Several city councillors have been surveying residents over the past week ahead of one of the most significant votes many have faced—a decision on whether to approve a 20-year Tax Increment Financing (TIF) agreement for ACS Development, the builders of the new FBI building.
Monday night, Jan. 23, is when the vote is scheduled to take place.
While some residents have expressed concerns about the agreement, business leaders and City Manager Tom Ambrosino have made the case for what they describe as a commitment made to the developer years earlier.
Under the agreement, a 20-year TIF on the new FBI building would provide a 50 percent reduction on the building’s assessed value for tax purposes over 15 years, followed by a 40 percent reduction over five years. This represents an unusual arrangement, as most TIFs typically last 10 years or fewer. The tax relief applies only to new value created through development; the property’s pre-development tax bill was $55,000. According to the City, even with the TIF in place, annual taxes would exceed $800,000.
With the TIF, initial yearly taxes would be $870,000, compared to $1.739 million without it.
During a Jan. 9 meeting before the Council Committee on Conference, ACS Development presented their position. They argued the project cannot move forward without the TIF, noting it was contemplated and expected throughout nearly 10 years of FBI development discussions.
A handful of residents spoke against the proposal.
Fran Roznowski opposed the TIF due to the 20-year duration it would establish as precedent. She clarified she does not oppose all TIFs, referencing a previously rejected TIF for a proposed Anheuser-Busch beer bottling facility.
“I agreed with that TIF because I thought it would bring jobs to the city,” she said.
Property owner John Harris noted his own taxes have risen considerably.
“My taxes on one property went up 40 percent,” he said. “I didn’t get a TIF. I wouldn’t give them this.”
Supporting the TIF were business figures including Chamber of Commerce President Sergio Jaramillo and Economic Development Board member Rick Pantano.
“These are good people,” said Pantano.
A number of councillors have already indicated support for the TIF, with preliminary counts suggesting at least five of the six required votes are committed to approval.