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WHY do we continue to approve tax abatements in areas that are ripe for development? That land is valuable; a developer can make it work without the abatements.
It’s a disturbing pattern.
I respectfully disagree. Parking garages do not pencil in a proforma, but are necessary to create density. Therefore, without any tax abatement, there would be no project. I think we can agree that this project and those like it are good for all for a number of reasons (jobs, sales tax revenue, enhancement/beautification, etc), so in my opinion, this is a fantastic use of tax incentives.
Because we’re stubbornly tied to a property tax instead of a land value tax. The land should already be taxed higher, which would encourage development instead of taxing the improvements to land, encouraging empty lots and dilapidated decay.
I couldn’t disagree with you more, Rick.
Joe: the original intent of state authorizing legislation, which allows tax incentives, was to encourage development in areas that the free market couldn’t necessarily sustain with ordinary development proforma standards.
That is absolutely not the case with anything in the Nora area. Ask Kroger, Target, the new restaurants in the area–the region has consistently reinvented itself for 50 years. At huge increases in property value.
For every deferred property tax dollar, the overall taxes assessed in an area, are not reduced. The incentivized amount is thusly sucked-up by remaining property tax payers.
Incentives should be used exclusively for those areas where developers cannot succeed in the traditional development/mortgage market. A parking garage may be needed, but that’s the exclusive domain of the developer. If a garage is needed, the overall development should fund the construction of the garage.
Incentives like this used to be rare. Now there are paid brokers who traffic in these incentives, and they’re a part of many major developments. The drip-drip-drip effect of dozens (hundreds?) of these developments, city-wide, can also have the overall results of adverse effect on the city’s total budget. That’s how the rating agencies review pending debt offerings. It’s got to stop…and be used only for those areas where development would be stalled without incentives.
I would prefer to see home ownership there, if possible, for the long-term health of Nora. Those who own homes (or what would probably be condos or townhomes here) have a vested interest in keeping things up and upgrading as time goes on. While there are exceptions, many apartment complexes deteriorate after 25-30 years due to absentee or corporate ownership.
The plot has bene zoned commercial for almost 60 years. The city’s Comp Plan has supported that status all that time.
Not that the city pays any attention to the Comp Plan any more.
Rick… It has. I was responding to the proposal that rental apartments are part of this project.
GB: apartments are zoned in a category very similar to commercial zoning. It is not typical residential zoning. There might be a market for owned townhomes there….not sure….
What’s up with the lot that’s been empty (it seems like forever) across the street from this location, between KBD and Wendy’s?
No doubt this is a high profile, desirable parcel. The reason incentives should be considered is to get to a level of density, if desired by the neighborhood and city, that couldn’t happen organically. No idea if this is the right project for that parcel or not but no way a developer can build a project with this amount of retail and residential, including a garage, without help from the municipality.
It’s also worth noting that the property will pay increased annual tax payments over current payments as a result of this project being completed, just not fully assessed taxes until the abatement burns off.
Nora is a highly desirable, high traffic area. Property tax abatements until they complete construction and open up are explainable, but why should any business expect other businesses (their competitors) and their residential customers to subsidize them for 10 years? Are clawbacks included if these newcomers decide to move elsewhere when abatements expire?
Other communities have even acquired property, built streets and curbs, connected city utilities, and provided police and fire protection and educational services for years – all while new businesses don’t pay their fair share of taxes for all of that – only to have these new businesses move out of the community when the abatements expire. Meanwhile our legislature continues their long practice of shifting business taxes to residential homeowners.
A little bit of tax abatement goes a very long way with more and more homeowners – present company included. Ten years of services with the costs passed on to other taxpayers is much too long. Schools, police and fire protection services, public libraries, street repairs, and more are struggling just to stay even under the recent property tax cut legislation. The next time chuck holes are not filled fast enough for you, remember that property tax abatements reduce funds for street repairs and other necessary local government services.
Carmel is saddled down with 1.3 billion in debt and it wants to keep adding properties which will suck up resources without paying any taxes. The developer wants to get a free parking garage, tax abatement, and they will sell the property to someone else before the abatement expires. You will begin to see the beginning of Carmel real estate crash this year.