Reply to Some perspective on those blaming Hogan for lack of education funding

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[quote=Anonymous][quote]Anonymous wrote:
How do you know this? And how are the developers staying in business if they can't sell what they're building?[/quote]

[quote]I don't think they need to quickly sell 100% occupancy and they get very good deals from the county so they have less pressure to fill it up fast. Of course, they would love to fill it up fast and make more money but its a numbers game for them. Oddly, the developers keep an upper hand with the county if the occupancy isn't filled fast. They can pressure council members who want money for something that they need more incentives to build because they haven't cleared their inventory. If the demand was higher the developers would be in less of a strong position.

What makes zero sense is that MoCo will tax business that create a steady stream of tax revenue and jobs to death until they go under but they give away the store to the developers. The businesses are far more valuable and would have an indirect positive effect on the housing market creating demand. Greater demand would create more competition for developers and allow the county to give away fewer incentives. [/quote]

[quote]Right now the county is completely controlled by the unions and the developers. They've squeezed out any business interests.[/quote]

[/quote]Such as?[quote]

Developers are supposed to pay taxes or fees to address infrastructure and school expansion in the areas they are building. This amount gets negotiated down, offset by other tax incentives or other mechanisms because the county wants some cash now. The county usually takes in far less than what the impact surveys would require. In addition, the county doesn't ear mark it for that area. The infrastructure and school construction projects that occur in areas with less development are being paid for by areas with more development. All the money being collected for the building going on in Bethesda is going to other areas. This is why there is never enough money to ever address the actual impacts of development. The county collected less money to get the developer to build and give them some money. The county then spent the money on something else.

MoCo can't take on more debt because the debt service is too high now for the operating budget. They are desperate for construction funding so they will give away more to developers, redirect the dollars more and end up even more short. This has been going on for years so the hole just keeps getting larger. [/quote]

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