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Content from our friends over at Richardson Echo

Friday, April 30, 2010

Editorial: Why I support Richardson’s 2010 bond program


We must renew and reinvigorate our city or it will fall behind.

As a president of a neighborhood association in one of the oldest area’s in Richardson, I see the struggles that an old neighborhood deals with everyday. Those struggles include the usual issues of streets and alleys. However, they also include struggles involving attracting and retaining families within the neighborhoods.

Much of the 2010 Bond Program was driven by neighborhoods. It was not dreamt up in offices of bureaucrats. It is not there to benefit bureaucrats. Neighborhood leaders, such as myself and presidents of other older neighborhood associations, went to City Hall when the idea of a Bond Package was floated and pushed the needs of older neighborhoods. We expressed the problems that we face with struggling home values and trying to keep good residents in the neighborhoods.

The formula is rather simple. If you are a homebuyer, then will you be attracted to a home where the alley is failing, the street is crumbling, and there are no parks or services nearby, when you can buy the equivalent home without these disadvantages? We know and have met people who made such decisions and that decision was often not to live in one of these older neighborhoods. That means lower demand. Lower demand means fewer customers to purchase homes from a pool of houses. It does not take an economist to tell the results of supply and demand in these situations. The message we sent with respect to this bond program was fix old neighborhoods and do what can be done before we have too many problems to fix.

Some things in this bond program are cast by the opposition as luxurious “nice to haves.” Obviously we disagree. Let us take the example of parks. Realtors, statistics from Richardson resident surveys, and studies evaluating home buying trends indicate almost without reservation that proximity to park space plays a large role in home buying decisions.

Old neighborhoods were built on a different suburban model than is required today. The old suburban model was ingrained in the concept of larger and separated services (through zoning and planning) wherein everyone drives a car to the services. Hence, large parks like Heights Park and shopping malls. That is not the successful model of today especially in older urban and suburban areas. Richardson must adapt or degrade. A new park such as in the Heights or Northrich area will appreciate sale value of nearby homes well above any extra taxes paid. For example, homes in the Northrich area are valued below the median sale price for Richardson. If those homes see a mere $1,000 sale price increase, then they will make up for over 10 years tax increase. However, studies indicate that the sale prices will probably increase 5 to 20% over that of the same house without a park nearby. Further, the gradual assessment appreciation will put more money into the cities coffers over time than the cost of some of these parks. Lastly, conscientious young buyers – that is to say today’s buyers that are analogous to some of the buyers that first populated Richardson in the 50s and 60s – will fill a greater percentage of those homes and bring their willingness to maintain their homes, raise children nearby, spend money, go to religious institutions if they choose, and participate in the community.

Experts on urban and suburban growth tell us that income is one of the factors that drive housing choice. The more the income, then more choice is available. The lower the income, then fewer choices are available. While this seems simple and obvious, it plays a large role in the rise and potential decay of old neighborhoods in suburban areas. This plays a role in the development of Richardson. The point of reinforcing old neighborhoods is NOT to bring in high income people and replace lower income persons. It is to make the neighborhood attractive to a wider range of incomes. Over time, suburban areas that are attractive to a wide range of incomes have a higher likelihood of stability and integrity.

The chart below is a chart I presented to the City Council in a worksession about a plan to reinforce the Heights neighborhoods. The chart shows a median income ration of a census block as compared to the entire DFW area. Hence, you can see that the DFW ratio is 1.00 as a reference. What it shows is the declining median income in the Heights areas relative to the entire DFW area. This method of showing relative income strength of areas was drawn from researchers William Lucy and David Phillips in their book “Confronting Suburban Decline” and from my personal conversations with Dr. Phillips. The takeaway from the chart is the declining income over time in the Heights area. An overall long-term outlook for a healthy area is to stabilize that line.

In order to stabilize this for Richardson’s older areas, we must reinvest. The 2010 Richardson Bond program is one such form of reinvestment.

Much of Richardson’s Fire Services were built in a different time. Only men were fire fighters and equipment was different. Times and demands have changed. Fire station 4 should be rebuilt and rebuilding it in the proposed location will strengthen response times in the city. It will also allow for proper storage of equipment and proper distribution of emergency personnel in the city without having to depend on Garland as we do now. To say this is unwieldy and unsafe (as has been said by a tiny minority) is an insult to the fire fighters who fully endorse this proposal. To suggest they would propose something inherently unsafe is a bit silly.

Much has been spread about the proposed tax increase. The tax increase figures released by the opposition are incredibly inflated and misleading. The median Richardson home will see a $9 a month increase. Those in the older areas that need the boost will see much less and as stated earlier their value reinforcement of many of these homes will be much larger than what is paid out. It is with good reason the opposition inflates and misleads, because if they gave a full picture and accounting of the mild increase, the average citizen would likely make a cost benefit analysis and vote FOR the entire package. The fears of tax increases and panic about Richardson’s top tier bond rating are meant to strike panic and fear rather than confronting the future challenges that Richardson faces.

Much has been said about the salaries of city employees. I think it is grossly unfair and a fit of personal politics to put a gun to the head of neighborhoods for the sake of petty personal grudges against individual employees. Even a severe reduction in the salaries of those employees targeted in propaganda would not pay for a significant amount of work. It would barely cover a small road. Further, even if, hypothetically speaking, there was an issue with some salaries, voting down a bond election to benefit the infrastructure of old neighborhoods is not the way solve that problem. In short, taking out one’s frustration on a few people is not only unfair to neighborhoods, it will leave projects undone for years, and it will likely have the opposite effect than the naysayers contend.

