Thursday, March 11, 2010

Energy Costs Will Change Our Business and Our Lives

With gas hovering at $4/gal everyone is feeling the pinch, but, this is only the beginning. While the optimist sees energy costs falling sometime after the elections, the realists know they are here to stay. And it’s not just gas. Home heating oil monthly budgets have tripled in some areas along with the cost of all raw materials and consumables that get transported across the country. So, what is the answer? A hybrid? Hardly. If the average person drives 30 miles round trip to and from work, getting an extra 10 miles per gallon saves you about 500 dollars per year, or about $1.38 a day. Of course, that is more than offset by the extra cost of the hybrid.

 

So, leaving the obvious out, you still save $1.38; unfortunately, that’s hardly enough to get a shot of vanilla in a cup of Saxby’s coffee in Kennett Square. Speaking of that, Saxby’s is Justin and his wife Angela’s new coffee shop in Kennett Square, PA. Stop in and get some coffee sometime, and mention my name, I get a free cup for every person I refer there, which I intend to turn around and sell on the open market for gas. Now, back on track.

The days of 80 cents/gallon gas have caused a few problems. One, they have spoiled us, but two, and more importantly, they have encouraged sprawl. That’s right, I said it, sprawl! With the cost of real estate and home prices going up and gas going down, it only made sense to work east and live west. More is less. I mean, heck, I work in Great Valley where I make more, but I bought a 4 bedroom, 3½ baths, 1 acre, 10-foot ceiling house in Oxford for less. It all made sense. Of course, I never considered gas, taxes, my time driving to and from work (which if I was working, would easily pay for my gas), the grocery store, soccer, my friends, Phillies games, the mall, Saxby’s coffee (wait, that is close by) etc, wear and tear on my car or the cost to heat and cool my new house, which, now, is not appreciating as fast as I would like.

Hold this thought for now. Let’s start now with a question. How do Townships zone? Easy…they put the Zoning they like, in the middle of their Township (low density more expensive homes) and the higher density (townhouses, small singles) on the outsides of their Township. Of course, this pushes development out, because, for these small lot residential units to be built, infrastructure needs to also be extended (sewer, water and road improvements – which only encourage MORE sprawl). Of course, the road improvements don’t extend from the new community to the nearest arterial road (i.e. Rt 1, 202, 322, 30), so…we get in our car and drive, usually about an hour, stopping, starting, guzzling and paying. It has always amazed me how the County has missed the boat so to speak on zoning. I mean, I’m not very smart, but it always made more sense to plan around the EXISTING infrastructure.

Example, zoning for a high density project on the outskirts of West Nowhere Township, and then complaining about traffic in West Nowhere never made sense to me. Why not provide zoning for housing that a large percentage of working Americans can afford that is also…this is crazy, NEAR the employment centers (Great Valley, West Chester, Exton). Finally, I’m almost done. Zoning will change. It will have to, mainly due to mathematics. The migration will be back to the Urban settings, where things are close, homes are smaller, more energy efficient. And by “things” I mean work, groceries, entertainment, dining, etc. Additionally, Zoning for Planned Communities where you can live, work and play will emerge. Today’s young people, when considering a career or job, should consider it for more than its salary. Living near where you work, shop, dine and play is a good thing.

You may pay more money for a little less house (which appreciates) but save a lot more on gas, which doesn’t appreciate, not to mention time, which you are losing every day. Want to truly save money and beat the oil companies? Use your car LESS, look at the big picture. Invest your money into the assets that appreciate, not your hybrid.

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