UPDATE: Is the TenHaken Administration getting ready to get ‘TIFaliscious’?
l3wis Well, that wasn’t to tough, they got Brian Allen at KSFY to roll over and talk about how great TIFs are. Funny, the important part missing from Allen’s story, the actual economic impact;
A KSFY review of active Tax Increment Financing projects in Iowa, Minnesota and South Dakota shows there is a dramatic drop-off in TIF usage.
You know why? Because several studies have been done showing they have very little economic impact. I also find if comical that Allen only interviewed PRO TIF folks and NO one who is against them. I also like how some in the interview talk about how South Dakota does them ‘different’. Good stuff. Yet there has been NO extensive study done in South Dakota showing the actual economic impact of them. Why? Because the results would be grim.
What other people don’t realize is that when we give wealthy developers TIFs we all pay more in property taxes to supplement them to fund things like our counties, cities and public education.
I think the TenHaken administration is gearing up to start handing them out, literally like candy. His COS, Beck, wrote the Sanford Sports Complex TIF while working for the city (the largest in state history) and she also wrote the most recent one while working for Lloyd Companies for the Cascade project that is mostly marketplace apartments.
Tonight the city is hiring a finance director who worked for the Costello Companies (a major developer in SF) who is also an expert in TIFs.
It is pretty clear to me they are getting us prepped and they are probably chiding our local media behind the scenes to talk about the ‘positivity’ of TIFs.
Let’s face it, they are simply a tax rebate for private developers who could easily pay the taxes with or without the TIF. We don’t have a growth problem in Sioux Falls. In fact we are developing so much and building so fast we can’t hire people fast enough. The city council even gave SE Tech $100K for more job training programs. This tells me we don’t need to be subsidizing growth and development in Sioux Falls, it actually tells me we need to find ways to slow this growth and concentrate on SMART-STEADY growth not FAST URBAN SPRAWL.
The TIF model in itself isn’t a bad idea, but I think it should be applied to cleaning up neighborhoods. Giving tax rebates to single family homeowners and small apartment owners to clean up the neighborhoods would be a better approach, and it would be a visible economic impact. When individuals have to spend less on taxes and divert that money to improving their properties and lives that means they spend more money on other things that help with sales tax revenue that truly impacts our community. Businesses who use TIFs to expand their businesses don’t pay sales taxes, they just collect them. Give the rebates to individuals who will actually use them to improve lives and contribute to sales tax revenue.
Let’s face it, TIFs right now are truly ‘Corporate Welfare’ and not much else.
UPDATE: Did anyone catch Dusty Johnson in the interview? Mr. Fiscal Conservative ANTI-WELFARE wants to raise the Social Security age gladly preaching the ‘WINS’ about TIFs? We know exactly what Dusty would do in Congress, handout to big business while stepping on the little guy. If I was the Bjorkman campaign I would be clipping this little piece of corporate welfare pie for a future TV commercial.
