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Tea Party TIF talks still going strong

Written by Heather Miller   
Friday, July 01, 2011

The Tea Party of Lafayette’s fight against Tax Increment Financing (TIF districts) was magnified Thursday night after a sold-out crowd heard a comical case against TIFs, those highly controversial economic development districts where additional taxes are imposed within the district’s boundaries to fund private development.

The local Tea Party group has certainly had some dealings with TIFs over the past six months, as the group successfully fought against three different proposals that would have paved the way for potential new taxing districts around town. The first TIF to unravel was the now defunct plan to fund Parc Lafayette, a chic retail center and a luxury hotel in the most commercially appealing part of town.

Then came two bills in the Legislature, one of which would have created a TIF district for UL Lafayette and another that would have given taxing powers to a proposed Lafayette Parish Redevelopment Authority.

All three proposals were pulled at the request of local officials, who were bombarded with opposition from TPL members.

“Everything is economic development now,” radio personality Moon Griffon told the audience. “If you pay more taxes, we’ll develop all this stuff and everything will be great and everyone’s gonna be happy. But when did that ever happen? When did you ever prosper by having less money in your pocket?”

Thursday night’s presentation from Randal O’Toole, a libertarian scholar with The Cato Institute, largely focused on out-of-state TIFs gone bad that mostly have relied on additional property taxes (Louisiana tends to rely on extra sales taxes to fund TIF development). But O’Toole — and many TPL members in attendance — seem to oppose all TIFs, even those like Louisiana Avenue’s Target shopping center that brought much-needed development to an area that may have never been developed without the incentive.

One unidentified woman in the audience called it “unfair” that north Lafayette residents from the city’s poorest neighborhoods have to pay an additional penny for every dollar they spend at the Louisiana Avenue shopping center, while more affluent residents like herself are able to pay less in sales taxes at the Target on the southside. That’s an insulting argument for the north Lafayette residents who gladly pay an extra 30 cents on a $30 purchase, a purchase that would have otherwise never been available without a bus ride or drive across town.

But TIF talk aside, what the TPL and Pelican Institute-sponsored event also offered is an interesting glimpse into a local conservative group that’s steadily growing in size, civic activity — and influence.

“One of the things the Tea Party has done is awakened a sleeping giant,” TPL coordinator and co-founder Joyce Linde said to the Tea Party enthusiasts. “That’s that silent majority, and we’re not silent anymore. We believe like you do, that we want to keep the spirit of the American dream burning in our hearts and souls. And to achieve this, we must return to smaller and less intrusive government, lower taxes and freedom as put forth in our Constitution.”

The local Tea Party, unlike most other Tea Party groups, will be endorsing political candidates in coming months. The group plans to be “very involved in the upcoming elections, locally, statewide and nationally.”

Carol Ross, the TPL emcee for the evening, had this to share with the hundreds who turned out: “Years ago, I was considered an intelligent person. I had my degree, I was doing well in my chosen field. Then I started hanging around with these damn Tea Partiers and Moon Griffon and it all went to hell. I’ve been called an idiot, a lunatic, an imbecile, and a racist among other things. But let me tell you, I know I’m in good company because none of those things apply. We know that, they know that, and the world is going to know that.”

Comments (30)add
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written by ragin_cajun , July 01, 2011 - 12:32 pm
Heather --

Why was the case against TIFs comical? And why was the unidentified woman's argument to North Lafayette residents?

Can you explain?
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written by ragin_cajun , July 01, 2011 - 12:47 pm
"why was the unidentified woman's argument to North Lafayette residents? "

Why was it "insulting" to Northside residents?
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written by ben , July 01, 2011 - 12:50 pm
I too, have been called an idiot and told that I didn't understand. Not in person, but by Joey on his radio show. I can tell you the council members, mayor and legislature will be very agreeable until after the election this year. Then all of this crazyness will return. Be very cautious of anyone running for their last term in office. They won't even listen to you for the next four years, because they won't need your vote ever again. The time is now for everyone to get envolved if we really want change. Not Obama change. Change away from all of Joey's crazy taxing.
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written by yes sir , July 01, 2011 - 01:06 pm
Democrats, Blacks, the Tea Party, Northside Residence, Unincorporated Residence,and Residence of the small towns in Lafayette Parish are all against Joey. Who will vote for Joey?
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written by Take a deep breath , July 01, 2011 - 02:15 pm
Capitalist follow efficient cash flow analysis and are attracted to do someone in specific areas based on marketability and incentives. Incentives are not insignificant to them. Our rigidity will merely mean capitalistic business decision makers will look to communities more accommodating. I wonder why Texas produced more jobs than the other 49 states put together in the recent past? Not all of the answer, but part of the answer is excellent public / private partnerships getting businesses to relocate from other states and to expand rather than move. Period. End of story.
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written by the original northsidian , July 01, 2011 - 02:19 pm
I am not insulted. But, I sure as hell don't shop the La. Ave. Target because of the extra tax. I refuse to help someone get weathly on my tax nickel!!!!!!!!!!!

