From Deseret News archives:
RDA problem tough to solve
More likely than not today, developers and local governments are helped. The poor, and other taxpayers, are hurt.
Perhaps there are other laws that governments have twisted and bent more badly out of shape for political purposes through the years, but none comes to mind. Through the powers of eminent domain, governments have forcibly yanked property from one owner, at a "fair market value," and handed it to another who is wealthier. Some of the former owners who have had the stomach to take their grievances to court have won substantial judgments but only after years of agony.
A magazine shop owner in Main Street in Salt Lake City held out amid intense pressure and scorn and eventually won a $2 million settlement. A property owner in Midvale held out and eventually won against the county and a huge retail shopping center but at great personal cost.
But lawmakers and others shouldn't be surprised if the audit comes back with the same general conclusions as the last one, conducted in 1991. That one said that, yes, RDAs are used to boost tax revenues rather than to eliminate blight, and, yes, they are being used more to lure retail than anything else. But it also determined that some RDAs have helped economic development and shored up a city's bottom line.
In the end, the RDA debate comes down to a matter of philosophy. It becomes a question of the proper role for local government, as well as a test of a public official's understanding of basic economic principles.
Some community leaders will argue that, without the incentives of an RDA, retail growth would never happen. Clearly, this is wrong. Retailers are drawn to markets like prospectors to a gold claim. If jobs and growth come, stores and shops will follow. Each time a city or county uses redevelopment money to lure a retail development, local school districts lose out on the property taxes that new development would have generated on its own.
On the other hand, an RDA or an economic development agency that attracts new, high-paying non-retail jobs from out of state may indeed be worth the trouble, especially if it also revitalizes an area.
In many ways, the RDA problem has its roots in Utah's overall tax system, which allows cities to keep 50 percent of the sales tax revenue generated within their borders. This gives cities an incentive to do all they can to lure retailers, even if it means luring some from neighboring cities. The new Tax Reform Task Force, which will begin meeting next month, should devise a simpler way, based more on population, to distribute these funds.
Maybe then cities would concentrate more on revitalizing run-down neighborhoods than on getting a rich developer to build a store on vacant land.
Comments
- Utah GOP opposes ethics initiative 5:45 p.m.
- Alternative to climate change? 5:40 p.m.
- Utah sells most 'New Moon' tickets 5:39 p.m.
- The origins of Thanksgiving Day 5:07 p.m.
- Test your Thanksgiving Day IQ 5:07 p.m.
- Fun facts about Thanksgiving 5:06 p.m.
- Words of thanks 5:06 p.m.
- Animal lovers blast grandma 5:06 p.m.
- Save glass coffee carafe 5:06 p.m.
- No easy answers on mammograms 5:06 p.m.
- Real Champions
- Bronco, Kyle rubber match
- RSL wins MLS Cup on penalty kicks
- BCS at-large bids up for grabs
- Plenty on line for rivalry game
- Time for big matchups in WAC, MWC
- Protests against Phoenix LDS temple
- Hall, Johnson matchup key
- Is talking about religion taboo?
- BYU's Lamb, Jorgensen reprimanded
- Buttars wants to limit gay rights laws
214 - Glenn Beck to enter politics?
212 - RSL wins MLS Cup on penalty kicks
192 - Palin plans tour stop in Utah
178 - BYU records with win
132 - Palin's book shows she's unqualified
131 - Bronco, Kyle rubber match
115 - Officer cleared in Cardall Taser case
103 - BYU cuts Women's Research Inst.
103 - Jazz finally win in San Antonio
99
Easliy..I'm sure they meant that LDS people here in Utah are intolerant of...
Only in Utah would this story even make the news. Not everyone in...
I live here in Phoenix and have since 1977, I am a member and yet even I can...
is meaningless, since most of Utah's wins came in the leather-helmet era...
No one ever faked an injury in the NBA? Or NFL? Please. Riots and...
yah man max will totally wilt to a defense that allowed 55 points to one of...
I'm sure there's a high correlation between illegal immigrants and crime in...
Cut blocks are an issue when someones knee is irreparably injured....
Im thankful that the Jazz have the New York Knicks 1st round draft pick this...
I just love how BYU and Utah give up all of their smack!!! They are playing...


You can be the first to comment on this story.