Quote:
Originally Posted by ScottFenstermaker
You apparently have never run a business. You assume that a business can simply pass its costs on to it customers. If that were so, no business would ever go bankrupt.
If the Developer's sweetheart impact fee (40% of the cost of his county roads and 0% of the cost of his other county infrastructure) were increased, he would TRY to pass the costs on to home buyers and the price of new houses and commercial property would increase somewhat. However, unless his finance department has left money on the table in establishing the current prices, the Developer already has priced his houses at a level to maximize profits: markup per house times number of houses sold.
Any increase in price would reduce profits by reducing the number of houses sold. Therefore, the probable result of a cost increase from reasonable impact fees would be: a profit hit for the Developer and somewhat higher prices on new houses. That outcome is fine for us, the present residents, since the cost of growth would then be paid by the persons causing the cost (the Developer and new buyers), not by us (the current residents). As a result of the Developer's sweetheart impact fee, we are currently subsidizing the Developer's business.
Why do you think the Developer paid our State Representative Hage almost a million dollars after Hage sponsored legislation protecting the Developer's sweetheart impact fee???
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Hage is an employee of the developer so thought he sponsored the legislation as part of his salary. How do you know he was slipped an additional million?
Either way new meaning to conflict of interest.