Git yer nose outta my TIF!

I started this as a reply to an anonymous commenter. As I kept typing I realized it was fast becoming a post all its own, so here goes... Anonymous said... Mark,What do you think about the argument that the city shouldn't care about the performance of TIFs that aren't backed by city bonds because the developer is taking the risk, not the city? Anonymous, First of all, risk is not the only factor to consider. The developer is controlling taxes that but for the TIF agreement would be going into the City's general fund. I think any project that affects our tax revenues deserves constant scrutiny. Especially when those TIF funds are used to build a parking garage. I think in all the talk about "blight" and "corporate welfare" people have lost sight of the original intent of funds created by TIF. TIF was a way for the developer to insure that infrastructure around their project received the proper attention based on the funds that project generated. To borrow from my good friend Al Gore, it was supposed to be a "lock box" that kept politicians from diverting those funds elsewhere. The developer was assured that he or she would have nice sidewalks, curbs, streetlights etc. It seemed like a fair idea. Why shouldn't I as the developer be able to demand good infrastructure around my project? Especially if I'm building in a blighted area. What happened along the way is someone figured out how to call parking garages public infrastructure. Open them up at night, let the public park for free and voila! A multi-million dollar parking structure is now in the same category as a street light. A multi-million dollar parking structure that instantly upgrades a developer's building from Class C to Class A office space allowing he or she to demand much higher rents. So to answer your original question anonymous, I don't think much about the argument that the developer is taking the risk and not the City. We're all taking a risk every time tax incentives are used. And every time a developer comes to us with hat in hand asking for help, they should be expected to open their books and give us full access to their numbers. Once we the citizens give them, or give them control of tax dollars we become partners. As such we the taxpayers should demand full access to their (our) financials. I expect no less when I purchase shares in a publicly traded company. I get a prospectus every year that tells me what that company is doing with my investment. We are after all, partners.