Archive for September, 2017

Peter’s POV – September 2017

CONSTRUCTION DEVELOPMENT TO BE AN EVEN MORE TAXING BUSINESS

It seems like there is just no end to the ways bureaucrats dream up to try and choke the market based economy. The newest twist is to slap a “linkage fee” on new developments in the city of Los Angeles. Based on mayor Eric Garcetti’s proposal, the Los Angeles City Council would levy a $5.00 per square foot fee on new commercial development and a $12.00 or more per square foot fee on new market rate residential development. Residential projects with five or fewer units would pay $1.00 per square foot. This additional revenue would go toward City controlled low income housing. Is this just another way to allow government to take over the free market economy? Do we really want the government to take over the housing industry? What would be the effect of this additional expense on new developments?