Monday, May 19, 2008

Community Improvement District

The SN-L had ran a story in today's paper about the proposed sale of the Hickory Hills School on East Chestnut and ByPass 65. Buried in this story was this quote:

Rognstad said the city has offered RLB Properties and developers interested in the south property the option to set up a community improvement district. That would mean the retail establishments developed there would charge higher sales tax -- up to 1 cent on the dollar -- which would ultimately be refunded back to the developers to help them pay for the improvements they had to finance.
Oh yeah. 1 cent on the dollar is 1%.
Does this mean that shoppers who shop in a Community Improvement District pay an additional 1% sales tax which goes to the developer to pay them back for the cost of the driveways and curbing and sewers? The shoppers pay for the improvement?

Wow! Who thought this up?!? This makes Milo Minderbinder look like an amateur! Guess where I ain't gonna be shopping no more!

ps, Mark Thieme has an interesting take on "The City's" plan to "sell out" our parks (staff recommends approval).

3 comments:

tom said...

Haven't shopped at Bass Pro then have you ?

Anonymous said...

There's a community improvement shopping district sign across from Sherwin-Williams on St.Louis, only retail store on that block. Other than a engineering firm, discovery center and Billiard's the storefronts are all empty and for sale. It seemed kind of ironic to see that faded sign in front of the empty stores.

John said...

Jim:

These things are nothing new. At least 120 statewide now.

Basically, the developers float a bond to develop the property and the homeowners within that district have to satisfy the bond over 20 or so years. Plus pay for the cost of their home, and community upkeep!! I have always thought it was a scam but they sell..scratch that...sold the hell out of them over the years.

john