City Approves up to $275 million in Tax Breaks for Developers
In 2016, city leaders approved a $275 million Tax Increment Financing (TIF) Request to assure developers interested in the Ford site that there will be enough public money available to reimburse them for building the site infrastructure (streets, curbs, sidewalks, etc.).
Since NEW income from new construction (commercial rent, apartment rental, etc.) built using this enormous tax break must go to bond holders, developers, the HRA or Port Authority for 25 years per the TIF agreement, new costs resulting from construction would need to be paid by the rest of the City's taxpayers during those 25 years.
Watch the video linked to this page for an explanation.
What the city has not yet calculated is the additional costs of providing services to this new neighborhood such as:
additional policing, fire and paramedic services,
repair of roads wasted by construction vehicles
and other costs.
Those costs would be paid for through increased taxes from existing city property tax payers.
This video click here explains why the City taking the equivalent of 10% of total tax revenues out of the public's hands for 25 years can be a real expensive proposition!
St. Paul TIF Districts
A PRICE FOR ‘TIF’
The Saint Paul School District Teachers Union has voted to go on strike beginning Feb. 13. All the issues raised in last week’s news report about that relate to a lack of adequate funding. There’s however no mention of a major reason for this. From my calculation, about $9 million each year is diverted from our public schools to pay debt service, for private development attributed to tax increment financing (TIF). This is done without School Board approval. The worst part is we are committed to this debt for 25 years from the start.
There is very little the city, Ramsey County and our schools have to show for this enormous ongoing expense.
John Mannillo, St. Paul
The writer is co-chair of Saint Paul STRONG