TIF (tax increment financing) abuse has been a matter of contention in Kansas City for years. It was one of the issues that got Mark Funkhouser elected mayor (disastrous as that turned out, sad to say) Mayor campaign toughens up over tax breaks
The problem has simmered for years like a sub-clinical disease, but I see symptoms everywhere that things are getting worse, so I wasn’t surprised to see this show up on my facebook feed.
The project that sparked the latest outrage is called Three Light, a luxury apartment development. It kind of went past my head — another yuppie palace downtown — ho hum. I signed the petition and shared it to facebook and twitter but I didn’t read it closely at the time.
We have many concerns regarding the Three Light project(s)…
Weak rationale for tax abatement. In December of 2016, SB Friedman did a preliminary financial review of the project and concluded that, “the requested PIEA assistance does not appear to be needed in order to achieve market-level rates of return.” The Developer then adjusted the numbers, in ways that are inconsistent with market realities, in order that the rationale squeak by. The project scored only one point above “low impact” on the city’s own lenient scoring status.
Conditions have changed since 2004. The city’s finances, the increased gap between rich and poor, and the continued neglect of the East side are important facts that belie the necessity of another major taxpayer subsidy for luxury housing inside the downtown loop.
Tax abatement has saturated the luxury market. An independent analysis stated that competition from other buildings from the same developer was part of the basis for their request. The response to this condition should not be further tax abatement but instead is a strong indicator that market forces should now be allowed to operate.
Then I got this update.
We have recently learned that the public hearing scheduled for tomorrow will not include the request made by Cordish for 100% tax abatement for 25 years.
We haven't heard what the official request will be for Three Light, but we are sure that they will be requesting some sort of subsidies. Please continue to share this petition and keep the pressure on City Council. We feel that subsidies in any form for this project is not acceptable.
And I started wondering who the heck is Cordish?
The Cordish Companies (previously The Cordish Company) is a privately held company that invests in real estate, including entertainment/mixed-use development, gambling and lodging, shopping centers, restaurants, clubs and music venues, offices, and residential and college student housing.
en.wikipedia.org/...
Reed S. Cordish (born June 18, 1974) is a real estate developer, former professional tennis player, and a former senior White House aide to U.S. President Donald Trump.
Cordish and his wife are close personal friends of Jared Kushner and Ivanka Trump. Reed Cordish was a principal and partner at his family-owned Baltimore-based real estate investment and development firm before joining the Trump Administration. [My bold]
en.wikipedia.org/...
Yikes! The corporate web site shows him currently as one of the “principals” all of whom are Cordishes and all whom, I’m sure, are solidly part of the T___p world. It’s a cancer.