Reining in the Tax-Gobbling Menace

Rahm Emanuel, the newly elected fiscally conservative mayor of Chicago, wants to “overhaul” that city’s tax-increment financing program, which he says “morphed from a tool for blighted economic communities into an all-purpose vehicle.” TIF was first used in Chicago by Mayor Harold Washington in the 1980s, whose goal was to help blighted neighborhoods.

Critics say that the second Mayor Daley, however, used TIF as a “private slush fund” to reward developers and punish disobedient aldermen. Chicago’s 180 TIF districts cover nearly a third of the city and siphon $500 million a year away from schools and other programs.

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Ending Urban Redevelopment

Despite pressure from cities, Jerry Brown stands firm in his proposal to end redevelopment agencies, a plan he says will immediately save the state $1.7 billion a year, and more than double that after 2012.


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Meanwhile, the Idaho Freedom Foundation publishes a report proposing to eliminate urban renewal in that state. Urban-renewal agencies in Idaho collect more than $50 million in property taxes that could otherwise go to schools and other agencies. The big savings will be in stopping the growth in urban-renewal districts, which Idaho cities are creating at the rate of five per year.

Movie Review: Road House

The Antiplanner doesn’t ordinarily review movies, but then, not many movies cover the dark side of urban renewal. Someone once called Road House, featuring the late Patrick Swayze, the “cheesiest movie ever made,” but they must not have been aware of the political subtext.

In the movie, Brad Wesley (played by Ben Gazzara) is the evil executive director of the urban-renewal district for a small town named Jasper, Missouri (which he calls an “improvement district”). The district taxes all of the businesses in the town and uses the money to make investments that attract new businesses. Like most advocates of tax-subsidized economic development, Wesley takes credit for all the good things that happen in town. “J.C. Penney is coming here because of me,” he brags, as if J.C. Penney didn’t ordinarily locate in small towns like Jasper.

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Portland Urban Renewal Scam

The Antiplanner’s former hometown of Portland, Oregon, is proposing to create a new urban renewal district that is so gerrymandered that blogger Jack Bogdanski suspects it must cover at least 50 scams.

Most of Portland’s previous urban renewal districts are pretty regular, following roughly rectangular boundaries. The proposed new district has fingers going in all directions, often connected to other parts of the district by an area no wider than a street. Some of the fingers overlap existing or lapsed districts.

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Despite TIF, the Bells Don’t Toll

Tualatin, a distant suburb of Portland, is the proud owner of three large and expensive bells that may never toll (there were supposed to be four, but one was stolen). The bells were purchased with TIF (tax-increment finance) money as a part of a $12 million subsidy to Tualatin Commons, a New Urbanist development. But the city ran out of subsidy before it could build a tower for the bells.

A proposal to extend the urban-renewal district for another 25 years, which would have provided the millions needed for a bell tower and other inane projects, was killed when the local fire district objected to the loss of its tax revenues and other taxpayers agreed that the project was frivolous. But the city had already bought the bells for $150,000 (which includes architectural drawings for the bell tower), so now it is stuck with four brass elephants.

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