The Economics of Lakes – Dollars and $ense

love-the-lakeBy Pamela Hoover – Lake Management Committee

We are all here, in beautiful Roaming Shores Village (RSV), for a variety of reasons. Some of us bought in RSV first and foremost for the beautiful lake and the related recreational activity it affords. Others of us bought in RSV for an affordable home, possibly a starter home, perhaps close to family. Living in RSV provides important public health and safety benefits, including a dedicated police force, road maintenance, public water and sewer. And as RSV residents, we have access to an assemblage of quality-of-life enhancing amenities unique in this area – numerous well-maintained parks, many with beautiful water views, groomed beaches, lake-front pools, playgrounds with fun and safe structures, a year-round clubhouse, tennis courts, a groomed baseball field, and basketball courts. Did I miss anything? All of this for annual fees less than a family YMCA membership!!

In an effort to continue improving our private lake community we have researched the relationship between lake health and property values. Multiple studies done in Maine and Minnesota have demonstrated a significant and positive correlation between lake health and community property values and the resultant tax revenue. Findings included:

  • An improvement of 3 feet in depth of water clarity could affect property values by approximately $200 per frontage foot, or $16,000 for a single lake front lot. (1, 2, 3, 4, 5)
  • Declining water clarity was shown to account for 10-20% drop in selling price. (1, 2, 3, 4, 5)
  • A 3-foot decline in water clarity was shown to decrease property values by approximately 5%. (2, 4, 5)
  • Grand Lake St. Mary’s (Ohio) experienced an estimated 14% decrease in property values in a two year period, with 6% of that decline directly attributed to the conditions of Grand Lake St. Mary’s. (6)

The presence of an attractive and usable lake supports home values and the tax base, which, along with the Association dues, fund the services that help to protect our health and safety, and provide amenities that make Roaming Shores Village living so special. Regardless of where and why we purchased a home in the Village, good water care practices benefit all of us. The Rome Rock Association Lake Management website http://www.roamingshores.org/RRA1/ has numerous articles and resources to help residents to be responsible lake water quality stewards.

Here is the link to our article history:

http://www.roamingshores.org/RRA1/category/sediment-control-sub-committee/

A few article titles are,

Washing Your Boat – An alternative approach

Landscaping Options – Buffer Zones

Spring Cleaning (Lake-Responsible Style)

 

Be Lake Responsible – LOVE THE LAKE

 

References:
  1. Protecting waterfront property values, local tax base http://mrbdc.mnsu.edu/sites/mrbdc.mnsu.edu/files/public/org/lakecrystal/pdf/lakeshore_factsheets/protecting_lakefront_propvalues.pdf
  2. Economics of Shoreline Protection http://www.uwsp.edu/cnr-ap/UWEXLakes/Documents/ecology/shoreland/background/the_economics_of_shoreline_protection.pdf
3 Schueler, T.R. and H.K. Holland, editors. 2000. The Practice of Watershed Protection. The Center for Watershed Protection, Ellicott City, MD
4. Lake Economics http://lakeripley1.homestead.com/files/lake_economics.pdf
  1. Maine Department of Environmental Protection, Lake Assessment Program. 2000. More on Dollars and Sense: The Economic Impact of Lake Use and Water Quality.
  2. Economic Impact of Grand Lake St. Mary’s http://www.lakeimprovement.com/sites/default/files/edseries/economy/economy.html

Additional Resources:
The Economics of Lakes - Dollars and $ense http://www.maine.gov/dep/water/lakes/research.html
Health Lakes and Higher Property Values http://water.epa.gov/type/lakes/upload/healthy_lakes_and_higher_property_values.pdf

E-Mail Blast Sign-Up
email-blast




    Roaming Shores E-Blast Categories

  • Weekly Newsletter
  • Emergency & Lake Alerts
  • Meeting Updates/Changes

View previous campaigns.