<html><head></head><body><div style="color:#000; background-color:#fff; font-family:Helvetica Neue, Helvetica, Arial, Lucida Grande, sans-serif;font-size:13px"><div id="yui_3_16_0_ym19_1_1512799277599_3931"><span>Food for thought:</span></div><div id="yui_3_16_0_ym19_1_1512799277599_3931"><span><br></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in" id="yui_3_16_0_ym19_1_1512799277599_4049"><em id="yui_3_16_0_ym19_1_1512799277599_4050"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4051">TIF Accountability and outcomes</span></em><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4052"><o:p id="yui_3_16_0_ym19_1_1512799277599_4053"></o:p></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in" id="yui_3_16_0_ym19_1_1512799277599_4054"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4055">Many proponents of TIF argue that improvements made under the
program “pay for themselves.” That is, cities and towns assume that TIF will
spur new development, increase property values, and create new tax revenue that
would not have existed otherwise, which will be used to pay off the costs of
the development.<o:p id="yui_3_16_0_ym19_1_1512799277599_4056"></o:p></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;box-sizing: border-box;font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" id="yui_3_16_0_ym19_1_1512799277599_4057"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4058">This is a risky wager since it assumes that
“but for” the TIF, no development would have occurred in the TIF district and
property values would have remained unchanged. In reality, it is impossible to
know whether a project will successfully generate the anticipated tax
increases. It is also difficult to determine whether property value increases
that do occur in TIF districts were exclusively the result of the TIF.<o:p id="yui_3_16_0_ym19_1_1512799277599_4059"></o:p></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;box-sizing: border-box;font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" id="yui_3_16_0_ym19_1_1512799277599_4060"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4061">The “but for” provision in many TIF laws has
already been weakened to allow TIF to be used on almost any project. In most
states, TIF was originally intended for use only in areas deemed “blighted” or
“distressed” where investment would not otherwise occur. Many states have since
loosened their TIF criteria to allow TIF to be used to develop non-blighted and
affluent neighborhoods (see Good Jobs First's report<span id="yui_3_16_0_ym19_1_1512799277599_4062"> </span><a href="http://www.goodjobsfirst.org/sites/default/files/docs/pdf/straying.pdf" style="box-sizing: border-box" id="yui_3_16_0_ym19_1_1512799277599_4063"><em style="box-sizing: border-box" id="yui_3_16_0_ym19_1_1512799277599_4064"><span style="font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#BF2519;text-decoration:none;text-underline:none" id="yui_3_16_0_ym19_1_1512799277599_4065">Straying from Good Intentions</span></em></a><span id="yui_3_16_0_ym19_1_1512799277599_4066"> </span>on the weakening of TIF and enterprise
zone requirements).<o:p id="yui_3_16_0_ym19_1_1512799277599_4067"></o:p></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;box-sizing: border-box;font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" id="yui_3_16_0_ym19_1_1512799277599_4068"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4069">In the end, the “but for” provisions of state
TIF laws often fall by the wayside, allowing TIF to finance development that
would happen anyway. This results in a loss of revenue that could have gone to
pay for schools and local services. Given that the diversion of taxes continues
until the TIF district expires, which is typically 7 to 30 years, the long-term
fiscal impact can be quite significant.<o:p id="yui_3_16_0_ym19_1_1512799277599_4070"></o:p></span></div><div style="margin-top:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;box-sizing: border-box;font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" id="yui_3_16_0_ym19_1_1512799277599_4071"><span style="font-size:10.5pt;font-family:Arial;mso-bidi-font-family:"Times New Roman";color:#333333" id="yui_3_16_0_ym19_1_1512799277599_4072">. Every TIF agreement should also contain a
clawback clause requiring developers to pay back all or part of the subsidy if
they fail to meet their job, wage, and other responsibilities.<o:p id="yui_3_16_0_ym19_1_1512799277599_4073"></o:p></span></div><div style="box-sizing: border-box;font-variant-caps: normal;orphans: auto;text-align:start;widows: auto;-webkit-text-size-adjust: auto;-webkit-text-stroke-width: 0px;word-spacing:0px" id="yui_3_16_0_ym19_1_1512799277599_4074"><a href="https://www.goodjobsfirst.org/accountable-development/tax-increment-financing" id="yui_3_16_0_ym19_1_1512799277599_4075">https://www.goodjobsfirst.org/accountable-development/tax-increment-financing</a><o:p id="yui_3_16_0_ym19_1_1512799277599_4076"></o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_4077"><o:p id="yui_3_16_0_ym19_1_1512799277599_4078"> </o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_4079"><span style="font-family:Georgia;mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman";color:#393203;background:#F6F6F6" id="yui_3_16_0_ym19_1_1512799277599_4080">“Wait a minute! I’m paying taxes so that the Walton
