Georgetown University
Would a TIF Make Sense for Georgetown Park?
Photo by Mr. T in DC.
Buried halfway through this week’s Current, the paper ran an article reporting that both Mayor Vincent Gray and Council Chair Kwame Brown believe it might be a good idea to use tax incremental financing to lure a high end tenant to the mall.
Tax incremental financing (or “TIF”) is a process whereby the city issues bonds to raise money for a particular project. Typically this involves giving the funds to a private developer. A portion of the taxes from the project that gets funded by the financing are directed towards paying off the bonds. The idea is that the city will take the taxes that arise from the incremental increase in property and/or sales taxes from the now improved property to pay back the money.
The city has used TIFs in the past. For instance, the city used a $74 million TIF to help the Gallery Place development along. It used a $46 million TIF for the Madarin Oriental hotel. And it used a $7 million TIF for the Spy Museum. Each of these projects was successful and they even paid off the bonds ahead of schedule.
But TIFs only work when there’s an increment to be found. In other words, they work when they’re used in areas that will likely see a big improvement from the public investment. If there’s no increment, then the only way to pay off the bonds is to cut into the taxes that would arise from the property without the public financing. In that case all you’ve really done is give free public money to a private developer. Continue reading
Filed under Development
The Morning Metropolitan
Photo by Bsivad.
Good morning Georgetown, here’s the latest:
- Apparently the DMV will return to the mall once the construction’s done.
- Georgetown canal boatman brawl results in murder, in 1886.
Filed under The Morning Metropolitan
Now and a Long Time Ago: C and O Canal
This week on Now and a Long Time Ago, GM stops by the C & O Canal at Wisconsin Ave. The old photo is labeled by the Library of Congress as being taken somewhere between 1890 and 1940. Given the industrial scene, GM is going to guess the shot was taken on the earlier end of that time frame.
Also, the photo is labeled “C & O Canal from Wisconsin Ave.”. But it doesn’t really look that much like the view from Wisconsin Ave. in either direction. GM guessed that if it’s either one, it’s the east side, so that’s what he matched it up with. Anyone have a better guess?
Filed under Uncategorized
The Morning Metropolitan
Photo by Byron Peebles.
Good morning Georgetown, here’s the latest:
- First review of new macaroon shop.
- Mike Isabella hopes to lead “a movement back to Georgetown“.
Filed under The Morning Metropolitan
