The true magic of Tax Incremental Financing is that no one can really explain how it works. The Assessor’s Office can not explain it. The Harrison County Commissioners cannot explain it. Doubt me? Then ask them. Ask them how the money is incrementally raised by increasing the tax assessment, collected, given back to the developer (?) and then paid to the bond holders? Or, does the assessor give the money to the Commissioner’s who pay the bond holders.
Or does the developer like Charles Pointe and White Oaks give permission to the Assessor to now raise the assessment because they have a bond payment due, and, oh, by the way, this is how much we need to raise so put the right variables into your state provided computer assessor’s software to be sure that the right amount of money is paid to keep us out of debt? And will the County Tax Equalization Board now have a conflict of interest in hearing complaints about the unfair raising of taxes on property within a TIF district because the Commissioners are now partners in the favoritism of the rich developer?
Our newspaper tried explaining how it works but the details are absent. 1) The property value is frozen (isn’t this true for all property owners until the next assessment?) with the creation of the TIF. 2) values increase because of development. 3) This incremental increase in value is set aside. There you have it. Except for who sets it aside? Where and how often is the increase in value determined. Who in the county government does the planning and directing of this? Who is in control of the TIF process?
Your Commissioners and your Assessor do not know. Really. Ask them. Ask all four and you will get different answers each time you ask. But Jaime Corton knows and Jack Keeley know. Why? The have hired good lawyers. Your County Commissioners however, never hired a lawyer to look after the tax-payer’s interest. They wanted to save money on lawyers. They relied instead on the lawyers of the TIF applicants to be told how this works. They are still in the dark.
Had the Commissioners exercised due diligence in getting independent legal advice they might have included a couple of sentences in a TIF agreement that would benefit the entire County. Here’s an idea. Prohibit any current tax paying business, now paying taxes to the County from being part of the TIF’s bond pay back plan. The purpose is, if you are a “new development” then do “new development”. Depriving the tax base of the County by moving existing property payers under your TIF umbrella is not “New Development” . If you can’t do new development. Get out of the business.
You cannot believe the Assessor or any of your Commissioners when they tell you that this will not have any effect on taxes. It does. The TIF district owners pay less to the County so that you pay more. Remember the school bond concept? Over-time with an expanding economy and growth the cost of the bond would have been spread over more tax payers. Not within the TIF it won’t. There increases in taxes go to the TIF owners to pay $97,000,000 in bonds that you allowed your Commissioner’s to give to Jaime and Jennifer of Genesis Partners.
Calling all Democrats! Iraq war aside for a moment. What has been the NUMBER ONE thing the national Democrats have been criticising George Bush about? ANSWER: Tax Benefits for the RICH. What are your local Democrats in the County Commissioner and Assessor’s office doing? ANSWER: Providing Tax benefits for the RICH!
Filed under: A Few Great Men, Area Business, Charles Pointe, City Council of Bridgeport, Economic Development, Elected Officials, TIF |
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If these guys are funding their own bonds it is fraud. There is no way to know whether they are or they aren’t. That information is not available. That money trail is top secret.
A 30 year TIF makes no sense. Eastpointe had a 10 year payback. That makes sense.
It is not the TIF process that is necessarily bad. State and local governments are not spending money on infratructure like they used to. It is the lack of oversight and willy nilly rush to get the money from the companion sale of tax exempt municipal/county bonds to get the $$$ up front that is the potential detriment to the public. It is one thing to have a ten year TIF that is funded as the development moves along through the increase property tax payments on the improved property. It is totally another to have a multi-million dollar bond that has to be paid back to bondholders 30 years from now that is scary. Thirty years of losing taxes to the developer is a lot worse than losing ten years of the taxes.. It is especially scary when the issuing local government does not have any mechanism for oversight, or even knows how to look for the information to conduct oversight. It will not matter how many statutes say that the local government is not liable for paying the interest on or paying the bonds back, if the money is not there 30 years from now (or the poopoo hits the fan before), the local government will be the first name on the bondholder lawsuit alleging securities fraud. The lawyers and accountants and such will already be in the Bahamas. Heck, if it can be proved that the individuals that voted to issue the bonds knew of funny business, their names (or that of their estates) could be named…..oops! I guess the horse is already out of the barn on the Charles Pointe deal.
who writes these bonds? does comvest aka Jim Christie? If he does how much commission does he get?
Sounds like someone’s making a lot of ca$h!!!! but whom????
Barney: these guys are doing multimillion dollar developments without using their own money. They’re using your money, dude.
is it legal, this Tif?
Can I build a new home using this Tif concept? Will I be excuse an increase in my property taxes for the next 30 years? Tell me someone, I want to take advantage of this if it is legal!!!!!! This Tif!!
barney you are a moron