Fort Wayne City Council passes another STUPID tax abatement

Posted by Mike Sylvester - 11/11/09 @ 11:57 pm - Filed Under Featured, Local Politics

The Henry Administration really needs to look at the projects they put in front of City Council before asking for tax abatements.

In turn the City Council really needs to look at the tax abatements put in front of them and they need to deny the stupid ones.

Tax abatements have been a common topic on this blog.  Likely all of the normal readers of this blog know that I oppose all tax abatements.  I believe that tax abatements are unfair and that it would be better to lower the tax rate that EVERYONE pays rather than pick a few “special” businesses to reward.

The News-Sentinel has a piece in the Wednesday newspaper that discusses some recently approved tax abatements.

I personally think that both Mayor Henry’s administration and every member of City Council that voted in favor of one of these tax abatements has absolutely no idea of how economics actually work.  If I were on City Council I would oppose all four of the abatements mentioned in the article; however, an argument could certainly be made for three of the projects.  The fourth project is ABSURD and should have been shot down by the Henry Administration up front.  If it made it to City Council then it should have been “laughed out of the room.”  Beleive it or not our City Council unanimously approved the following tax abatement per the News-Sentinel:

Keller Development will construct a 35-person, single-family-home subdivision called Hopewell Pointe on vacant land at 1900 Reservation Drive. The cost is nearly $3.9 million, and two-part time jobs will be created. Homes will be offered to individuals and families at or below 60 percent of the area’s median income, with a lease-to-purchase option.   

I cannot believe that all nine members of City Council voted in favor of this tax abatement.  I especially cannot believethat Harper, Smith, and Shoaf in favor of it.  I agree with the latter three members of council the majority of the time and I consider all three fiscal conservatives…  

A tax abatement is supposed to be granted in cases that provide “economic development” to Fort Wayne.  Can anyone reading this blog explain to me how building 35 houses for low income people will provide any economic development for the City of Fort Wayne?  Consider this:

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    1. The Fort Wayne market has way too many houses as it is.  Simply look at the local statistics or talk to a local Realtor.
    2. Low income houses are being foreclosed on in this area in record numbers.  This means there are a lot of inexpensive houses available to be purchased.
    3. The houses will be sold with a lease-to-purchase option.  What this means is it will be sold to low income people who cannot get financing from a bank.  If the people cannot get financing from the bank then it is very likely that they should not own a house; since they likely will not be able to pay for it.  How on Earth is this economic development?
    4. This boondoggle will create two TEMPORARY part time jobs.  Whoopee…

Tax abatements like this absolutely infuriate me.  This tax abatement is actually worse than giving a tax abatement to a Wal-Mart.    

SERIOUSLY IS THERE ANYONE READING THIS BLOG WHO THINKS THIS TAX ABATEMENT WILL PROMOTE ECONOMIC DEVELOPMENT IN FORT WAYNE.  PLEASE CHIME IN.  I WILL TRY NOT TO MAKE FUN OF YOU IF YOU SUPPORT THIS TAX ABATEMENT; HOWEVER, I ADMIT UP FRONT THAT IT WILL BE HARD…

Good grief…

Mike Sylvester

Comments

3 Responses to “Fort Wayne City Council passes another STUPID tax abatement”

  1. The Old Country on November 12th, 2009 12:32 am

    I disagree with you—I think that we should encourage a glut of unsellable houses on the market in order to help the local economy. Its common sense.

  2. William Larsen on November 12th, 2009 12:37 am

    You are right. We could hire people to mow the lawns, pay people to maintain them, increase the usage of utilities so that we can collect more storm water fees to pay for the $500 million storm sewers we need, taxes on the utilities and when they fall apart, pay some one to tear them down and build new ones! Think of all the jobs we create.

  3. Courtney Bontempo on January 16th, 2010 4:48 am

    Can I get in on the action as well? I can sell them over and over again, think of all the commission I could make. To your point, the local market is flooded with homes for sale; both new and old. Renaissance Pointe anybody? This is what happens when the government tries to interfere with the free market. Big brother knows best…

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