posted by Mike Madison at 11:14 AM /
At last Monday's meeting, the Mt. Lebanon Commission was set to review whether to participate on a committee to review the TIF proposal for the Zamagias development slated for the Washington Road/Bower Hill Road intersection. I don't know the outcome of the meeting, but Bill Matthews suggested that I post a link to a letter that he sent to the Commission in advance of the meeting, expressing deep skepticism of the economics behind the TIF. Here is Bill's letter. [pdf file]
2 Comments:
Something occurred to me with the juxtaposition of the recent issues on Blog - Lebo. That being the proposed Zamagias TIF and the appointment of the Assistant Manager to the Library Board.
The Assistant Manager’s appointment was framed in the press with Commissioner Humphreys’ contention of fiscal recklessness by the Mt. Lebanon Library. Something Commissioner Humphreys customarily holds in immense contempt – by any affiliate of the Municipality.
Yet when a developer comes forward, as Zamagias Properties did, proposing a project that returns $5,565,646 on a $2,000,000 investment (278% ROI), with $3,500,000 of the proceeds coming from a taxpayer funded TIF - the Municipality won’t even say “boo.”
When the pro forma was submitted showing an excessive return on investment - it should have been stamped “return to sender.”
Instead it is the Library that is challenged to tighten its belt and be responsible stewards of the public’s money.
I’m stumped.
BTW
The Commission did move forward with appointing 2 Commissioners and 2 Economic Development Council (EDC) members to a TIF Committee.
The School Board will take up the issue in June.
The TIF Committee is empowered to recommend a level of public assistance; in addition to "negotiate" with the developer the terms and conditions of any potential TIF plan. It can be like playing Three Card Monty - only with OPM (Other People's Money).
The final plan is then submitted to the Commission and School Board for final consideration.
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