BUSINESS ADVOCACY: HOUSING FEES

Mayor & Council to Consider Raising Fees 300% on New Commercial & Housing Development: City's Housing Fee Hikes Contrary to Affordable Housing

On April 7, 2020, the Flagstaff Mayor and City Council will hear another request from City Community Development staff on raising current development fees on new commercial and residential development. The new fee hikes increase existing development fees 300%, and almost certainly make new housing development in Flagstaff more expensive. Housing developers pass the new fee hikes on to the home buyer in higher home costs. Flagstaff already has housing costs well above the national average. The Chamber receives quarterly cost of living studies, and Flagstaff's housing cost cumulative score for 2019 was well above 30% higher than the national average.

Those City Councilmembers & City Community Development Staff in support of the fee hikes argue "growth should pay for growth," implying the additional fees are needed for the City to provide services to new residents. This theory is patently false and misleading, as new residents in Flagstaff will pay property taxes directly to the City. That property tax revenue is supposed to go to the general fund for services.

Please take a moment and voice your concern about City policies that contribute to higher housing costs, higher rents, and higher prices on commercial goods. Visit our Greater Flagstaff Chamber of Commerce Action Center and send the Mayor and City Council a note about the proposed fee hikes.

Speaking of using your voice, don't forget to utilize this grassroots advocacy software under the "Take Action" page on our website to stay in the loop about business-applicable news like this and to easily access contact information for local and state representatives. Connecting with your elected officials and taking a stand on legislation that impacts your business is a crucial part of being an engaged business owner, and can help you see how the chamber is advocating on your behalf. Staying involved of upcoming decisions and showing the diversity and strength of our chamber community is crucial as we face business changes over time. Thank you to Foothills Bank for helping to sponsor our VoterVoice Initiative!