Building on yesterday’s post on the first 5 myths, lies or spin regarding inclusionary zoning – I thought I’d address some of the funniest/saddest/most outrageous statements I keep hearing about inclusionary zoning.
Myth, Lie, Spin #6 – Inclusionary Zoning is costing us $60,000 per unit.
What?! From February 15, 2004 to September 1, 2005 we approved 24 projects that had 360 inclusionary zoning units. Let’s see, simple math 360 units x $60,000 = $21,600,000. Hmmmm . . . you really think the City spent $21.6 million on Inclusionary Zoning?
Myth, Lie, Spin #7 – Developers aren’t getting any incentives.
Set aside, for a moment, the fact that this one is absolutely absurd when uttered by the same person who makes the claims in myth #6. Folks, it’s one or the other.
True, there have not been any cash incentives available to developers until the buy-out payments are made. We are expecting three payments at the moment (Monroe Commons, Capitol West and Krupp Project) at which point a portion of that money will be available as incentives. We could have made a budget amendment to make money available sooner, but the development community did not want to support such an amendment, lest they appear “greedy”. (Their word, not mine.) Other incentives, including density bonuses, TIF assistance and parking permits have been granted.
Myth, Lie, Spin #8 – IZ is a failure because not one unit has been sold yet.
It is true not one unit has been sold yet, but consider that of the 360 units that have been approved:
– about 100 only have initial (GDP) approval and need final (SIP) approval, so the project is not started
– about 90 units the projects have final approval by the Council but aren’t started yet
– about 100 units the projects are started, but they are still working on roads and utilities
That only leaves about 60 – 70 in some stage of construction. Of course they aren’t sold yet, construction takes time after approval and you need something to sell.
Myth, Lie, Spin #9 – Developers are leaving the City.
Preliminary reports do not show a significant decrease in the amount of development going on in the City of Madison. Anecdotally, I’m not aware of any developers that have “left the City”. Additionally, my personal experience is that plan commission meeting agendas are packed with development and besides an initial few months, I have not seen a slow-down in project approvals.
Myth, Lie, Spin #10 – People won’t buy homes with program restrictions on them because it is too complicated.
This one baffles me. There are non-profits who have been operating in the City for years that sell homes to moderate income folks with restrictions every year. If you had a choice between continuing to rent and owning with the probability of gaining equity, which would you choose? How many people would continue to throw their money away on rent simply because the City has an option to purchase the home when you are ready to sell and won’t allow you to rent it while you own it? Besides the equity model, which should be changed immediately, its not that complicated. Just because you have a lower income, doesn’t mean you are stupid.
