South Tahoe defends redevelopment plan
Dear City Residents and Neighbors of South Lake Tahoe,
I am writing this letter to provide you with information in addition to what you recently received from our friends at the South Tahoe Public Utility District (STPUD).
The city of South Lake Tahoe has been engaged in a process that we hope and intend will support and encourage the growth and diversification of the city’s economy as a means of improving the lives of our residents, improving the built environment, and providing for environmental improvements. A strong economy and environmental protection go hand in hand and are essential ingredients for our future.
Plan Your Work, Work your Plan
To this end, city officials are moving forward with the adoption of a new city General Plan [that includes an economic development element], the Tahoe Valley Community Plan, and implementation of the city’s Sustainability Plan. All of these local plans are important and inter-related to the future well being of the Tahoe area, but some funding mechanism is needed to help to make them work. That is why we are proposing Redevelopment Project Area No. 2. No, RDA cannot finance everything we want and desire as a community, but it can help.
We see the adoption of a new redevelopment plan as helping us to do the following:
1. Attract businesses locals want in town and encourage local shopping.
2. Provide loans/grants to smaller existing business owners for business expansion.
3. Foster the growth of more local jobs.
4. Help to develop quality workforce housing.
5. Help support green rehabilitation of homes and businesses.
6. Generate more dollars for street reconstruction, storm drainage improvements, sidewalks [where needed] and lighting as appropriate.
7. Assist in developing a green technology park for new business.
8. Assist in financing needed improvements to water systems for fire suppression response under a public-private partnership.
We Made Our Best Estimates, but We Do Not Have a Crystal Ball
RDA dollars do not grow on trees. We know there are some cautions from our friends on the board of STPUD about the adoption of the new redevelopment area. We have had meetings with staff and the board, and we hope to be able to demonstrate that implementation of our plan will provide many benefits to our 24,000 residents and all agencies including new STPUD customers. We have shown them that if we can grow the local “economic pie” sufficiently [at an average of around 6 percent per year] that this will result in the mitigation of almost all possible losses in property taxes they may sustain. STPUD customers and all residents will not pay more property taxes as the result of a new Project Area.
Even with a slower growth rate of 5 percent per year, the average annual loss to the district would be less than 1 percent of the total revenues budgeted by the district in 2009-10. We can partner with the district and help to finance district capital improvements in the project area that would offset any negative financial impacts if they occur.
The growth projections could be lower in these unusual economic times with or without RDA. Our experts and our experience tell us that we are more likely to see economic and property value growth with the help of RDA than without it.
When we take actions to improve our economy as we have proposed, quality workforce housing is built, new commercial is attracted to town and new green jobs are created, this improves STPUD revenues as well. No one wins in a no-growth local economy.
Doing Nothing is Not an Option
We cannot create prosperity in our community without new capital investment. Without putting our collective planning efforts in place, and then having some means to finance these plans [in part through redevelopment], our chances for economic growth and local prosperity will be minimized if not substantially curtailed. City government will continue to aggressively pursue Federal and State grant funds as well to pursue our economic growth and community improvement objectives. With new vigorous economic growth all levels of government benefit and most importantly the people of our community benefit. Failure in our efforts is not an option. As John F. Kennedy said, “a rising tide lifts all boats.”
No RDA Eminent Domain/Your Property is Protected
As you may have heard as well, the new RDA Project Area No.2 plan does not give the Agency the power of eminent domain. We will build our community the old fashioned way … by voluntary cooperation and mutual respect.
City staff and I welcome your questions and comments.
Sincerely,
Dave M. Jinkens, city manager/executive director STRA
After attending both the quote, unquote, public meetings yesterday, and being prevented from speaking in the first meeting, I came away with a reinforced opinion that South Lake Tahoe doesn’t need another ill concieved redevelopment area! They fail to address or consider other options or points of view. The public meetings that they have held are not to give residents a chance for input of ideas and alternatives, but a burlesque show featuring City Manager Jenkins and Redevelopment Manager Palazzo, performing a “Dog and Pony show” with sketchy, vague, and incomplete answers, which allow only the creation of another redevelopment area, as the sole answer to the problems facing the City.