Now let's see if the Tea Party is for or against the SCHOOL BOARD TAX INCREASE!! And as for Joey, he just a LACKEY of the LAFAYETTE CHAMBER OF COMMERCE!! If you investigate a little, you will discover who his handlers really are!
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written by Colon Flow , July 01, 2011 - 02:20 pm
"heard a comical case against TIFs"
-------------------------

I don't think so. TIFs are an end run around the voters. They add loopholes to the tax system. They benefit the few, and often those who don't need it. And, yes, I oppose all TIFs.
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written by Compassionate One , July 01, 2011 - 02:49 pm
I think Leslie was referring to the light hearted banter on display last night as comical.

But her bias permeates the article, although not blatent.
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written by Ryan , July 01, 2011 - 02:50 pm
Eventually, everyone gets the government they deserve.
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written by realitycheck , July 01, 2011 - 02:54 pm
If you don't like what you see in Washington, D.C., work locally to send a message up the line. Just Say NO!! to TIF's as they are being used to subsidize businesses that don't need it. Say NO to developers using LIHTC to make themselves rich and leave us with slums. Federal money comes with strings attached; always, no matter the pretty picture the developer tries to paint with power point and failing to mention things, like, "oh, yeah, HUD will require land use restrictions (google HUD and LURA) for 30 years" (read hear: price and rent controls and resulting low property value)
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written by milo , July 01, 2011 - 02:59 pm
A "TIF" might be a good thing however a realestate developement must be able to stand on its own finacial footing with out any finacial help in order to survive. A TIF garantees the developer that he/she doesnt really have to qualify because it is easy to borrow money behind a garanteed tax increase. I suggest if a developer wants a TIF then he prove he has qualified for the loan he/she needs and prove same to the council when applying. In development there is always high risk and return. With a TIF there is alot less risk and a high return. I guess from a developers view point it is a good deal but it only hurts the people and local businesses that have to compete. No to TIF.
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written by barb , July 01, 2011 - 03:29 pm
Thank god we don't get all the government we pay for
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written by ragin_cajun , July 01, 2011 - 06:00 pm
Take a deep breath --

Thinking about what you said, and I think "everybody else is doing it" about sums up your justification for TIF's. Not very persuasive.

Another problem you conveniently omit in your comment is the COST of TIF's, and who pays it. Public-priviate partnerships are a euphemism for government participation in the private sector. Lafayette has, in the past, decided that money is not worth the moral decay that comes along with it when voting down gambling. TIF's are at LEAST as dangerous to government, businesses, and the "community". There are many things that are a great idea until government does them. There are decisions that government should not make. Public-Private Partnerships warp the free market into a system where government participates in and then controls the business climate.

Also, there's this fantasy afoot about attracting new business. But, economic development ALSO means developing business out of the existing community. I would venture to say that far more economic development is created in Lafayette by people already here than has ever been attracted into Lafayette from elsewhere. That being the case, what do TIF's do to the local businesses that are already here?

How would you like to be a hotel owner who has to compete against a new 4-star hotel with a leg up on you in the financing?

How would you like to be an Internet Service Provider in Lafayette that has to compete with a government utility for limited wireless spectrum?

How would you like to compete against big retailers like Target who were "lured in" by your government? After you'd spent decades building a business in the town where you live, your new competitor is propped up by the taxing authority of your own governmnet?

And if government "partners" with one business, how can it fairly regulate the competitors of its "partner"?

So local government is making business harder on local entrepreneurs in the name of "economic development", corrupting our capitalist system and warping it into a kinder gentler fascist/socialist system, and you say it's OK because everybody else is doing it.
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written by ragin_cajun , July 01, 2011 - 06:02 pm
yes sir --

"Who will vote for Joey?"

First things first. Who will run AGAINST Joey? Didn't Durel run unopposed last time? If that happens this time, NOBODY could vote for him and he'd still win, right?
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written by James Melancon , July 01, 2011 - 08:44 pm
Public-private partnerships are another way to say government subsidized business; just like the military-industrial complex. Do we really need more this?
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written by Resident , July 01, 2011 - 09:23 pm
Ragin, fascism comes in all kinds of forms. Corporate fascism does not care what kind of government is in control, as long as it can bought.

