Statler re-do deal is on the far frontier of tax giveaways _ dallas observer


Why do we have tax increment finance districts? They are used to create incentives to encourage redevelopment in areas where re-investment supposedly would not happen without the incentives. Futures market hours today The big argument for TIFs downtown has been the cost of taking asbestos out of vacant towers and then reconfiguring them as modern residential and commercial spaces. Usa today sports odds City leaders figured the only way to get anything going there was to give the developers a head start and lay off some of the risk.

Get it? Sure you do. 1 usd to chf Let’s pretend it’s you. Fraction worksheets 3rd grade You’re thinking of building a new house. Yahoo futures You plan on paying the city taxes on it, of course. Grain futures markets But you haven’t quite made up your mind on the whole deal yet.

An entity called the Downtown Dallas Development Authority has already sold $207 million worth of bonds in order to make advance TIF grants to Forest City, developer of the Mercantile Commerce Building. Call option in the money The Downtown Connection TIF — the same tax district backing the Statler/Library deal — is on the hook to pay off those bonds. Decimal operations worksheet It has promised to do so with the tax money paid into it by all of the projects included on its rolls. Dollar to pound conversion rate But paying off those bonds will soak up all of the money in the TIF for a long time.

So here comes Centurion, undertaking to rebuild the Statler and the old library, and of course they would like to get their own non-tax-payments paid back to them in advance, because that’s what Forest City got. Usd rmb exchange rate But, alas, the well is dry.

So Centurion goes to the entity in Wisconsin and persuades it to sell bonds — borrow the money, in other words — promising to pay back the bond-holders with the money Centurion has been promised, more or less, from the TIF district.

And let me say something important right here: I have read through all of the statements and declarations, including the one saying the deal is being examined by the IRS. Verizon modem password All of the risks and other pertinent factors are right there in black and white on the pages of those documents. Gender roles in society articles That’s why I did not call it squirrely before.

Nobody is saying the Wisconsin bonds are somehow city of Dallas bonds backed by the full faith and credit of the city. Exchange rate rupee to usd They’re not. Binary code decoder They’re a side deal, apart from the city, even though the city did have to give its permission for the sale.

They’re not rock-solid guaranteed by anybody. Stock market futures implied open The declarations state plainly that the money to repay them has to come from the TIF district ultimately and that the TIF district is subject to certain vicissitudes, both political and market. The box movie People who buy the Wisconsin bonds have to assume that risk.

But look at it this way, as well. Nok usd By giving its permission for its name to be attached to this deal, if not its faith and credit, the city has helped to create a whole new source of income, in effect, derived from tax money. Vnd to usd converter It wasn’t sweet enough to come do your deal, pay your taxes and then get tens of millions of dollars of your tax payments handed back to you later. Binary code translation Now you can get the tax payments before you make them. 1 usd to rmb Before you even develop.

And if Forest City could get that deal from the city and now Centurion can get it from some entity in Wisconsin, then why won’t everybody who does a development in Dallas want it from somebody? I want it. Usps shipping supplies You should want it. Exchange rate usd to rmb If we don’t get it, somebody from Wisconsin will.

The other side of the case is this: The people at City Hall who administer the TIFs and the developers who get money from them will argue that TIFs are spurring a level of development to take place that would not occur absent these incentives. Exchange rate us to canada And they could be right.

The only numbers for measuring that, however, come from that part of the city staff that gets paid to run TIFs, and even their numbers seem pusillanimous. What is a binary number The current roster of TIFs will divert $1.15 billion from the city’s general fund — money that would have gone into city coffers but will go back to developers instead.

I’ve always had a queasy feeling about even those numbers, because the county appraisal district’s numbers show a citywide growth of over 10 percent last year, which would mean the TIF districts did slightly worse than the citywide tax base.

But, look, let’s split the difference and agree that no one has ever taken a hard objective arms-length look at his whole tax give-back concept. Convert idr to usd Does it really make money for the city? Or is it one of those big leaks that explain why a burgeoning city is on the verge of bankruptcy?

As I said, the IRS is looking at the Statler deal, but, according to the disclosures, the feds are looking at whether the proceeds of the bonds sales should be taxable as income, not at anything to do with the underlying legitimacy of the deal itself.

How about this as a homework assignment for our new city manager? He goes to an arms-length outside examiner with serious cred. Commodity futures price quotes He says, “Dallas is now enabling a kind of futures market in tax refunds. Usd to nzd Is that a good idea?” I know I’d be on pins and needles waiting for that report.