Is this a new obstacle or just a matter of getting concerns on the record?
Officials keep pushing for the Missouri Innovation Park, which is proposed for the area east of Adams Dairy Parkway in Blue Springs. Proponents say the life-sciences center could eventually create 5,000 jobs in the area. Let’s be clear: This would be the best thing for Eastern Jackson County’s economy in a long time.
So far, proponents have failed to overcome some concerns raised by the Missouri Department of Trade and Economic Development, so state legislators – despite a strong push this spring – haven’t yet given their approval to the project. They’ll try again in 2010.
The president of the Blue Springs Board of Education, Dave Wright, on Monday raised this point. What happens when all of the expected development around the Innovation Park comes? If it’s the usual incentives – such as tax abatement under Missouri’s “353” program or a diversion of tax funds under tax-increment financing – Wright says there’s a problem. It could cut into taxes for the school district financially.
It’s an entirely fair point, but what’s the solution?
What percentage of new development has occurred in Eastern Jackson County in the last decade without TIF, 353 or other incentives? Is it even half? Is it close to half? Yes, a new drug store or fast-food restaurant pops up now and then on a busy corner, but not one major retail development without this assistance springs to mind.
Once the money faucet is turned on, it’s very hard to turn it off. Take the example of Independence. Fifteen years ago, when the city was getting into TIF in a serious way, local officials claimed they just needed to “jump start” retail development and that southeast Independence would soon be attracting enough new stores and shops that TIF wouldn’t be needed. Has it worked out that way? Not even close. City officials no longer use that language, and each new project has been more expensive for the taxpayers than the one before.
This is the game cities are forced to play if they want any significant retail development at all. They didn’t write the rules, and there’s little indication that lawmakers in Jefferson City will fix them anytime soon. Is it reasonable to expect Blue Springs city officials to rule out tax incentives years down the road? It’s unlikely and probably wouldn’t be prudent.
