by Mike Gustavson, Director, Kitsap Alliance of Property Owners
The cost of smart growth for Kitsap is:
$509 x 12 months = $6,108/year x 8,000 homes sold per year = $48,864,000
$48,864,000 x 6 past years* of houses sold under these regulations = $293,184,000 excess mortgage cost being paid annually out of Kitsap homeowner’s pockets
This is discretionary money that could have been used for new car payments, vacations or whatever.
Since each dollar created circulates through an average of seven purchases:
$293,184,000 x 7 times each dollar turns over = $2,052,288,000 in retail sales lost to Kitsap County x 0.1% Kitsap County General Fund portion of sales tax = $2,052,288 County sales tax revenue lost annually just due to the cost of “permission to build” regulations.
Additionally, the “Cost of permission to build” of $85,000, added to the $60,000 cost of a typical lot under the current regulations, leaves only $35,000 remaining for cost of construction. As you can see, few houses will be built for $35,000 each. Under current bank lending practices, construction will not recover until the cost of lots is reduced through reduced regulation.
* Note: This originally appeared in Mike Gustavson’s account of a joint Planning Commission / Board of County Commissioners meeting on May 4, 2009.