According to a lead article in the Intelligencer Journal – New Era, “A presentation by Lancaster city officials, including an appeal by Mayor Rick Gray, helped convince skeptical School District of Lancaster board members to approve a tax break for a company planning to move to the former Lancaster Stockyards. .. Patterson, the city’s director of economic development and neighborhood revitalization, pointed out that most of Lancaster city already provides tax breaks for new developments or renovations.”
Let’s consider two relevant factors:
1) The Stockyards is not in the midst of blighted neighborhood so the argument that the School District of Lancaster should pay 100% of taxes the first year to 0% the eighth for “revitalization” is nonsense. In fact, the stockyard was the first choice for the convention center in one of the early studies. It is at the very northern entryway of the City and of high commercial value. With the economic recovery would come many attractive offers.
2) For such a prime site, forgiving taxes simply drives up the sale or leasing price of the property, it doesn’t attract anyone. Stated inversely, a 20% drop in asking price or a 5% reduction in rental charges would have the exact same impact as the tax abatement as far as any prospective user is concerned.
We are told “a professional services company that wants to bring 175 to 200 white-collar jobs to the former Stockyards.” Sure, like the 300 jobs promised for the Convention Center project. Don’t hold your breath!
What Mayor Gray and planner Patterson were unwittingly advocating was enhancing the sale price of the property, not attracting business. If the site is zoned for offices, it will be used for offices.
Where there is no blight, there should be no abatements. In classic words, “If it ain’t broke, don’t fix it.” Or if you prefer, “Alms for the rich.”
I wonder if PSP, High Industries or LNP is behind this????????