Crestwood drops it's TIF lawsuit, and what's this about the Crestwood Courts getting a very low property tax assessment?
I have it from a very reliable source that Crestwood has "opted" out of the TIF lawsuit after the State came up with a bill that will allow both the City and the County to have representation on the new TIF committees!
Interesting to say the least! I wonder why we spent all that money on a project if we were not going to continue to the end? Or, is this "end" what we wanted all along?
I am also given to understand that Crestwood Courts has been given an "assessment" from the County for property tax of only 60 Million. Now we all know that the new owners bought it at a "fire sale," for 17.5 Million (Westfield paid over 100 Million when they bought it.)
That said, I am waiting to see if the new owners will be asking (you know they will) for a TIF, CID, TDD, for their new development! How much more can we give before it starts to be ridiculous? Well, I think we are there, and I see no sense in giving away the tax monies any longer! There are those who will say they will just let it decay, wrong, they also have a very high stake in this, so.....
At any rate, stay tuned for the development's as they happen, and please convey your feelings to your Alderman, because this is OUR CITY, and we do have a say in what happens here!
Tom Ford
NO. 535
Interesting to say the least! I wonder why we spent all that money on a project if we were not going to continue to the end? Or, is this "end" what we wanted all along?
I am also given to understand that Crestwood Courts has been given an "assessment" from the County for property tax of only 60 Million. Now we all know that the new owners bought it at a "fire sale," for 17.5 Million (Westfield paid over 100 Million when they bought it.)
That said, I am waiting to see if the new owners will be asking (you know they will) for a TIF, CID, TDD, for their new development! How much more can we give before it starts to be ridiculous? Well, I think we are there, and I see no sense in giving away the tax monies any longer! There are those who will say they will just let it decay, wrong, they also have a very high stake in this, so.....
At any rate, stay tuned for the development's as they happen, and please convey your feelings to your Alderman, because this is OUR CITY, and we do have a say in what happens here!
Tom Ford
NO. 535
posted by Crestwood Independent at 19:49
10 Comments:
My first reaction to this possible change is why did we join in the first place if we are dropping out now? Was the real reason for the requested tax increase for an increase in legal fees?
My next reaction is the new owners of the Mall, they are doing what they want, how they want and when they want, regardless of what our Mayor tells us he's going to make them do.
9:59 AM blogger: The State set up " TIF commissions" consisting of three members from each City, and three County members.
I guess they thought that was the best they could get so they pulled the suit.
Tom Ford
Crestwood voters voiced their opinion aug 5 on how they feel about municipal blank checks. For this reason I feel that the new mall owners are basically on their own as they and other developers nowdays seem to think they are calling all the shots, and we get to live by them, like it or not. Isn't it time that we let the billionair developers do their thing, with their money? Perhaps then they will develop wisely and with a PLAN. Thoughts of another St. Louis Center,Union Station, etc. are downright scary and motivate our thinking. We are in the time or reality now, voters told us this at the polls. TIF's are yesterday. Today is another story. The rich do not automatically need to inherit the earth. Crestwood can take a courageous stand and wisely consider every single option available, even if it is nice and affordable condos. Whatever it is, it must be innovative. Sameness surrounds us at all our shopping centers. We really should not drop the ball and go for a less than accomodating venture or a TIF.
BOA approved of a 353 for the Crestwood Mall which is like a TIF but for a larger area and more money can be involved.
Year 2004
CRESTWOOD/WESTFIELD SHOPPINGTOWN 353/CID
(353 is a Urban Redevelopment Corporations Law 353.010 R.S. Mo.)
5/29/2004 Second reading of 353 and CID ordinances, and approval upon signature of Mayor Fagan
3/30/2004 to 4/01/2004 Execution of Development Agreement.
Ordinance No. 3880 2nd Reading 12/14/2004 Mayor Fagan
Approving a preliminary funding agreement between the City and WEA Crestwood Plaza, LLC
Ordinance No. 3881 2nd Reading 12/14/2004 Mayor Fagan
Approving an agreement with PGAV for Crestwood Westfield Shoppingtown
Is everything ready for a 353 instead of a TIF for the Crestwood Court?
Is it true, that you do not need a TIF board because this is a 353 Tax Abatement?
Is the agreement void because it was with former owner?
8:42 PM blogger: I would think all former agreements with Westfield are now off the table due to the new owners.
It will be interesting to see if City Hall tries anything to the contrary, but with our City Attorney, who knows!
Tom Ford
This analogy illustrates how tax cuts in a progressive tax system can be misrepresented:
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers, he said, "I’m going to reduce the cost of your daily beer by $20". Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. What happens to the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. ‘I only got a dollar out of the $20,’declared the sixth man. He pointed to the tenth man,’ but he got $10!’ ‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’ ‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’ ‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’ The nine men surrounded the tenth and beat him up. The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible
(Borrowed from the south county truth spot.com) a very good site to check from time to time on events in South County.
Tom Ford
"I would think all former agreements with Westfield are now off the table due to the new owners."
Not necessarly... One simple phrase"....Westfield Corporation or its successors." is all that needs to be in the agreement.
6:56 PM blogger: Correct, I had forgotten about that. I guess that's why I don't play a lawyer on TV!
Interesting to see if in fact Westfield thought of it, and further, if it's in there why we agreed to it.
Unless we have a clairvoyant on staff, we had no idea of what would be going in there, so why sign off on it?
Good eye! Keep up the info stream, please.
Tom Ford
Post a Comment
<< Home