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TIF tiff

I'm pleased to hear that formal legal opposition is developing to the vast Tax Increment Finance giveaway Mayor Pat Hays has engineered in North Little Rock for developer Bruce Burrow and (to a lesser extent) a neighborhood redevelopment plan in Baring Cross. (The latter more fits the notion of addressing blighted neighborhoods, but the gradual build-out of residential property doesn't seem likely to produce the instant bump-up in property value and increased tax flow that typically make TIF projects work.)

The Burrow giveaway is the real outrage and it's being sold on lies -- that sales taxes somehow benefit schools and that robbing Peter (another retailer) to pay Paul (Bass Pro) somehow is a net benefit. The Burrow project also envisions capturing all the increased taxes on the development, including the base 25-mill charge for education that one court and an attorney general's opinion have said belong to the schools not retail developers. But, in NLR, they follow the law of Hays and Burrow, not the statute and Constitution. (The same with the notion that Supreme Court precedent doesn't apply to the new NLR ballpark, which, since it is leased to a private entity, should go on the property tax rolls and help schools, too.)

Bottom line: I was assured today that an unfriendly lawsuit will be filed for a declaratory judgment on what tax may be captured for a TIF and, I hope, whether the school tax can be taken at all, given the Constitutional bar of using money voted for schools for any other purpose.

Meanwhile, I'm trying to figure how the mayor was telling the truth when he told me a few weeks ago that the Bruce Burrow TIF district would be limited to the shopping center site. It appears from a map in the newspaper today to cover a vast area of several square miles. More explanation is needed.

Comments

Since the schools get what they would have received if no improvements had been made, its not a big loss for them.... HOWEVER

Why is one retailer (Bass Pro) being favored over competitors (Gander Mountain, Fort Thompson, and even Wal-Mart) located nearby?

We can't have a state religion but we can have a state retailer?

The idea of TIF was touted as a way to fund INFRASTRUCTURE improvements to make new development or redevelopment possible. To me that means building roads, widening roads, re-routing roads, adding or improving rail access, adding or improving public transit access, adding traffic lights, upgrading sewer and water systems, insuring adequate police, fire and amblulance protection and maybe even upgrading electric and natural gas access.

I missed the part where a giant strip mall is part of the public infrastructure.

I wish someone would put a pencil to it and figure how much money the school district is now getting from the Dark Hollow property and what the projected revenue will be to the city of NLR once the shopping center is open. Show me the money!

"...I missed the part where a giant strip mall is part of the public infrastructure."

I missed it too. But evidently it's required learning for city council members across the state.

Max,

I agree with you. If the Dark Hollow TIF includes all the oultying parcels and adjacent land (not just the Bass Pro Shop footprint) where is the benefit for the school district? They will see no new revenue from the increased property tax on outparcels and neighboring property. I t may actually cause a decrease in the Lakewood neighborhood property with all the traffic. Not a good deal!!!!

For the record, I believe the Supreme Court may have said retail stores were a part of the infrastructure when they upheld the use of eminent domain for a City to take residential property for redevelopment (part of which included retail. I don't agree with it but I think we are seeign more fallout from that poor decision

Anyone working in downtown LR and living in Sherwood, Jax, Cabot, and points beyond needs to work somewhere else.

You will just have your normal congestion coming in to town in the morning but in the afternoon when the Bass Pro Mall is open with extra entrances and exits in the zoo that already exists.

Dallas and Denver traffic jams will have nothing on NLR.

Hey, we'll be first in the nation in something else!

Seems to me that Gander Mountain should have already had their lawyer at the county clerks office filing a suit over this.

Bass Pro has made a fortune hoodwinking local governments. Their "shopertainment" concept makes eyes widen and brains go in to sleep mode. When will Pat Hays and Bruce Burrow wake up and realize that Bass Pro will only take existing biz from Fort Thompson, Academy, Lockwood's and Wal Mart. It will not generate new shoppers. The Bass Pro concept is overexposed. No longer a novelty. Mayor Hays, wake up. No TIF for Bass Pro. If the concept is so great Burrow will build it without subsidy.

Guys,, Fort Thompson, Gander Mountain, Academy Sports are all located in Sherwood and I am sure Mayour Hays doesn't give a rat's &%$ about them since none of thier tax money goes to NLIR. I also doubt Wa-Mart gives a rat's %^$ either unless Bass Pro starts selling groceries or electronics.

SamNLR,

Fort Thompson was once located in NLR and probably still would be today if Hays had not insisted on giving away the farm to Bass Pro. Academy and Gander built the Sherwood stores after the Burrow announcement of his Dark Hollow project. Giving sweetheart deals to retailers does have consequences.

70%er,

I think you're expecting quite a bit from Hays. He can't even manage to get critically important things done (like ensuring a 38% rate increase won't be necessary next time the city negotiates a new electricity contract).

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