Showing posts with label CIDs. Show all posts
Showing posts with label CIDs. Show all posts

Sunday, July 12, 2009

Community Improvement District Debate Continues and: An Open Question to the Springfield News-Leader

Regarding Sunday's "Our Voice" column: "Lumber company should not be forced into CID Springfield News-Leader"

The inclusion of Janss Lumber into the Commercial Street CID was based on its inclusion in Commericial Street's tax increment financing (TIF) district wasn't it?

I'd be interested to know exactly how many "economic development" improvements Janns Lumber benefitted from, in the past, as a result of captured existing sales tax generated by Janss into the Commercial Street TIF district's coffers, News-Leader?

Did Janss benefit at all?

Such "tools in the tool box," as past Mayor Pro Tem Gary Deaver liked to characterize them, are, as you pointed out, supposed to benefit the participants by economic development. If Janss Lumber has been paying into C-Street TIF district coffers but has not benefitted from the tax captured from its business, it would seem a good argument for being excluded from the CID.

It seems like I read there were some small improvements made to Janss' parking situation, at some point, through the TIF. It would have been nice to have seen that information, if I am correct in my remembrance of its existance, included in Sunday's editorial column.

It might also serve as a warning to businesses who have allowed themselves to become involved in a TIF district, intended to capture existing sales taxes from their own businesses as a sort of tax incentive from the city. Since a TIF appears to be the precursor to a later request for a CID, perhaps the time to take real action against the CID is when a TIF district is first offered. They seem to go hand in hand, if my understanding is correct.

I think you can have a TIF district without becoming a CID. I'm not sure you can become a part of a CID without having first been a part of a TIF district?

In lieu of the News-Leader answering these questions, I guess I could buck up and do the research, myself. I just don't have their staff and am working on other projects at the moment. It takes three staff reporters covering the City government at the News-Leader for a reason, you know?

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Monday, June 29, 2009

Breaking: Council Members Issue Formal Request for Ordinance

Ordinance request seeks more transparency regarding sales taxes charged at businesses within the City

Councilmen Nicholas Ibarra and Doug Burlison issued a formal request to City Manager Greg Burris, City Attorney Dan Wichmer and other members of City staff in Springfield on Monday. The request calls for more sales tax transparency within the City of Springfield on behalf of their constituents.

In a post at Mr. Ibarra's Web log, "Zone 1 Matters," he noted the discussion needs to be more than a secondary issue when the Council is faced with other issues, "...the following was submitted to City Staff this morning, taking the first step in bringing this topic to the table as a debate in and of itself, rather than a side conversation while dealing with other topics as the basis of conversation," Ibarra wrote.

The request is not very specific or detailed regarding the way in which the sales tax notifications to the public might be posted at Springfield businesses and, while Ibarra did not want to be perceived as speaking on behalf of his fellow Councilmember, when questioned about the lack of specific details regarding placement of the notices in the ordinance request, Ibarra indicated his understanding was that Burlison has had difficulty moving ahead on proposed legislation, in the past, when he has been overly detailed in his requests for action on issues affecting Springfield and its citizens.

"When Doug and I started these discussions, he pointed out that when he has tried to get something done, the more detailed he is, the harder time he has getting anywhere… so we figured ambiguity in the beginning would be good given he is on the committee that will discuss this proposal," Ibarra wrote in an email.

The request, which Ibarra has identified as a "Transparency in Taxation Initiative," as submitted by the Councilmen on Monday, June 29:

FORMAL REQUEST FOR ORDINANCE DRAFT

Mr. Burris, Mr. Wichmer, and other appropriate City Staff:

Since the new Council has taken office in April, a consistent and contentious discussion has been that of Capital Improvements Districts (CIDs). While the philosophical value may vary from council member to council member as to the appropriateness of CIDs, the consistency of much of the discussion has been regarding the transparency to the customers (citizens) paying the additional tax.

While we understand that The Mayor and Council will have to charge the appropriate committee to review a request for an ordinance and the ordinance itself, this letter is a formal request to begin the process of bringing two different proposals to Council:

> The first request is one that would require any business that sells goods or services at the retail level, is part of a CID, and charges sales tax to display signage that notifies the consumer of such goods and services in an adequate manner that they are shopping in a CID and how much the CID tax amount is.

