TIF Fallacy #4: The transfer of tens of millions of taxpayer dollars to private developers is only for "public improvements."
The “public improvements” fallacy makes it sound like the tax money transferred to private developers will only pay for things that taxpayers would be funding anyway. THIS IS DECEPTIVE AND DISHONEST.
Here is a list of things that transferred tax dollars are allowed to be used to fund in the two projects being considered (documents from the Urban Renewal Authority):
- Parking garages for development’s tenants and customers on the developer’s property
- Building façade improvements
- Tenant relocations
- anything that makes the "area more attractive to private investment.
Bottom line: developers outside the crony capitalism district are responsible for building and PAYING FOR all “public improvements.” The only thing public about these “improvements” is the public tax dollars that are being asked for to build them.
Note: To date, only ONE of the nearly one dozen urban renewal area "revenue sharing agreements" actually places a restriction on the use of "TIF" dollars strictly for a truly "public purpose" that the developer wouldn't otherwise be obligated to pay for. The "Polaris Pointe" area restricts the use of sales TIF dollars from being used for developer costs and mandates that the funds may only be used for the completion of Powers Boulevard to I-25.