Oct

28

A tale of three TIFs

October 28, 2008 |

Kansas City, MO usually gets most of the attention in the conversation of the abuse of tax breaks and the  problems TIF projects that fail to produce the promised returns on taxpayer investments. But lately the problem seems to be moving to the suburbs.  The KC Tribune tells the story of a failed TIF strip mall in Merriam, which replaced several locally owned businesses and private homes.  Despite hefty subsidies and a prime location along I-35, the strip mall sits empty.  And now, the developers are asking for even more public subsidies while Merriam raises property taxes to pay for the failed TIF.

Out in the eastern suburbs, there is a similar story.  The new Bass Pro Shop in Independence was supposed to anchor a large “destination” retail development.  In fact, the adjacent retail was supposed to pay for the massive TIF subsidy used to build the Bass Pro Shop.  However, the site still sits empty with few prospects for tenants and will likely become a burden on Independence taxpayers.

However, at least one TIF project is finding success in the middle the recession.  The Tiffany Springs Market Center recently opened in KCMO at the intersection of I-29 and M-152, across the highway from Zona Rosa.  This massive TIF strip mall was able to attract several tenants like Target, Home Depot, and JC Penney.


Comments

1 Comment so far

  1. vj on October 28, 2008 8:26 am

    Not defending rampant use of TIF here(I’ve seen corn fields being blighted out in the burbs so they could qualify) but if you look at retail across the country it is nearly impossible to recruit credit tenants right now and many major retailers are closing stores. Probably because they overbuilt in the first place, but still, major retailers are closing a lot of stores. If more cities would say no to developers then we could get TIF under control. Unforunately, as soon as one city says no they simply go to the next town over.

Name (required)

Email (required)

Website

Speak your mind