Will revoking growth management help development?
In the current economy, "growth management" sounds like a bit of a joke.
But there could be far-reaching effects on local commercial development in the wake of the Legislature earlier this month revoking much of Florida's 26-year-old growth-management law and the regulatory oversight that came with it.
It is difficult to imagine the change in the law having any immediate impact: There was only $137 million in new construction in Sarasota County in 2009, and probably not much more than that last year.
To put that in perspective: New construction was annually more than $2 billion during the peak years of the boom, and the county's total current property value, according to tax records, is $56 billion, down from a peak of $85 billion.
"The changes in regulations will not turn on a market that is sputtering," said John Harshman, a commercial real estate broker and president of Sarasota's Harshman & Co. Inc.
Changes in the law do not effect the equation of demand for office space will grow only when companies have more workers to house. So the local commercial real estate market, which has more than 2 million square feet of empty space, is only going to recover when the area's 10.9 percent unemployment rate goes down, Harshman said."What this is an attempt to do is correct some of the obstacles in development so that when we do start having some significant recovery, the development process will be more reasonable," Harshman said.
Many business decisions are time-sensitive, and making decisions locally and more quickly would effect all the facets of commercial development, from office and industrial space to condominium and subdivision development, he added.
"What this growth-management bill does is really put a lot of the burden on decision-making at the local level," said developer Henry Rodriguez.
That in itself should speed the process, he said, noting that the oversight by the state's Department of Community Affairs was a crutch for some local governments.
"I think local municipalities and counties for years have been punting to DCA to do some of the dirty work," he said. Under the new law, DCA's role is more advisory and limited to effects a new development has on neighboring cities and counties.
Local control of the development approval process translates into "more accountability at the local level," Rodriguez said.
Because Sarasota County has some of the strictest development standards in the state, Rodriguez argues that diminishing of the state's role will not have as much of an effect here as it will in other counties, particular rural ones, where development is less regulated and less scrutinized.
One of the major questions that will face county commissioners is what to do about concurrency, the requirement that major new developments, say a subdivision, pay for improvements to roads, schools or other infrastructure at the time that it adds a local strain on these same assets. The new state law eliminates the requirement that the state enforce concurrency, but leaves it up to local governments whether to do so.
As the economy begins growing again, the county could choose to selectively require concurrency, County Commissioner Jon Thaxton said.
In areas where new development adds to urban sprawl, more car trips and longer trips to work, the need for more schools and sewer lines, the county could require new development to pay for those improvements.
But it could waive concurrency requirements for more desirable developments, Thaxton said.
In areas where development is wanted -- perhaps a new company adding jobs in an urban areas where denser development and job growth is desired -- the commission might choose to simply accept more traffic congestion.
"There is a middle ground here," he said.
By Doug Sword
Published: Monday, May 16, 2011 at 1:00 a.m.
Last Modified: Friday, May 13, 2011 at 12:09 p.m.