> The second request is one that would require any business inside the city limits of Springfield that sells goods or services at the retail level and charges tax to its consumers to display signage that notifies the customer of the amount of tax being paid as a patron.

As public servants, we believe that the number one duty in preserving trust with the people we serve is to offer transparency.

As a City with nearly a dozen CIDs either in place or in the works to be put into place, offering the citizens notice whether or not they are shopping or receiving services in a CID is not only about transparency, but also about honesty. Whether it comes to
fruition by way of CID-only signage or city-wide signage, to offer these two proposals to the citizens of this community for discussion and debate is the appropriate step to take at this time.

We look forward to working with Council and City Staff on this issue, and are available for questions, comments, or concerns at any time.



Respectfully Submitted,

Nicholas Ibarra, Zone 1 City Councilman

Doug Burlison, General C City Councilman


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Friday, May 08, 2009

Involved Springfield Citizen Kick Starts City Council Discussions on Community Improvement Districts

An involved Springfield citizen spoke to the City Council under the auspices of commenting on Council Bill 2009-099. The City Council will vote on that bill at their May 18 Council meeting.

But, Fred Ellison's comments had little to do with the bill he signed up to comment on, instead, Ellison addressed points involved in the philosophical debate surrounding the more general use of Community Improvement Districts (CIDs).

Why is it important?

Well, if I may refresh your memory, back at the Council luncheon on April 28, following some comments on CIDs by Councilmen Nick Ibarra and Doug Burlison, Mayor Jim O'Neal advised City Manager Greg Burris that the Council would like to engage in a philosophical discussion on the issue of CIDs before they vote on many more of them.

"It's (the CID) an interesting political creature and I understand there's some philosophical discussion behind that," O'Neal said at the luncheon. "We'd (the City Council would) like to have that discussion before we vote on many of these."

At the luncheon meeting, a majority of the City Council voted to authorize the Mayor to sign a petition to create the Shoppes at James River (SJR) Community Improvement District. That step is a necessary, preliminary step for the creation of the SJR CID but, it did not actually create the district, that will be considered by Council at a later date. Councilmen Ibarra and Burlison were opposed to the harbinger of the creation of such a district.

Councilman Doug Burlison expressed a concern about the continuing approval of such districts' potential to have a negative effect on passage of any sort of a sales tax, which might be initiated, as a cure for the police and firefighter pension plan (See: "JackeHammer:" CID, TIF, & TDD; Tools in the City's Tool Box).

Councilman Nick Ibarra didn't like the idea that a citizen frequenting a business within a CID receives no notification they are paying a higher sales tax rate at the CID business than what they would pay at a competing business, not located within a CID (See: above noted previous entry).

In light of these future, requested discussions, having a citizen taxpayer define his own philosophical objections to the use of CIDs should be of great interest to the City Council. So, for the sake of future reference, I felt it might be valuable to lock Mr. Ellison's comments into a more accessible and permanent form.

Ellison brought up some interesting points in relation to Community Improvement Districts. He noted that only property owners within any given CID have a say in the creation of the CID; People leasing properties within a proposed CID have no voice in the creation of the district; and a CID creates a competitive advantage for the businesses within it.

"You're allowing a business, another entity, to use the taxpayer to pay for improvements on their properties," Ellison said. "That's an expense that that business no longer has to bear on itself and, therefore, it gives them a competitive advantage over other businesses that may be existing within the same line of business."

Ellison also suggested that businesses within a CID should post notice to their customers that they are paying a higher sales tax rate within the district.

"I think that businesses within a CID should be forced to disclose the fact that they're charging a higher sales tax rate than other businesses within the City of Springfield," Ellison said.

Another suggestion Ellison had was that there should be a minimum number of property owners. He noted, in the case of the CID discussed at the prior City Council luncheon, there was only one property owner, other than the City's own interest in the district.

"I don't think that's what the State statute intended," Ellison noted.

While Ellison did not note it, it could be noted that, generally, a "community" implies more than one or even two involved parties. According to Ellison, the State statute does not define how many participants must be involved in order to form a CID.

When a "community" of business owners wants to initiate a CID, it is generally initiated because it enables the property owners within the CID to ask registered voters within that district to approve an additional sales tax, specifically earmarked for developmental improvements to the property in question. Supposedly, it pertains to improvements which would be beneficial to the entire "community" zoned within the particular district.

