In my blog last week, One CO town proposes to tax employers for hiring workers, I asked the question was are proposed linkage fees a good idea. I was very surprised with the results of the survey. My base case was that there would be an even split, but the survey results were radically different. In the comments there was one profound sentiment that radiated through both pro and con of taxation
What was in the survey data on linkage fees in Steamboat?
64% of respondents felt that linkage fees were a terrible idea versus 34% who supported taxation of new developments to offset the impacts to the community. I was very surprised by this outcome as I thought it would be much more evenly split.
Top Comments on impact fees on new development in Colorado ski towns
After reading through all the comments there was one prevailing theme: the respective ski towns are overspending and by merely providing more tax revenue we are going to continue to enable this behavior. I could not agree further, the underlying issue is that ski towns are grossly overspending on various projects and people. On the flip side it is also important to note that it is extremely expensive to do business in the mountains so ski towns are faced with similar costs as other businesses from higher fuel cost to higher employee costs, to higher health care, etc…
The comments were pretty interesting from the survey, as you can see they are very polarizing either for or against the proposal.
- If a business wants to build in one of these HIGH COST, HIGH RETURN resort towns, I think it’s become a necessary evil of investing there.
- It seems there are sufficient fees and tax regimes already in place to cover the costs associated with new construction.
- Adding the cost to developers only hampers the project. Communities receive taxes and they are expected to budget and provide services accordingly. Instead, provide tax exempt bonds for building employee housing.
- It is the fairest way to tax developers that are creating jobs that can’t afford to live in the area
- This comment captures the primary underlying theme on many comments: Adds another layer of cost and further erodes what’s left of fiscal discipline at the local level
Summary: Developer impact fees in Colorado ski towns
The results from the last survey were surprising to me. Long and short this topic shows the huge polarization emerging in Colorado Mountain towns on the idea of taxation and fairness in taxation. Unfortunately there is not a great solution as the current all-you-can-Eat buffet of tourism is not working and creating real expenses for local governments that must be paid for. On the flip side many local governments need to focus on much better “fiscal discipline”. Thank you to everyone who participated in the survey, your insights are amazing.
Additional Reading/Resources
- https://coloradohardmoney.com/one-co-town-proposes-to-tax-employers-for-hiring-workers/
- https://coloradohardmoney.com/legalized-prostitution-impacts-colorado-real-estate/
- https://coloradohardmoney.com/low-snow-year-impact-on-colorado-ski-real-estate/
- https://coloradohardmoney.com/denver-inventory-surges-and-yet-prices-rise/
- https://coloradohardmoney.com/vail-loses-major-lawsuit-should-you-only-buy-real-estate-in-a-vail-resort/
- https://coloradohardmoney.com/colorado-property-taxes-jump-40-percent/
- https://coloradohardmoney.com/category/survey-results/
We are a Colorado Private/ Hard Money Lender funding in cash!
If you were forwarded this message, please subscribe to our newsletter
I need your help as my goal in writing these articles is to provide the best information/insight on Colorado Real Estate that you cannot get anywhere else! Please like and share my articles on linked in, twitter, facebook, and other social media and forward to your friends/associates 😊 I would greatly appreciate it.
Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Glen resides in Colorado, lends in Colorado, owns property in Colorado, and services loans in Colorado which provides a unique real estate prospective of what is actually happening on the ground both in Denver and throughout Colorado. My goal of this real estate blog is to provide an honest assessment of what I see happening in Colorado real estate and how it will impact real estate owners, buyers, realtors, mortgage professionals, etc…
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the Front range, Western slope, resort communities, and everywhere in between. We also live, work, and play in the mountains throughout Colorado and understand the intricacies of each market.
When you call you will speak directly to the decision makers and get an honest answer quickly. We are recognized in the industry as the leader in Colorado hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games)
Tags: Denver hard money, Denver Colorado hard money lender, Colorado hard money, Colorado private lender, Denver private lender, Colorado ski lender, Colorado real estate trends, Colorado real estate prices, Private real estate loans, Hard money loans, Private real estate mortgage, Hard money mortgage lender, Hard money mortgage lender, residential hard money loans, commercial hard money loans, private mortgage lender, Hard Money Lender, Private lender, private real estate lender, residential hard money lender, commercial hard money lender, No doc real estate lender