(Ed. note. It has been almost a year since this first RDA meeting on 1-20-2006 on the Economy Store. Many issues have been solved. Some remain. This is a nostalgia post in preparation for the meeting tonight of the RDA. The Observer will be provinding full coverage of the event. See you there.)
First, I want to thank all those citizens and readers of the blog who came to this meeting. It was an important meeting for the future of Evansville. It was also important because even if the answers were not there, many of the key questions were asked.
The meeting opened with Mr. Connors passing out the spreadsheet mentioned in the previous post. He provided an overview by saying that the objective of TIF #5 was to provide substantial capital projects in the first couple years of the life of the TIF that would provide substantial tax increment to complement the infrastructure projects in the later years of the TIF that would not have increment. This would be the WIN-WIN situation.
Then the meeting commenced and the first two projects, namely the Nelson-Young fence request for assistance of $11,000 of a $33,000 fence project cost and the Berg, Farnsworth, Brunsell et al project of the Economy Store which had a request of 25% of 1.9 million or $450,00 which did not have any increment that one could measure---at least from the figures presented, which were none in the case of the Economy Store. Observers were just a little stunned by the developer's request to commit by the Redevelopment Authority on such sketchy info, but they did, with many stipulated conditions----namely all the details.
The most stunning fact, or possible fact, was that although the total expense of the project was 1.9 million, it might only appraise out at 1.2 million. The developer group stated that they would guarantee that they would agree to pay taxes on the total amount, despite the possible lower appraisal. Legal types observing wondered whether that might be struck down quickly. It was not clear that the project would generate increment or when. Observers wondered whether this would be a LOSE-LOSE project because the risk to the developers was also large. Mr. John Decker went over the numbers on the risk to the developer group on such an investment.
The vision of this project is not of 20 years in the Observer's view. But more like 100 years.
Mr. Berg stated that it is realistic to see that the impact of the closed upper East Main street would be even worse than that of the Hwy 14 project and that little if any business might survive. The New Economy store would be the anchor of the new beginning.
The question was posed whether this new beginning at "ground zero" should be new or restored construction. Nobody wanted to really face the question although all realized that this was the bottom line.
Mr. Berg explained that the number of apartments possible on the upper floor has been cut to eight. There is also a concern about the structural integrity of the building in that one side may be "bowed." He said that it is possible that a negative "surprise" in the next phase of design and costing might just doom the project. So. Is it a bold vision or an impossible dream? I cannot say. Stay tuned to the Observer for details as they develop.
If you attended the meeting, and wish to add to these minutes or clarify or rebut parts of these minutes, feel free to use the comment line.
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I couldn't stay for the entire meeting, but it seems there are a lot of unanswered questions and it appears that the RDA would like those answers before a final approval.
ReplyDeleteI don't think a TIF should be viewed as a government handout. If my understanding is correct, bonds will be purchsed by the city to cover the cost of the $450,000 (or in reality probably for the full amount of all of the projects for this TIF district). The building will then be assessed at $1,900,000 (even if it assesses at 1.2 million, but the legality of this is apparen tly being investigated as far as taxing the full amount if the assessment falls short).
The additional tax revenue generated by the increased property values from the properties involved will pay off the bonds. I am sure there are some risks that the property tax payments could go into default and the cost could be passed onto eveyone paying property taxes in Evansville. Answering the additional questions will give the RDA/Community a better idea of how much risk there is for the community to partially finance this projects through TIFs.
I think it is unfair to think of the TIF as a handout. I didn't do any research, because I am sure someone here can correct me if I am wrong. Can someone clarify how this will work if my understanding is wrong?
Thanks,
Mark
The chances of getting another VP, Stoughton Trailers, Baker etc. is going to be very tough.
ReplyDelete1. Employable people in the region. We have not only these businesses above but there is a GM plant east and Madison north.
2. Our location is not very good for shipping reasons. Large industry likes to be near major highways. I as a family like our location here, but if I was making a decision on a business we are just too far away.
If we had a horrible unemployment problem in the region I to would push for a larger business in the community. Also our taxes as a state do not favor this as well.
I think they certainly are putting this out for a vote well before they have everything in line. From my past observations of Evansville City Government, my concern is that this is supposed to be just the first step in a series of votes they need to get through, but once the ball starts rolling it is considered a "done deal" and it is hard to stop it once it has started rolling.
ReplyDeleteMy concern is now that they have their foot is in the door it will be assumed to be a "done deal" and everyone will go along with it. In past projects I have watched it seems that once something gets through the first vote, everybody seems to take the remaining steps as a formality and no one seems to put much thought into their vote (admittedly I may be off base here, because I make this statement from the standpoint of attending planning commission meetings). I hope the numbers are scrutinized once they are available to make sure that this project is a good use of TIF money.
If the numbers work, I think the buildings will certainly be attractive and they can be an asset to the community.
As I mentioned in another post, I think someone needs to do some heavy recruiting of business to make sure the buildings don't sit empty. Right now it has a "field of dreams" feel to it.