TIFs

Further proof TIFs produce NO economic growth

l3wis December 5, 2018 0Comments

Once again, we are probably going to break building permit records;

With one month left in the year, the valuation of building permits in Sioux Falls is $4 million shy of the 2017 record.

Permits through November totaled just less than $735 million. At the same time in 2017, it was $663 million. That year ended with a total of $739 million. In 2016, the total was $702 million, which also was a record.

As I have pointed out, further proof that the development community doesn’t need tax incentives like TIFs, they are flourishing on their own. Some would even argue our fast growth may hurt us in the long run.

So another TIF study, this time in Missouri (St. Louis and Kansas City) shows there is very little economic impact from TIFs;

Overall, the analysis conducted in this study finds no support for the claim that TIF generated tangible economic development benefits in either Kansas City or Saint Louis. In other words, we do not find evidence that the use of TIF generated economic development opportunities that would not have arisen in the absence of TIF.

This article I think says it best;

Until cities and states adopt meaningful reforms, we can expect developers to continue asking for taxpayer subsidies whether the need is real or imagined. And as long as politicians are willing to oblige the developers, taxpayers will be all the poorer.

I couldn’t agree more.

More reasons why we don’t need TIFs

l3wis November 12, 2018 4Comments

There was a couple of stories today that show when developers in the Sioux Falls area want something, they suddenly have the money to pony up.

First the 85th exchange;

The project got through the IJR at the speed it did because the area landowners upfronted the money to pay privately for the report to be compiled.

They are committed to investing $4 million to get the project through federal approvals and initial design.

“You have a consolidated group of motivated businesspeople who own a massive piece of ground that’s going to open for commercial development,” said Jake Quasney, vice president of real estate and investments at Lloyd Cos.

Isn’t it funny, when there are millions to be made, the developers have all kinds of upfront cash to get what they want done and pushed through.

Just look at Journey’s $1 million land ‘Donation’ to the SFSD;

The district’s school board made the decision Wednesday for about $4.3 million and accept a $1 million donation from the company, bringing the total cost closer to $3.3 million.

Was this a ‘donation’ or just incentive to secure building a $90 million dollar High School (and possibly other facilities?).

With record building permits again this year, and all this CAPITAL the developers have to help secure future projects, one has to wonder if TIFs are even needed anymore in Sioux Falls?

Short answer; NO.

Record Building Permits only prove TIF’s are NOT needed

l3wis November 1, 2018 2Comments

Here we go again, record growth and record building permits;

The city of Sioux Falls has surpassed $700 million in building activity through October, continuing a record-setting pace.

In the first 10 months of the year, the city has issued $701.3 million in building permits, up from $624.6 million for the same period in 2017.

The record for building activity was set last year at almost $739.3 million.

It is further proof that developers in Sioux Falls don’t need incentives like TIF’s, which are gigantic, long term, tax rebates. If anything, with this kind of growth, we should be raising fees and taxes on developers and putting that money towards technical education or better yet tax cuts for the rest of us stiffs.

Just a thought.