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| AIA found out how communities can get richer The American Institute of Architects (AIA) released a report showing that communities with a more efficient building permitting process can gain millions of dollars in tax revenues and significantly bolster their economic development. The AIA commissioned PricewaterhouseCoopers LLP to study the relationship between building permit processes, local economic activity, and government tax revenues. The study concluded that the implementation of a more responsive permit process over a five year period could result in a 16.5 percent increase in property taxes and a 5.7 percent increase in construction spending. The report, “The Economic Impact of Accelerating Permit Processes on Local Development and Government Revenues, ” presents calculations assuming three-month acceleration in total development time. It focuses on nonresidential projects that accounted for $295 billion in new investment in 2004, according to the Department of Commerce. The costs of regulatory delays on economic development are largely unseen because it is not readily apparent that buildings are not being built, potential tax revenues are not being collected, and related jobs are not present. Prior to the recent U.S. Conference of Mayors, this report was sent to 1000 mayors, local building permit officers, city council members, and local municipal and county officials. write your comments about the article :: © 2006 Construction News :: home page |