Dear Erie Neighbors,
Do you support larger government and higher taxes to subsidize developers in Erie? I think most will agree this is not a value our community supports.
Do you support larger government and higher taxes to subsidize developers in Erie? I think most will agree this is not a value our community supports.
The Mayor is once again supporting development by saying the “free market” should allow developers to set up their own government entities, called Metro Districts, and to not have an explicit cap on the taxes these Districts charge.
A little history. If you live in Vista Pointe or an Erie development started before Vista Ridge you do not pay property taxes to a metro district. Your property taxes are relatively low.
Vista Ridge was the first to have a metro district which basically reduced developer costs for infrastructure (streets, parks, amenities, water/sewer pipes, etc) and places that burden, through higher property taxes, on the new home buyer. This was done to encourage development that would bring in big box commercial at Vista Ridge. Unfortunately that has not materialized. However, the Vista Ridge homeowners are paying higher property taxes to fund the building of Vista Ridge.
When Erie Commons came along, the Board understood the issue with higher taxes and created a law limiting what a metro district could charge. That cap stands at 50 mils today - roughly what the school districts charge. Both Erie Commons and (the new) FlatIron Meadows exist within this cap.
Now, fast forward to this week and before the Board on Tuesday is a proposed change to the law to remove the cap.
Higher taxes to support development have long term negative consequences including:
- lower home values as the banks have to figure in the higher taxes during qualification
- tax fatigue so when Erie needs funding for a new police station or road improvements, those with high metro district taxes are less likely to support them
- every dollar spent on higher property taxes is a dollar that can’t be spent in Erie businesses
- the developers often put up the money for the district further profiting at the home owners expense
This becomes another case of working for the developer, not the homeowners in Erie. I think the existing cap of 50 mils should remain.
This coming Tuesday, April 23rd, this issue will be decided by the Trustees. Also, on the agenda is the Daybreak (formally Bridgewater) metro district resolution and changes to the development quality being pushed through using an emergency procedure to circumventing the requirement for two meetings. The timing of this is concerning to me.
If the majority of the BOT votes to lift the cap on the metro districts to allow the developer to name their number, then this developer, CDG, would be the first to benefit, and the future home buyers suffer.
This is the same development to receive $2.8 million of incentives for Erie Parkway and storm water drainage improvements. By giving incentives to the developers, Erie taxpayers will not have it available to pay for projects to mitigate the results of increased traffic on the roads or make needed improvements. Please read my previous blog on this topic to learn more by clicking here.
If you don’t want Erie residents to further subsidize developers, please come to the BOT meeting on Tuesday and let your views be known. Higher taxes for future residents hurt us all.
Take care,
Janice
