Communities with a more efficient construction plan review approval can gain millions of dollars in tax
revenues and significantly bolster their economic development. The costs of regulatory delays on economic development are largely
unseen because it is not readily apparent that buildings are not being built, potential tax revenues are not being collected, and
related jobs are not present. Inefficient construction plan review approvals are equivalent to a drain on economic development.
Plan review delays lead to higher costs that either will be passed through to occupants or will discourage new construction.
- An acceleration in plan review approval on a 12-month project cycle would make a project more financially attractive and could
determine whether or not the project can be undertaken.
- An acceleration in plan review approval can attract investment from areas outside a local community.
- Accelerating the plan review approval can permanently increase local government revenues.
- An acceleration in plan review approval increases construction spending thereby provides broader economic benefits.
The purpose of this tool is to analyze the
economic
impact on local communities economy resulting from the construction activities
and the
impact of plan review approval delays on
Local,
state and
federal income tax
collections. The analysis uses RIMS II economic impact model which estimate
both direct and indirect effects resulting from the construction costs circulated
into the economy.