formula it uses to calculate Systems Development Charges, or SDCs, which are fees levied on new home construction to pay for things like roads, sewers and (in this case) parks. It’s a routine move; state law, and local ordinance, requires the district to do it periodically.
To hear the screams from local realtors and builders, though, you’d think the district was proposing to confiscate their first-born children and sell them into slavery.
“I question the timing and necessity of this enormous SDC hike that will make housing less affordable in Bend,” reads a form letter that local realtors have been sending to the park district.
Okay, in the first place, the park board isn’t considering an SDC increase – it’s only considering a possible change in the formula that could possibly lead to an SDC increase.
The charge by realtors and builders that the park district ignored their concerns is also bogus. Both the Central Oregon Builders Association and the Central Oregon Association of Realtors had representatives on the subcommittee that considered the formula change. Oddly, those representatives supported it but then reversed themselves when COBA and COAR came out against it.
COBA and COAR also are peddling the claim that SDCs and other fees on new homes in Bend amount to $30,000 per house. A more realistic figure is $23,000. Also dubious is their claim that 60% of the new homes built in Bend are sold to people who already live here. (As one park district official said, “The question then is where are all these new people who move to Bend living?”)
COBA and COAR are saying the population estimate being used by the district is too high. Curiously, these are the same people who were saying the population estimates used by the City of Bend to determine the size of the Urban Growth Boundary expansion were too low.
Finally, COBA and COAR and their mouthpieces on The Bulletin’s editorial board are slamming the park district’s planned new headquarters, charging that it’s an irresponsible extravagance in these hard times. The new HQ has been in the works for five years; only now have the builders and realtors decided to use it as a club against the district.
Increasing park SDCs might or might not be the right thing to do at this point in Bend’s history. The park district board will have to decide that question, and we hope it will do it honestly and intelligently. In the meantime, here’s THE BOOT to COAR and COBA for running a lobbying campaign that’s neither honest nor intelligent.
This article appears in Jan 29 – Feb 4, 2009.
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As a builder I don’t think the SDC’s are “The Source” of the local real estate slow down in Bend.
Lets consider a $500,000 home sale, listed and sold in MLS at a 6% sales fee charged by the real estate agent. The addition cost to sell that home would be $30,000.
Building materials and labor cost rise and fall with the tide. Its called adjusting to market conditions, which the builder has no control over. Often selling the home at a loss.
If Central Oregon Association of Realtors is truly concerned about Bends SDC’s fees, might I suggest they reduce their 6% sales commission, offering the difference to the Bend Metro Recreation and Park District. Look at the root of the problem , not the fruit on the tree.
I just don’t understand WHY anyone listens to these two organizations. They obviously are representing only their own interests and don’t even come CLOSE to representing the opinions of the majority of Realtors and Builders out there . . . only the most right-leaning of their organizations. I could really care less what COBA or COAR have to say about anything. All I ever hear is squawking from them led by their mouthpieces who are trying to justify their jobs. Doesn’t matter though because money is power and they have gone broke. They’re in deep fear of their waning power and are squawking louder than ever to try and hang on to their jobs. By the end of the year, all COBA and COAR are going to care about is how to pay their overhead due to loss of members who have left town/gotten jobs in other sectors/filed bankruptcy/gone to jail.
These people need to quit smoking the hippie cabbage and get real. Building more homes in a market with inventory right now for a decades is insane thinking. Surely some of the real greedy ones want to set up outside of the UGB’s and start up starter home subdivisions to continue to live in denial that we are toast for a while and that this market is going to get progressively worse for another two to three years.
To my dismay a GREEN business which came to town to see what tax breaks they could get for operating here in the Bend area were told that they did not want any more blue collar jobs in this area. This company moved to another town in Oregon and have employed over 600 workers and are booming.
Until we can create jobs besides construction and more real estate agents, we are focusing our energy in the wrong direction. We have to draw in companies to set up here and support our economy. Without jobs here and industry being invited into this area, we are left with an economy which is going to FAIL.
The company told we did not need any more blue collar jobs is backed up by some of the deepest pockets in the country. They are cash flush for the next decade without selling a single product. What are people thinking turning down industry like this? They were given tax breaks of 16 million over a ten year span, which is supplemented by the Feds with even bigger tax breaks due to being a green energy company.
Whoever on City Council that voted this company out of here should be tarred and feathered and sent out of here on a greased pole.
We also need to support Cessna and expand the airport as they need it. They are the biggest player in the WORLD with regards to small aircraft and we should be blessed to have them in our area and keeping our neighbors employed in great jobs with benefits.
For years this town has sent new companies packing, yes that good ol boy crowd that did not want their buddies to lose employees to companies that paid better and offered real benefits and retirement. We cannot afford to send anyone packing and City Council needs to present this information to the WHOLE Community before making a decision that impacts us.
If COBA and COAR are not a part of the solution of bringing in new industry, then they are the main problem. Instead of whining about their fees and other right wing propaganda they spew , they need to get companies like the one we just lost in here and create jobs.
The era of the past of Californians selling their homes for big bucks and moving to Bend to buy a much nicer home for half of the price are long gone. These days are history. A friend of mine from the Bay Area looked at Bend and at Whistler Blackcomb for a ski condo. He bought a condo in Whistler Village for 30% less than what he could have bought one for here. He has had it rented out every week since he bought it at a positive cash flow. Why? Cause it is a world recognized ski area and the population there make a living wage. Two people can be waiters or bartenders and raise a family and do not have to worry about health care costs as they pay 2% more in taxes so that everyone can have health care. What substantiates the prices in Bend other than hype? Not a thing. Sure it is a beautiful place, but so is Whistler Blackcomb or places in Utah, Washington and Idaho that are selling for a fraction of the prices in Bend.
Bend has to much potential to become the greatest town in America, but as long as greedy builders and real estate agents are only looking out for themselves, well then they deserve what they are getting and having to deal with. To listen to them speak of “community” makes me sick. The word community is based on that everyone is participating, not just taking as over 1% of our city budget has gone to subsidies for builders and developers as we were dependent on them. We allowed ourselves to become dependent on these fools.
Call your family from out of town, start reading about new industries and then invite them to Bend, so this economy can stabilize. Jobs are still abundant in larger metro areas in the sense that one can still work as in Bend there is nothing. A lot of people are going to move from here. We are going to have a ghost town like during the timber era. The people that can still afford to keep their homes and pay the astronomical mortgages are the ones who have passive income.
Sending away 600 ” blue collar” jobs is insane. Simple economics can tell us that one new job support six others in a small community. The good ole boys who sent them packing are the reason we are in so much trouble.
When COBA and COAR are participating in getting new industry into this area, industries that produce something rather than overinflated prices and fat commissions, then we will prosper again. Until then pack your bags as denial is likely to kill us all