Steve Benjamin chats with Bob Ford at the Gourmet Shop in Five Points this morning.
Had coffee again this morning with Steve Benjamin — my friend Jack Van Loan keeps inviting me to these Kaffeeklatschen, and I attend when I don’t have a conflict. (FYI, I’m having breakfast next week with Steve Morrison to learn more about his candidacy, so I need to get together with Kirkman Finlay at some point.)
Most interesting part of this morning’s discussion: Steve B. was talking about the importance of developing our riverfront, as part of overall efforts to make Columbia a place where the 8,000 or so people who graduate from college in this community and then go elsewhere each year would have a greater motivation to stay. So I asked him if he supported the TIF for riverfront redevelopment, and he said “yes.” This led naturally to asking about the proposed North Columbia TIF that keeps getting paired with it.
To that he had a long answer that, boiled down, amounted to this: The problems of North Columbia are deep societal problems and challenges that would not be solved by streetscaping. What North Columbia needs is efforts to raise education levels and promote family stability and help the folks who live in those neighborhoods have a brighter future because they as individuals are better prepared for it. He spoke of a program he saw in Harlem that basically drew a line around a troubled area and said, we’re going to address everything that holds people back in this community — that included instituting a lot of programs, including charter schools.
Basically, he said that the kind of solutions that make sense in the city’s economic core — such as along the riverfront — do not make the same kind of sense in such areas as North Main.
I was impressed with this stance, because it is not the politically convenient one. Steve is running a campaign in which he’s going after every sector of the electorate, every neighborhood. The conventional approach in Columbia has been to say that in order to invest in the core, we have to keep the neighborhoods happy as well. And investing in North Columbia has become convenient shorthand for telling neighborhoods that we’re serious about y’all as well. At some point, we have to say that devices such as TIFs, which require sacrifice of revenues by the larger community, need to be used in those pivot points where the economy of the whole area turns.
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Benjamin as a reasonable and thoughtful guy. We have an excellent choice for mayor this time around.
At some point, we have to say that devices such as TIFs, which require sacrifice of revenues by the larger community, need to be used in those pivot points where the economy of the whole area turns.
The theory behind TIF districts is that by freezing taxation in a “blighted area” for a fixed period of time and using the revenues which would have otherwise been used for taxes and instead using them to secure debt incurred to fund publicly owned infrastructure in the area, economic benefits (through jobs creation, enhancement of future property values) will ensue which will have an overall positive benefit.
If bonds are to be used to fund the planned projects a definite plan is required for what will be built as well as realistic projection of the tax increments which will be used to repay the indebtedness. Such indebtedness generally requires a backup pledge of the general tax revenues of the issuing entity (e.g. the City of Columbia). Without definite prospects of revenue production to service debt a TIF in North Columbia is irresponsible and will almost certainly become a debt borne by all of the taxpayers of the City. Mr. Benjamin is exactly right regarding the type of approach which would be helpful in transforming the area. What has happened in Harlem is amazing.
I should have said we have excellent choices for Mayor. All three leading candidates are quality people. As I say elsewhere, Sparkle Clark may well be as well, I just know nothing about her.
I feel dumb, what is a TIF? I always thought that was a quarrel.
No, that would be a “tiff,” with two Fs — which can also be a format for a digital image…
Sorry, bud, I had meant to link to some explanatory material there. TIF stands for Tax Increment Financing. Basically, it’s a special deal in which all or some of the taxes generated in a certain district are diverted from their usual streams (city and county general funds, school districts, etc.) and devoted to be spent in helping develop that district.
The device has been used with great success, for instance, in the Vista. The downside is that needs in the rest of the political jurisdiction — say, the public schools in the district — lose the funding for the duration of the TIF.
My former colleagues atThe State are opposed to doing either of the proposed TIFs at this time. I disagree, I think. The development of our riverfront is such a high priority for the economic well-being of the entire Midlands that I think a TIF is worthwhile there. North Columbia, it seems to me, is just about North Columbia. And it’s wrong to do a TIF where you don’t need one just to get the political juice to do one where it DOES benefit the whole community.
Both TIFs hit a recent roadblock in Richland County Council. But I’m hearing on the grapevine that this obstacle may be surmountable…
To add to Brad’s definition and highlight one of Greg’s excellent observations: a TIF concentrates the taxes generated in the affected area to be used in that area. To make it work well, you need to attract revenue-generating sources (business and industry) to justify it. You leverage the projected increased revenues — you borrow against the higher tax base (the “increment”) projected to result from the enhanced area. If the city enhances the infrastructure (dealing with the railroad tracks in the Vista, adding nice lighting, say), the hope is that instead of empty or under-utilized warehouses, you get bustling retail and hospitality businesses–that pay much higher taxes and pay off the debt, and continue generating higher taxes long after the debt is repaid.
If you fix up an area but do not attract any or many new revenue sources, all you did was move one area ahead of another in the services queue.
How will this be different from the Innovista boondoggle?
The only way these types of projects should be started is if EVERY single dollar that is spent is traceable immediately and every meeting with public officials is videotaped and made public. Think that would ever happen?
Doug- If the monies are pledged for debt service then they are traceable. If they are to be used to fund improvements as they are collected it is a little more difficult but governments should be willing are able to provide an annual accounting of revenue and expense.
