More on North Bethany Subsidized Development

I got so involved in writing about the history of San Jose last week that I neglected to make some important points about the planned development in North Bethany, near Portland, that set me off on that rant. Fortunately, some of these points are brought out in an article in the Beaverton Valley Times.

First, planners are projecting that North Bethany will have about 10 homes per acre, which is fairly dense considering that a lot of acres will be devoted to streets, parks, etc. “Net” density — the density of the land actually used for residential — is generally about 25 to 50 percent denser than “gross” density, which means planners are thinking of average lot sizes of 3,000 to 3,400 square feet. Nearby developments built in the 1970s average 6 units per acre, while more recent developments have 7 to 8 units per acre.

At 10 homes per acre planners project a total population of as many as 10,000 people, which would be 8,000 people per square mile for the 800-acre parcel. That’s far denser than most suburban communties in the Portland area.

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“Urban renewal, through the provision of tax increment financing, can provide for capital improvements such as parks, streets, parking garages and transit systems that stimulate private investment and attract new businesses, jobs and residents,” a consultant told planners. Well, duh! Just why does any place in the Portland area need to “stimulate private investment”? Are developers chomping at the bit to develop the North Bethany area? Of course they are, but they probably would not develop it as dense as planners want.

I am glad to see that the Beaverton Valley Times reported concerns of the local fire district that this development would impose fire protection costs on the district without adding to their revenues. Since, for the first 20 years at least, planners expect to spend all the incremental property taxes collected from the development on subsidies to the development, the fire district will go hungry. Same is true for other districts in the area, though the impact on schools will be lower because the state supplements school budgets with income tax revenue.

In the end, this is simply an example of government overplanning an area. Just open the area to development and take your hands off! What you will get will be a lot better (and probably more affordable in the long run) than what planners are seeking.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

5 Responses to More on North Bethany Subsidized Development

  1. D4P says:

    I’m guessing The Antiplanner and “Ticked off Native Oregonian” know each other very, very well…

  2. johngalt says:

    Like I wrote on you last Bethany post, no subsidy is needed. The land value can simply adjust to pay for the infrastructure. Most of this land was fairly low value farm and forest land, worth $10-30K per acre. When developable it is worth over %500K per acre. That leaves a lot of money for infrastructure. Why should the general public pay for the “parks, streets, parking garages and transit systems” for this area so that land owners can get a larger profit on the land they own there when developers will pay those costs and simply pay less for the properties to offset the costs?

  3. bherbert says:

    The purpose of an urban renewal district is to help take an area that is considered “blighted” and bring it back up to some acceptable standard for similar types of developments in that area. If my understanding of this area is correct, the use of this tool would seem to be inappropriate here. The North Bethany area isn’t “blighted;” it’s undeveloped. The role of city planning staff should be to ensure that development meets reasonable esthetic standards and complies with city zoning and building codes. Urban renewal funds should be reserved for infrastructure relating to projects in areas or neighborhoods that have become run down and substandard.

  4. Dan says:

    The role of city planning staff should be to ensure that development meets reasonable esthetic standards and complies with city zoning and building codes.

    Yup. That’s what planning staff does.

    Politicians use TIF to attract growth. Contrary to what some here want you to believe, planners don’t arrange financing for developers, as they don’t cut deals – they advise and consent if asked.

    The rampant use of TIF by politicians is becoming worrisome* to some folks and they are calling for less use, alternative considerations** or even curtailment.

    DS

    * http://tinyurl.com/2txq89

    **http://tinyurl.com/3bnnc2

  5. Pingback: American Dream News » Oregon land use planning the Oregon Way

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