October 27, 2007

Special District Finance Zone

We have discussed this once before when there was discussion of the Skybridge. The other day the Telegram had an editorial regarding the financing of improvements at the DCU Center via the Special District Finance Zone. Here is two paragraphs from the story:

The complete upgrade program, which could cost more than $20 million, involves no use of tax money thanks to a special financing plan devised by City Manager Michael V. O’Brien and approved by the Legislature and former Gov. Mitt Romney.

The financing plan created a Special District Finance Zone that includes the DCU Center, the Hilton Garden Inn, the city garage across from the hotel and the Residence Inn on Plantation Street. “Net new” state tax revenues from businesses in the district — including hotel-motel occupancy taxes, food and beverage taxes and taxes generated from the sales of services collected by the state — will be redirected into the special district and will be used to repay loans for the work on the DCU Center

How many times has the Telegram gotten this wrong now?? How can they say "no use of tax money"???? The Special District Finance Zone only lets the City of Worcester retain "NET NEW" state revenuues. The telegram is asserting that there will be enough "NET NEW" state revenues to pay for the $20 million in upgrade. No way!!

I am not saying that we should or should not invest the monies, but the Telegram Editorial Board should not leave the impression that this project will not use any tax monies .

1 comment:

Anonymous said...

1. Calling Plantation St part of a district that is basically centered around Worc Center Blvd is LIke inculding Westwood Hills in the Main South Community District.

2. Call your Philadelphia Lawyer to ATTEMPT TO define "NET NEW REVENUES"

3. dIDNT WE USE $800 large that was supposed to go toward the Skybridge to balance the '08 muunicipal budget? So now have to come up with the $800 large again in Fiscal '09?

4. Agreed, that calling this "no use of tax money" is clearly wrong. If it isnt tax money than what is it? This notion that funds from Washington or Beacon Hill are not tax money is wrong.

5. Imagine if Mr Picknelly gave the City of Worcester of a taste of their own medicine by giving them the City the "City Square Treatment". The City Square treatment is what happens when those who are supposed to build in the city are not building. Mr Picknelly was promised a SkyBridge once his Hotel was built. So should he call Perotto, et al on the carpet, blast them in the T&G, blast them on the the Jordan Levy hour, and basically behave like spoiled brat when he doenst get his bridge? Why the hell not. Here's $20 bucks that says Mr.Picknelly is livid, but knows he has to keep his mouth shut.

6. "Taxes generated from the sales of services". What services? BTW services aint taxable. One does not pay a tax on the services of a plumber or a doctor or a car mechanic......only on goods and only on certain goods at that.

7. I'll take that 01-01-08 $20 bet re: ORH. Is $25 to win $20??