Winter 2003

Hope of Hope Open For Tours• Development News • Homes and Lots For Sale
How Developments Add Value to the Community •Recipes and Home Tips
Employee Profile

How Developents Add Much to the Community
By Joe Pusateri

Recently as I was paying the property tax bills on our lots, models, homes under construction and vacant land, I started thinking how much wealth is created by a development. It seems like every week there is an anti-development article in the newspaper. You would think developers and builders are paving over all our farmlands. What are the facts? Any discussion must first review the essence of our free-enterprise system – supply and demand. Developers/builders create subdivisions in response to a demand by the public – they do not create the demand. For instance, when the home-buying public demanded a maintenance free, no hassle lifestyle, builders began building Patio home communities. And when people decide in significant numbers they want to move back downtown or live in high-rise buildings, builders will flock to build this type of housing. That is the way our system works. This basic tenet is lost on those who advocate “no growth” policies.

Are we experiencing sprawl? The Louisville area Chamber of Commerce (now Greater Louisville, Inc.) conducted a study to compare Louisville, Jefferson county, and the Louisville-Jefferson county metropolitan area to 18 “competitor” cities which included Cincinnati, Columbus, Dayton, Indianapolis, Memphis, Nashville, St. Louis among others.

In terms of the central city, only 2 of the 18 cities (Cincinnati & St. Louis) have a greater population concentration (i.e. population per square mile) than Louisville, most weren’t even close. In terms of Jefferson County, only 6 of the 18 have a more concentrated population. In terms of metropolitan statistical area (MSA), the most meaningful comparison, only 2 of the 18 MSA’s have a greater population concentration.

The fact is Louisville & Jefferson county are not experiencing “sprawl” in the sense of development mindlessly leapfrogging to remote outlying areas. Our local population is relatively heavily concentrated.

However, if land in Jefferson county is restricted or the cost to develop available land becomes cost prohibitive, then these buyers will go a little further out to Shelby, Bullitt, Oldham, or Spencer counties to find the home they want. They will still drive on the same roads, Shelbyville Road, Bardstown Road, etc. because they work in Jefferson County. Then we have a lose/lose for Jefferson County. We lose population, we lose the tax base – but they still use our roads. We also have the makings of “sprawl”, one household often taking many acres of land instead of the approximate 2 ½ - 3 per acre that exists in most subdivisions.

Are developers paving over all our farmlands? Currently less than 5% of the country’s land mass is urbanized. Our farmers can produce far more than this country will ever need. 20% of our agricultural production is exported; some farmers receive subsidies not to grow. What about the right of the farmers to sell their land if they choose?
There is no question the market is growing somewhat for infill and high-density developments. However, polls and research show the majority of citizens still want what they have always wanted, a single family home. And for most of them, that home will be most affordable and desirable at the edge of the urban market.

I could go on and on about this subject but let’s look at our Monticello Parke development in Jeffersontown. The land we purchased for this development was assessed at about $800,000.00. We paid for all sewer line extensions, street improvements and drainage improvements in the area. We took 2 of our lots and created a park at the entrance of the subdivision for all the residents to use and enjoy. We will have planted hundreds of nice, healthy trees. When we complete the development, there will be 110 homes at an average price of approximately $300,000.00. The above chart shows the dramatic increase in tax revenue.

Who benefits from the increased taxes? Jefferson County Public Schools are the main recipients getting almost 62%. In this example it means over $1.84 million in new revenue. At a recent meeting I was at, Dr. Daeschner said this new revenue has become more important than ever, as funding for Public Schools has been slashed in the State budget. The balance is distributed as follows: Approximately $435,000 to the State, $412,000 to Jefferson County and $290,000 to Jeffersontown Fire Department.
This is but one of the three developments we are doing and just one of many in our county. When looked at from this aspect, a new development can add much to the community – a park, trees, beautiful new homes and new revenue for the benefit of all citizens.