If memory serves me right? The initial public cost will be 34,500,000 for phase 1A.
- Commonwealth of Massachusetts pays $25,000,000
- Worcester through the DIF pays $9,500,000.
- To date 6,100,000 on DIF bonds invested
- 15,600,000 in DIF bonds to date
- 64,000,000 projected in DIF bonds upon completion
Today, Nick K writes a story addressing this problem. If we issue TIF's to all the new businesses coming to City Square (Hanover and the new St Vincent's Cancer Center to date), how much additional tax revenue are we going to raise to make payments on the DIF bonds?
The story goes on to say that we may not be able to give out any more TIF's since we will need those taxes to make the payments on the DIF bonds. Problem is we may have no chance but to offer a TIF to get a developer to come to City Square. Here is the question, in the end will the DIF produce enough additional tax revenues to make payments of $64,000,000 of bonds?
Think the answer it clearly "no" and the City of Worcester will need to dip in the General Funds just like they need to do for the Gardner-Kilby-Hammond loan (actually that is merely taken off our annual CDBG allocation), Union Station or any of the other development projects. Not saying that the DIF was a bad idea, but not accurately portraying the risks and saying this will cost the tax-payers nothing was wrong.
In the end I just do not see enough "extra" revenues being produced within the DIF to make payments on $64,000,000.
1 comment:
And once they raze the T&G site on Franklin St, another dev'er will be looking for a TAG ( Tax Abatement Grab).
I only read part of Nick K today. I was interrupted 1/3 of the way through then I just flipped the page to the The Irish Sports pages where there are usually close to 3 pages of obits in the Sunday paper.........today less than 1 1/4 pages of obits. Thats a "+3" for this weeks Womag Worc Livablity Index or what ever it is they call that column.
Like i said, I didnt read all of Nick, but I have to wonder if the investor(s) looking to buy the T&G and the Globe want no part of T&G's Franklin St parcel for at least 2 reasons, neither of which I'll speculate publicly on.
AGAIN, I just fail to understand the obsession with new buildings being Worc's cure..starting in 1971 to date...be it a mall, a civic center, new Lincoln Square(s), new Commons (3 of em?), new police station, umpteen new school buildings, The Hand it Over Theatre, Union Station, a new gigantic medical complex, and a new, full city block courthouse.
Then given all the pending changes in health care, what happens if the for profit owners of Medical city just are forced to sell out non profit hospital? Un thinkable u say? Well for sure they will lose a few couple/few million in RE tax revenue. Let us not forget the windfall for the city when Worc Med Center purchased by a from St V's by profit company. Just the reverse could easily happen.
Next up, The Hand It Over Theatre Restaurant HIF or whatever you want to call it?
And let us never forget what I call the Hand It Over Headfake (or backdoor) TIF in 9 EZ steps.
a. Announce plans to rehab old Loews Poli Theatre.
b. Bring huge tin cup
to CC meetings and explain your Ten Gallon Hat, yet paucity of any cattle.
c. Continually bang tin cup in CC chambers for months on end.
d. Obtain your millions in taxpayer money, subsidies, guarantees, public donations, and the like.
e. Succesfully complete re-hab project (I might add, a truly beautiful looking resto).
f. Then file for non profit status effectively shafting the city of $1M in tax revenue.
g. Smile all the way to the bank whilst CC gives you kudos, ATTA Boys, and backslaps.
h. Draw nice fat salaries.
i. Eventually (my conjecture here) off load entire project at a future date for mucho dineros to another publicly funded non profit.
TIF'ers, DIF'ers, TAG'ers, & HIF'ers are mere modern day Willy Suttons, legally robbing the TaxPayers Banks and sheep in Worcester just keep paying & paying & paying..while their shepards (CC) them right off teh bankruptcy cliff.
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