Coastal Services Center

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Infrastructure Costs Indicator Information

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In the Scenarios | What Does Infrastructure Really Cost? | What Can I Do? | References and Resources

Related Indicator Information Net Revenue Calculation Worksheet

In the Scenarios

For the purposes of this project, infrastructure costs were defined as the cost to develop roads, water lines, and sewer lines. The estimated infrastructure costs of the conventional scenario are highest at nearly $8.9 million; the new urbanist estimates follow at approximately $8.8 million; and the conservation estimates are just under $6.7 million. Additional cost factors, such as clearing and path and trail development costs, are also influenced by the form of each scenario design. These are accounted for in the potential profit estimate.

For the infrastructure indicator, the average cost per square foot for road development was obtained from the City of St. Marys, Georgia, and this figure was used to estimate the overall cost of constructing roads. Measurements of the total length of roads in each scenario was extracted from geographic information system (GIS) data layers and multiplied by the per-square-yard cost to estimate the total cost. A similar procedure was followed to estimate water and sewer construction costs, using St. Marys water and sewer costs per linear foot and main roads in the scenarios as a proxy for total pipe length.

For details on how sewer and water line estimates were calculated, refer to the Indicator Methods section.

What Does Infrastructure Really Cost?

There is much debate over how development form impacts infrastructure costs. This issue is important because the majority of costs associated with water and sewer infrastructure are borne by local governments (Speir 2002).

At the same time, financial incentives often make it cheaper for developers to purchase land surrounding existing development than to redevelop previously used land or brownfields (Levy 1997). Due to these factors, infrastructure is being extended to support development that is further and further from existing sewer facilities, water supplies, roads, and electricity. In situations where state and local governments provide these services, this growth can ultimately cost taxpayers more money than the residential development provided to the city or town in return for its investment (Levy 1997, Freedgood 2002, National Park Service 1995).

Several factors regarding a development's form are relevant. According to Speir (2002), when other variables are held constant, the cost of extending infrastructure increases as

• the distance to established service centers increases
• lots become more widely dispersed
• lot size increases

What Can I Do?

Local governments and developers are best suited to control infrastructure costs. The following are examples of local government policy changes that may help

• Encouraging infill development
• Ensuring current regulations allow compact forms of development
• Revisiting minimizing lot size requirements
• Considering an adequate public facilities ordinance
• Stopping infrastructure subsidies to attract businesses

Developers' strategies for controlling infrastructure costs include designing sites that incorporate fewer streets, are more compact, and decrease average lot size. Choosing sites for development that are closer to existing centers (infill) would also contribute to lower infrastructure costs.

References and Resources

Freedgood, Julia. 2002. Cost of Community Services Studies: Making the Case for Conservation. American Farmland Trust.

Levy, John M. 1997. Contemporary Urban Planning. 4th ed.

Greenbelt Alliance – Infill Development: Rebuilding Our Cities for a Sustainable Future

Smart Communities Network – Land Use Planning Strategies: Infill Development

Godschalk, David R. 2000. "Smart Growth Efforts around the Nation." Popular Government. Volume 66, Number 1. Pages 12 to 20.

Keating, Janis. 2002. "Trees: The Oldest New Thing in Stormwater Treatment?" Stormwater: The Journal for Water Quality Professionals. March/April 2002.

Sierra Club. 2000. Sprawl Costs Us All: How Your Taxes Fuel Suburban Sprawl!

Natural Resources Defense Council. 1998. Another Cost of Sprawl: The Effects of Land Use on Wastewater Utility Costs.

Bagi, Faqir S. 2002. "Economic Impact of Water/Sewer Facilities on Rural and Urban Communities." Rural America. Volume 17, Number 4. Pages 44 to 60.

Speir, Cameron and Kurt Stephenson. 2002. "Does Sprawl Cost Us All? Isolating the Effects of Housing Patterns on Public Water and Sewer Costs." Journal of the American Planning Association. Volume 68, Number 1. Pages 56 to 70.

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