Super TIF, look mom I can make a comic….

Well its time to pull up a chair, get out your pen and paper, because class is about to begin. No matter how much I have written, what discrepancies I have tried to dispel, or what truths anyone else has attempted to lay at the feet of the University Heights community; we are still bombarded with half-truths, misinterpretations, and falsehoods. My count this morning yielded 13 yard signs of differing degrees of misconceptions. Now I will be completely willing to accept the “No TIF” sentiments because at least those simply state a personal opinion and objection. My first main contention lies with the creation of the term “Super TIF”. This conception makes it seem as if this extraordinary TIF is going to sweep in and empty the University Heights coffers in one fail swoop before taking to the sky again and vanishing with all of our hard earned tax dollars. But here let me give you a picture.

This is A simple cartoon to demonstrate the problem with the estimation of Super TIF, versus the modest 10% TIF that University Heights is considering. But lets look into this a little further. The major contention is that a TIF will cost the city of University Heights tax revenue. Yes there is a proposed TIF rebate on a portion, A PORTION, of the tax revenue being brought in by the development. Ok the first major matter to consider; the current site, that of St Andrews church brings in exactly zero, zilch, nada in tax revenue. So even if the site brings in $1.00 it is an increase.

 

 

 

 

 

 

 

 

 

I am missing the calculation somewhere that says we are incurring debt for a luxury condo development. Let me be very clear, if the community desired commercial space with the opportunity for a community center were not part of the equation it is likely that the development could be done without the inclusion of TIF. The community, not these city councilors, wanted and still want commercial amenities in close proximity. So they gave you their misplaced idea that it was going to cost $5,080 per University Heights resident to pay for the TIF, which is the type of fuzzy math that only a 3rd grader can understand. Until the final assessments are done, and the base line for the TIF is set, we can make little judgement as to how much revenue will truly be gathered by University Heights in the 13.5 years that the TIF will be in place. But what we do know is that the City Council has been in contact with the National Development Council, and have asked lots of questions… oops, I guess that 2 sign is just a bald faced lie….and have been informed that the TIF being considered is reasonable. We also know that the experts have weighed in on some estimated numbers, and once the TIF expires it is very likely to generate $640,000 in tax dollars. This years budget is just over $677,000 so that type of increase means a huge difference for our small community. I would again remind everyone that when the NDC said that the GAP financing asked for was unreasonable the opposition applauded their intelligence, but now we simply want to ignore their advise? There is little point in hiring experts if we then choose to ignore they information that they present us with.

The next set of points I would like to discuss are concerning the acceptable uses of TIF. I am not an economist, to be perfectly truthful I skip my economic class in college, took the open book tests, got my A and went on. The basic discussion of economic theory bores me to death. But even I understand the current changing dynamic of TIF use. Yes historically, HISTORICALLY, TIF was designed to push development in blighted Urban areas, or to fight the onslaught of Urban decay. But in the current economic climate, and under the current changing political structure TIF has found an evolutionary structure. While some municipalities choose to use TIF as a golden carrot to lure economic development in competition with other markets, sometimes it is a give and take relationship between the developer and the community in which both prosper.

The TIF is necessary if we wish to have the commercial development. In this type of mixed use building, the commercial space is at best a break even proposition. We want commercial amenities as a community. We currently have few amenities, and the prospect of adding any amenities other than the current proposal seems bleak. We have had few other proposals to bring development to University Heights, and the last one was a high density student housing project. (Now there is your Animal House scenario). We wont see a Starbucks on Golfview Ave any time soon, and I doubt John’s Grocery is putting a second location in on Highland. And unless I am mistaken we wont be getting a Community Center built in Silvia’s back yard. So this is it, this is our shot, our time, our opportunity to make a lasting change for the residents of University Heights. I cant foresee a scenario in which we get the type of control, and input we have with this current process without it carrying a much greater price tag. The opposition asks us to Right Fit the TIF….. This is a right fit, the long term gains far outweigh the short term potential costs. We don’t live in Chicago, or even Coralville where the rampant use of TIF has helped to complicate city finances. We don’t currently have a TIF, and this one will be short lived, finely tailored to the situation, and generate a positive future for our community.

It is far too easy for people to sit on the sidelines and throw stones at those in elected office. It takes little time to mock the decisions and argue about everything you don’t like. And anyone with a few markers, and maybe fewer brain cells can make a yard sign. But do some critical thinking, get your NIMBY blinders off, and look towards a prosperous future for our community and there is little doubt that this is the right choice for our community. Its time to build our future, not quibble over imaginary costs, and fuzzy math. And it may have just been a corn field, and this may just be the site of a church, but if we build it the tax revenue will come. Its time for us to become a prosperous smurf village, and get out from under the angry boot of the opposition.