Affordability "Crisis" 101
I received some GREAT news yesterday. The city of Pacific, WA where our family business has operated for 40 years, was informed of a new local tax of 15% that we now owe. Yippee! Let me explain...
25 years ago, the Kent to Puyallup valley was still largely undeveloped farmland. We moved over there even before that, in the early 1980's. But big changes came and that farmland started to get developed, paved over, and built into the warehousing & distribution hub for the growing Puget Sound region. Great for jobs, great for developers, and great for consumers to source everything closer.
Only one problem. As much as the local cities and counties loved the new revenue, they hated trucks and truck parking. So, they made permitting a developing truck stops nearly impossible. Since trucks don't levitate in near Earth orbit waiting to pickup and deliver, you started to see them parked on side streets, on ramps, and other inappropriate places. Eventually, private land-owners started to develop some of that vacant land into parking, so the trucks serving those distribution hubs could more effectively and safely operate. Yeah, free markets at work to solve a problem!
Not so fast....
Given our proximity to these facilities and our truck dealership that provides parts and service, it only makes sense to offer some of our undeveloped property as parking. Of course, it can't just be undeveloped gravel lots here in Washington like the rest of the country. You need them paved, extensive storm water systems, etc. It's spendy to even offer just a spot for a trailer to park. At the end of the day however, you do all that, figure out the cost, divide by the number of spots, and charge per spot. It's simple 8th grade algebra...
We've been offering that to a loyal base of customers for the last 15 years or so. Turns out, last year, the city of Pacific decided that they needed to tax that revenue. I'm sure it's because of all the extensive service provided for paved lot. So we got a notice that they now want to extort tax that revenue 15%. Somehow, between their lack of notice or our lack of noticing the notice, we hadn't paid, so we now have a $250,000 bill for the city. (And yes, of course we'll pay it).
This is the cold-hearted lesson on free market pricing. I got notice yesterday, along with a lot of grousing and how unfair it was and on and on. My response, "so what." Just raise all the rents 15%. Now. We just pass through the costs and this is just another cost. I feel bad for my friends in the trucking biz, who are already getting crushed by diesel prices, and tariff disruptions, and the rest. And I feel bad for their customers that they'll pass this cost along to. But most of all, I feel bad for the consumers, who ultimately will of course pay the 15% tax to the city of Pacific.
And that's why Dems will NEVER fix the affordability crisis. They simply can't help but add taxes, and regulations, and other impediments to the cost effective deployment of resources. And you, dear public, pay the bill.
