Reprinted from Indy Tax Dollars blog, written by long-time Indianapolis business leader Fred McCarthy.
INDIANAPOLIS, IN -- The headline in this morning's paper (9/15/08) reads, "MSA site will remain empty for a while." We're talking about "...prime real estate three blocks from Monument Circle."
We're talking about a site that has been off the property tax rolls for 34 years. We're also talking about a site that has been a ground level parking lot for 7 years while bureaucratic "planners" and economic "developers" have been unable to come up with the "right" use of the land. It goes on and on!
Meanwhile it is rather obvious that no one in a position of authority has the faintest concept of letting the market determine what ought to be the economically proper use of the plot. We are told that rejection of two current proposals "...will allow the Department of Metropolitan Development to further assess development alternatives." (Too bad the word "assess" is not more prominent in their thinking.)
We find it absolutely amazing that the city agency most responsible for handing out tax breaks to downtown businesses have spent 7 years failing to figure out how to put a single piece of real estate back on the assessment books.
Come on, folks. Give it a try. Have an auction. Sell the land. If someone thinks a combination high-rise condo and Pizza Hut will make a profit, take the money, give your blessing, and get the h... out of the way. Just make sure the new professional assessors do their job on the property!
And speaking of tax breaks, we congratulate Mayor Ballard on his decision to make a study of the use of Tax Increment Financing (TIF) districts in the city. We take this as coinciding with something we have advocated for some time - at least a partial look backward to determine how the city got into its current financial bind.
Some will say that development will not take place without these incentives. Our take would be that such an attitude shows a real lack of confidence in the city and its leadership. Do we really believe that local entrepreneurs cannot - or will not attempt to - make a go of businesses without being propped up by tax subsidies?
Certainly these goodies are used when they become a primary part of broad public policy. Why not? Would it be suggested that a kid walking into a candy store ignore the half-price chocolate bar sale and volunteer to pay the full cost?
If, in fact, development would cease in this city without the artificial stimulus of public funding, then we do indeed need to take a long, hard look at ourselves. A world class city will never be built on such an overwhelming feeling of inferiority.
