----- Original Message ----- From: <[EMAIL PROTECTED]>
This is flat out wrong! TIF (Tax Increment Financing) allows >cities to remove increased tax generated by a new development >and capture it for the city. Not ONE DIME of the tax revenue >that previously been coming from the property is lost from the >county or school district.
I can just see Dennis Hill pulling his hair out saying, "OMG, here she goes again on TIF!"
As Chuck knows, a lot of commercial property has been "redeveloped" that isn't exactly "blighted" or polluted. But the law is conveniently very loosely worded so a lot of questionable things can be thrown in there.
Also, some properties already in some TIF districts, can just keep getting redevelopment loans from the City, adding on or redoing their existing structure, and extending the time period the school district and county cannot levy local taxes on them.
After a property is 20 years old, and it finally comes out of TIF (if the property hasn't gotten another redevelopment loan in the meantime), it may be worth a whole lot less. Might even be a "blighted" property by then.
TIF also changes the demographics of a community CONSIDERABLY. Which also effects a school district. More jobs=more people=more kids. If the jobs are on the low end of the wage scale (like for retail), that also has implications as far as free and reduced lunches, kids with special needs, english as a second language, etc.
In the Law, Cities are supposd to ask School Districts and Counties for permisson before they move ahead and give Tax Increment Financing. Even when School Districts or Counties voice objections, the cities move ahead anyway.
It's a dumb law (written vaguely so it is easy to abuse)set up to benefit a very few. And if it wasn't, the amounts that are spent on TIF each year in Minnesota would be available tothe public.
How much does St. Paul subsidize businesses each year? And if these taxes that are captured were available to the School District and the County, how much of a difference would it make on everyone's tax bill?
Renee Jenson Como
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