If I Was On The Columbia TIF Panel Tonight . . .
. . . I would ask the other panelists for answers to these questions about Tax Increment Financing (TIF) and centralized economic development policy:
1. To the business people on the panel, I would ask: Why, as supposed believers in capitalism and free markets, are you supporting proposals that will increase the use of centralized economic planning in Columbia? Do you believe that central economic planning by governments is desirable, because that is exactly what TIF is? Do you think it is the proper role of government to pick which companies and projects get special tax breaks, while others do not?
2. To the city officials on the panel, I would ask: Why, when Columbia is doing better than most other areas in Missouri, are you attempting to implement policies that are very expensive, have a terrible track record of creating jobs, and have a record of failure throughout the state? Although, frankly, it is probably a waste of time to ask those officials anything. TIF increases the power and involvement of government. If you are a city manager, what is not to like?
3. There are many questions to ask of former Saint Louis Mayor Vince Schoemehl. I would ask about the abject failure of Saint Louis Marketplace as a failure of TIF. I would ask about the failure of Saint Louis Center as a failure of central economic planning. I would ask, who came up with the idea for the disappearing police car? – not for any specific reason but it was a famous ad in Saint Louis political history so I would ask about it. Mostly though, I would ask why he thinks taking money and property from other people to fund things he likes can possibly be good public policy that should be imitated around the state.
TIF has been a total failure in our state, particularly in Saint Louis. Columbia should avoid expanding its use. And, yes, the panel should have included at least one person who is skeptical of the benefits of TIF and local economic planning. Finally, TIF absolutely and regularly involves the abuse of eminent domain. Unlike Enhanced Enterprise Zones, there is a track record of eminent domain abuse associated with TIF usage in Missouri.
As for #1, I think you harbor the silly notion that business people are true believers in free markets and capitalism. Most business people want to limit their risk and secure their profits. TIFs allow them to limit their risk.
Most people are fine with the government picking winners and losers as long as they are the winner. That is a kind of self-interest. ‘I got mine, so I better pull up the ladder before the ship starts to list. . .’
Comment by Papillon — June 27, 2012 @ 8:34 a.m.
We heard from a panel of TIF proponents which included Ken Christian, one of the directors of Grand Center Inc. – not Vince Schoemehl. Of course, he portrayed the Grand Center TIF project as nothing short of wonderful.
I asked Mr. Christian if eminent domain was used to acquire property during the Grand Center project. He said that it was used once, but only when the owners of a property could not locate one of their fellow owners so used it as a way to proceed with an otherwise voluntary sale.
I asked him about Jim Day’s auto garage. He said that there was never an effort by Grand Center to take that property and that the entire story was concocted by a jilted developer with an ax to grind. I asked him why the Post Dispatch had reported extensively on the case, and he chuckled and insinuated that the media can’t be trusted to report truthfully.
He also said that prior to the TIF district, eminent domain was used in the area, but the Grand Center TIF district never used eminent domain or the threat thereof to acquire property for renewal development.
Comment by Mark F. — June 27, 2012 @ 1:25 p.m.