The Power & Light District generated $2.2 million in sales taxes last year. The city was expecting $14.1 million, a figure based on a consultant's projection.
Abouhalkah's column highlighted a section of the city budget that describes how TIF projects inflict damage through a phenomenon known as"displacement." Displacement occurs when shopping and dining shift from a non-TIF area to a TIF district. This is a bad thing, because TIF, at its essence, is an agreement between the city and developers to share tax revenue. All things being equal, the city wants people hungry for Chipotle to get a burrito at a location outside of a TIF district, so it can keep all the taxes.
The 2005 C.H. Johnson report suggested that displacement wouldn't be a problem. C.H. Johnson's consultants thought the proposal for the Power & Light District was so unique and so wonderful that it would create new spending, not steal it from Westport or someplace else. The consultants foresaw "little substitution spending" as P&L would attract new visitors and teach existing residents new ways to part with their cash.
I followed up Johnson's e-mail with a note suggesting he may want to spell out his reasons for sharing the Yael column. He hasn't responded.
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