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Efreepress 02.10.11.Pdf Priceless Take One Vol. 19 Number 34 An Award Winning Weekly Newspaper Thursday, February 10, 2011 TIF Is Not “Free Money” By Randal O’Toole Ironically, we seem to have bill doing just that was pro- The CATO Institute come full circle. Once used to posed in, but not passed by, Originally created with good subsidize the removal of high- North Dakota’s 2003 legisla- intentions, tax-increment density developments that few ture. financing (TIF) has become a wanted to live in, TIF is now But that doesn’t go far way for city officials to used to subsidize the construc- enough. Legislators should rec- enhance their power by taking tion of high-density develop- ognize that TIF no longer has a money from schools and other ments that few want to live in. reason to exist, and it didn’t essential urban services and Parking After all, if there was truly a even work when it did. They giving it to politically connect- Garage demand for such high-density should repeal the laws allowing ed developers. It is also often Existing Motel housing, no subsidies would be cities to use TIF and encourage used to promote the social Center Conference needed. cities to instead rely on devel- engineering goals of urban While we like to think that opers who build things that planners. government officials have our people want, not things that TIF is based on the idea that best interests at heart, TIF is just planners think they should public improvements to a Discovery too much of a temptation for have. neighborhood or district will Center many cities to resist. Two Randal O'Toole is a Cato lead developers to invest in that Democratic legislators in Institute Senior Fellow working district. To finance such public Colorado want to reform TIF in on urban growth, public land, improvements, cities are that state so that cities can’t and transportation issues. allowed to keep the “incre- Lot 9 declare farms to be blighted. A ment” or increased property taxes collected from the area. Typically, planners estimate in advance how much new prop- erty tax the city can collect and Festival Of Wines then sell bonds that will be The Homecare & Hospice over 200 wines and spirits from repaid out of those taxes. The Foundation is pleased to revenues from the bonds are all around the world and taste used to pay for the improve- announce that tickets are on sale gourmet hors d’oeuvres from ments. now for their biggest fundraiser local restaurants. The Grand TIF was invented in City Looks At Lot 9 of the year, The Flint Hills Tasting also features a large California in 1952 in response The Manhattan City pulled out of the project it creat- expressed at the meeting was Festival of Wines. Silent Auction and an energetic to a problem found in many Commission Tuesday night ed a big problem. The City was for two new hotels for Lot 9. In The Festival of Wines, now Live Auction held at the end of cities after World War II. At the talked about what to do with Lot planning on STAR Bonds and 2004-05 the City paid good in its 12th year, features a week- the evening. beginning of and during the 9 in the Downtown Redevelop- Tif Bond payments to be made money to have a study made on end of wine tasting events. The Proceeds from the Festival war, most urban residents lived ment District. from this property. the hotel needs of Manhattan. Festival weekend begins on will directly support the in apartments. After the war, The City Staff is recommend- As the Memo to the The report concluded Friday, March 4th with a Wine Homecare & Hospice Agency huge numbers of people moved ing that they go out for Commissioners said: “Lot 9 has Manhattan would not need Dinner and Live Auction held at to single-family homes in the and our compassionate hospice, “Request for Proposals” (RFP). the potential to leverage rev- suburbs. This left inner-city another hotel for 10 years. the Manhattan Country Club at home health and support servic- enue from the sale of the 4.5 neighborhoods with high Lot 9 is East of 3rd Street and After the report five new hotels 6:30 p.m. Dinner guests will es provided to our friends and vacancy rates. Since few want- north of Fort Riley Blvd. Part of acre tract to the developer. In have been built in Manhattan enjoy a gourmet multi-course neighbors in their homes as well ed to rent the cramped housing this lot is where Manhattan Ice addition, various types of devel- and more are planned. meal featuring a different as the care provided at The in such neighborhoods, the and Cold Storage stood along opment will likely provide rev- Tuesday night the idea for Jackson Family Estates wine Good Shepherd Hospice House. landowners did not keep the with the Pepsi Warehouse and enue streams (sales and proper- two new hotels was put for- paired with each course. Call Homecare & Hospice at housing in good condition, and several other buildings. This is ty taxes) to assist in the retire- ward. The Commissioners The dinner leads into the 537-0688 now to purchase your the neighborhoods became also the lot that Warren Theatres ment of STAR and TIF bonds.” liked the idea. main Festival event, the Grand tickets or visit www.flinthill- “blighted.” were to be built. When Warren One idea for the area Tasting which is held on swinefest.com. There is a limit So the California legislature Saturday, March 5th from 6:30 allowed cities to create “rede- to the number of tickets that will – 10 p.m. at the Clarion Hotel. be sold, so get yours today to velopment districts.” Typically, police, and other services, but development. In many cities, need. Grand Tasting participants sip, sample and support a great the cities evicted the residents since they don’t pay for those TIF is a major source of gov- Some states require cities to of the districts and tore down services, people in the rest of ernment corruption, as city find that a neighborhood is can sample from a variety of organization! the housing, thus leaving bare the city either have to pay high- leaders hand tax dollars over to blighted before they can use land that developers could use er taxes or accept a lower level developers who then make TIF. San Jose planners once to build whatever met market of services. This means people campaign contributions to re- found that a third of their city demand. It sometimes worked, outside the district lose twice: elect those leaders. was blighted, including one Former Resident but often did not, and to this first when developments that TIF isn’t even necessary to posh neighborhood that was day some neighborhoods of might have enhanced their promote redevelopment of supposedly a slum because the Appears In Commercials New York City, New Jersey, property values are enticed into declining neighborhoods. residents had failed to rake the and other urban areas remain the TIF district and second Eventually, property values fall leaves from the private tennis Brie Strohmeyer, former Productions, the creative when they pay more taxes or low enough that people start to little more than gravel pits. courts in their backyards. Some Manhattan, Kansas resident team behind Fox’s hit show Eventually, every state but receive less services because of buy and restore or replace cities go so far as to declare Arizona legalized TIFs — the TIF district. buildings in those districts. recently gained national “Hell’s Kitchen”, aired in prime farmland to be “blighted” exposure by appearing in a primetime throughout North Dakota doing so in 1973. Not only does TIF not stimu- Rather than use TIF and emi- so they can maximize their (Arizona and some other states late urban growth, it may even nent domain to redevelop a share of the revenues when that series of Match.com com- Australia in summer 2010 use a similar scheme involving slow it down. One study found warehouse district, Anaheim land is developed. mercials for the popular and January 2011 on sales taxes.) Thousands of that TIF is actually a negative- recently decided to merely get TIF today is often part of a online dating site. SEVEN. SEVEN is one of cities have established TIF dis- sum game because businesses out of the way of developers of social engineering agenda that The commercials, which the country’s leading net- tricts. But experience has that might have located or what became known as the Americans should reject. With began airing back in early works. To help promote the proven that they don’t work as expanded in the cities decide to Platinum Triangle. Since then, no more slums to clear, urban November 2010, feature show, Strohmeyer, made a well as hoped. move to another place that has developers have invested bil- planners see themselves as hav- vignettes from a typical first guest appearance on their lower taxes or higher levels of lions of dollars in the district. TIF is not “free money.” ing a new mission: not to restore date. The 30 second spots popular morning syndicate Studies have found that, at best, urban services. TIF is no longer about blight. blighted neighborhoods but to TIF is a zero-sum game, mean- TIF puts city officials on the Today, the inner-city slums that have been airing daily on “The Morning Show”. re-engineer society to fit their many national cable net- Strohmeyer, is the daugh- ing for every winner in the TIF verge of corruption, favoring TIF was created to replace are fantasies of how people should game others lose an equal some developers and property long gone, yet TIF continues to live.
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