TIF was developed as a way to fund publicly owned improvements benefiting a specific needy area. If properly used it is a creative and useful financing mechanism. The theory is that it does not remove any existing tax revenue and only earmarks new revenue facilitated by the improvements constructed.
Innovista will go down as one of this State’s great boondoggles. Does anybody have any idea how much public money has been spent (wasted)? The faster we pull the plug the better.
Another point, it is my understanding that the Riverfront proposal contains specific projects with cost projections while the one for North Columbia presently consists of much less detail. At the very least it should be postponed until it is more concrete.
Exactly how is Innovista a boondoggle?
There are lovely buildings and several are occupied by University people. When the economy picks up, the spaces will be filled by something useful, if not what was originally planned.
Are you accusing USC of corruption in this?
I expect you can FOIA and find out how every single dollar is spent, if you have nothing better to do.
Brad, the purpose of the TIF is to allow a blighted area to, in essence, pay for its own redevelopment. A project which would have a direct economic impact on the entire area of the governmental entity (e.g. city, county) should perhaps be paid for by general obligation bonds where the only source of repayment is the tax revenues of the issuer.
to stay in Columbia, how bout some jobs?
I am not a Columbia area resident so my comments need to be taken with that in mind.
San Antonio, for those who have not been there, did wonders with the riverfront and made it an attraction for visitors and tourists year round.
Columbia has that potential as well. Can’t remember the name of the restaurant but dining on the balcony overlooking the river and the run path on the opposite site provided a great vista and if the right design and use is presented and incorporated, Columbia could enhance its image and business opportunities increase for riverfront development.
Unlike the bottomless pit of
“downtown revitalization” in so many cities where untold amounts of money are spent on dilapidated buildings with cheap storefronts for eye appeal only instead of doing the hard work and retooling the interiors required, if a sensible plan with aesthetics that appeal to the public is incorporated, the TIF will be well worthwhile.
Kathryn,
So you would call the Innovista implementation a great example of government economic development?
The “occupation” by University people wasn’t the intended objective was it? Innovista was supposed to bring in all sorts of new jobs. The University occupancy was a face saving exercise implemented by USC at the expense of taxpayer dollars.
Here’s an article from The State that recaps the status of Innovista.
http://www.thestate.com/101/story/889136.html?storylink=omni_popular
Other than being three years overdue, costing millions more than planned, and having to fire the first two developers who were involved, it’s been great.
Compare the hype to the reality and you’ll see exactly why the government continues to screw up. No accountability, sweetheart deals, overspending other people’s money. Same as it ever was.
As for having to file an FOIA request, do you want to place a bet on whether I could get the information I mentioned without delays or denials? I’ve tried FOIA’s before in other arenas. They’re a joke. They lie about how much effort it takes to produce the information or make bogus claims about the confidentiality of the information.
@ Bart–New Orleans is the name of the restaurant. It maybe closed–dunno–has a big sign saying restaurant equipment for sale out front.
I think you may have made Steve Benjamin’s point— targeted TIFs, not me, too TIFs
Hey: what’s Steve Benjamin doing bringing a cup of Starbucks into Gourmet Shop anyway?
Yeah, I noticed that, too. the Gourmet Shop has upgraded its coffee fairly recently, but it still isn’t Starbucks….
When you speak with Morrison, Brad, I hope that you will press him on the REAL reason he is running. As a progressive he obviously recognizes the psychological importance of a qualified black mayor. In all likelihood neither of these gentlemen will get my vote but Morrison’s entry is confusing.
Is there a runoff or is it a plurality victor (you’ve told me but I can’t remember.)
My understanding is that there would be a runoff…
I’m not from Columbia either, but remember Mayor Bob leading Council and The State on a tour of Chattanooga a few years ago and how stunned everyone was to learn it had revitalized itself with private sector money.
Better, more imaginative, less corporate welfare mnentality type of developers?
Re: the mayor’s race, does that mean 2 white candidates (one legit, the other a spoiler) to split the white vote so the black guy can get elected without a runoff?
That’s how they do it in my little town, per the instructions of our white Boss Hogg legislator. That keeps him in office in a majority black district.
I like the Riverfront the way it is, largely in it’s pristine, undeveloped state. They ruined the West Columbia riverfront when they cut all the gorgeous, canopy growth in front of New Orleans restaraunt. Chattanooga has a nice riverfront, as does Jacksonville but it’s not the same as the natural one we have, so far, retained here.
Actually, Martin, the two Steves would be more likely to split the black vote, and the white liberal (i.e., Shandon) vote as well.
There would be some overlap between Steve Morrison and Kirkman Finlay — they have some friends and allies in common — but not nearly so much as between the two Steves.
Again, I agree with bud. It was a sad day when I walked along the West Columbia riverfront and they had removed the “You are now entering a natural floodplain. Be careful of the wild creatures you may encounter” –or words to that effect. Thank goodness the Cayce section is more pristine.
I do applaud the efforts by the Columbia Parks people to remove the invasive non-natives like privet, English ivy and Japanese honeysuckle that block the view and crowd out native plants. I just wish they could figure out a way to preserve and enhance the wildness of the sections north and south of the Granby Park trail–and the plans I saw didn’t seem to envision this.