I suspect The Villages, like the companies I worked for, has a gross margin target for their product. Any impact fee is just another cost and will be paid by the customer. You mentioned competition. The Villages essentially has no competition. I doubt a price increase, of say $10K for an increased impact fee, would affect sales as they sell everything they can build, and they have been doing it for some time now. Trying to compare The Villages to GM is not useful. GM has lots of competition.
As I indicated in my post, someone was going to pay for the roads and it turned out to be the existing residents, so, yes, I agree with your last statement. I wonder if bonds could have been floated?
Quote:
Originally Posted by Advogado
I can tell you from from my days as an economics major and my decades of experience as a corporate attorney, sellers cannot simply pass on their additional costs to buyers. Competition prevents it. If sellers could simply pass on their added costs, the present GM strike would have been settled long ago.
But let's assume that the Developer could pass along some or all of the additional impact fee to buyers-- fine. The existing taxpayers would not be paying for the cost of the expansion the way we are now.
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