As Ellison noted, over 50% of the property owners in both number and assessed value are required to petition to create the CID, however, only the registered voters within the CID are allowed to vote for approval or denial of the imposition of the additional sales tax within their district, though, in most or, at least, many cases, other taxpayers within the City, who did not have a vote on the sales tax rate, but, who might frequent the businesses within it, have had no say in the higher tax rate and are not notified of its existence.

In the case of the Shoppes at James River CID, there was only one property owner besides the City of Springfield, and that is why it was required that the Mayor be authorized to sign the petition calling for the formation of that Community Improvement District.

If the City Council later approves a CID sales tax initiative be placed on the ballot for the Shoppes at James River CID and it succeeds, the SJR district would use the proceeds of the additional sales tax to improve a storm water basin owned by the City, and take over the ongoing maintenance of the basin.

Without an initial 1 percent CID sales tax, Developer Tom Rankin has said he would be unable to pay the $300,000 required by the City for the developments' initial use of the basin, the improvements which would be required to it, and the ongoing maintenance they have agreed to provide for that basin.

"We can't afford to spend that kind of money without getting some return," Rankin said at the luncheon (again, see: "JackeHammer:" CID, TIF, & TDD; Tools in the City's Tool Box

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Wednesday, April 29, 2009

Recommended Reading 9: CID, TIF, & TDD; Tools in the City's Tool Box

Ibarra, Burlison call for greater CID awareness News-Leader.com Springfield News-Leader

I just have a few points to add to Johnson's article in today's News-Leader. Unfortunately, my allergies have been running amuck and yesterday I didn't feel up to recapping the meeting. So, I'll just add onto Johnson's accurate report.

Mayor Jim O'Neal wants to have a philosophical discussion about the use of community improvement districts (CIDs), tax increment financing (TIF), and transportation development districts (TDDs) before City staff asks for approval of many more projects involving the use of the development strategies.

"It's (the CID) an interesting political creature and I understand there's some philosophical discussion behind that," O'Neal said. "We'd like to have that discussion before we vote on many of these."

The comment came on the heels of a brief discussion raised by Councilman Nick Ibarra about the transparency, or lack of it, regarding community improvement districts. Ibarra asked Economic Development Director Mary Lilly Smith how the public knows when they are in a CID.

"There's no requirement that they post the sales tax at the register," Smith answered. She explained that the creation of the CID creates a new jurisdiction within the City.

After the creation of the district, those within it can seek an additional sales tax, in this case, The Shoppes at James River would use the proceeds of the sales tax to improve a storm water basin and take over the ongoing maintainence of the basin. The basin is currently the responsibility of the tax payer through the City. Developer Tom Rankin said he would be unable to pay the $300,000 for use of the basin, required improvements to it, and ongoing maintenance of it without an initial 1 percent tax.

"We can't afford to spend that kind of money without getting some return," Rankin said.

Smith explained that those who live within the district would not lose their ability to vote in support or opposition of the additional sales tax. Registered voters who live within the district would vote it up or down. Sometimes the districts, however, only contain the property owners, in which case, only the property owners would vote on whether to place an additional sales tax within the boundaries of the district.

By there being no requirement for the affected business owners to post the sales tax at the register, patrons who enter the district to make purchases within it are usually unaware they are paying a higher tax rate than they would at a store or restaurant not located within the community improvement district.

Councilman Doug Burlison was concerned about the CID's potential effect on any sort of a sales tax which might be initiated as a cure for the police and firefighter pension plan.

"If we're putting in an additional tax here and an additional tax there, that doesn't go unnoticed," Burlison said. He fears adding yet another community improvement district, with an additional 1 percent sales tax, will lessen the chance of passage of a pension sales tax for the pension fund.

The News-Leader article linked above lists the 7 existing CIDs within Springfield and the rate of additional sales tax each district charges.

The passage of Council Bill 2009-095 did not create a new CID. It authorized the Mayor to sign a petition to create the Shoppes at James River Community Improvement District. That step is a necessary, preliminary step for the creation of that district.

