I love that you are asking questions about issues that nearly everyone is just takes as "normal". Undoubtedly there is a quid pro quo dynamic in play in these crony capitalist endeavors.
South Dakota Voices Response: Jeff, thank you joining the conversation. Do you have a link to the TIF issues in Mitchell? We would love to learn the details.
Email comment from JB: "Want a shady TIF story (several) research Mitchell TIFs. Everyone gets a handout!"
Good question. I posted the increment data at the end of the article. The Steel District has an increment (freebie pool) of $52,288,246 ($53,879,300 - $1,591,054 base). The details are in the Sioux Falls budget on page 25. The link is included above.
TIF’s are the only tool available in many towns to aid economic development. With that said there are other benefits to the public you didn’t mention. When a new business comes by way of TIF citizens get new jobs. By law a TIF can’t be created simply to benefit a single entity, as if the project would be built without it. The applicant must prove the project can not go forward without a TIF. The applicant borrows the money for the project. If the taxes needed to pay back the loan are not there, the applicant has to pay out of his own pocket. TIF’s are not freebies there is much consideration and risk taken by individuals. The government scrutiny is real before any TIF is approved.
People are complaining about companies and individuals seeing big personal windfalls that are tens of millions of dollars in size (maybe $50 million in the Steel District). Is there a way that this matter could be resolved?
Virtually every "economic development" project in Aberdeen, South Dakota in the last forty-five years has benefitted from a TIF. One might reasonably think that without the availability of a TIF, economic development would have come to a grinding halt here decades ago (which given the economic development that happened before TIF's, is demonstrably untrue).
I don't think characterizing TIF's as "freebies" is necessarily fair, but the pros of using them are definitely talked up while the cons are downplayed. As with so much of government activity, it's the dishonesty that really upsets me more than anything. Perhaps if people were more educated about the upsides and downsides, they might be used, but perhaps not as often.
I love that you are asking questions about issues that nearly everyone is just takes as "normal". Undoubtedly there is a quid pro quo dynamic in play in these crony capitalist endeavors.
Who benefits is the right question.
South Dakota Voices Response: Jeff, thank you joining the conversation. Do you have a link to the TIF issues in Mitchell? We would love to learn the details.
Email comment from JB: "Want a shady TIF story (several) research Mitchell TIFs. Everyone gets a handout!"
I wonder how much the Steel District got?
Good question. I posted the increment data at the end of the article. The Steel District has an increment (freebie pool) of $52,288,246 ($53,879,300 - $1,591,054 base). The details are in the Sioux Falls budget on page 25. The link is included above.
Big developer = Lloyd property
TIF’s are the only tool available in many towns to aid economic development. With that said there are other benefits to the public you didn’t mention. When a new business comes by way of TIF citizens get new jobs. By law a TIF can’t be created simply to benefit a single entity, as if the project would be built without it. The applicant must prove the project can not go forward without a TIF. The applicant borrows the money for the project. If the taxes needed to pay back the loan are not there, the applicant has to pay out of his own pocket. TIF’s are not freebies there is much consideration and risk taken by individuals. The government scrutiny is real before any TIF is approved.
People are complaining about companies and individuals seeing big personal windfalls that are tens of millions of dollars in size (maybe $50 million in the Steel District). Is there a way that this matter could be resolved?
Virtually every "economic development" project in Aberdeen, South Dakota in the last forty-five years has benefitted from a TIF. One might reasonably think that without the availability of a TIF, economic development would have come to a grinding halt here decades ago (which given the economic development that happened before TIF's, is demonstrably untrue).
I don't think characterizing TIF's as "freebies" is necessarily fair, but the pros of using them are definitely talked up while the cons are downplayed. As with so much of government activity, it's the dishonesty that really upsets me more than anything. Perhaps if people were more educated about the upsides and downsides, they might be used, but perhaps not as often.
Thank you for sharing your thoughts. Transparency is a significant issue.