Towns too giving to developers
When are municipalities going to stop being financial institutions for developers? Every community needs to attract new developments but to give cash is not the correct approach.
The village of Gilberts is the latest victim of giving cash to a developer. Neumann Homes was required to acquire 20 acres for a new elementary school. Rather then using their line-of-credit, Neumann Homes "borrowed" $1.5 million from the village with repayment only from the impact fees on new home sales. Neumann Homes received free money, and with their complete bankruptcy and liquidation, the very beneficiary, the school district, must now repay the village.
Batavia has become a bank and a developer. The city acquired 2 East Wilson through eminent domain and completely refurbished the building. When the First Baptist Church wanted to sell the property, the city immediately purchased it so they could control the corner if Route 25 was ever going to be straightened. The Baptist Church is moving to Geneva, and Route 25 will not be straightened, so the city has two properties. Batavia, which has over a million dollars invested in these two properties, has hired consultants not only to try to market the buildings but also what type of business would best be suited for these buildings.
St. Charles is the biggest bank for developers. The city lost millions of dollars with the Frank/Johnson venture in the Hotel Baker. St. Charles gave these developers loans and grants, free money, before the Hotel Baker went into bankruptcy.
Now St. Charles is giving $7 million to Zylstra, LLC, the developer of the Harley-Davidson property, so Costco can build a new store on the property. The city is also rearranging the utilities on the property. The $7 million will be repaid with sales tax. The city will not receive the full value of Costco for up to 10 years. It is the sales tax that is repaying the city, so Zylstra, LLC and Costco have received free money.
Cities need to attract new projects for growth but the incentives must work both ways, not just in the developer favor.
Jack McCabe
Batavia
Do the candidates understand taxes?
Both John McCain and Barack Obama have displayed either a naive misunderstanding or a disingenuous deception of who actually pays taxes in this country.
Obama and Democrats talk about a windfall tax on oil companies when they know a tax on oil is a tax on consumers. They know corporations do not pay taxes. They simply add all costs, including taxes, into the price of the product or service they provide.
McCain rejects the Fair Tax, saying it puts a burden on the poor, when he knows or should know the poor is who the Fair Tax helps most. The pre-bate (money sent each month in the amount each person will pay in taxes for goods purchased, up to the poverty level), no employment taxes (Social Security) and the lower prices companies will charge when competition causes them to lower prices because they pay no tax-related expenses would cause the poor to get a 37 percent raise in pay.
The more I hear our representatives and the two senators running for president, the less I respect their intelligence or their integrity.
Wilton Jere Tidwell
Huntley