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Neighborhood Backgrounder: Cleaver TIF 6.
Do we care about how this project is financed? |
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 Another view from Cleaver Blvd. |
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If
the financing of this project affects us individually, our
neighborhood or our community, we need to be highly aware of
those impacts. So here's why it matters: Property
taxes fund programs & services like schools, and EATS fund items
like government and public infrastructure, government services
and programs at the local and state level. Under TIF, tax revenue
is diverted from their normal uses and given to the developer. The
theory of TIF is that it provides an equivalent,
or even improved, public benefit compared to the normal use of
the taxes. |
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supporting
non-subsidized development that funds the normal tax contribution
to schools and government programs and services; |
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supporting
subsidized development that, in this case, funds parking associated
with a hotel project just off the Plaza. |
If
we were to support this project we would be agreeing with the
argument that no development can happen on this property without
the help of public financing. |
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Advocates
of this development and associated TIF have used these arguments,
that we feel need further scruiny: |
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"Taxpayers
have nothing to lose in this deal." This property
is underutilized today and isn't generating that much in tax
revenue. Without this development that situtation will continue.
With this development we can realize additional tax revenue in
the form of 50% of the EATs. (The other 50%
of EATs and 100% of the incremental property tax revenue goes
to the developer to pay for the parking.) A Different Perspective This argument assumes that development of this property is only possible with public financing. We do not know that this is true. And if our purpose is to maximize tax revenue then we can make an excellent case for putting a Walmart on the property. |
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"The
property is blighted and it therefore requires public financing." A Different Perspective We have no data that indicates this property meets a common sense definition of blight much less a technical TIF definition of blight. However, everyone agrees the apartments are in need of rehabilitation. The property is certainly not located in a blighted area. In fact, this property is next to the historic Sophian Plaza condominium building, where a 3-bedroom condo is currently listed for $445,000. Immediately across 46th street are The Atriums condos, where a 2-bedroom unit is currently listed at $300,000. Further, the property in question is across 46th street from the award-winning and regionally-ranked Southmoreland B&B, with most room rates from $165 - $190 per night. Shouldn't a poorly-maintained property in the heart of a gentrified area be evaluated for public subsidy differently than a similar property in a depressed area? |
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"The
public parking funded by this TIF provides a significant public
benefit." It doesn't appear the additional public parking will help the neighborhood. Our biggest parking issue in the south part of our neighborhood was with the Shakespeare Festival, and this problem has been solved by the new undergound parking at the Nelson-Atkins Museum. The only time we anticipate this parking would be utilized
would be at the Plaza lighting ceremony. |
TIFs
are complicated, but they become much more straightforward to
understand once we can all agree that: |
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That there is
an important, specific problem we all agree needs to be solved;
and |
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that problem
can only (or best) be solved using public financing. |
To
go back to the Cleaver TIF main page, click
here. Or blog. To get on our email list for this issue click here. |
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