As a part of the explanation to the bill, the Planning and Development Department's Ralph Rognsdadt noted: "This resolution merely authorizes the Mayor to sign the petition to establish the CID. It does not establish the CID. The City Council will consider a bill to establish the district at a subsequent City Council meeting." At the time of the Council's consideration to establish the CID, the public will have an opportunity to speak.

The preliminary step was approved with Councilmen Ibarra and Burlison opposed.

City Manager Greg Burris indicated the budget should be the priority for the Council for the time being but, agreed the new Council needed to understand the development strategies.

"You do need to be aware of the tools we have in our tool box," Burris said. Burris said he will have a presentation prepared to facilitate a discussion about the development strategies in the near future.

For more information about Community Improvement Districts, Tax Increment Financing, Transportation Development Districts and other municipal development strategies click this link.

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Tuesday, November 18, 2008

New Issue of Community Free Press

You might wonder why I devoted my entire Council Notes column to the general ordinance which, if passed November 24, will close the center area of Park Central Square at 11:00 p.m. as opposed to the current closing time of 1:30 a.m. Well, it's because I see it as a class warfare sort of issue, and, really, I'm not the only one who views it that way. I mean, what is the whole square renovation supposed to accomplish? I thought the point was to draw more people to the square, not send them home earlier.

That's where the class issue arises.

Generally, many of the patrons of the center of the park who stay after 11:00 p.m. may not be able to afford a cover charge at one of the local establishments on Park Central so, it seems to me the Urban District Alliance, with the City Council as its tool, wants to pick and choose who should enjoy the area and who should not. If you happen to be one of those who is hanging out in the center of the square, spending little money, well, move along 2.5 hours earlier than the money-spending-people, would ya? "Whaddaya think this is??? A public square???"

I could go on about it when what I really want to do is direct you to the new issue of CFP, which is online tonight and in some stands already but will fill the rest tomorrow. What I tried to draw out was the real reason* there was a request to close the square at 11 p.m. It isn't so much that there are real, tangible problems there, no, it is that some of the preferred clientele being drawn there might get the wrong IMPRESSION, that they might FEEL intimidated by the patrons in the park. You see, those patrons in the park have no control over anyone's feelings, only those harboring the feelings do. Do we, or the City Council, want to hold those people who are hanging out in the center of the square responsible for other people's impressions, for other people's feeeeeeelings? Consider, the worst thing the business owner who spoke last Monday night could come up with when Councilwoman Cindy Rushefsky asked him for a description of "riff raff:" People who yell at passing cars, "What are you looking at!?" Give me a break.

Bob Mace also weighed in on the issue on page 7 with a very good point: "New York’s Central Park is a 24/7 operation with woods, lakes, and structures everywhere. The thought that the city of Springfield would proclaim itself unable to protect and defend one block, populated by a couple of benches, in the very heart of the city is preposterous." Go Bob!

Some guy named Chris Wilson apparently b-u-m-p-e-d MY pension article off the front page to page 2. Seems the guy is a teacher who is running a "Graphic Classroom," meaning, he encourages his class to read by the use of some carefully selected comic books and graphic novels. He rates them for educational quality at a Web site, which is appropriately named: The Graphic Classroom, go figger. But, seriously, thanks, Mert, for a great article about some real creativity at play in the classroom. ;)

Brian Brown explored the Commercial Street Community Improvement District's possibilities, namely, the self-imposed on you (the consumer) tax they can decide to levy if they meet certain conditions. The article is very informative and tells you how many CIDs Springfield hosts and where. I had wondered about that.

City Council Candidate in waiting (a little birdie (psst...I said birdie, not query) told me this candidate turned in his petitions to the City Clerk's office today) Fred B. Ellison, wrote a guest column calling for the City to show a bit more "skin," when it comes to funding the pension plan for the police and firefighters.

On page 13, Kara Hartfield tells you where you can go to create your own Christmas ornaments; host a party to do so or; attend a holiday free art day with hands on activities and story telling.

Kara will also tell you about College Night on C-Street, BUT, you have to read the whole paper before you will be able to find it because I'm not telling.

That's it. That's what I'm spotlighting this time. There's a whole lot more to read in the issue, you'll have to find out for yourself.

Check out the advertisers too and pay them a call. It'll help ensure your locally owned free community paper will continue to be available. It's free because of them. Remember them this holiday season!

*In my opinion

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