Would the Parc Lafayette TIF have been conceived without millionaire developers greasing the skids? Would ethanol subsidies have been possible without corn industry titans? Would US militarism be possible without defense industry executives? Would TSA scanners be in place without Michael Chertoff and his pals in the "security" industry?

For every public-private scheme where a competitor gets the shaft or we lose a freedom, there is a corporate crony sitting in darkness behind the bureaucrat.
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written by realitycheck , July 02, 2011 - 07:21 am
Great posts, Ragin!! Joey Durel is easily defeatable I think since he has gotten bolder and bolder and done the outrageous; like saying publicly at a televised council meeting that it is ok with him to decieve the federal government to get the money and has shown his intentions to empower himself to grab family homes and businesses and give them away to developers and non-profits (misnomer!). A campaign of "protecting from government" might work and certainly anyone saying that they know and appreciate the Upper Lafayette area would garner a large voting mass.
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written by Ophelia 46 , July 02, 2011 - 11:08 pm
Comical? No, but humorous and insightful and painfully true what Mr. O'Toole had to say about TIF's, soviet-style central planning and the crony capitalism that rewards the chosen few and erodes trust in government. And I don't believe any "insult" was intended to anyone - but overall, a good report Heather. Thanks for being there.
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written by NORTHSIDIAN SHOTGUN , July 03, 2011 - 12:10 am
If Joey would,nt have the cronies pulling his strings and leading and directing him on every money making project which they invite themselves into a cut of the publics money he might would qualify as a dog catcher with his background, and if this would come to be surely his crony pals would somehow benefit on the supposedly bid out projects which his snake in the grass GreenAmbulanceMan seems to always glean Joey's favor when the money is slid under the table, its a shame the feds haven't come in and removed him from office as they removed our last lawman from public office, for sharing in the public's pie, someday Joey you're going to hit the fan.
The Feds need to drop in and give him the ultimatum, get out or get locked in the parish jailhouse..........
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written by BoFred , July 03, 2011 - 10:51 am
Sun. Advertiser, article on expanding the Convention Center, is exactly why I believe this Administration/Council is allowing the Heymann Center to decay into dirty (ring around the toilet) rotting falling down pile of peeling paint and bricks: to SELL IT TO GENERAL HOSPITAL!!!! The convention center does not need to be expanded to allow performances, just to suck more taxpayer money. ITS THE SAME AS THE SCHOOL BOARD: we need to replace it because its old. NO, just keep it maintained!!! In fact, I want it back. Sell the old planitarium to Gen. Hospital & give me back Heymann Center parking!!! Repair the building, do the landscaping, & keep it clean! Mark my words though, its in the works, "they" are letting it rot to convince citizens the Heymann Center is no longer worth keeping and THAT IS A BOLD FACED LIE!
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written by NORTHSIDIAN SHOTGUN , July 03, 2011 - 08:36 pm
The Administration ( mainly Joey ) cannot satisfy his associate cronys without another and another public projects that is the " Only means of sharing another Pie ", Bowen did this and now Joey is sharing the public funds....
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written by realitycheck , July 04, 2011 - 10:09 pm
bofred: SOOOOO TRUE!! There is too little money in maintenance to be able to hide corruption and syphon money to cronies; hence, no maintenance and decay! Sad and irresponsible!!

