The school board will hear a TIF presentation from Allegheny County on Monday evening (3/12). If you can make it, please stop by. The meeting begins at 7:30 in the High School Library. Or (and) share your thoughts with the school board at firstname.lastname@example.org.
Bill Matthews, who has been tireless in his efforts to explain what the TIF is about and to explain why it's a bad deal for the taxpayers, has circulated a summary of the current proposal. I've copied the main points of Bill's presentation below:Tax Increment Financing (TIF)
Basics of the Zamagias Properties Final 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. Please see the allocation and use of TIF funds listed on next page.
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.Allocation and Use of TIF Funds
Washington Park Tax Increment Financing Plan
$ 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
$568,514 - Debt Service Reserve Fund
$502,514 - Capitalized Interest
$160,000 - Miscellaneous Costs
$140,000 - Legal Fees
$61,000 - Issuer Fee (1% - Redevelopment Authority of Allegheny County)
$57,951 - Underwriter’s Fee (0.95%)
$1,490,330 - Total Issuance Related Uses
$6,100,000 - Total TIF Borrowing
Labels: school district, TIF, washington park