Sedona’s Sky-High Development Fees: A Crisis for Workers and Affordable Housing

In a recent meeting, the Sedona City Council received a stark assessment from a consulting firm based in Baltimore regarding the city’s development fees. The consultants revealed that Sedona’s fees for constructing a home are significantly higher than those in surrounding communities, drawing incredulous reactions from council members.

“We were highest to begin with and we are three times higher after the proposed fees,” remarked Councilwoman Jessica Williamson. Councilman Pete Furman added, “When you look at this stuff, it sure looks like we’re trying to prevent housing,” highlighting council members’ concerns about the escalating costs.

Given the council’s earlier discussions surrounding housing affordability, many expected a pivot toward reducing development fees. These discussions were a central theme during various council members’ election campaigns, where they emphasized the urgent need for addressing rising housing costs.

However, a surprising decision unfolded on Tuesday, October 8, as the council voted unanimously to nearly double these development fees. Critics argue that this move exacerbates existing financial pressures on families amid record inflation, recalling a previous council decision to permanently raise the sales tax, a step critics claim disproportionately affects lower-income residents.

The decision appears to align with a troubling pattern that prioritizes city revenue over community welfare. This approach risks transforming Sedona into a locale accessible only to the wealthiest, sidelining working-class families and renters who already struggle to afford housing.

Council members are seen prioritizing projects that seem more beneficial to affluent demographics, such as new recreational facilities and enhanced neighborhood services in wealthier areas, rather than addressing the needs of the community as a whole.

As development fees rise, the prospect of affordable housing diminishes. Potential new homes, even those with modest plans and basic amenities, will be priced out of reach for many residents. The council’s apparent disconnect is underscored by the fact that most members reside in million-dollar homes, raising questions about their commitment to fostering diverse housing options.

As the landscape shifts, older and more affordable homes risk being replaced by luxury properties and short-term rentals, further eroding community value. This could lead to a cycle where working families are forced to relocate to surrounding areas, thus weakening the community fabric that supports local businesses.

Despite candidates’ reassurances during election cycles about prioritizing the working class, these recent moves signal a departure from those promises. Furman’s statement resonates deeply: “No, councilman, you and your six colleagues aren’t ‘trying to prevent housing’ — you are preventing housing.”

The council still has the opportunity to reconsider this trajectory. By revisiting the development fees, especially those relevant to single-family homes, they could promote the construction of more affordable housing options, ultimately benefiting Sedona’s diverse community.