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HomeMy WebLinkAboutItem #1 Land Value per AcreLAND VALUE PER ACRE & WHY DEVELOPMENT PATTERNS MATTER EFFICIENT What does it mean for something to be “Efficient”: 2 EFFICIENCY/EFFICIENT Efficient: Achieving maximum productivity with minimum wasted effort or expense Efficiency: The state of being efficient. 3 EFFICIENCY/EFFICIENT How does efficiency apply to a farming operation? 4 DESIGN YOUR FARM (THAT YOU LIVE NEXT TO) 5 Goals: •Fulfill wants/needs of the market •Leave your family with a sustainable farm when you retire •Afford the mountain property that you and spouse have always wanted YOUR FARM (THAT YOU LIVE NEXT TO) •Annual operating expenses are high: cellars, tractors, employees, vehicles, etc. •X Crop produces $15 / bushel •The crop that your family (the farmer) loves to eat and the kind that your dad farmed before you •Y Crop produces $30 / bushel •No change in workload •Z Crop produces $50 / bushel •No change in workload •AA Crop (dairy farm) produces $150 / bushel •There’s a high but limited demand & unless industry best practices are followed, people say this crop smells and draws pests. Neighbors will call you when they have any issues but the farm needs to be close to roads for transport/operations. With right implementation, no impacts on neighbors and now their milk is cheaper. 6 Goals: •Fulfill wants/needs of the market •Leave your family with a sustainable farm when you retire •Afford the mountain property that you and spouse have always wanted The farm 7 Yx AA AA Z CITY AREAS OF IMPACT AS FARMS Efficient: Achieving maximum productivity with minimum wasted effort or expense •There are roughly 7,250 acres of land outside of Chubbuck boundaries to the north and to the west (area into which the city can grow). •Approx. 1/2 of the land is either developed (mix of lot sizes) or unsuitable for development (floodplain). •3,625 acres of developable land remaining. •Land development is a crop •City/County planning is the seed planter •Public, P&Z, elected officials are the farmer 8 9 FACTS •Needs of the City must be met •New wants will arise as community changes •Land around Chubbuck is a very limited commodity due to: •Reservation boundary •City of Pocatello boundary •Airport boundary •Public land boundaries 10 The farm 11 Yx AA AA Z PROPERTY TAXES: WHO LIKES THEM HIGH? 12 PROPERTY TAXES: WHO LIKES THEM HIGH? 13 Cost to provide expected services (fixed cost) # of Property Taxpayers (proportionate to their land/improvement values) 14 1,000 Feet GROWTH HAS COME AND MORE IS COMING. HAVING THE RIGHT LAND USE POLICIES IN PLACE IS CRITICAL TO LONG -TERM SUCCESS 15 WHY VIEWING DEVELOPABLE LAND AS A CROP MATTERS Low density development is an inefficient use of a limited commodity. Inefficient development will result in a needlessly higher property tax liability than more efficient development patterns. •Chubbuck has developed at around 3 residential units per acre in single -family neighborhoods •Bannock County is development with some 5 -acre residential lots and some 1 -acre residential lots (on average based on zoning, including required open space) •5 acre lots can be redeveloped based on market demand w/ good planning •1 acre lots can be redeveloped into more dense developments, but likely only with main home demolished 16 CITY PLANNING MEANS LOOKING AT BOTH THE SHORT -TERM NEEDS/OUTCOMES AND LONG -TERM NEEDS/OUTCOMES •Some people want space to have hobby farms/gardens, distance from neighbors, big detached garages, spots to park toys, etc. •Some people want small yards, low maintenance, cheaper mortgages, etc. •We can have room for both desires today realizing that at some point, economics will dictate that the large properties will redevelop/infill to create smaller lots due to our geographic and political boundary constraints 17 CITY PLANNING MEANS LOOKING AT BOTH THE SHORT -TERM NEEDS/OUTCOMES AND LONG -TERM NEEDS/OUTCOMES •Efficient land development means: •Lower property tax liabilities (fixed cost spread amongst more tax payers 18 19 1,000 Feet CITY PLANNING MEANS LOOKING AT BOTH THE SHORT -TERM NEEDS/OUTCOMES AND LONG -TERM NEEDS/OUTCOMES •Or The property taxpayers can get greater service at the same cost •More parks / better parks •Better streets •More police •More firefighters •More aesthetics •Maybe a golf course? Cemetery? Community rec center? •Better schools; More schools •Etc., Etc., Etc. 20 21 Which have hit maximum development value? 22 Developments will not fund needed/wanted services equally HTTPS://GIS.CITYOFCHUBBUCK.US/PORTAL/HOME/WEBSCENE/V IEWER.HTML?WEBSCENE=FE2335534C974E38BA055A742DE64DC 7