Willow Creek TIF

Today, County Commission will consider whether developer Tim Graham's request for a TIF should be passed to the Industrial Development Board (IDB) in order for the latter to create an economic impact study. The Willow Creek shopper center in Halls will be anchored by a Lowe's store.

Graham is asking for $5 million to be repaid over 15 years from the incremental taxes that - per the proposal - will be generated in the TIF plan area. The plan area covers 1,320 acres and includes 359 taxable parcels, mostly residential properties. Essentially, the idea is that increased property values will result in higher taxes for the county. Graham gets the money for road upgrades to improve access to his shopping center.

Is this a good idea? The historical rationale for granting TIFs was to improve blighted areas. The "but for" provision has likewise traditionally played a role, i.e the imrovements would not occur "but for" the TIF money.

The Graham TIF fails both tests. The site of the shopping center is by no means blighted, and the project will go ahead even without the TIF money.

Commissioner Mark Harmon recently characterized this use of a TIF as "maximizing profits and socializing losses. Graham has publicly admitted that his project has run into financial difficulty. This TIF smacks of a bailout.

If you agree, let your County Commissioners know. Their action today will not approve the TIF, but it's the first step in another developer handout.  

Comments

[bird_dog]

Historically, haven't the TIF areas been limited to the particular developed property? This TIF area is excessive, regardless of the Blighted issue.

[Larry Van Guilder]

BD: I think you're correct on the first point, and there's no doubt you are correct on the second. This is developer welfare,

LVG