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I thought an abatement was a tool for encouraging development—designed to provide relief while a project gets up and is productive. Are these (West End) developers telling us they need 15 to 20 years to get productive?
In 15 years, it’s time to remodel, refurbish what has worn out. Is that what we are funding with these abatements?
Are these businesses expecting to turn a profit? If so, why would the taxpayer be expected to gift $3,400 to $4,700 a year to them? And for 15 to 20 years!
Taxes are expenses that all of us anticipate and budget for as we consider starting a business. As an incentive to encourage new development I can see an abatement during the build-up but within a reasonable limit.
Specifically, the Tofte Downtown Development has experienced businesspeople behind it. This group knows better than anyone what it’s getting into with retail housing prices. Are we to believe the project won’t work if they have the $4,700 expense each year? This is a for-profit business, but that profit should not be on you and me.
The Sawbill Development is building on property that 15 years ago had the beginnings of retail restaurant and housing. What happened? Did the jury decision change the buildability or useability of that piece or have other circumstances changed? Has the parking issue been addressed? Is the issue with the sewer resolved? This business is asking for 20 years to succeed or fail.
How do these projects contribute to the services— hospital, health and human services, law enforcement etc., that they use?
What happens if the property changes hands, does the abatement go with the property or does it stop and get reviewed?
We have an EDA that we taxpayers fund to develop businesses that we get to forgive tax money to these businesses so they can make money. When do we, and how do we rank-and-file taxpayers benefit from those developments?
I am suggesting that you limit the abatements to two (2) years. That gives plenty of time to build and rent apartments and find retailers and maintain your position of helping to develop new business for the rest of us.
Arvis Thompson,
Grand Marais
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