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The Madison City Commission will discuss changes to the Tax Increment District plan it approved last November. The original price tag was $203,485. MDL reports that the commission will discuss a supplemental resolution to cover the new cost of the project: $330,000.
O.K., prices have gone up since November, but a 63% increase in the debt taxpayers will assume on this private development? Uff da! Maybe the city commission needs to take time at its Monday meeting to ask whether this is really the bill of goods they were sold back in November.
I'll have more on this later, after I've done some reading. The May 19 city commission agenda has some details you can read for yourself. (Maybe I'll even be able to bum a look at someone's copy of the LAIC's housing study, which is still available only to folks willing to fork over $250.)
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For $330,000, our City could purchase a larger parcel of land on the city's edge which would provide for truly affordable housing. Then, if Randy Schaefer wants to build some homes, the city can sell lots to him at cost. What makes more sense? Four acres of flood plain creek bed that will benefit one private developer, or 80 acres of development property that would provide up to 320 new affordable homes for Madison? The city's borrowing power will be nearly depleted with this TIF and if it fails, the city (taxpayers) are holding the bag. Not good business to focus on helping the guy who helps himself to our pockets.
ReplyDeleteI spoke with the mayor 2 months ago about the TIF. He said only 3 people had voiced concern to him and further he wanted to see those houses built (although he had not seen the LAIC housing study either). After researching the TIF none of it made sense to me so I wrote a letter to the editor and made more comments to the commissioners. Cory's readers have made thoughtful comments previously on this issue, so might I suggest they leave an email for the mayor/commissioners on the city web site. HomeViewSiouxFalls site shows 29 homes (49%) below the LAIC benchmark of $122,000 for affordability. In my opinion the developer is the only one who benefits from this TIF. - John Hess
ReplyDeleteFirst of all, Mayor Hexom doesn't fully understand the TIF. He wasn't present for the meeting in December. This project, before the price increase, placed the City within $200,000 of its total borrowing capacity, which is dangerously low. The Commercial TIF will take future tax revenue away from Madison Central School District for the next 20 years. That's $330,000 of property taxes that will be paid to the developer instead of our schools, which means taxpayers will pick up the difference. How can anyone justify $330,000 in infrastructure plus $1.23 Million in construction for seven houses? That's $1.5 Million invested in seven homes, or just over $200,000 each. Affordable housing? I hope the City Commissioners and Mayor Hexom take a longer look at the viability of this project, its location next to a flood plain, and its negative effect on our school district. According to LAIC director, Dwaine Chapel, LAIC is buying the first house from Randy Schaefer. Is that what Madison's development has become? A bunch of good old boys greasing each others palms, moving money around from one hand to another? Come on folks, let's make decisions for viable housing projects that benefit our community. How about a TIF to redevelop the Rosebud buildings since we now have about six downtown buildings vacant. Let's revitalize downtown.
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