It does seem like the City of Janesville has once again chosen to abuse the TIF economic tool regarding the plans of a local developer. With the Five Points redevelopment plan, at least they placed a TIF where it belongs, in an existing economically depressed area and not in empty fields on the outskirts of town. They got the location right this time around, but again have chosen to ignore some basic TIF principles and have put the buggy before the horse.
JG Excerpt:This paragraph has been the Gazette’s cookie-cutter explanation of what a TIF is for the past few years. It explains nothing and doesn’t come close to addressing the larger tax burden placed on those living outside the TIF. It also says nothing about city guidelines or the recipient attributes necessary to qualify for a TIF. Considering how loosely city management uses TIF's, I wonder how much of Janesville is a TIF district?
The city creates TIF districts and sets existing assessed values and taxes as a baseline. Any increase in property value within the district resulting from development is an "incremental" increase in taxes above the baseline. All or part of the increase is used to pay for infrastructure improvements for that district.
Not always, but usually an area is chosen for rehabilitation by the city leaders first, AND THEN a TIF district is created to entice entrepreneurs, businesses and developers from outside the city and even the state. The idea here is to bring in NEW jobs that did not exist previously, not merely shift jobs around within city limits. But when a developer buys up properties and businesses first in a non-TIF district and THEN approaches the city for TIF money and gets their way, the city eventually hands over control of its destiny to the whims of the private investor. Allegations of collusion result, insider information is compromised and even blackmail is often assumed.
JG Excerpt:Whatever his reasons, once again I am pleasantly surprised by Councilman Williams position on city matters. He is willing to stand up for city taxpayers and has proven to have an excellent command and awareness of important issues. If I had been on the city council, I too would have voted "no" and given the same reasons.
Councilman Paul Williams was the only council member to vote against the TIF agreement. He said the 15-year TIF payback is too long. He also said he is not comfortable using TIF money for retail development.
Janesville basically operates leaderless and is democratically dysfunctional, Williams would make a great candidate for mayor – if we had a mayor.
JG Excerpt:Although I don’t agree with her in many areas, I have to hand it to her, she is openly playing full-time citizen and not afraid to speak out. That is important.
One Fourth Ward resident, K. Andreah Briarmoon, argued that federal block grant money should be used differently to benefit the inner city neighborhoods rather than for Hendricks' development. The neighbors need a community center, not a grocery store, she said. Or the city could buy two windmills to lower the cost of energy in the neighborhood, she said. The money should not be given to a "... dude that's wealthier than Oprah," Briarmoon said.
But a recent letter writer to the Gazette responded to Briarmoon and set her straight about the "dude" Ken Hendricks.
JG Letter Excerpt:I don’t know how billionaire venture capitalists working deals for TIF money can be classified as regular guys. On the other hand I also doubt that if Hendricks was just a near penniless regular guy, would he be trying to do the world some good as the letter writer implies. Make no mistake, Hendricks is right there when it comes to turning a deal for a buck, that some good may come out of it all depends on whether others are willing to take a greater risk.
And while he may be worth more than Oprah, he’s just a guy like anyone else, trying to do the world some good, which is more than a lot of people can say. – Letter writer
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