Given the many years and hundreds of thousands of dollars already spent of redevelopment area #2, the proponents still can not or will not answer questions honestly or accurately. They admit that other less costly means of achieving the same or better results exist but fail to admit discussion of them. They promote redevelopment stating that if it isn’t used nothing will be done at all. This could not be farther from the truth!
What if the monies spent on staff and consultants was spent to help local businesses? Would it have had a positive effect on the dismal state of our business community
I do not know of anyone who doesn’t feel that corridor renewal is necessary, but nearly everyone at both meetings felt that redevelopment as proposed is not the answer. The majority present felt that using public funds to bail out the failing Lukins Brothers Water system is wrong. Redevelopment funds used for Lukins will increase the rates paid by STPUD customers in the City and the County as well, as STPUD seeks to replace funds siphoned from property taxes by “tax increment financing”. Residents will also see County service costs rise as the County also seeks to make up the missing revenues.
The lack of maintainance and upkeep to Lukins resulted in water rates for those served far below those of STPUD water customers who paid for maintainance and replacement of infrastructure by rate increases over the last 5 decades. To ask STPUD ratepayers to pay for the upgrades to Lukins is unfair and unethical. These repairs and upgrades which are desparately needed can be paid for by the formation of a “Community or Special Service District” which would spread the cost between the 937 properties served by Lukins and amortize it over thirty years, making it palatable and easily payable by those who benefit, the Lukins Bros. customers.
The flawed basis for calculating the amounts collected by Tax Increment Financing (TIF)is the property tax growth from the years 2001-2007. Basing the amount of average property tax revenue growth on the “bubble” created by the unsupportable real estate gains, is fantasy if not a purely ridiculous assumption. Their 7% prediction of average growth of property values is the only reason they can justify TIF.
Examining the past history of redevelopment Areas #1 and #3 does little to justify faith in redevelopment, although redevelopment representatives state they have nothing to do with one another. In short forget the numerous past mistakes and blunders made and let us keep practicing with your monies until we get it right.
Perhaps the most telling information presented was when speaking to City Redevelopment Director Gene Palazzo I asked him why he was so supportive of redevelopment as the only solution? He reached into his shirt pocket removing his business card, pointing to his title, REDEVELOPMENT DIRECTOR, and stated “It’s what I Do!”
I urge all residents of the City and County to attend the April 6th City Council meeting where our representatives will hold the final vote to create this redevelopment zone. Urge them to hold off on their decision and first adopt the Tahoe Valley Area Plan. A plan that was worked on by locals for over 3 years, only to have their recommendations for a maximum redevelopment area of 40 acres thrown out by the City in favor of the now 1300 acre+ area.
We need corridor and Citywide renewal but the City should act as a facilitator to LOCAL businesses and residents, examining all possibilities not just REDEVELOPMENT. As Dr Pat Martin so aptly said “There is no free lunch, it’s a shell game, what you get through TIF, you pay for through increased service costs elsewhere.”
Pack the City Council Chambers on April 6th and make the City Council finally respect what residents want and need.
John W. Runnels, President
Citizens Alliance for Responsible Government
Well said John.
Why is it the City is always soliciting the input and wishes of local residents and businesses, only to totally disregard them, and do that they planned to do anyway?
Why is it the City is always soliciting the input and wishes of local residents and businesses, only to totally disregard them, and do what they planned to do anyway?
We need new blood in this town with new ideas. I never liked the Good Ole Boys associated with the Alliance.
John, What about dissolving the city? Responsible govt is small enough to manage our small community. We have so many duplicated services on a County/City level.
How about a strip club at State Line
David, you may be joking but at this time we need to try any and all types of new businesses up here other than gaming just to hold on. Just long enough until we can figure out what to do next.
Mark
YES I MAY BE KIDDING BUT EVERY TIME WE CONDONE A STRIP CLUB OR TOPLESS BAR WE TAKE A STEP BACKWARDS. IT IS NEVER FAR TO THE BOTTOM OF THE GUTTER, YOU GET THERE BY TAKING TINY STEPS ONE BAR AND ONE STRIP CLUB AT A TIME PRETTY SOON WE LOOK LIKE VEGAS AND WHO WANTS THAT. WE NEED SOME ONE WHO HAS A BETTER VISION OF TAHOE.
I guess Strip Clubs are gateway businesses to other more nefarious businesses.