Presentation on theme: "FRLP PROPOSED BOUNDARY ADJUSTMENT 1 Joe Duggan Bill Barnett Joe Silek"— Presentation transcript:
FRLP PROPOSED BOUNDARY ADJUSTMENT 1 Joe Duggan Bill Barnett Joe Silek David Vazzana August 6, 2013 An unlimited power to tax involves, necessarily, a power to destroy; because there is a limit beyond which no institution and no property can bear taxation. - Chief Justice John Marshall, U.S. Supreme Court Chief Justice Considered the founder of Constitutional Law who acquired this property with his brother, James Markham Marshall, after the revolutionary war.
2 FRLP PROPOSED BOUNDARY ADJUSTMENT: If this land (604 acres) is brought into the Front Royal boundaries, and the East-West Connector is built, connecting the planned Leaches Run Parkway with Commerce Ave., this will be the greatest transportation improvement in Warren County since I-66. It will open up for business the Happy Creek Technology Park, relieve school bus riders of dangerous roads and intersections, and allow Front Royal to once again accommodate new housing as an alternative to breaking the rest of Warren County up into 5, 10, and 20 acre lots. 181 acres future tax positvi
3 Transportation: The FRLP proposal would cause the construction of the entire E-W Connector Road – at NO cost to existing taxpayers… The need for improvements to the local transportation network in the future is indisputable… The EDA will have a very good story to tell prospective companies bringing much needed jobs and investment. Ideally located between the Tech. Park and Bing Crosby, with our planned bike and walking paths connecting to existing and planned community paths, workers will be able go to work, to the Bing, or downtown to dinner and a movie without getting in a car. We have planned this community to be an extension of downtown, not an island.
REVIEW: WHAT I BELIEVE AND WOULD LIKE TO SAY TO THE COMMUNITY This is a great Community, a great State, and the greatest Country in history… Proffers are relatively new… Comparable projects: Blue Ridge Shadows – 225 units ($8,000). Crosspointe – 1,578 units ($4,046). Snowden Bridge – 2,465 units ($5,327 with 30k per acre land credit). Huntfield – 2,400 units… $0 (Tap Fees $4,000)… The Huntfield developers went bankrupt as many do everyday – even without proffers. National average impact fees of $8,251 in Including utility fees the national average was $11,417. If we go to Court – We ALL lose… and the Community loses. 4
REVIEW: LEGAL OVERVIEW: A COURT DECIDES OR? FRLP proposed middle ground: Maximum of 818 market rate units. FRLP will contribute $12,500 to the County per MR unit (with CPI escalator). The County has assurances as to maximum units and that a significant portion (1/3 as previously proposed) of the developable acreage will be devoted to net fiscal positive development. The E-W Connector is vital to the future of Economic Development (and existing residents safety) in the Happy Creek Planning Area. This project pays for the E-W connector – at NO cost to existing taxpayers. This road is almost 2.5 miles and will cost million dollars. 5
Comparable nearby projects: Blue Ridge Shadows – 225 units($8,000). Crosspointe – 1,578 units ($4,046). Snowden Bridge – 2,465 units ($5,327 with 30k per acre land credit). Huntfield – 2,400 units… $0 (Tap Fees $4,000)… The Huntfield developers went bankrupt as many do everyday – even without proffers. Development, and development financing is extremely risky without impact fees. National average total impact fees: $11,417. Excluding utility fees, the average total fee was $8,251. FRLP is over $40,000 per unit with this application. LOWER TAXES… IN VIRGINIA? COMPETITIVE PROJECTS IN VIRGINIA? HOW MUCH IN PROFFERS ARE THEY PAYING? PROFFERS AND/OR IMPACT FEES - ARE TAXES
At the peak of the market (2006-7), average proffers (impact fees) in Virginia were $38,000, or 30% higher in Virginia than in the next highest state, California ($29,700). The national average TOTAL impact fees per single family detached unit in 2011 was $11,000. Source: Journal of Business and Economic Research – July 2008 (Illustrates impact fees at peak of the market – 2007). LOWER TAXES… IN VIRGINIA? PROFFERS AND/OR IMPACT FEES - ARE TAXES
WHAT ABOUT OUR NEIGHBORS IN MARYLAND? HOW MUCH DO THEY TAX NEW HOMES? Source: Managing Growth: The use of development impact fees and excise taxes in Maryland, Department of Legislative Services, Office of Policy Analysis, Annapolis, Md. January, 2011.
COMMUNITY CONTRIBUTIONS RESPECT AND CARE FOR EXISTING AND FUTURE RESIDENTS Summary: For the Community – this is a transportation and an economic development plan…
10 APPENDIX: GREAT VIRGINIANS ON PROPERTY FRLPS PROPOSED TOWN/COUNTY HAPPY CREEK DEVELOPMENT IS AS MUCH ABOUT OUR PAST AS IT IS ABOUT OUR FUTURE… A right to property is founded in our natural wants, in the means with which we are endowed to satisfy those wants, and the right to what we acquire by those means without violating the similar rights of other sensible beings. - Thomas Jefferson The personal right to acquire property, which is a natural right, gives to property, when acquired, a right to protection, as a social right. - James Madison The rights of persons, and the rights of property, are the objects, for the protection of which government was instituted. - James Madison Democracy is not so much a form of government as a set of principles. - Woodrow Wilson Freedom and Property are inseparable. – George Washington Sometimes people call me an idealist, well that is the way that I know I am an American, America is the only idealistic nation in the world. -Woodrow Wilson, 28th President of the U.S. and the 8th from the state of Va. To obtain a just compromise, concession must not only be mutual--it must be equal also....There can be no hope that either will yield more than it gets in return. - Chief Justice John Marshall