Thursday, February 6th, 2014
I’m a little late to the party on this one, but wanted to chime in on Long Grove, Illinois’ proposal to privatize residential streets by vacating them and turning them over the subdivision owners to maintain, either via a homeowners associations or special service districts.
This has been presented in some quarters as the cost of sprawl coming due, but I wouldn’t spin it that way. Long Grove is an affluent community and doesn’t even levy a property tax at all. Clearly the village has a the fiscal wherewithal to afford to maintain these roads.
Rather, I see this as intelligently recognizing the fact that the roads are already private. Many subdivision streets effectively serve no public purpose to anyone outside the development in question. Why should they then be paid for out of general taxes anymore than private driveways are? Indeed, the village actually wised up long ago and decided to no longer accept subdivision streets into its inventory. As the linked article above from the Chicago Tribune put it:
Local leaders first realized in the 1970s that to pay for maintaining roads without a property tax, something had to give, said Long Grove Village Manager David Lothspeich. After that, the board allowed public streets in new subdivisions only if they were main roads, and eventually entire subdivisions sprang up without a single public road, he said.
The article also notes that private roads are what allows gated communities, something that actually has proven a selling point. I didn’t see in the article whether or not the developments in question would be able to erect gates on their newly privatized streets, but why not?
So much of the traditional sprawl development is based on backloaded subsidies for things like street maintenance. By establishing up front that these de facto private roads are in fact actually private, and forcing the cost of maintenance, snow removal, etc. onto the private beneficiaries, we can start getting close to the true market cost of these houses.