Coos Bay hangs out the welcome sign

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Tuesday, June 24, 2008 | 2 comment(s)

Coos Bay city officials are making an obvious — and welcome — effort to demonstrate that the city is open for business. Like many things, such an effort is good in moderation.

Just a month ago, the city placed a six-month moratorium on its “transportation development charges.” These are fees charged for business construction, to help pay for streets and bike paths. Now the City Council has gone a step further, extending the moratorium to include sewer and storm drain fees.

The hope is that giving businesses a slightly better deal may encourage them to set up shop in Coos Bay, creating badly needed local jobs.

Cities everywhere walk a tightrope on the subject of fees and services for new businesses. On the one hand, new businesses bring new expenses by using services and infrastructure. On the other hand, they help build the local economy, spreading the prosperity that helps everyone pay the bills.

So some rapidly growing communities, where public services are stretched thin, have imposed stiff fees for new development. Other communities, pursuing economic vitality, have offered incentives to new businesses.

Which approach is right? The answer may depend on the time and the place. In 2008, on Oregon’s South Coast, a move toward business-friendly policies probably is wise.

Also wise, however, is the council’s cautious approach. Instead of repealing the fees outright, the city will hit the “pause” button and evaluate its policy.

The evaluation should include reviewing the experience of other communities that have tried similar fees. It also should include careful thought about the logical connections between business development and public service costs. For example, when a business paves a parking lot for its customers’ cars, a fee for storm drains may make sense. A fee for bike paths may not.

Ultimately, the practical effect of the council’s decisions may be minimal. Businesses choose to locate in communities for many reasons, including transportation access, work force and livability. Development fees are a small factor at best.

Nonetheless, Coos Bay should make sure it’s doing what it can. Even small factors can help.
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bob wrote on Jun 24, 2008 10:21 PM:

"For example, when a business paves a parking lot for its customers’ cars, a fee for storm drains may make sense."

But that storm drain has already been paid for by the first builder/owner, should this charge be imposed on someone that buys the buildingand parking lot and pay again? If a house burns down and you sell the empty lot do you think a new fee for sewer connections should be made? This is why people are building in North Bend. Coos Bay has ridiculous amounts for their fees.

Thomas wrote on Jun 24, 2008 4:00 PM:

" No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States ... "
So?

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