Thursday, August 20, 2015

ONE TO GO



On its second day of hearing it took the Planning Boar d less than an hour to approve the South Ave. $50mil. Apartment redevelopment plan. Now it is up to the Council to either approve or disapprove the agreement between the City and the Developer.

Questions raised by the public as to the adequacy of the number of parking spaces, handicap access, fire safety, sewer capacity etc. were answered positively. Other than Storch who is the Council's representative to the Board, there were no Councilors present to  publicly ask some of the questions that they had raised  last Monday.

10 comments:

  1. of course the ones who claimed to not know anything about this project weren't there... closed ignorant minds do not seek out knowledge, they demand it be forced down their throats

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  2. There was a meeting? They don't go to meetings, they get private, individual briefings. It's the only respectful thing to do.

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    1. They don't "get" them, they ask for them and are accommodated. The councilors are not privileged people, they are SERVANTS of the people. They serve you and I. The problem is they believe it is the other way around.

      If that's the case, let them find their own 10K to pay for their duty. I will be happy to keep my portion.

      Fact is, if there were no compensation for serving on the council, I believe there would be a better crop of candidates.

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  3. Not surprising they were not there, again it's not about the PILOT, it's about the respect (code for payoff by way of donation).

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  4. If the project is really worth 50 million dollars what would the regular, non-subsidized taxes be? Has that information surfaced? What's the difference between the PILOT and taxes?

    By my math taxes would be about $1,375,000 (50MM/2 - that's roughly how my house is assessed) x 5.5%+/-). The PILOT payments, at 90% occupancy, should start at about $375,000. That's a one million dollar a year difference every year for thirty years.

    Does anyone have an alternative theory or data containing actual numbers?

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    1. Anon 9:56 - your theory is faulty to begin with. Asking what the taxes would be for this development without the Pilot isn't a valid question - without the PILOT there is no development. So the question to ask is, "what would the taxes be over 30 years if the properties are left as is?" That answer by Carlos Sanchez is $3.5 million (over 30 years) or approximately $116,600 annually. The next question you would want to ask is "what would be the contribution to the city over 30 years with a Pilot?" and that answer, according to Mr. Sanchez, is $10 Million, approximately $350,000 annually. I am saying "contribution" because a PILOT is a payment in lieu of taxes - which means it is a set figure or scale over the period that does not include education and other funds and it ALL goes to the city treasury.

      If your point is to compare current taxes with the properties undeveloped against full taxes with the property developed under this plan then the math is easy - it won't change because the developer won't develop the land.

      So with a PILOT we get a new development of high quality apartments with several hundred new residents - in need of new merchants who can then come and start developing for retail space - and about $230,000 more in the city treasury annually. OR, the land sits as is, the buildings continue to fall apart and sit empty and we get $116,000 annually.

      The math on this one is easy.

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    2. Of all the comments in pro of the PILOT everyone keeps stressing that the developer will walk away without the PILOT. Can we ask, how much profit does the developer expect to make on his fifty million dollar investment? Would that profit be worth him building even without a PILOT? I can’t imagine that there paying that much for the land. How much are they paying for the land?

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    3. Anon 3:05 - how is his profit our business? How much is he paying for the land? Go ask the sellers - who are private citizens and negotiated a private sale with the buyer - just like capitalism works. And there are multiple properties as well as some properties who are selling pieces of their current land. This isn't city land, nor is the project city financed. A PILOT will put MORE money in the city treasury than we are getting with the land as is. Why is this so difficult for people to understand?

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    4. How is his tax issue are business?

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