Podcast Summary: Upzoned - "Want To Use This Rural Road? That’ll Be $50K"

Introduction

In the July 30, 2025 episode of Upzoned, hosted by Abby Newsham from Strong Towns, the discussion centers around a compelling story from Lincoln County, South Dakota. Abby is joined by Edward Erfert, the Chief Technical Advisor at Strong Towns, to delve deep into the implications of a milk processing facility being mandated to pay $50,000 for using rural roads. This episode explores the intricate relationship between industrial operations, public infrastructure, and rural economies.

Overview of the Story

Abby introduces the story, highlighting its setting in the rural southeast of South Dakota, near Sioux Falls. The focal point is a milk condensing facility tasked with processing milk into dry forms for transportation. Lincoln County requires the facility to pay a $50,000 fee to account for the wear and tear on township roads used by the facility’s heavy trucks and machinery.

Zoning and Development Practices

Edward begins by contextualizing the situation within conventional zoning and development practices. He notes the uniqueness of the scenario—contrasting it with typical zoning requests like new commercial developments or residential upzoning.

"What's so unique with this is unlike looking at a request for somebody to put a new commercial like a daycare in a neighborhood... this is a dairy with processing for dairy in the middle of dairy agricultural land." (04:02)

Edward explains that the county has an agricultural zoning designation, which includes conditional uses allowing for unique developments like the milk facility. The process involves multiple layers of approval, including public comments, hearings, and city council reviews. This rigorous process underscores the complexity of integrating industrial growth with existing rural infrastructure.

Impact Fees and Infrastructure Funding

Abby and Edward examine the $50,000 impact fee, debating its adequacy and long-term sustainability. Abby questions whether this fee truly addresses the significant costs of maintaining rural roads, which often exceed the single payment.

"The $50,000, while it's probably a lot of money to the person... it really doesn't feel like much of a drop in the bucket, you know, for the cost of infrastructure." (09:31)

Edward adds that communities often lack a clear understanding of actual road maintenance costs. He points out that the fee is based on minimal estimates, such as applying gravel rather than asphalt, which significantly undervalues the maintenance required.

"We really have very little understanding of what it actually costs to maintain and upkeep our existing roads." (11:50)

Long-Term Strategies and Sustainability

The conversation shifts to the sustainability of relying on single impact fees. Abby highlights the absence of a broader strategy to fund ongoing infrastructure needs, questioning what happens once the initial $50,000 is exhausted.

"What is the long term plan here? Because this will surely be an issue in a couple of years when that money is gone." (15:50)

Edward suggests that without a comprehensive approach, such as creating a maintenance fund through multiple users, the county remains financially strained. He emphasizes the need for collective responsibility among all users of the infrastructure to ensure long-term viability.

Challenges in the Development Application Process

A significant portion of the discussion focuses on the development application process and the disconnect between zoning approvals and actual infrastructure maintenance. Abby and Edward critique the public engagement methods, noting that they often do not yield meaningful input from the community.

"When a planning commission or a city council are reviewing something, there's probably very specific things that they need to be asked to review... but there's a debate over things that are allowed by right." (32:07)

Edward elaborates on how public meetings can become unproductive, with only a few vocal residents attending and opposing developments despite the lack of immediate impact.

"They're being empowered to participate where their participation has zero value." (33:14)

Improving Community Engagement and Planning Processes

The duo explores potential improvements in community engagement and planning processes. They advocate for more structured and informative public workshops that educate residents about the zoning and development processes, enabling more constructive participation.

"If you actually work in the things you're most comfortable in... That builds trust." (40:38)

Edward proposes hosting regular public workshops to demystify the development application process, helping residents understand what to expect and how they can effectively contribute.

Conclusion

The episode wraps up with Abby and Edward reflecting on the complexities of balancing rural development with infrastructure sustainability. They underscore the importance of transparent, informed community engagement and the need for comprehensive funding strategies to support long-term infrastructure maintenance.

Notable Quotes

• "What is the long term plan here? Because this will surely be an issue in a couple of years when that money is gone." – Abby Newsham (15:50)

• "We really have very little understanding of what it actually costs to maintain and upkeep our existing roads." – Edward Erfert (11:50)

• "They're being empowered to participate where their participation has zero value." – Abby Newsham (33:14)

Key Takeaways

1. Impact Fees as a Short-Term Solution: While the $50,000 fee imposed on the milk facility addresses immediate road wear, it falls short of covering long-term infrastructure needs.

2. Need for Comprehensive Planning: Rural counties must develop broader strategies that involve multiple stakeholders to create sustainable funding mechanisms for infrastructure maintenance.

3. Challenges in Public Engagement: Current public engagement processes often fail to produce meaningful community input, highlighting the need for more effective and informative engagement methods.

4. Importance of Transparency and Education: Educating residents about zoning laws and development processes can lead to more constructive participation and trust in local governance.

5. Balancing Development with Infrastructure: Striking a balance between attracting industrial growth and maintaining infrastructure is crucial for the financial health of rural communities.

This episode of Upzoned provides a nuanced examination of the intersections between rural industrial development, zoning practices, and infrastructure sustainability, offering valuable insights for community leaders, planners, and residents alike.