Entries Tagged 'TIFs' ↓

Follow the Money; TenHaken & Soehl’s donor lists tells us who they will serve

Some of the Biggest Banksters and developers in Sioux Falls have thrown thousand$ at Paul and Curt.

PTH: TENHAKEN-Donor

CS: SOEHL-Donor

I always find it ironic when I hear certain candidates tell us what they will do for ‘US’ than read their donor list that tell us a different story.

The other night in the final mayoral debate, TenHaken made the comment that he felt we haven’t used TIF’s enough. I just about fell out of my chair. With 5 years of record building permits, why is it that we continue to handout corporate welfare to the developers? They are NOT hurting, just look at the money they threw at these two candidates.

We need to focus on bringing customer service back to ALL the citizens in Sioux Falls, not just the super wealthy. Council Candidate Zach DeBoer has proposed numerous initiatives that would lift up neighborhoods and support more affordable housing in Sioux Falls. Paul and Curt have proposed we stay the course with corporate welfare and TIF’s.

Some say the decision on Tuesday is a hard one. Just look at these donor lists, it will make your decision a lot easier.

With School Bond issue on the horizon, it’s time to end TIF’s

Let’s face it, with the Sioux Falls School District telling us that it is inevitable they will need to build new schools (though I would rather they spend the money on giving parents FREE birth control) that means our property taxes in Sioux Falls will be going up, ALOT!

I think it is time to either put a moratorium or to eliminate TIFs all together. Developers in this town need to start paying their fair share. With over $700 million in building permits last year, it is obvious that developers and investors don’t need a handout or rebate on taxes to develop, if anything all this massive growth is hurting us, with little payback to the city, county and school district coffers.

It is time WE ALL paid into supporting public education, and that means killing large, unnecessary TIFs once and for all.

TIFs have little impact on benefitting society as a whole

Dave Swenson, Associate Scientist, Department of Economics from Iowa State University recently did a presentation to Bon Homme County about TIFs. Through his research, Swenson has become critical of TIFs because he has found little to no benefit to society from TIFs.

FULL DOC: TIFs-SD

Important Slides from the presentation;

Here is a recent letter Swenson sent former Senator Kloucek on the matter;

Frank,

Economics says that we don’t interfere in normal market decisions unless we can demonstrate that we are improving the welfare of society at large.  We do that, for example, by reducing impediments to production or impediments to running a household.  When we do that, by timely investment in critical infrastructure that is widely beneficial to commerce and individuals, for example, we improve aggregate living standards.  If, on the other hand, we are providing public assistance for the purpose of enticing economic development.  Unless the region is suffering from chronic and high unemployment there is no justification in economics for the decision.  The only justification is political.  And society is not better off, at large, just the primary beneficiaries.

You cannot explain this to a typical government official, however.  That person usually does not understand economics or the relationship between government decisions and area commercial activity.  They think they do but they don’t.

There is a standard test that is often used: “but for” the activity of the government body, this commercial development would not have occurred.  Very good research has demonstrated that as many as four in five instances of government assistance to firms would have resulted in the firm developing there nonetheless.  That means that the government assistance was only locationally instrumental in 1/5th of the instances.

Assistance for housing, if it is targeted to low income and moderate income households can make sense if affordability is an issue in an area or there is an undeveloped housing market.  Politicians think, however, that “if we build it, they will come” in that housing stimulates other economic growth.  That is almost always a fallacy: houses are bought (apartments are rented) with income made from working – that’s the demand variable.  It has been our experience in Iowa that small and struggling communities have used TIFs for new housing and for apartments, but growth in those areas is usually meager.  The rest of the regional economy is contracting and is not able to employ enough people to maintain housing demand.  The other extreme is that suburbs of metros use housing development subsidies as a way to speed up growth as compared to other suburbs.  Here the subsidy is awarding the economy (developers) for doing what they would have done nonetheless because metropolitan economic and demographic forces would have yielded that demand nonetheless.

In my professional opinion, nearly all public subsidies for businesses or for housing are unnecessary, and it is very rare that the public gets paid back in the form of net fiscal growth sufficient to cover the initial subsidy.  That is not the way politicians look at it, but it is the way that economists look at it.

Put differently, the only way you can justify these things is by not asking an economist.

Dave Swenson

Chamber to host a TIF informational

I find the statement ‘TIF itself can be rather complex and confusing’ a little comical. TIFs are not complicated. They are basically a property tax rebate to private development. Funny how I could explain that in one sentence. Where it gets confusing and frustrating is when they hand this rebate to extremely successful and wealthy free enterprise private developers for property that isn’t blighted OR above and beyond what that blight is costing them to develop. It is also a little ironic that TIF recipients are often big campaign donors to the elected officials who authorize the TIFs. It’s a blatant conflict of interest, corruption and corporate welfare. It’s time we end TIFs. They don’t benefit the common citizen in any way. A better program would be more low interest or no interest community development loans to landlords who want to provide working class affordable housing. Read all about it;

Dear Community Leader,

You are invited to join Lt. Gov. Matt Michels and other state and local leaders in learning more about an economic development tool called Tax Increment Financing (TIF). TIF is a development incentive primarily used locally to redevelop blighted areas and grow the local economy. TIF is a useful economic development tool intended to attract private investment and new businesses, which in turn means more jobs, more customers, and a growing tax base. When used correctly, the benefit to our community seems to be straightforward—however, TIF itself can be rather complex and confusing.

With that in mind, we would like to take the opportunity to invite you to an informational “TIF Forum”. During this event, you will hear from:

*   Lieutenant Governor, Matt Michels
*   Secretary of the Department of Revenue, Andy Gerlach
*   Department of Revenue’s Director of Property Special Taxes, Mike Houdyshell
*   City Council Vice Chair, Christine Erickson.
This is an opportunity to simply learn more about TIF, how it works, and ask any questions you might have. We hope you will consider attending this event.

Tax Increment Financing Forum
Sioux Falls Area Chamber of Commerce- Betty J. Ordal Room
Monday, Nov. 13, 2017
3:00-5:00 p.m.

We kindly ask you to RSVP by responding to this email no later than Monday, Nov. 13th at noon. With limited seating available in the Chamber’s conference room, this event will be restricted to the first 45 people to RSVP.

Thank you,

Teresa Schreier
Public Affairs and Communications Assistant
Sioux Falls Area Chamber of Commerce
200 N. Phillips Ave., Suite 200
PO Box 1425 | Sioux Falls, SD 57101-1425
P 605.373.2050 | F 605.336.6499