HomeMy WebLinkAbout1980 10-01 City too generouse with tax-exempt status THE REVIEW City too generous with tax-exempt status
Better late than never best describes the situation benefits with jobs and increased tax revenue for the
in Maplewood regarding the use of the city's tax- city.
exempt status for commercial and industrial revenue
financing. But it is important for the local government to
carefully weigh the costs and benefits. When the
This is not a case where such methods have been Maplewood City Council got around to doing this,they
underused;rather,they have been over used. In the discovered that they had already issued twice the
1 past, just about any private enterprise could walk amount that was going to be their new limit of five
kinto city hall and walk out with below market rate percent of the total assessed valuation of the city.
financing.Finally,the city council recently decided
Q to tighten up the restrictions on granting the city's Considering some of the business enterprises
tax-exempt status. (Wendy's and K-mart)that in the past have received
approval in Maplewood for commercial revenue note
At the bottom line,it is tax payers who must foot the financing,it is likely that a good portion could afford
bill for commercial and industrial revenue financing financing at regular market rates. But if they know
with municipal tax-exempt status. the city is an easy mark for granting its tax-exempt
status,it is only natural that they will seek it.
As they are supposed to work, the methods are
available to attract commercial and industrial Many other communities are far more strict in
development to areas that need some type of granting tax-exempt status, and their commercial
economic boost. If development occurs in an area and industrial development is no better or worse than
where otherwise there would be none, everybody in Maplewood.—FWP