City of Fruita planners and city manager are reportedly within striking distance of eliminating affordable housing in this small Western Colorado community during their lifetime. By employing an economic theory known only to government employees they have determined that the cost for residential permitting should more than double. By not counting the offsetting benefit of development in the form of sales tax revenue, property tax increases and other economic realities their approach boldly challenges the long-held and dusty theories of such economists as David Ricardo, John Maynard Keynes and Milton Friedman.
Fruita took up the issue Dec. 4 and tentatively agreed to increase fees on new home construction from $1,589 to $3,200. Commercial construction was set at a base of $1,589. The fees on commercial construction will increase depending on the building’s size and occupant.
The fees in Fruita will increase yearly based on the actual costs of construction, as determined by the Colorado Department of Transportation.
“It is a way to make growth pay for itself and it’s a way to make sure we have the infrastructure these houses need,” Fruita City Manager Clint Kinney said. Daily Sentinel December 11, 2007
The wonderful job that the city of Fruita has done in managing infrastructure can be judged by driving through the congestion free city.
