Submitted by Beezlegrunk t3_xt1llo in RhodeIsland
hcwhitewolf t1_iqni089 wrote
For people who won't read the article:
Current Property Taxes on the build: $499K per year, over the 30 year term they are discussing, that's $14.97M.
Estimated Property Taxes over 30 years for the redeveloped building: $56M.
Tax Break: $29M
Estimated Amount to be paid over 30 years: $26.8M.
Net tax revenue gain for the city w/ tax break: $11.83M.
Net gain w/o tax break: $40.83M.
LTG-Jon t1_iqoho1k wrote
Or it could be that the net gain without the break would be $0.
I don’t like giveaways to developers, but from the point of view of the city, increasing revenue by $11 million looks like a good plan.
gusterfell t1_iqou8lc wrote
So many people think giving a developer a tax break costs the city money. If the break is necessary for the development to get built, it means the city gains money.
[deleted] t1_iqottsl wrote
[deleted]
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