Public Benefit from TIF?

The recent column by Rod Thomson in the Sarasota Herald Tribune makes a clear case for questioning the give-aways city officials seem to think are required to lure developers to downtown Sarasota. This is something we have been questioning also.

What benefit does the public get by giving $9M for public parking to a developer who wants to build here no matter what? Yes, we know the spin that the developer will use: I need this funding to make my project pay, otherwise I can’t do it. And some of our officials will buy into this pitch.

That’s what happens when there is a limited vision for downtown - so far our vision includes more parking, a walkable and lively downtown and mixed use. We have also put limits on building height and design parameters. So as long as a developer promises to fit this limited vision he is free to pitch pretty pictures and should expect at least a majority of commissioners to buy into the concept. Our limited vision is an easy one to buy into.

We don’t have a plan or strategy on how to get there. We talk about public/private partnerships and investment in needed development. But how do we measure the result? What is the target?

What about affordable housing, diversity of residents, traffic patterns for getting to the parking garage, public spaces for lively activity, more businesses downtown, easy access to the bayfront, transportation (other than the car) that people will want to use, more green space in downtown? What is the relationship between the Quay site and downtown - how will this work? There are many issues that face us and it seems there is little effort at defining the issues and moving toward a consolidated vision of where we want to go. With a limited vision it is easy to acquiesce to the first request for dollars. Meanwhile our downtown continues its march toward a place where the wealthy visit for a few months during the year.

Thomson pointedly indicates that developers on the fringes of Sarasota will be paying for the increased strain they put on the infrastructure - mainly road improvement - as a cost of locating at a highly desirable spot. Downtown should do the same.

In a recent Argus Foundation Newsletter opposing the use of TIF funds (for fees, utility construction, landscaping) at the 1350 Main project, they indicated:

"the tax increment finance district was established to fund projects in the downtown that create true public benefit like parking, sidewalks, streetscapes, true "utility relocations," etc. If we approve, or encourage, this kind of public subsidy (i.e., for what 1350 Main wanted) we will have no money left from the tax increment to pay for the projects that are creating the public space of a vibrant downtown. "

We likewise believe that the best use of TIF funds is for required and necessary infrastructure improvements that will benefit all of downtown, public space that adds to the vibrancy of downtown, and parking if necessary (it should also benefit all of downtown).

We need to look at the long term for downtown - how do we insure a lively and livable downtown for the entire year and for many years. We need a long term vision of what makes a livable and lively downtown. Then we need a strategy to accomplish this and that will guide our decision makers as they review projects worthy of TIF funds. If developers are intent on cashing in on the wildly popular Downtown Sarasota Show (Thomson uses the term "event") let them pay for what they need. If they need a street vacation, what will they contribute to the public good? If they require parking, what benefit does the public receive for the $9M they want?

Oh yes, let’s not forget tough negotiating in the sunshine!