Investing In Infill Is A Better Effort Than More SDCs?

https://www.bendsource.com/bend/investing-in-infill-is-a-better-effort-than-more-sdcs/Content?oid=4475337

This editorial presents a spurious argument in support of its title:  Investing in Infill is a Better Effort Than More SDCs.

The first paragraph is a fact.

The second paragraph proposes another approach: ..... "...to bring in money without raising SDCs ---and relatively quickly.......dense, mixed-use developments bring a far higher rate of return per acre than single-use developments, whether those are large shopping centers or single-family homes. "...to bring in money without raising SDCs ---and relatively quickly.

Fact:  SDCs are city fees paid to the City for new start up one time requirements.
Fact:  Deschutes County property taxes go to the county. Some amount of county tax paid by City residents returns to Bend to support the City Budget.  Tax payers in Bend can see on their county tax statement how much returns to the City of Bend.  I paid county tax yesterday on my property.  Total tax:  $4,575.22.  The City of Bend got $818.06.  That amount goes to the City Budget for annual maintenance of city services. 

The other approach to "bring in money" (to the City as a result of mixed use developments) can only be through Deschutes County Property Tax that is claimed to bring a far higher rate of return per acre than single use development.  This is where the apples of SDCs to the City get mixed up with the oranges of Deschutes County taxes.

The way it gets mixed up is framed by reference to a study

"According to an article by architect Joseph Minizozzi, AICP, the city of Asheville, N.C. realizes an 800 percent greater return on downtown mixed-use development projects compared to single-use development—to the tune of $360,000 more in tax revenue per acre going toward city government. This is not an anomaly....."Are cities across the country acting negligently in ignoring the property tax implications of different development types? Joseph Minicozzi thinks so, and he's done the math to prove it."

Works for Asheville.  How does that work in Bend?  Look at rwo Box Stores

Bend Walmart Property: https://dial.deschutes.org/Real/Index/192590
Interactive Map Property View:  https://dial.deschutes.org/Real/InteractiveMap/192590
Real Market Value:
          Land:                           $0.00
Assessor Acres:                      0.00 Acres
    Structure:           $18,323,580.00
           Total:           $18,323,580.00
Assessed Value:     $11,164,700.00
2017-18 Tax:              $173,238.17
Problem here:  No acreage amount to put into a tax per acre computation!  The Deschutes County Assessor does not assess the value of the taxlot acreage land that the Walmart store is on.  I don't know why but there must be a reason.  Everybody knows that tax to be fair must stand to reason?

Pick another Box Store:  This one has an amount of Assessor Acres.
Bend Fred Myer Property: https://dial.deschutes.org/Real/Index/177087
Interactive Map Property View:  https://dial.deschutes.org/Real/InteractiveMap/177087
Real Market Value:
                   Land:    $11,931,935.00
   Assessor Acres:                   19.16 Acres
             Structure:    $17,620,070.00
                   Total:    $29,552,005.00
 Assessed Value:      $22,119,710.00
2017-18 Tax:                $343,222.70

Tax paid Deschutes County per acre of taxlot land occupied by Fred Meyer:  $17,913.50 
County tax portion of total tax $343,222 to the City of Bend: $61,368.00

My Deschutes county tax residential home in the West Hills https://dial.deschutes.org/Real/Index/101757  Overhead View:  https://dial.deschutes.org/Real/InteractiveMap/101757
Total tax 2017-18: $4,575.00
Tax per acre: $19,062.00 (.24 acres)
Portion of total county tax going to the City of Bend:   $818.00

Some Observations:

Walmart has no Assessor Acreage and pays far less ($173,238) than Fred Meyer ($343,222) in county tax.  The two Box Stores seem comparable.

Fred Meyer county tax expressed  on an per acre basis is $17,913.50
My property county property tax expressed on a per acre basis: $19,062.00
On a per acre basis they are both close.

County tax portion to the City of Bend on a per acre basis:
Fred Myer portion computed per acre : $3,203.00
My portion computed per acre: $3,408.00

How does a downtown property compare?

Bend Hardware Building (mixed use)  https://dial.deschutes.org/Real/Index/104516
Real Market Value
   Land:          $1,997,900.00
   Structure:   $1,104,230.00
          Total:  $$3,405,130.00
Assessed Value: $765,660.00
Total Tax 2017-18:  $11,880.44
Tax per acre computation (.24 acres) $49,502.00
County tax portion to the City of Bend:  $2,124.00
Tax portion to the City of Bend on a per acre computation:  $8,850.00

My residential property tax contributes about as much on on a per acre computation basis as Fred myer.

A sample mixed use, middle of downtown property, built in 1911 contributes 2.5 times more in county property tax than the Fred Myer Box store.

In terms of tax per acre computed portion to the City of Bend the Hardware Building contributes
a computed $8,848 per acre (.24 acre)

Box Store Fred Myer per acre couputed portion to the City of Bend contributes a computed
$3,203.00 per acre (19.16 acres)

Downtown mixed use contributes about 2.75 times more to the City of Bend Portion of Deschutes County taxes.

In my opinion the conclusion of the editorial is to "Infill" develop more properties on small acreage mixed use in a core commercial/residential area that (once structures are built on developed land) they will provide a future annual stream of increased Deshutes County tax revenue to the City of Bend greater than if they were built on the periphery of Bend.   That will pay for the lower incremental cost to the City to build infrastructure in an Infill area as well as the greater infrastructure costs related to development at the periphery instead of SDCs