By Mary Hopkin
ProximityOne, a data analysis firm, projects the Tri-Cities’ population will be the second-fastest growing metropolitan area in the country by 2020, increasing by 35.3 percent.
But our boomtown potential could be hindered by additional fees and taxes being considered by local jurisdictions, said Reneé Dahlgren, the HBA’s director of government affairs, communications and Built Green® Program.
ProximityOne expects the population of the Kennewick-Pasco-Richland metro area, which they list as 253,000 in 2010, to increase to 345,779. The area’s population jumped 32.6 percent from 2000 to 2010.
The firm used the 2010 census data and historical birth, death, migration and economic data to make the projection. The Raleigh-Cary N.C. metro area topped the list with a projected population increase of 35.7 percent by 2020.
Dahlgren said such a population boom will create a higher demand for homes and spur the areas construction industry. At the same time, she worries that growth could be stifled if local governments continue to seek higher fees and taxes.
The Pasco School District has asked the city of Pasco and Franklin County to consider passing ordinances that place impact fees on every new home, duplex or apartment building constructed in the respective jurisdictions. Dahlgren said the impact fee would be more than $6,000 on every new home and multi-family fees would be $5,272.
Although the fees would be paid by developers, that additional cost would be incorporated into the sales price of homes and monthly rental fees, driving up the area’s housing costs, she explained.
In Richland, the Planning Commission is considering increasing its park impact fees by 74 percent, from $683 to $1,187. The issue will be re-evaluated in a workshop, since some members felt the increase was too high, Dahlgren said.
In addition, the City of Kennewick is also reviewing its development services fees, she said.
“Although several council members have stated that they want to minimize any fee increases to try and encourage, rather than stymie, growth and development,” Dahlgren added.
Dahlgren said that new or increased taxes and fees will only hinder that growth and development and artificially increase the cost of housing and the cost of living.
“Instead, we need to find ways to encourage this growth and development, while planning smartly for it,” said Dahlgren
by Mary HopkinTri-Cities Area Journal of Business
This entry was posted on Thursday, June 23rd, 2011 at 10:49 am and is filed under Breaking News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.