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Don’t exactions and approval processes impose penalties on the developer?



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Positive Development From Vicious Circles to V

Don’t exactions and approval processes impose penalties on the developer?
The public pays for everything in the end, regardless of who pays up-front. Planning is generally 
misconceived as a financial imposition and a constraint on the market. In fact, however, exactions 
can conceal some of the public costs of conventional development. Even though the financial costs 
to the taxpayer are reduced by exactions, the ecological costs of conventional development never 
disappear. Taxpayers, in a sense, pay government agencies to mitigate the externalities of development.
Moreover, assessment methods fail to weigh in the positive impacts accruing to the developer from 
the general public or public sector investment (whether from dams, sewage treatment, highways or 
telecommunications systems). This is what we have called ‘internalities’. Direct benefits to developers 
can include land capability analyses, land remediation, infrastructure and service provision to the site.
There are indirect services by planners as well. For example, planners often provide free expertise 
and advice to developers. Council staff and officials also act as intermediaries, resolving conflicting 
rights and keeping community objectors away from the developer. Planning is a safety valve for 
reducing the impacts of social discontent at the lowest cost to business. Thus planning transfers 
some private costs to the public (ie externalizes costs), but planning also transfers public benefits to 
private developers (ie internalizes benefits).
Surely development fees at least pay for the contributions of planners?
If development fees for processing applications and exactions covered the benefits provided to 
development by the public sector, planning agencies would operate on a cost-neutral basis. So, 
again, government subsidizes private development through planning services provided with taxpayers’ 
funds. This is not necessarily a bad thing. But since we already subsidize conventional development, 
why not subsidize net Positive Development instead? Planning could at least ensure that the taxpayers’ 
indirect costs are appropriate or proportional to the benefits the general public receives. This would 
require tracing both internalities and externalities – who gains as well as who loses over the long 
term. Our assessment and rating tool suggests that we are improving with each ‘greener’ development.
But planning inevitably transfers wealth by allocating land and resources. Planning methods do not 
map, or assign numbers to, these resource transfers. In effect, therefore, these methods ‘invisibilize’ 
resource transfers [Chapter 14]. Planning should register non-sustainable, inequitable, resource 
transfer processes over time, so that we can track our growing distance from sustainability. At the very 
least, planning could make subsidies and internalities far more visible. Rather than just assessing and 
mitigating development proposals that arise from the market, then, public planning could proactively 
seek public and/or private investment opportunities that reverse externalities, reduce disparities of 
wealth and generate win–win–win outcomes.

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