CRAG press release, copied in full. CRAG is doing good work in Aurora.
Aurora Activist Group to Oppose TIF Corporate Welfare Subisdies for New Development
March 4, 2010
For Immediate Release: (Aurora)
On Monday, March 8th, at 7:30 PM, the Aurora City council will hold a public hearing on a measure that would provide for a Tax Increment Financing designation for the Lend Lease Horizon Uptown development, in east Aurora. See Schedule.
The eventual vote will decide whether the raw ranch land will be "blighted" under "urban renewal" state statutes. Citizens For Responsible Aurora Government (CRAG) has asked Aurora voters to contact their city council representatives and encourage them to vote NO to subsidizing a private real estate development, when this issue comes up for a vote.
The City of Aurora hired its own consultant, BBC Research & Consulting (BBC), to analyze the impact of this development on the city. See report . BBC questioned many of the assumptions from the developer, and noted:
The "…remote site presents costly operating burdens to service providers." Page 5
Different development scenarios "…would have been an instructive addition to the analysis and a reasonable expectation for a project of this scale and uncertainty." Page 6
BBC questions what the developers' model does not reveal for "…fiscal effects, and the implications of diverting Horizon tax revenues for other purposes." Page 7
The analysis also notes "Required Off-site households not included in cost." Page 7
"The Horizons's fiscal benefits cannot be achieved without a large amount of new, off-site residential development…" Page 9
…"the public service costs associated with this off-site development is not represented in this [developers] study." Page 9
"…Horizon's retail component will require 20,900 new households by 2017 and 25,100 new households in the immediate market area at build out." Page 10
"These households will require City services and will be a financial burden to the community." Page 10
"The market feasibility of the project is brought into question when one considers its reliance on the development of over 25,000 households in the immediate area over a seven-year period." Page 11
When analyzing the fiscal impact, BBC states "We have rarely seen the levels of efficiency in government service provision implied in the DCS" [City of Aurora Development Cost Study] Page 9
"…this regional draw [for retail mix] raises questions about the road system around the project and its ability to handle the retail and office commuting suggested in this model." Page 12
The reports states "It should be noted that the success of the retail and office portions of the project would be at risk if costly transportation improvements were not completed. This could affect the vast amounts of sales tax revenue projected." Page 12.
BBC notes the probable requirement for additional police and fire facilities. Page 12
"Market support for both the on- and off-site development requirements is uncertain." Page 13
CRAG encourages Aurora voters to read the 13 page BBC report. Private development should be undertaken on its own merits, with 100% of its own money and not require a taxpayer TIF subsidy.
For additional information, you can access the CRAG website at concernedaurora.com or contact Greg Golyansky at 720.201.8789.
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