Check out page 33 of this link
We are looking at $4,000,000 million per year in payments. Take the new St Vincent's project which will pay 3,200,000 in additional taxes but over 15 years or approximately 210,000 in extra taxes. Personally I do not remember the additional taxes Hanover will pay but lets just say it is also $200,000 per year.
Bottom line these two projects will pay in $400,000 in new taxes through the DIF. That puts us 1/10th of the way there to pay the annual payments on the bonds. A $4,000,000 per year DIF bond payment is one very large nut and we need a s---load of new development to generate new taxes to pay this bill...
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
5 months ago
3 comments:
Also do not forget the new taxes are only part of the equation. How much in tax revenue is being demolished to make way for the new stream of taxes from City Sq?
If in your example the property throwing off 200k in new RE taxes displaces a property currently paying, for ex., 75k in taxes. Wouldnt the net gain in tax revenue to the city really only 125k, using my hypothetical figures?
Politicians and bureaucrats, unfortunately rarely have any real world business exp. so when they start with all their rosey predictions about econ. growth & revenue growth they never look at the growth in COSTS that are related to revenue growth, b/c it aint their money. Marginal revenue growth ALWAYS = MARGINAL growth in costs. This is basic lemonade stand mathematics. You want to generate more lemonade revenues you have to buy more lemons. Dittos for the local adult beverage outlet :)
Speaking of lemons...densely built Low income housing (or maybe any low income housing) is a classic example of this mindset. 40 new apts on a 1.5 acre site may generate 60k in new tax revenue but if each apt has 1/2 kid living in it (very conservatively speaking here) and it costs 13k to educate the kid....well thats 260k (13k x 20 kids) in add'l costs to the city....vs.....60k in new tax revenue. Not a business I'd like to be in. Then there are the usual social costs that typically accompany the lo wincome demographic. And THEN there are the atypical costs to the city.......upgrading infrasture to handle all the add'l feces inflows to the city sewerage system. Can you say man made "natural disasters"?......flooding the delta at May & Main Sts :)
Just start to hit me... i know the Commonwealth is putting alot of money into CitySquare, but the City of Worcester bonding 64 million dollars.
That is a big investment
http://www.telegram.com/apps/pbcs.dll/article?AID=/20110518/NEWS/110519597/1116
mall demolition
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