The hidden costs of developing Crebilly Farm

The Cost of Community Services Study investigated the benefits of preserving Crebilly Farm from future development. The study found that open space costs are far lower compared to residential development costs.

As one of the largest remaining undeveloped properties in Westtown Township, Crebilly Farm offers significant historical, scenic, recreational, and open space resources to Township residents.

If converted to residential development, the Township would incur the cost of providing services to additional residents and the school district would need to support more students.

How land is used in a community impacts the type, quality, and extent of local services provided, as well as the taxes that are needed to fund those services. These community services include police and fire protection, road maintenance, public water or sewer, and others.

Residential land often costs municipalities and school districts more than other land uses because of the number of students generated by residential land use.

Taxes collected by the school district on residential uses typically do not keep pace with actual per-student costs. For this reason, converting open space to housing generally has a negative fiscal impact on local government.

WHO BENEFITS WHEN LAND IS PRESERVED?

Households
Homeowners pay less tax to their municipality and school district when open space is preserved than they do if it is developed into residences.

Westtown Township
Open space and farms provide greater tax revenues for our local government than they require in costs for services Westtown Township provides.

For every $1 received from residential taxes, Westtown Township spends $1.17 on services

Residential development in Westtown Township creates a deficit, generating less in taxes than the cost of services it receives in return. This deficit is paid for by existing residents in their taxes.

For every $1 received from farmland and open space taxes, Westtown Township spends 17 cents on services

Westtown Township spends only $0.17 on farms and open space for every dollar this land generates for the community. Said another way, the cost to the Township for undeveloped land operates at a 83% surplus. 

A cost analysis of Crebilly Farm, preservation versus development: 

Fee purchase: 208 acres at $20,800,000

+ Private easement: 104 acres at $4,368,000

= $25,168,000 (total price to preserve)

Vs.

319 new homes (based on previous proposed development) will bring approximately 319 new students

$9,558 per student cost 

= $3,049,002 total annual cost 

$25,168,000 (preservation cost) / $3,049,002 year shortfall = 8.25-year break-even point

In summary, after 8.25 years, the cost to preserve Crebilly Farm as open space breaks even with the cost the community would be taxed to support its development.

And after that 8.25-year break-even point, if Crebilly is developed it will continue to cost the community more than the tax revenue it generates. 

What could it look like?

Short answer: It depends! There will be a public process once Crebilly is protected to determine what this space will look like moving forward. The conceptual plan drafted by Natural Lands (via Westtown Township) shows a mostly natural area with minimal improvements.

NOTE: This is just one concept. No decisions have been made by the Township regarding any possible amenities or features.

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