INSIDE TUCSON BUSINESS: Mon., Aug. 29, 2005
Bringing home the money
Bizz Buzz by David Hatfield
As of last month, the new home construction industry in Tucson passed $1 billion in the amount of money it has directly put in to the local economy. John Strobeck, of Bright Futures Business Consultants, told me that last week.
It puts the industry on pace to hit over $2 billion for the first time.
Match those kinds of numbers up with the study done by Elliot Eisenberg, housing policy economist for the National Association of Home Builders, and we're talking about some serious money being pumped into the local economy. But more than that, as has been reported before, those people eagerly coming here to snap up new homes actually repay the infrastructure costs within four years!
And they keep on paying.
Eisenberg's study, which was done using 2004 statistics, calculates that the City of Tucson took in $15.7 million in taxes and other revenue, such as permit fees, last year from the 2,188 permits that were issued. Beyond that, the city can look for a continuing impact of $10 million a year they will continue to receive as a result of those new homes.
It works for other municipalities too. Marana saw 1,425 new home permits issued last year, which brought in first-year revenues of $12.4 million and will continue to see annual revenue of $8.1 million. Sahuarita issued 1,705 permits last year to bring in first-year revenue of $11.3 million and an ongoing $9.1 million.
Even Oro Valley, which only issued 482 permits last year, gained $6.3 million in revenue and can look forward to $3.6 million a year in the future.
Pima County takes in the moolah where there aren't any municipalities to get it. Last year there were 3,271 new home permits issued in the unincorporated parts of the county. That brought in first-year revenue of $38.5 million and will continue to see $17.3 million going to county coffers each year into the future.
Interesting stuff and a side of the story we don't hear around here.
Eisenberg gave a presentation on his statistics last week at Bright Futures' Fall Showcase breakfast. Several politicos were there - I saw county supervisors Ann Day and Ray Carroll and city council members Kathleen Dunbar, Fred Ronstadt and Shirley Scott. Bureaucrats were also scattered about.
Our reporter who stayed afterward to listen in on a hoped-for discussion between the local folks and Eisenberg said it never materialized. Too bad.
By the way, congratulations to Strobeck. It looks as if his inaugural Fall Showcase is off to a bright future itself. About 250 people showed up to the morning breakfast at the Westin La Paloma Resort & Spa. Strobeck recalled that only about 80 people showed up to his first Spring event back when it started. This year that mushroomed into more than 800.
By the way, why is it when it comes to bureaucrats, the ones who are in charge of water seem to be the most glib? For all our water problems here, it took Dave Modeer, with his high-profile straight-forward style to calm the political waves. At last week's showcase, it was Pat Mulroy, general manager of the Southern Nevada Water Authority, who gave us a glimpse of how they're doing it in her neck of the desert.
And talk about turning things around! As most of us suspect, conservation isn't a widely used word in Las Vegas no matter what you're talking about. A decade ago, Mulroy said when it came to water, the Las Vegas motto was "hurry up and use the water before California does."
She went on to describe how her utility has instituted conservation efforts to the point that Las Vegas has cut the total amount of its water use despite its booming population growth.
Mulroy said business is the key to helping deal with water issues in the Southwest. She said many companies have offices in several states and they're interested in what's best for all of their interests, not one over another.
Contact David Hatfield at dhatfield@azbiz.com or call (520) 295-4327.