Q1. What are the four techniques of financing redevelopment in local areas? Briefly explain the tax increment financing technique? Has this technique been abused by business communities? Explain. \
After World War II the cost of redevelopment was mostly paid by taxpayers through property taxes. Then as the housing market increased, tax payers became increasingly weary of the growing costs. These costs were attributed to the increasing budgets from municipalities and school districts. Thus, Proposition 13 was enacted by limiting “the basic property tax to 1 percent of the property’s assessed value” (180, Cullingworth). Now, cities can no longer rely solely on tax payers to cover costs. In turn, municipalities have increased charger, and state and federal funding has begun to diminish (180, Cullingworth). The purpose of this paper will be to give four alternative sources of funding for redevelopment at the local level, and to discuss the tax increment financing technique and whether the technique has been abused by the
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The criteria are similar in most cities, states, and are long-term with a dollar cost of at least $10,000. Moreover, all projects to be considered must be drawn up and include, but not limited to, “the name of the project, the location and description of the project, the justification of the project, the schedule of funds to be expended, the source of the funding, and the annual operating budget impact of the project’ (188, Cullingworth). Not all projects that are submitted by the city get accepted, so each project is valued by all pertinent information depicted in the CIP. Each CIP is then reviewed by a community, which can include both citizens of the community and department representatives. Once the CIP’s have been selected, they are the herd by some form of planning commission who will submit a recommendation to the ‘mayor and city council’ for a final
Habitat for Humanity is a nonprofit organization dedicate to building homes for low-income individuals. This organization requires that potential homeowners assist in the building of their home or others to reduce the financing cost of homeownership. This paper focuses on the percentage of property tax revenue, two arguments in favor, and two arguments property tax breaks for Habitat of Humanity homeowner, and case resolution.
This week’s assignment was to write an essay discussing the pros and cons of the Kelo decision as it pertains to local economic development. The city of New London, Connecticut, in 2000, agreed on a development plan that was proposed to increase taxes, jobs and invigorate a troubled city that had fallen on hard economic times. When the city heard that Pfizer, a pharmaceutical company had interest in opening a research facility on the outer limits of the Fort Trumbull neighborhood, they then set out and began deliberating on redevelopment plans for the neighborhood to promote new economic activities for the area. Included in the development plan was a resort hotel and conference center, new residences, retail space and even a state park. The
Lately I have noticed numerous abandoned buildings around the Battle Creek area; the sight makes our city look run down and cheap. I believe something must be done about this issue such as turning the buildings into new city attractions. Two vacant buildings that come to mind are the run down State Police Station and the dilapidated Family Fare store.
Sacramento is a bustling city with a diverse population and a city structure to match. In the last few decades the growth and development within our area has grown exponentially, land that was completely vacant fields and farmland has been replaced with shopping centers and freeways, expanding with the population increase in recent years. With the fast-track building of these areas before the economic collapse, more areas were developed than can currently be filled, which unfortunately has left many new buildings empty and lots paved for new construction or parking lots left unused. This is in addition to the expansion of roads and freeways in an attempt to relieve the traffic congestion that comes from rapid urban growth.
The rezoning of 125th street has been a topic of controversy and has yet to be approved. The Department of City Planning believes rezoning of 125th street will bring positive economic changes. I personally believe that these changes would negatively affect the residents and business owners of Harlem. According to the New York City’s Planning Commission, the rezoning will bring new business and housing. Residents and business owners disagree because they believe this plays a bigger role in promoting further “gentrification.” I believe that Harlem should be able to keep its cultural heritage while still promoting and modifying economic growth.
New York City is not only a tourist attraction, but considered one of the most expensive cities in the world to fund because of its superb security, overall popularity, and partly its dependence on Wall Street to pay high income taxes to fund social programs, such as those who help homeless individuals and low-income residents. Ever since Bloomberg's re-election in 2005 he warned New Yorker's that because of a gaping budget deficit the city may have to raise property tax and state tax. The only people who struggle the most from increasing taxes are those who are barely able to pay rent and other expenses, such as utilities bills. One of the reasons why increasing taxes affect individuals is because as property taxes rise the property owner has to spend more, which means his/her profits may be affected, thus increasing the rent of tenants (the most current increase was 4% in one-year leases and 7.25% in two-year leases). In the other hand residents that currently live in homeless shelters have fewer chances of finding an affordable apartment even if he/she obtains a job (Most of the jobs homeless shelters refuges receive are low-paying jobs).