There is a cost to voting "no" which is greater than the cost of voting "yes." Defeating the bond program will simply serve to leave roads unpaved, alleys failing, and outdated public buildings costing the public more money than it is worth to maintain them. Neighborhoods will have less of a voice in City Hall and not a greater one. Corporations pay about half of the property tax in Richardson and it would tell them that voters do not want to reinvest in infrastructure. A loss of corporate clientele could strain the tax base and it certainly would not help us retain or attract more. We risk far too much to have a “Do over.”

All in all, there are vastly superior reasons to vote "yes" for Richardson’s 2010 bond proposals and not much reason to vote against it. We must renew and reinvigorate our city or it will fall behind. The time to do it is now. Please vote "yes" for all four proposals on Richardson’s 2010 Bond Program.

Richardson Echo
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Scott Doyle, verified:

You are asking for bonds, which must be paid back with interest...how will Richardson afford this over the term of the bond?

Further, the gradual assessment appreciation will put more money into the cities coffers over time than the cost of some of these parks.

That certainly won't cut it, and seems like the proposed tax increase will be the first of many if you plan on not defaulting.

As someone who looked at Richardson homes somewhat recently, I can tell you a park wouldn't have mattered. Richardson has very few newer homes. Said homes are generally in the same price-range as a much newer home in a neighboring city. Anybody who has had to deal with maintenance on a house is much more likely to opt for one they feel will be the least hassle...and another 10 minutes on your commute is well worth it.

Andrew Laska, verified:

Scott, you misunderstood part of the editorial. With respect to small parks, the added value of nearby property will exceed any loss of tax income of private property purchased for a park. That was the point of the part you quoted. The evidence for that position is well grounded not just in the local region but also in broad studies of the effects of park space on urban growth. That Richardson has "very few newer homes" is the point even though your statement is somewhat exaggerated. A person moving into a first tier suburb is not likely going to be someone interested in the exurban experience. Further, nobody claimed that a park would solve all problems or any problems by itself for that matter. A portion of a park plan - enacted through a bond program - is only one part of a long term renewal and reinvestment strategy. Implementing part of a long term park plan is not a total strategy in the same way making an incision on the skin is not the totality of surgery.

"How will Richardson afford this over the term of the bond?" That was addressed.

With respect to 10 minutes extra commute time, look at it this way. 10 minutes is 20 minutes round trip. If you work 240 days a year that ends up being 3.3 DAYS in a car per year. Further, Richardson is one of the top three employment centers in the Dallas-Collin County area so those residents who also work here are motivated to live here so it matters to them.

If 3.3 days extra in car per year doesn't phase you and you are outside the demographic boundaries of people who would typically live in first tier suburb then you weren't going to live here anyway just as many people living here would never want to live in Frisco.

Clay213, anonymous:

So your plan is to tax the entire city so that a small area can experience an increase in property value and wealth?

Scott Doyle, verified:

Where was repaying the bond addressed (adequately, I might add)? Generally when you state something has been done, you point out where/how.

You're talking to a guy who lives in North Dallas, works in Richardson, and works-out in north Plano...after work. I drive that stretch of northbound 75 almost daily during rush hour. It's all about priorities.

Spending 6+ weekends a year maintaining/upgrading a home older than I am is not a Doyle priority. I already have to get in my car and hop on the highway to go to work, the extra minutes on a highway is a lot better than retiling/rewiring/re-whatever on my weekend. Same applies to nightlife...absolutely none in Richardson, meaning you generally have to get in a vehicle to go anyways. Without reasonable public transportation there simply isn't incentive to buy older when it's not even more bang for your buck - one of few exceptions is a pier & beam foundation.

Tiering of suburbs is somewhat strange to me. Either you want the urban experience or not. If not, it's simply a matter of how many minutes in your commute you can tolerate.

maildeaddrop, anonymous:

<quote>As a president of a neighborhood association in one of the oldest area’s in Richardson <endquote>

Thanks for providing adequate reason to disregard your opinion as utterly biased. Why don't I see you lobbying for government spending that goes to other people and not you? In today's economy we should be concentrating on fiscal responsibility, not on feeding at the public trough.

As for corporations, they don't care if "voters do not want to reinvest in infrastructure". All they care about is how much of a kickback they can squeeze out of the local government to keep their businesses around.

And if the folks in the "older neighborhoods" want new roads and new parks, let them pay for them. I would vote for a bond that increased the tax rate of AFFECTED homes to cover the costs of improvements that affect ONLY those homes. Improvements in the Heights neighborhood does nothing for my neighborhood EXCEPT take money out of my pocket.

Andrew Laska, verified:

"So your plan is to tax the entire city so that a small area can experience an increase in property value and wealth?"

No. We were only discussing one part of the bond program. Since programs are, mostly, location specific they will always be in one location and not in another. Lastly, with respect to older areas, those cover a vast swath of Richardson. If those degrade, then the other locations pick up the bill and more of it.

Doyle, most of that has to do with personal tastes and not the content before the voters.

Andrew Laska, verified:

"Why don't I see you lobbying for government spending that goes to other people and not you? In today's economy we should be concentrating on fiscal responsibility, not on feeding at the public trough."

I agree. That's why its a bond program where all voters get a say.

Clay213, anonymous:

I expect Richardson is attracting a lot of families. Large ones.

jtmbls, anonymous:

Sounds like Doyle just needs to buy a van.

What do you think?

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