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08-22-1996
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08-22-1996
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MV EDC
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Date
8/22/1996
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point value for upfront assistance in a redevelopment <br /> project creates a disincentive for redevelopment . The <br /> same observation could be made about the public <br /> investment versus private investment or the public <br /> investment per current employee . In a redevelopment <br /> situation the public investment is going to be <br /> substantially greater. <br /> 6 . The criteria involving the generation of new real <br /> estate taxes discriminates against smaller projects <br /> and, again, those projects involving redevelopment . <br /> Generally, it is not the gross amount of taxes that <br /> should be the determination. For economic development, <br /> it should be taxes per square foot, or tax increment <br /> per square foot, or increased taxes per square foot . <br /> Assuming the same completed market value, a piece of <br /> vacant land will always generate more increased taxes <br /> than parcels that require redevelopment efforts and may <br /> already have a significant tax base . <br /> The 1997 Legislature is determined to review tax increment with <br /> the goal of curtailing the use of spending tax increment outside <br /> of the tax increment districts in which they were generated <br /> (commonly referred to as "pooling" ) . Most of the TI Policy seems <br /> to be responding to the expenditure of pooled tax increment . It <br /> Ilk <br /> may be prudent to de-emphasize the incentive approach for the <br /> economic development uses of tax increment and concentrate more <br /> on redevelopment, pollution abatement and housing uses for tax <br /> increment . <br /> If I can provide any further information, please do not hesitate <br /> to call . I look forward to visiting with you and the Economic <br /> Development Commission on July 25 . <br /> JRC/kh <br /> Enol <br />
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