DUREL NEEDS TO GO AND FUTURE POLITICAL PLANS need to be squashed bc we will remember and keep bringing it up!!!
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written by rambeaux rawlings , July 05, 2011 - 07:47 am
TIFS: Another good idea(to promote development where otherwise it might not occur), seized by those for whom it was not intended (who needs an incentive to develop in the most commercially valuable area in Lafayette?), and now used to generate political division by the narrow-minded (NO TAXES, NOT NOW, NOT EVER) who frequently use capitals to make their point. Sigh...when does football start?
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written by LookSomeThings , July 05, 2011 - 09:33 am
I'd take the Tea Party more seriously if they didn't charge upward of $40 for events like this all while getting free, regular publicity on KPEL—the same station that gives Durel a weekly pulpit. I'm supposed to buy that they have the public interest at heart, but it's pretty clear it's just another vehicle to get Republicans elected. Go to their website and try to find one dissenting word on our great city-parish enabler. Though in Durel's defense, he isn't pushing a 4-cent cigarette tax extension, so it's unlikely the Tea Party will call for his RESIGNATION. Priorities, people.
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written by NORTHSIDIAN SHOTGUN , July 05, 2011 - 09:36 pm
Fox's will take care of their own, just like skunks, and the first TEA PARTY had their personal gains to lose, so why would todays TEA PARTY'S worry about anyone's ass but their own kind.
" Give to the Tea Party and enrich DUREL'S COFFERS. "
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written by realitycheck , July 06, 2011 - 10:39 am
North: I don't think Durel has the support of the Tea Party. In fact, I'm sure he's pretty disappointed at their effective blocking his recent power/land grabs. The Tea Party would require accountability and they don't want to give him more money.
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written by Gays for Joey , July 07, 2011 - 02:07 pm
Joey has a pole that says he will get 75% of the vote, so yall can all just get used to it. Hes here hes quear get used to it.
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written by realitycheck , July 08, 2011 - 05:53 am
"gays": LOL!! sure! Durel surrounds himself with a "good ol' boy" and crony group and no doubt, he's very popular there!!! And when his buddies like Gachassin, Becker and others give him campaign bucks, he seems to buy a lot of cigars!! But even Freud said, "sometimes a cigar is just a cigar".
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written by NORTHSIDIAN SHOTGUN , July 08, 2011 - 07:23 am
Nuttin Quear (sic, huh Tut Tut ) bout Joey, he's a run of the mill genetically defective LSC cell, akin to former stickum finger, Bertrand, Bowen, and the " Maestro, Horse Farm Thief Lastrapes, EXCEPT jOEY'S ENTOURAGE OF GREEDY CRONYS REALLY, " TAKE THE PIE, there is nothing shy about these cronys and nothing hidden from the public's eye, Joey Joey, pants on firah.
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written by Jason D. Faulk , July 13, 2011 - 12:46 am
An interesting bit of context to this matter comes from the Center for Planning Excellence in Baton Rouge (cpex.org)
In their July 12th newsletter, CPEX comments on this matter:
http://us1.campaign-archive1.com/?u=a12dbc326e438181a77066824&id=b299f5f46a&e=52beeb4d0f

"The interesting fallacy in this debate is that a TIF, by definition (notwithstanding what is happening in Lafayette), uses future tax revenues to capitalize development, not increased tax rates. This future revenue comes from rising property values, new development and new commerce. Those increases are the "increments" referred to by the "I" in TIF. While there are some valid arguments against TIFs as being "handouts for developers," these problems usually come from poor administration of TIFs, not from the mechanism itself. If well administered, TIFs can be valuable in spurring reinvestment in neighborhoods and helping communities realize their comprehensive plans. We will have a session on this very topic at our Smart Growth Summit."

In other words, as I best appreciate this matter, instead of applying a new tax, the intended method is to define the geographic area in which a Tax-Increment Financing mechanism will be applied, compile the baseline annual tax receipts through sales or property or other tax forms in that area, then "draw" a baseline upon which any future expected increases in tax revenue collected will be in that geographic area. These over the baseline funds will be used as the basis upon which bonding can be issued, to build improvements, which will be paid back in future years by the increased revenue being exclusively dedicated to the repayment of those bonds for projects and ongoing maintenance in that exclusive geographic area.

In Lafayette, we just have proven ourselves unwilling to surrender any future tax revenue above the "zero" baseline in a TIF. Considering that a growing city has a need to continue receiving revenue growth under existing rates proportionate with our growth in population and commerce to fund a growing need for municipal services, then really this seems like a bit of a robbing Peter to pay Paul situation. Thenceforward one might infer the Lafayette option: temporarily increasing the tax rate in that narrow geographic area to finance the improvements under separate bonding than general citywide borrowing capacity.

Another argument is that all our tax mechanisms seem to be bonded against, so really in the big picture, absent 10%+ growth per decade, we're just digging a bigger hole with each unit of extra sprawl and growth we experience, particularly when we borrow to pay for it. If sprawl doesn't pay for itself and creates externalized costs to a city that aren't recovered elsewhere via the uptick in commerce, then we should rethink what we're doing or how we fund and incentivize sprawl. Its entirely one thing to bond out a major development "loss-leader" type of project while we're growing, one that will attract major activity (especially if private bonding has stalled out or if we're being strangely overlooked for investment) however when we start bonding out the cyclical repair of existing parish roads, bridges and drainage, aren't we just borrowing money on time that will run out if we stop growing? This pattern has been observed across the United States over the decades 5-7 decades. It has been asserted as one of the primary root causes of the housing bubble and bank collapses and the Great Recession, along with the long term unsustainability of our cities, fiscally, environmentally and energetically.

Back to the point of this matter, the TIF mechanism should be used more realistically for how it was intended or not so much at all. Let's use it for special needs and special projects and let's have honest discussions about the need for citywide tax levels. If Lafayette truly refuses to fund itself adequately and continues building unsustainable sprawl, then inevitably we will find ourselves having a brain-drain and a falling behind again on infrastructure, amenities, quality of life ratings, and not living up to our potential as an attractive, decent mid-size city with a decent university connected to a vital bio-region and distinct group of connected cultures.
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