Albemarle Headed for Deep Trouble
There is a cataclysmic clash between perception and reality headed to the largest county in the Charlottesville MSA. Over the next 10 years, the commercial tax base of Albemarle will be headed in one direction – down – while general costs and citizen expectations of services will continue to rise. The sad part is that Albemarle, unlike many other localities, is causing this effect. Natural economic declines have hurt some areas (mainly in other states), but Albemarle’s decline in commercial revenue is self-inflicted.
You only have to look at neighboring counties such as Augusta, Greene, and Louisa to see where Albemarle’s tax base is going. Augusta has opened up several large retailers in the past few years – Target, Home Depot, etc. – and has plans for more. Greene is rumored to be getting a Super Wal-mart, Home Depot, and other major retailers. Louisa already has the Wal-mart Distribution Center and is doing major commercial development at Zion Crossroads.
Albemarle is (or was) the perfect place to be the regional retail center for central Virginia, but the County has shunned efforts by major retailers to locate within the county borders. Recently, the developer of the upscale shopping center formerly known as Albemarle Place bailed out after years of trying to work through the County’s planning process. Home Depot has been rejected, as well as many other high-tax-paying businesses.Â
Albemarle citizens and leaders have not been shy about their negative feelings toward so-called “big box� retailers. Keep in mind that these businesses are also called “anchor� stores because they create a base that attracts small box retailers. So when a community rejects an anchor store, they not only lose the “big� tax revenue, they also lose the tax revenue from several small stores.
Albemarle lost a lot of tax revenue when the Short Pump Mall opened just this side of Richmond. Now that Augusta/Waynesboro has better shopping than Albemarle, the local tax revenues are off dramatically (around a million dollars). That decline coupled with lower real estate assessments spells trouble for the County coffers. Actually, it spells REAL ESTATE TAX INCREASE to those who live in Albemarle. Once the other counties come online with their major commercial developments, the business tax base will decline even more due to lower sales in Albemarle’s existing retail outlets. People who currently drive into Albemarle from Greene to shop at Wal-mart and Lowe’s will stop right before the border and will no longer help generate Albemarle tax revenue.Â
Albemarle is only at the tip of the iceberg of this situation. Unless they do a better job of embracing businesses and attracting commercial revenues to the County, they can expect further declines in the tax base. Citizens may not like big box retail stores, but my guess is that they don’t like paying taxes even more.Â
Dave,
And when the property taxes for the aging residents of Albemarle start zooming upward, their wailing will be loud. Too late, because by then, their property value will have declined significantly due to lack of growth in the community. If the Albemarle government doesn’t catch on to this soon, it will be too late. As we all know with our own, physical bodies - you either grow, or die. There is no other option.
Comment by Vance Shutes — March 20, 2008 @ 3:20 pm
Not taking the average Realtor’s view, I believe the answer for Albemarle and other evolving “rural” communities is to “go green.” And in a major, transformative way. The big boxes bring in some jobs, yes, but add to traffic snarl and the more negative aspects of our wonderful environs, those environs that have done such a great job attracting our clients to this area. More traditional businesses are not the answer in my view. I abhor what Fairfax County and its neighbors have become. Is this what we want to emulate?
The wave of the future is environmentally friendly businesses and ways of life. And there is money to be made, big money. And jobs. Everything from new ways to heat and cool homes to providing new energy sources that are cleaner and greener. Why not be on the cutting edge instead of followers in this area that the nation is clearly headed toward? There is also much to be said for making a bigger push to bring the high tech crowd in. UVA’s Research Park is showing the way.
While not being a big fan of corn-based ethanol (I just don’t think it makes sense in the long run), I do think that we can benefit from growing other organic material that will be suitable for making us less dependent on foreign oil while keeping our terrain and viewsheds intact. “Switchgrass” is but one option. There are others. This will make keeping land in agricultural use very attractive.
Additionally, if we get serious about eating healthier there is no reason that Albemarle and the surrounding counties cannot become the bread baskets for D.C., northern VA and Richmond. Organic food, grown “locally” is a trend that takes advantage of consumer demands for healthier food, grown locally, that demands less fuel to transport to the consumer’s shopping cart. And when we get to this point of having scores of small organic and biofuel farms, it will do wonders for the values of our rural property and give us more opportunities to use our land more wisely while maintaining the Piedmont’s charm that brought so many here — from Thomas Jefferson to James Madison to the multiple clients we all deal with that makes our livelihoods both enjoyable and profitable. My 2 cents.
Comment by Bill Martin — March 27, 2008 @ 10:51 am
Bill,
Thanks for the comments. I think your ideas are perfect for this area. What better place to capitalize on Green, healthy and tech business. And NO!, we do not want to be like norther VA. The problem is that Albemarle County has a reputation for being difficult to work with when relocating your business to the area. They make businesses jump through hoops that Greene, Lousia and Wayneboro don’t. Clean businesses can still locate in the area and take advantage of the wonders we have here, but not pay taxes in Albemarle. We should be fighting for businesses like the ones you mention to locate in this area, but ALL TYPES of businesses are being discourage to locate in Albemarle.
On a side note, it just struck me that the best place to locate a green business is in Greene County!
Comment by Dave Phillips — March 28, 2008 @ 9:27 am