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Revenue source

Our Town needs alternative revenue sources, now. Why? Because 91 percent of town revenues are from sales taxes and state shared revenues. But sales taxes are cratering as businesses are shut down everywhere. Solution: New construction.

A 2019 AMA report (Arizona Multifamily Association) by E. D. Pollack/Scottsdale details how $500,000 per year in new city revenue was derived from a 250-unit apartment complex in Chandler. Don’t believe it? Cited are increased: Construction sales taxes, speculative builder’s taxes, impact fees ($2.5M) and use taxes during the construction phase. When leased, there will be incremental increases in property taxes, monthly transaction privilege taxes and state shared revenues.

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Revenue source

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Our Town needs alternative revenue sources, now. Why? Because 91 percent of town revenues are from sales taxes and state shared revenues. But sales taxes are cratering as businesses are shut down everywhere. Solution: New construction.

A 2019 AMA report (Arizona Multifamily Association) by E. D. Pollack/Scottsdale details how $500,000 per year in new city revenue was derived from a 250-unit apartment complex in Chandler. Don’t believe it? Cited are increased: Construction sales taxes, speculative builder’s taxes, impact fees ($2.5M) and use taxes during the construction phase. When leased, there will be incremental increases in property taxes, monthly transaction privilege taxes and state shared revenues.

Service personnel will add secondary funds to the local economy, as will the new residents. They are more likely than not to shop at Fry’s, Safeway and Bashas’; eat at local restaurants, go to Target and Ace Hardware. They also may find a new insurance agent, chiropractor, dentist, cleaners and travel agent in town.

So, will you choose to support our town and local businesses now or wait until we have to go through another round of property tax bedlam?

Now, with full respect to those who are against the apartments off Palisades, we all are entitled to our opinions. But if your concern is too much traffic, a good benchmark is the amount of traffic that leaves the much larger Eagle Mountain community (with 550 homes, a hotel and restaurant, shopping center and a golf course). Maybe six vehicles at most leave there at any one particular time. Firerock? Maybe two to four cars max at once. Are two to six more cars on Palisades that much of a concern? Or will you support our local businesses and town revenues at a critical time by approving the new construction? Your choice.

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