posted by Joe Polk at 11:03 PM /
The Allegheny Institute published a new brief today regarding the TIF issue being discussed for the Washington Park project. It's available on their web site at the link below:
Link: www.alleghenyinstitute.org/briefs/vol7no10.pdf
Link: www.alleghenyinstitute.org/briefs/vol7no10.pdf
Labels: municipality, TIF, washington park
6 Comments:
The prevailing wages part is very interesting. If true, that it would cost 30-40% more than the regular free market (I assume because we would have to use union), then this is business as usual.
Is it possible that the company wouldn't need a TIF if they could use anybody to build it?
Another interesting point is the galleria. The township cried that the boutique mall would never make it without a TIF. They are making it just fine. The problem is the only thing government can do to promte economic development is lower taxes or offer money. Lowering taxes is against their nature and offering money is so much easier. It's just a little bit from each taxpayer, but look what we get, a happy developer, laughing all the way to the bank.
In my business, if I do not have more revenue than expenses, I am out of business! Businesses learn about this harsh reality all the time. This developer should not be denied this learning opportunity.
If a nice building cannot be built in mount lebanon given the desirability and vitality of the area, how does anybody make it anywhere? How did jamesplace, woodridge, mainline and mainline II make it? Did the schools pay for their streets and sidewalks? Do we have the wrong plan? I would still rather see the money put into the elementary playgrounds than a streetside park and bus stop.
The school board can end the saga this month. Please!
I would like to see the downtown businesses revitalized..pedestrian bridges built over Washington Road...the Denis theater renovated....that is where the TIF money belongs!
The school board will hear a TIF presentation from Allegheny County on Monday evening (3/12). If you can make it, please stop by. (7:30 in the High School Library)
Or share your thoughts directly with the school board at schoolboard@mtlsd.net
Below are highlights of the recent plan:
1) The Washington Park project includes 72 condominiums (projected average sale price of over $550,000), 14,000 square feet of retail space, associated parking and open space along Washington Road.
2) Condominium owners of the Washington Park project will pay their ordinary property taxes to the school district and municipality just like every other property owner in Mt. Lebanon.
3) A significant portion (72%) of their “incremental” taxes will be diverted and used to pay TIF funded project debt, in lieu of being used for education and essential government services. (Incremental taxes are calculated as the difference between taxes payable on the properties today and taxes payable after the development.)
4) No taxes will be diverted from Allegheny County. The project does not meet the County TIF guidelines and therefore the County will not participate in the TIF.
5) The TIF Plan indicates “net” TIF proceeds of approximately $4.6MM for Washington Park. However, to net $4.6MM for the project, approximately $6.1MM will be borrowed.
$ 1,651,122 -- Parking Improvements
$ 1,301,251 -- Public Park (Plaza fronting Washington Rd., outside storefronts)
$ 1,088,329 -- Land Acquisition
$ 349,029 -- Utility Improvements
$ 155,801 -- Funded Soft Costs
$ 64,138 -- Intersection Improvements (Bower Hill & Washington Road)
$ 4,609,670 -- Total Project Uses
6) The total tax diversion over the life of the TIF will approach $9,000,000, including principal and interest payments. 82.6% of the diverted funds will be from the school district.
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