California's High Fees Driving Business to Nevada


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(Sacramento, CA)
Wednesday, October 13, 2004
A Netherlands-owned company, James Hardie Building Products, paid about $4 million dollars last year for land in Elk Grove. It intended to put in a concrete products manufacturing plant, but when the city hiked its development fees, left town for Nevada instead. Now Sacramento developer Buzz Oates has stepped in, buying the site. Oates executives say they’ll build what’s called flex space, with showrooms, offices, and space for tradespeople. They expect to employ hundreds. The story illustrates two truths: the competitive disadvantage of California’s high fees, and such strong demand that building still proceeds at the end of the day.