Comments

2 responses to “Columbia Pike Streetcars: Delving Deeper into the Value-Capture Scenario”

1. 

   TMT

   April 7, 2014

   The C&I tax is an appropriate mechanism to help fund projects such as the Columbia Pike streetcar line in Arlington. Fairfax County will dedicate its C&I tax revenues for a number of year to pay for some of the Tysons transportation needs. For a number of years, Fairfax County did not spend anywhere near what Tysons generated in C&I revenues on Tysons area projects. Of course, Tysons also has a service district to pay more transportation costs.

   Log in to Reply
2. 

   larryg

   April 8, 2014

   I generally feel that the businesses and their owners should have a significant role in the decisions – and especially those concerning funding mechanisms.

   in the end – what you’re really talking about is potential disincentives to prospective (and perhaps existing) businesses to locate or stay in a place that has a higher tax burden than other potential locations.

   People with actual businesses know the value, the ROI value of such things relatives to the businesses – more /better than folks who are not business people and we need, in my view, something like a real business plan although I will say that Arlington seems to have a track record of success in how they go about these things.

   but any business has to look at it’s costs – including supplemental taxes (which are just additional expenses) – to see if it will be able to offer competitive goods and services at a price that allows them to pay their expenses – and make a profit.

   if a business can sell $2 hot dogs for $3 dollars because of it’s location, then perhaps. but some businesses competitors don’t have to locate in a high-dollar place to start with and others actually seek out the least expensive places to operate and higher tax, tax districts, do have the effect of pushing some kinds of businesses out of that area and into other areas.

   TIF is usually for capital costs not operational costs. Usually TIF is supposed to be a temporary situation where you get to keep some of the taxes that typically go to the govt – to provide services – to essentially invest in infrastructure.

   to have a permanent TIF – meaning you use to money to provide additional services not found in other locations – and STILL receive other govt-provided services – obtained by taxation of every one – essentially means that the TIF district becomes a subsidized district .. where they keep some of their taxes for their own uses, pay less tax to govt – but still get services like everyone else gets – for less taxes.

   the only way you could justify something like that – is as Bacon is saying – that there is increased value – and it generates increased taxes to the govt.

   I can see this for typical TIF-supported infill development but to pay for the operational costs of a streetcar… on a permanent basis… I dunno. Or perhaps I missed that whole part of it.

   Log in to Reply