What Should We Call It

Hypocrisy or something nicer?

I am not going to call it hypocrisy. That word carries a connotation of malevolent intent and effectively snuffs out conversation about an issue. If you want to really get someone's back up just accuse them of this fault. There are other words though. One may call it being disingenuous, one may call it a lack of understanding or just simply being unwilling to look at issues with an eye to the causes and effects of some action. I suppose one could sometimes call it selfishness but that is getting pretty close to hypocrisy.

I have been paying pretty close attention to the Centrepointe development in downtown Lexington that the Webb Brothers have been trying to take somewhere for quite a few years now. It seems to me that they knowingly misled the city administration and cajoled them into allowing the destruction of a historically and architecturally significant block of buildings just to create a bare space that would somehow encourage the city to eagerly accept anything to fill up the spot. They said they had financing in place for an expansive project and it was only after the destruction of those properties that they admitted the financing had evaporated. To be sure, the Great Recession intervened but there are a lot of questions of intent that have never been answered. Now they are asking the city to issue $30 million in bonds to underwrite the construction of a three story parking garage under the development. First the city asked the state to issue the bonds but it declined. Now, the city is looking at hooking itself for the bond issue and the developers wait with bated breath assuring everyone that the project will continue even if the bond issue is not approved. Hmmmm!

But, I do not come here to talk about Lexington's downtown project but it serves as a fine example of something that quite a few people are beginning to talk about. Something that we, here in Somerset-Pulaski County, have had some experience with and could experience more in the future. What I am referring to is the creation of special taxing districts that would procure Tax Increment Financing for projects using the taxes generated by the project to pay the costs.

All that to get here. I read Mike Whitaker's letter in the newspaper the other day and I have to say that I agree with his point. We should do all that we can to present our community in the best possible light when it comes to making an attractive place for people to do business. I would not limit that effort to just being presentable to our visitors but also to other businesses that might locate here. The city has done a pretty good job of that but a lot of the local business district is still served by county government. I wrote a column a couple of weeks ago about perhaps planting medians with native wildflowers but that may not work as well along US 27 in the business district. In addition to mowing and not impeding traffic with construction we could also give more attention to better code enforcement and planning and zoning. There are stretches of US 27 that are now beginning to look like someone may have given some thought to development and it has only taken fifty years to get here. Things like that show that there are governmental structures in place that not only care what the area looks like but are sensitive to property values and advancements that would enhance commerce. One of the things that could indicate a progressive community is a public wi-fi system that would offer speeds only dreamed of with the current providers. The internet has now invaded every aspect of business and should be considered a utility rather than just entertainment. If private enterprise is unwilling to take on the task then governmental entities should shoulder the load.

One of the critical issues in this years County Judge Executive race is how the county will usher in an attitude that we are a community that wants businesses to locate here. This is not simply the old saw of getting out of the way and letting business do what it will. It also includes various intangible benefits that offer the employees of those businesses reason to believe they are not looking at an artistic and entertainment desert. Government must present itself as capable and knowledgeable and not just a pushover. Preparation of the population to supply the needs of modern industry has to be developed and made visible. Since tourism is a major industry here there should be attractions that offer plenty to do while not on the lake. Public/private partnerships can be useful here.

Both the city and the county have development districts that have the power to offer tax abatements to induce business to locate here and have done that quite a few times, some with success and some not. We must be diligent to insure that the taxpayer is receiving good benefit from the forgiveness of taxes. Here is where the TIF financing comes in. There is a certain logic for the use of tax increment financing but those who argue that it has no cost to the taxpayer are just wrong. They argue that the financing is paid for from taxes that would not have been generated otherwise and to a degree that is true. But not totally. If a government is expected to provide services then there must be revenues to support it and that has to come from somewhere. I would like to see a summary of how tax forgiveness has paid off for our area. It seems that we have been able to attract low wage jobs that are gone soon after the period of abatement is done. That only results in empty factories that present a poor picture to new business. What we must NOT do is be seen as a provincial town and county that does not want anything to change and we have been guilty of that in the past.

But if we are going to do that then government will have to be part of the solution. When we do that will there be howls of “SOCIALISM” or does that just apply when government tries to help citizens rather than businesses? Is it OK to provide benefits to businesses to the exclusion of helping the men and women in the trenches? That's not hypocrisy is it?

My Take? Let's make the candidates talk about specifics.