We already know that special interests run city hall in Sioux Falls, and they have a few (most) councilor’s balls in a vice, but when I heard this idea at the economic forum, cheerled by councilor and developer Gregg Jamison, I thought it would go nowhere. Well guess again;
The idea – still in its infancy – would enact a broad, temporary tax abatement program in the city. In essence, the program would give builders an incentive to start projects now on the promise of lower property tax bills once they’re completed.
Here’s the deal. DEMAND drives commercial development. If businesses need more office space, contractors will figure it out and build more office space. What a concept? Huh?
The details of abatement programs vary, but they generally work something like this: Without an abatement, a developer who builds an office or apartment building would begin paying the full tax bill on the property once it’s completed. The property taxes on the same building built under an abatement program would be phased in.
So I am guessing this is similiar to the program I got when I bought my first home? Wait. That program does not exist you say? Well why not? Because the little man gets his taxes increased on bread and milk so the big man can have FREE MONEY from the city coffers.
[youtube]http://www.youtube.com/watch?v=4-Ve19tbxlQ[/youtube]
And of course, Gregg, SPECIAL INTERESTS, CITY LEAKING MONEY, AC/DC SHIRT WEARING, REAL PEOPLE DIE IN FLOODS, HANDOUTS NOT HAND UPS, WASHER AND DRYER IN EVERY ROOM, LISTENING TO DADDY’S TALKING POINTS, Jamison thinks it is a swell idea;
The idea originated in a community forum of local business leaders who were exploring options to help the economy and community. The forum was the idea of City Councilor Greg Jamison.
“I think any idea to help stimulate the economy is worth looking at,” Jamison said.
Wanna stimulate the economy? Bring high paying manufacturing and technical jobs to Sioux Falls. Have tax incentives for people buying homes in older neighborhoods that are willing to fix them up. Invest in the citizenry first, build the city from the bottom up, not the top down.
We know how Reagan’s ‘trickle down economics’ worked, we are climbing out of that hole right now. Sorry, Gregg, there is no such thing as FREE MONEY unless you are a dirt poor rancher in Winner, SD.
This is beyond stupid. There is a glut of residential and commercial real estate – a huge glut. Nationwide, the real estate market won’t begin to recover until about 2012 to 2013. The median home price in Detroit is $6,000. That’s not a typo. http://globaleconomicanalysis.blogspot.com/2009/06/im-trapped-in-my-house.html
The last thing we need to do is subsidize more unnecessary construction. The party is over. The quickest way to reduce the real estate glut would be to bulldoze over 1.5 million houses and commercial buildings. A bank that repoed a development in California did just that rather than sink more money into completing the development. http://abclocal.go.com/kabc/story?section=news/local/inland_empire&id=6797624
While the SF market is not as out-of-kilter as is the national; subsidizing more building will not make it better.
Yeah, we need more overbuilding like we need another bailout.
http://www.nakedcapitalism.com/2009/06/low-interest-rates-lead-to-overbuilding.html
I agree. While the city council and mayor are busy raising taxes on food and our property taxes to pay for roads on the edge of Tea, SD for developers, they are suggesting we give MASSIVE tax breaks to developers to encourage them to OVER-DEVELOP, it is insanity and completely stupid. But look who is pushing the plan, Mr. conflict of interest himself, Jamison, a developer, who ironically has a stake in a development company that is behind on their property taxes because they bought land too early in hopes they could turn it quick. This would benefit them directly.
I also shook my head when I opened the Gargoyle Leader this morning and saw all the developers and their friends voted in the online poll yesterday to unfairly tilt the scale. The results were so ridiculous, you know it was rigged. First off, 6,632 votes is a huge number for an Argus poll, especially on a Saturday, secondly the results 93.9% in favor of the tax cuts is hilarious. I hardly doubt if the actual citizens voted for this it would be that many in favor.
What a joke.
First, the city is not a democracy nor is it socialist. It is a sophisticated but legal syndicate similar to the mafia. Second, citizens pay protection money to the godfathers. Third, you’ll not find fairness in the sovereign nation known as the City of Sioux Falls. Encourage anyone moving here to live in Brandon, Harrisburg, or Tea and shop in Minnesota. The developers were not ready for a downturn and they’re embezzling from citizens. Residential real estate may recover. The commercial collapse is just getting started. When taxes are very high and services are even worse, we’ll move but return occassionally return scavaging for fire wood from the remnants of what was a fine city.
WTF? Tax abatement for contractors?
Drive around town – there’s new stuff going up all over the place without any special tax incentives.
PLUS – in nearly every strip mall there’s at LEAST one empty store – like an empty socket where a tooth used to be. (Linens ‘n’ Things comes to mind… Klocker’s… )
In SOME places there’s an empty building sittin’ there while they’re putting up a brand new one just across the street! (Like on 57th, ironically, due south of Lloyds)…thus: where’s the need for tax breaks to spur new development?
And, as I understand it, there are already several contractors that are a few years behind on paying their taxes – to the tune of a few million dollars, no?
So… tax abatement for contractors? WTF?