CITIZENS FOR A BETTER MEQUON
Newsletter Issue 1 - February 2018
Welcome to the inaugural newsletter of Citizens for a Better Mequon. We hope to provide all of the residents of Mequon with an objective source of information about our city and its government. This issue will focus on the recent developments such as the "Town Center District" that the city government is subsidizing through the use of Tax Increment Financing (TIF). We will explain what this method is, what is being done with it here in Mequon, who is benefiting, and how it may be creating long-term, negative consequences for the city and its residents.
What Is Tax Increment Financing (TIF)?
Tax Increment Financing is a method local governments can use to subsidize developers. TIF was originally intended as a last resort to foster the redevelopment of blighted properties or contaminated industrial parks where no private investment could ever be justified. However, some city governments have expanded the definition of "blighted" to include almost any area, even including farmland. This development is incentivized by the promise of the developers not having to pay property taxes for years or even decades as well as city sponsored cash payments or loans. Municipalities effectively borrow against the increased property values and economic development adjacent properties will supposedly provide.What Are the Potential Dangers of Using TIF?
Unfortunately, many TIF districts never create any sustainable economic benefit and result in huge public debts and defaults. Many municipalities overuse TIFs or direct them toward pet projects in areas that could otherwise be developed through private investment. Instead of using the traditional "but for..." test where the argument is that development would not occur but for the TIF, city officials can use this mechanism to force taxpayers to support projects with city-favored developers for risky projects which will never produce additional tax revenue and can lead to default and increased urban blight. Even though the State of California first made TIFs legal in 1952, they ended up banning them by statute in 2011 because of the debt and litigation they inflicted on their residents.How Has the City of Mequon Government Used TIF Districts?
There are four active TIF districts (TIDs) in Mequon. Two are located along Port Washington Rd. (TID 4 and TID 5), one is in the Mequon Business Park (TID 2), and the Mequon Town Center (TID 3). The Mequon Town Center was originally planned to be much the same as downtown Cedarburg. The vision was of a walking area with quaint owner operated shops with unique natural and cultural amenities all built around a park like setting. Today it has morphed into a stark, high-density city-scape that has no resemblance to the original plan.What Is the City of Mequon Government Planning to Do with TIFs in the Future?
Without a clear vision and responsible planning, TIF districts can end up being a detriment to the community for decades into the future. As political whims change and favored developers come and go, TIF districts can end up being behemoth dysfunctional boondoggles. The Mequon Town Center's parking problem may only be the tip of the iceberg.What Are the Consequences of These Decisions?
TIF districts were never intended for high density urban housing. High density housing puts a severe strain on city resources, especially for schools, roadways, police, and fire departments. Developers and renters in TIF districts do not pay property taxes to support these vital functions. As a result, the cost of these additional services become a burden to all of the existing taxpayers who live outside the TIF district. Each TIF district has a lifespan (maturity date) of at least 20 years so these poor decisions made today will affect us for decades to come.What Can the Residents of Mequon Do About This?
Residents first need to understand what their elected officials are doing. The Mequon Town Center TIF district has been losing money for over a decade and the much touted development and housing occurring inside of it today will not contribute to our tax base for over a decade, if ever. Residents need to demand transparency, straight talk, and accountability from their elected officials. Closed door backroom deals creating a land sale of 13.9 acres of prime city land to a preferred developer for $1 is not good governance. The Mequon city government is looking more and more like a microcosm of the corruption and bloat of Washington D.C. It's time for Mequon residents to drain our own swamp!About Citizens for a Better Mequon
Who We Are
Residents and neighbors who are concerned about the future of Mequon and the direction it is being taken.Our Mission
The mission of Citizens for a Better Mequon is to inform and educate Mequon residents and concerned neighbors by providing fact-based, objective information about our community and its governance so as to inspire active resident stewardship, effective citizen oversight, and strict governmental accountability.Our Shared Vision
Citizens for a Better Mequon looks toward a future in which our local government responds in a thoughtful and respectful way to residents' issues and concerns so as to preserve and improve the high quality of life the residents of the City of Mequon should enjoy.Our Principles
Membership
Membership in Citizens for a Better Mequon is open to all residents and concerned neighbors subject to Board of Directors approval.Contact
For more information about Citizens for a Better Mequon or to join, please visit http://www.bettermequon.org or e-mail contact@bettermequon.org.Subscription
Subscriptions to the Citizens for a Better Mequon Newsletter are free. To subscribe or unsubscribe click at the bottom of this message.© Copyright 2018 Citizens for a Better Mequon, Inc.