This week offers a couple of good opportunities to learn more about plans for improving Lexington and to have your say about them.
The Urban County Council panel that is studying tax increment financing (TIF) for downtown improvements related to Dudley Webb’s proposed CentrePointe development will have a public hearing Tuesday at 6 p.m. in council chambers at Main Street and Martin Luther King Jr. Boulevard.
I’m skeptical about a CentrePointe TIF project for several reasons, but I’m keeping an open mind. I’m glad city officials are studying the issue closely. I’m also glad they have hired their own TIF expert for advice, rather than relying only on The Webb Companies’ consultant.
Another good opportunity for civic engagement is a series of public meetings tonight, Tuesday and Wednesday on the future of Lexington’s excellent system of public parks. It’s an opportunity to have your say as city officials put together a parks master plan for the next decade. Click here or here for more details.
August 4, 2008 at 6:14 pm |
Why should Lexington give the Webbs any tax breaks or special financing. They did not ask for our input over 2 years ago when planning their atrocity, so why should they want our help now. I say let them do what they do best, build it, bankrupt it, then take their money and run. Maybe some day Lexington will overcome her amnesia regarding what these blokes do, and protect herself from them and those like them. Lexington should not subsidize this project in any way. And maybe they own the block where the buildings sit (sat), but the Webbs do not own the streets and sidewalks that WE citizens walk , drive, and park along. I don’t want them doing me any more “favors” as they have not managed their past downtown projects well, and I trust that this fiasco will be no different. I say let them put their parking on the top of the “pointe”, or better yet, let them give private helicopter rides to and from their centerpointe island.
August 10, 2008 at 10:42 am |
I agree with XORo…one need not look far to see the failed developments of the Webb’s in lexington.
I just wish someone would get up off their knees … and realize that they have made a huge mistake. All will be forgiven and forgotten…
…what do you say Mr Newberry? Don’t you think “it’s time for a change”?
August 12, 2008 at 10:53 pm |
Wow – interesting comments – and what passion for Lexington/Fayettee County.
I think it is time for everyone to just move on and hope that this project succeeds. In this weak economy, and with the block down, what do we have to lose but cross our fingers and hope for the best. IF this project gets off the ground it will certainly allow for many substantial construction jobs and once completed will provide jobs at every wage category. The way that I remember it the Webb’s are from Eastern Kentucky, were raised in a Coal Camp, are self made businessmen and yes, have some failures including Festival Market and Victorian Square (the largest historic preservation project in Lexington’s history – 17 historic buildings that were restored and no one came to shop or work in them – our city failed to support historic development risk taking – interesting story), and many more successful projects too numerous to list but including the Fifth Third building, the Radisson, Tates Creek Center, Palomar Center, Lexington Green, Regency Center, Corporate Center, Perimeter Center, Jamestown Marina, Leestown Distribution complex, Melbourne Industrial, and on and on – just check out their website for a list.
As far as Tax Increment Financing, Alan Hawse, David Mahoney and yes Dan Rowland all do not understand the TIF proposal or TIFs in general yet they claim to speak with authority on them. In fact, a TIF is not a subsidy. Taxes are paid on a project like Centrepointe at the same exact level whether a TIF is utilized or not. Taxes at every are paid as normal. The difference is in laymans terms – where do the taxes “go” – do they flow to Frankfort or can we keep the taxes here in Lexington to be used for publically owned public purposes?
Basically, if a TIF is not used, all of the taxes from the project that would otherwise flow directly to Frankfort to be further disbursed on across our 120 counties. On a large project like Centrepointe, cities like Henderson or Pikeville would love that – they are going to get additional tax revenues from a large project in Lexington. That is the way our great Commonwealth works with our 120 county seats.
Alternatively, should our council elect to pursue a TIF and utilize a large project like a Centreponte with it, it would not be a subsidy, addition ot the bottom line, line Dudley Webb’s pockets, etc., to the developer. It would allow the taxes that would otherwise flow to Frankfort to stay in Lexington over the alloted time period instead of heading to Henderson or Louisville.
Lexington can elect to take that tax amount each year for 30 years or the 30 year estimate could be analyzed by bond purchasers in NY for example and such an investment bank could purchase that cash flow stream in todays dollars and with an underwriting “discount” and provide Lexington with an up front sum of money (remember the time value of money in Econ 101?) and therefore Lexington could – say – get $35 million or so – in today’s dollars.
Nothing, nada, zero, zilch – goes to the pockets of the developer – they are paying taxes as normal. No subsidy. Also, the city is not obligated to the bond purchaser – unless it wants to be – so the city has zero risk. But, who gets the benefit? The public.
The TIF monies can only be utilized by the city to go into city owned public improvements. Yes, Dan and Alan and Tom, please all check your facts first.
Why would the devloper care about a TIF then if they don’t get anything? Improving the community and downtown must somehow help the developer and the project. And, maybe the developer actually cares about the long term success of the community? Now wouldn’t that make for an interesting story?
Back to the beginning, maybe now is the time that jack, XO, Rob Snyder, Mr. X, Tim and others need to stand together as advocates for the betterment of the community and hope that this “fiasco” actually works – the final chapter has not been told but I for one hopes that we can all have a happy ending for our downtown and our community at large.