The Lenexa city council has been struggling to try and find ways to spur housing development in the city that has seen the median home prices fall by nearly $100k since 2009. Their new plan appears to based on the same philosophy as Obama's jobs program. The basic idea is that if they make it less expensive to do something, businesses will do it, but when that discount is barely two tenths of one percent they can't really expect businesses to be stirred towards investment.
Here is the new plan to decrease the cost of new construction permits in the hopes it will stimulate the housing market:
A $200,000 house has building permit fees of $795 plus the plan review of $159 for a total of $954. New fee: $500; savings: $454.
A $300,000 house has building permit fees of $995 plus the plan review of $199 for a total of $1,194. New fee: $500; savings: $694.
A $400,000 house has building permit fees of $1,195 plus the plan review of $235 for a total of $1,434. New fee: $500; savings: $934.These new rates are only available to the first 200 permit requests made within the next 12 months.
I'm not one to complain about reducing taxes, and let's be honest government fee's are taxes, but if anyone on the city council thinks this plan will actual create new investment they are fooling themselves. A business that would invest $200,000 it didn't plan on doing already, because it can now save $454 by doing so, is a business that is going to be going out of business sooner, rather than later.