posted January 12, 2005
The other day Mayor Corker made an appearance on Talk Radio. I called in to ask him a question about the riverfront and various other development projects. Before I called, the mayor stated that the riverfront project had cost $51 million in private money and $56 million in bonds issued for this project. The bonds will be paid off using the hotel/motel tax revenues. These revenues do not go into the general tax fund and are earmarked specifically for further development projects. A developer slush fund, as is were.
At any rate, he further claimed and was very proud of the fact that no direct taxpayer dollars would go to pay for the project, just hotel/motel tax dollars.
The premise that the hotel/motel tax will be able to service the riverfront debt is questionable because of the fact that no other projects downtown have generated the tax revenue promised. For example, in the Times/Free Press article, "Servicing Downtown Growth," (2003) revealed that of the city is already paying approximately 9.9 million on the debt for projects like the Chattanoogan, Finely Stadium, airport, and convention center.
With a track record like that, why would we believe that this new development will be able to support its debt service with tax revenues? The normal taxpayer would be astounded if he knew how many downtown tourist traps are exempt from paying property taxes. The answer is we don't know, but if the riverfront project does not meet tax revenue expectations, then you, the taxpayer will have to cough up the difference in bond debt service out of the general tax fund. Surprise..Surprise...
Anyway, the mayor made some convoluted answer and then said that he had met with me once in the past and wondered sarcastically, "What is your beef?" in regards to downtown development. OK, mayor, here it is. Since the taxpayer bankrolled most of downtown development, why are we being saddled with debt service payments on failed projects? My second beef is, why can we afford extravagant projects downtown which benefit a very few people, when other government services beg us for more money in property taxes? Aren't the schools or salaries for police and fire personnel more important that building another tourist trap?
Obviously, these projects are not paying off as far as the public is concerned.
I will continue to say that downtown has been a taxpayer negative and will not believe the spin our local officials, who are in personal downtown investments up to their chins, would like to put on it. The first thing to do to stop this madness is to investigate the RiverCity Company and their incestuous relationship with the local government. Then we need to put the hotel/motel tax in the general tax fund in order for the public to have more input and oversight on how this money is spent.
This money can be used easily to provide additional funding from the school system or any other government entity if they were being used correctly. Most other counties/cities put this tax revenue in the general fund, why don't we? At any rate, all that has been done is to create a slush fund for developers which does not help the average citizen of this county.
Tim Price
jat-55@msn.com
| Dining Out | Business | Movies | Focus | About Us |
| Church | Living Well | Memories | Outdoors | Real Estate | Student Scene | Travel |
