[CPEO-BIF] Petoskey Pointe (MI) tax credit debate

[Robert Paterson]

The larger question is what we demand of sites that realize substantial
brownfield subsidy benefit...the payoff to society for the subsidy should be
on par with the benefits given...if we simply boost a developer's rate of
return from 18 to 29% how is society served? The opportunity costs of those
subsidies are not inconsequential...perhaps a better use of foregone revenue
would be to reduce illiteracy, enhance job training or expand social work
efforts....perhaps a more refined question is whether we are dealing with
positive or negative value sites? If it is a positive value site, why allow
a subsidy at all? 

Of course the whole cost/benefit analysis for the use of public subsidies
has been trashed in prior studies on land development decision making
(basically non-existent for most cities)...so why should brownfields be any
different...because we sell it as "sustainable development"

My feeling is we need to establish better benchmarks to get public
subsidies, along the lines of a LEEDs certification process, where subsidies
are tied to auxiliary benefits to society....we need to make sure its not
feeding at the "pork barrel" trough...my 2 cents....... 

Bob

Robert G. Paterson
Associate Professor
Co-Director, Center for Sustainable Development
1 University Station B7500
School of Architecture
The University of Texas
Austin TX 78712-1160
512-471-0734
Fax 512-471-0716
rgfp at mail.utexas.edu
 
 
Whatever befalls the earth 
Befalls the sons and daughters 
Of the earth. 
We did not weave the web of life; 
We are merely a strand in it. 
Whatever we do to the web. 
We do it to ourselves. 
 -Chief Seattle (1788-1866) 
Native American (Suquamish leader)
 
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-----Original Message-----
From: brownfields-bounces at list.cpeo.org
[mailto:brownfields-bounces at list.cpeo.org] On Behalf Of Lenny Siegel
Sent: Monday, October 09, 2006 10:15 AM
To: Brownfields Internet Forum
Subject: [CPEO-BIF] Petoskey Pointe (MI) tax credit debate

[I expect this issue to come up more and more: Are Brownfields subsidies 
for development in general, or are they targeted at properties with 
significant environmentally impairments? - LS]


Allen supports review of $4.5 million tax credit request

By CRAIG McCOOL
Traverse City Record Eagle (MI)
October 8, 2006


PETOSKEY - A state lawmaker said he is "very concerned" that developers 
behind a downtown project cited inaccurate information on an application 
worth millions in brownfield tax credits.

Sen. Jason Allen, R-Traverse City, supports a complete review of 
Petoskey Pointe developers' application for a $4.5 million tax credit, 
awarded in June by the Michigan Economic Development Corporation.

"Clearly, it's an oversight issue between the (Department of 
Environmental Quality) and the MEDC. I think it's appropriate for them 
to take full review of the problems that are going on," Allen said.

...

For the entire article, see
http://www.record-eagle.com/2006/oct/08pointe.htm

-- 


Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel at cpeo.org>
http://www.cpeo.org


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