From Deseret News archives:

Is block blight or just tired?

Published: Friday, April 29, 2005 11:45 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Another business owner likely to support the city's RDA is Will Feller, who owns Goldsmith Company Jewelers at 120 N. University Ave.

"I think the city is trying very hard to do the best it can for downtown," Feller said.

Glauser said the city has no agreements with developers yet, but local businessmen say there is talk Zions Bank might purchase the land and develop it.

"If Zions Bank were to develop on the land," Stout said, "they would hopefully make space for retail stores that would include those of us currently doing business on this block."

RDAs use property tax money to finance revitalization. The idea is that new or improved buildings draw more businesses, or a mix of businesses and apartments as in the Wells Fargo Building, and generate much more property tax revenue. Cities lure developers by promising them a rebate on those newly generated taxes for a limited number of years, or similar options that give the developers incentive to build in the "blighted" area rather than away from downtown.

"If done correctly, this is property tax money that wouldn't be there if we didn't have these incentives," Glauser said.

Story continues below
Bramble calls RDAs a "zero-sum game" because an average of 55 percent of property taxes goes to school districts and another portion goes to counties. For a city to capture those taxes for a space of years is the equivalent of spending someone else's money, he said, and can force school districts or counties to raise taxes to make up for the shortfall.

"The money used by these elected officials isn't coming out of those elected officials' budgets," Bramble added. "It comes out of some other elected official's future budget."

He is exploring changes in the law that would force government bodies to use their own money or pledge that of their constituents. While the Utah Taxpayer Association's Web site carries two pictures of Provo's controversial block, Bramble said he'd rather ask fundamental questions about RDAs in general in Utah than take shots at Provo or other specific redevelopment projects.

"If Provo had to give away their own tax base to do that project," he said, "not public school monies or county monies, but their own future budget, would the city do it? Regardless of the condition of the property, the accountability of the local officials should take center stage."


Contributing: The Associated Press

E-mail: kmartinez@desnews.com; twalch@desnews.com

Comments

You can be the first to comment on this story.

previousnext

Latest comments

I think that Salt Lake City would be a great place to hold the 2012 RNC. Salt...

Pitta doesn't win award

Hernandez is much better than Pitta. Pitta was lucky to be nominated with the...

I think that's just plain "TORRIBLE"!

Holy Cow! Just how good is this kid?! That's impressive. Not only does he tie...

Barkley says Boozer is big problem

Boozer is bad medicine for the Jazz. He refuses to take hits and defend,...

Springville comes back against AF

Who has beaten your #1 & #2 state ranked teams? Oh...and your #10 team,...

Good job Titans another win.

Sorry..."Classless Ute". Max Hall is hilarious.

Good concert tonight. Not great. Natalie Cole was as good as I expected...I...

$11.3 billion Utah budget

Isn't that what barack is teaching us? When we have financial difficulies,...

Advertisements