...t severely reduced the amount of property taxes collected and thus diminished funding for California's education system. Although, voters intended to reduce state government interference in local governance, the proposition had the opposite effect. The shortfall in tax revenue made it necessary for the State to provide aid to local governments to keep public safety, welfare programs, and education programs running. Property tax revenue at the county level decreased from thirty-three percent to only twelve percent after the implementation of Proposition 13.(Chapman 1998) The allotment of aid means that the state has greater control over how money is allocated and spent, while cities were able to transfer lost revenue onto residents through service fees, counties had to turn to state and federal funding to provide for public safety and public assistance programs.
The Urban Residential Grant offered 4 options ranging from $15,000 for mixed use apartments with ground floor commercial use, $10,000 for 24+ units residential, matching grant for water and wastewater connections, and option to defer the General Municipal Tax Portion of the Incremental Assessed Value for a max of 3 years. Facade Improvements were a matching grant of $750 per Front Foot or $50,000 for improvements of aesthetic appeal, pedestrian
This will cause lower income residents to move out of their homes. It is also stated that the action of restoring damaged property would be a positive because it attracts those who can afford the newly renovated homes. This also includes the physical rehabilitation of certain neighborhoods that are in poor conditions. Once these neighborhoods are renovated this will invite those who choose to invest in this area and new businesses will open. However, the negative would be that lower income residents will still be forced to move out because rent prices would increase due to the new demand.(Atikinson, 2004, p.
"Building Partnerships to Revitalize America's Neighborhoods." HBCU Central (Winter 2002): 1-6. Winter 2002. Web. 2 May 2012.
Gentrification is described as the renovation of certain neighborhoods in order to accommodate to young workers and the middle-class. For an area to be considered gentrified, a neighborhood must meet a certain median home value and hold a percentage of adults earning Bachelor’s degree. Philadelphia’s gentrification rate is among the top in the nation; different neighborhoods have pushed for gentrification and have seen immense changes as a result. However, deciding on whether or not gentrification is a beneficial process can become complicated. Various groups of people believe that cities should implementing policy on advancing gentrification, and others believe that this process shouldn’t executed. Both sides are impacted by the decision to progress gentrification; it is unclear of the true implications of completely renovating impoverished urban areas; gentrification surely doesn’t solve all of a community’s issues. I personally believe that gentrification is not necessarily a good or bad process; gentrification should occur as a natural progression of innovative economies and novel lifestyles collide within certain areas. Policy involving gentrification should not support the removal of people out of their neighborhood for the sake of advancement.
According to Accounting Theory: Contemporary Accounting Issues by Evans, accountants have developed two alternative approaches to accounting for income taxes, which are the cash method and the allocation method. The cash method is described as a simple and direct approach. The amount of income taxes actually paid for the year is reported on the Income Statement. The amount comes from the firm's income tax return and fit is not adjusted in any way. Therefore, the firm's actual transaction to record its income tax liability is the basis for the amount of the income tax expense reported on the Income Statement. The allocation method is a bit different. The actual amount of tax that is paid in the year is ignored when it comes to reporting income tax expense on the Income Statement. The amount of income tax expense reported on the Income Statement is based on the on the income tax rate that the firm pays, which is applied to the amount of pretax income. This makes the Income Statement perfectly consistent with the before-tax income. Using the allocation method makes it look like all items on the Income Statement based on the same method.
To test the financial feasibility and plan acceptability, there must be information on the magnitude, and share of estimated project cost that are reimbursable. This information can be derived from cost allocation. Also where cost sharing is required in the multipurpose planning process cost allocation can be applied. Cost allocation also provides information necessary for allocating the real expenditures ensuring that the cost account are maintained in line with plan formulation and allocation principles during the subsequent c...
In order to reach this goal, it will take community planning and funding to obtain the
Krueckeberg, Donald A. (ed.) 1983. Introduction to Planning History in the United States. New Brunswick, NJ: Center for Urban Policy Research.