The real culprit is that developers aren't putting in thier own money on these
stalled projects. Developers have created their own demise with no solvency in
their developing. If they don't have money they can't develope, easy as that.
The days of taxpayer funding devlopers is over, hopefully, as education has lost
$20 million dollars on the cottonwood mall fiasco. The tigntened lending by
banks means developers must have more capital to secure loans is all it means.
This helps the econommy by keeping out flakey developers and reduces the tax
burden on citizens. And City governments can no longer develope on possible
taxes, now they must wait until the taxes are in hand before they can plan to
^^^ Agreed, the Craig Meacham memorial mud puddle in Sugarhouse is the perfect
Absolutely untrue that Granite School District has lost any money. As part of
the Redevelopment Agreement, they are guaranteed the same amount of taxes that
they received in 2007 for each of the next twenty years. If anything, they are
better off with that guaranteed base. If the project is built, then they will
share in the additional taxes as well.
So who is losing money? If the school District is guaranteed the same money and
the project is not built and the value of the property goes down, who is paying
the increase? Who pays the guaranteed? I would bet it is you and me.
I'm not knowledgeable about how these developments have been financed and
planed, so I'll state that upfront. But, I don't get how anyone can say that the
school district can be "guaranteed" anything. If this downturn continues...
down, then all bets are off. The state can't print its own money and the fed can
only for so long. High inflation or deflation could be coming, and it will make
life difficult for all. I can't believe all the incredible gambling that was
going on not only with shady developers, but also with municipalities hoping to
get in on the cut. Now we have these amazing eye-sores to gaze upon and turn
people and businesses away from the area. To start a project without 100% of the
needed funding in place makes no sense to me, and never will. I don't care how
"great" things were going - what could the developer have been thinking? To
quote a well known phrase: "for which of you, intending to build a tower,
sitteth not down first, and counteth the cost, whether he have sufficient to
Educate yourself about how Redevelopment and Community Development agencies work
before you make untrue claims about Granite District revenues. They not only
aren't guaranteed a dime, but they foolishly gave up their share of property tax
revenues to the CDA for the new project. The day the mall was evacuated and torn
down they became big losers. While the old mall was operating they were
receiving 100% of their share of property tax revenues. Now while it sits idle
they only get the minimal value attributed to the devalued land. Even if or when
the development is built, they've signed over the lions share of their revenues
(called tax increment) for years to come. Pathetic educrats easily led by
developers. I was involved in a somewhat succussful fight for RDA reform at the
legislature and am quite informed on the issue.
I am unconvinced of the title of this article. It seems to me that you have
shown that new large developments are having a hard time but not shown that
mixed use developments are having any harder time than single use developments.