Wendell News Outlet

Many thanks to Mr. Sanderson for his informative dissertation on the financial calculations and thought process’ followed by developers and home builders in determining what size house to build. Though interesting in its’ content, Mr. Sanderson’s letter seemed to skim over the underlying message I was trying to convey in mine. Perhaps I missed the mark so let me be more specific.

Firstly, the quote from my letter was incomplete, it should have read as follows; “That (smaller lots) in turn will probably mean smaller, less expensive homes which will not generate sufficient taxes to pay for the greater portion of the services the town provides.” The underlying and worrisome thought of this statement is “less expensive homes”. Wendell depends primarily on property taxes for its income and more expensive homes will generate more property taxes than less expensive homes.

Simply put, as any family or business owner knows, your income, salary or profits, basically determines how much money you can reasonably spend and still stay solvent. The same principle applies to the town of Wendell, except their primary income is derived from property taxes levied on homes in the town. In Wendell this tax is currently .64 cents (.54 plus .10 Fire District Tax - Source: N&O 6-19-07) for every $100 of assessed valuation, the highest tax rate in Wake County. If Wendell were to maintain the proper ratio of expensive homes to less expensive homes, also known as housing diversity, the town budget should remain stable and be able to sustain itself without major tax increases or reduction in services. However if, as is the current situation, the town has a disproportionate number of less expensive homes in relation to more expensive homes, fiscal problems will surely follow.

Now, as to Mr. Sanderson’s statement, “The fact is that smaller lots mean larger houses” may be true in at least one upcoming sub-division in Wendell, Edgemont Landing with its 260 houses. They are offering a 3055 sq. ft., house for $189,990. If, for example, this house is assessed for about $159,591 (84% of selling price) then the tax revenues generated would be approximately $1021, not really an improvement from houses currently being built in the town. But, if that house sold for $300,000 or more, as it would in most other areas of Wake County, the tax revenues would be approximately $1613, or an additional $592 dollars. A good example of more expensive homes can be seen in Olde Wendell and Tanners Creek sub-divisions where the prices average $258,900 and $294,950 respectively. But they are built on larger half acre and acre sized lots.

So, does the “fact that smaller lots mean larger houses” really bode well for the town of Wendell? Where are these large houses and when are they coming? Will they be less expensive or more expensive? Currently there are about a dozen or more sub-divisions in the planning stages, or actually underway, in the town or its ETJ. Unfortunately most of these sub-divisions received zoning approval for smaller lots and will most likely have less expensive housing prices, if Edgemont Landing is any example. It appears, at this time, the trend toward lower priced housing continues unabated.

Yes, admittedly, I have taken one example of a larger house on a smaller lot to exemplify future housing in Wendell. Of course this is not necessarily true under all circumstances. But until Wendell establishes guidelines for developers and builders, such as Knightdale and Rolesville have done, laying out what is and what is not acceptable, my previous scenario may become the rule rather than the example.

Recently the News & Observer ran an article in which they listed the median home values (half are higher-half are lower) for the twelve municipalities in Wake County. Wendell was in eleventh position with a median home value of $94,351. Rolesville’s median home value was $174,149, a whopping $79,798 dollars more. If Rolesville can make it happen, why shouldn’t Wendell follow their lead? No need to re-invent the wheel!

Circumstances within our control are keeping Wendell down and unless someone, or some group, takes the lead and turns the town around I’m afraid it’s destined to remain the poor stepchild of Wake County!