GOVERNMENT AFFAIRS

AFFAIRS GOVERNMENT

Intel Announcement’s Impact on 2022 Public Policy Priorities

By Malcolm Porter

The well reported influx of new jobs resulting from Intel’s historic investment in central Ohio’s economy brings an even greater focus to the challenges of the chronic underbuilding of housing in our region.

2022 is shaping up to be a crucial year for housing. Central Ohio has a rare opportunity to transform its economy with a new generation of employees in high tech. However, for the full benefit of Intel’s potential future expansion in the region to be realized, there must be a healthy housing market.

Will the Intel announcement bring new players to the table that will change the dynamics that have restricted land use decisions that continue to constrain the local housing market?

Our region would appear to have a unique opportunity to alter the regulatory landscape of its housing market. Significant changes to funding and development approval processes are likely to be needed as a part of a comprehensive strategy for increasing housing opportunity in the region. It is not an overstatement to say that the country is watching for how central Ohio responds to the challenge.

Local Government Fiscal

Policies. Current economic development policy is focused on the costs associated with the job site that creates the tax revenues that make the project worthwhile. There is little to no accounting for the costs associated with the housing of the workers for that job site.

It is generally believed in local government circles that “jobs” are an economic gain; however, “housing does not pay for itself.” Therefore, local governments are incentivized to pursue jobs and minimize/ deny housing. The strategy is to encourage/require that the workers live in some other community. Over decades, the implementation of this philosophy to minimize housing has led us to the current underbuilding of the market. Is now the time for bold thinking that extends income tax revenue benefits beyond the job site community to include the community where the worker lives? And should we apply this same sharing of revenues to include school districts?

The time is upon us to give serious consideration to some fundamental change to the economics of jobs and housing.

Process Timelines. The norm to obtain zoning and development plan approvals in our region is between 18 and 36 months. A series of best practices for these approvals needs to be designed to shorten this timeframe, while providing clear expectations on both the private and public sector participants for their roles in the process. Approval process changes will be different for each jurisdiction. However, a common theme of a shorter, more predictable, and more transparent approval process must prevail if the region is to come close to addressing Intel’s increased housing demand that is a few short years away.

We must remember, Ohio is a home rule state. Land use decisions are held by local governments. Changes in policy and practice must be a platform for drastically improving the housing market for the region, while still recognizing local governments’ ultimate authority to make land use decisions. Wide ranging local government examples go from existing efforts to update the Columbus zoning code, to Liberty Township updating their comprehensive plan to areas of new need, like conservation zoning codes and utility policies in western Licking County.

How will we achieve regionwide housing market reform?

It will not be easy. It will require leadership from policy decisionmakers. It will require some increased risk taking to try new ideas. It will require focused attention from all stakeholders, as the housing demand clock continues to tick.

The BIA has begun these kinds of conversations and seeks new solutions to address our existing, and expected future increased housing demand. The Board of Trustees will lead both the Builders and Developers Council, as well as the Multi-Family Council, in working through details of new policies and initiatives. All BIA members are invited to these forums to share your ideas and input.

Malcolm Porter is Public & Government Affairs Consultant for the BIA.