family, the richest family in America, can be richer? I’m paying taxes so
the Cabelas out in Nebraska or Johnny Morris who owns Bass Pro can get
richer? That’s what my taxes are going for? That I am forced to
pay?” People don’t know about it. That’s the only reason this goes
on everywhere.</span><span style="font-size:10.0pt;font-family:Times;mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"" id="yui_3_16_0_ym19_1_1512799277599_4081"><o:p id="yui_3_16_0_ym19_1_1512799277599_4082"></o:p></span></div><div id="yui_3_16_0_ym19_1_1512799277599_4083"><a href="http://prairieweather.typepad.com/the_scribe/2008/01/free-lunch-davi.html" id="yui_3_16_0_ym19_1_1512799277599_4084">http://prairieweather.typepad.com/the_scribe/2008/01/free-lunch-davi.html</a><o:p id="yui_3_16_0_ym19_1_1512799277599_4085"></o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_4086"><o:p id="yui_3_16_0_ym19_1_1512799277599_4087"> </o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_4088"><span style="font-size:13.0pt;font-family:"Helvetica Neue";mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman";color:#191F24;letter-spacing:-.15pt;background:white" id="yui_3_16_0_ym19_1_1512799277599_4089">Well, what is tax
increment financing? I’ll tell you what it is. You go to the store with your
goods, you pay for it at Wal-Mart, and there’s a very good chance that that
store has made a deal with the government that the sales taxes you are required
to pay, that government requires you to pay, never go to the government.
Instead, those sales taxes are used to pay the cost of the store. And typically
in those deals, the project is tax exempt, just like a church. </span><span style="font-size:10.0pt;font-family:Times;mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"" id="yui_3_16_0_ym19_1_1512799277599_4090"><o:p id="yui_3_16_0_ym19_1_1512799277599_4091"></o:p></span></div><div id="yui_3_16_0_ym19_1_1512799277599_4092"><o:p id="yui_3_16_0_ym19_1_1512799277599_4093"> </o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_4094"><a href="https://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans" id="yui_3_16_0_ym19_1_1512799277599_4095">https://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans</a><o:p id="yui_3_16_0_ym19_1_1512799277599_4096"></o:p></div><div id="yui_3_16_0_ym19_1_1512799277599_3931">
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<!--StartFragment-->
<!--EndFragment--></div><div dir="ltr" id="yui_3_16_0_ym19_1_1512799277599_4097"><o:p id="yui_3_16_0_ym19_1_1512799277599_4098"> </o:p></div> <div class="qtdSeparateBR"><br><br></div><div class="yahoo_quoted" style="display: block;"> <div style="font-family: Helvetica Neue, Helvetica, Arial, Lucida Grande, sans-serif; font-size: 13px;"> <div style="font-family: HelveticaNeue, Helvetica Neue, Helvetica, Arial, Lucida Grande, sans-serif; font-size: 16px;"> <div dir="ltr"><font size="2" face="Arial"> On Friday, December 8, 2017 6:27 PM, Melinda via Electronic-lan <electronic-lan@lists.ku.edu> wrote:<br></font></div> <br><br> <div class="y_msg_container"><div id="yiv2944088824">
<div>
<div><font size="+1"><font face="Calibri"><a rel="nofollow" class="yiv2944088824moz-txt-link-freetext" target="_blank" href="https://assets.lawrenceks.org/assets/agendas/cc/2017/12-12-17/grocery-store-project-staff-memo.html">https://assets.lawrenceks.org/assets/agendas/cc/2017/12-12-17/grocery-store-project-staff-memo.html</a></font></font></div>
<div><font size="+1"><font face="Calibri">After reading this, I'm
pretty sure I won't live to see this happen. If it ever does.</font></font></div>
<div><font size="+1"><font face="Calibri">...Melin</font></font><br>
</div>
<div class="yiv2944088824moz-signature">-- <br>
<i>"The first lesson to be learned by every citizen who desires to
bring about a higher life in our American cities is that he must
take an active part in managing the affairs of his own city."<br>
</i>--Theodore Roosevelt, The Outlook Magazine, Dec 21, 1895</div>
</div>
</div>_______________________________________________<br>Electronic-lan mailing list<br><a ymailto="mailto:Electronic-lan@lists.ku.edu" href="mailto:Electronic-lan@lists.ku.edu">Electronic-lan@lists.ku.edu</a><br><a href="https://lists.ku.edu/listinfo/electronic-lan" target="_blank">https://lists.ku.edu/listinfo/electronic-lan</a><br><br><br></div> </div> </div> </div></div></body></html>