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The Platteville Journal The First Amendment Nov. 11, 2015
The Platteville Journal The First Amendment Nov. 11, 2015
ETC.
The Platteville
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G u e s t opi n io n
You, a philanthropist?
by Barb Daus
Donor Services Representative, Community
Foundation of Southern Wisconsin
LETTERS
The Platteville Journal, P.O. Box 266, Platteville, WI 53818-0266 plattevillejournaleditor@gmail.com
multiple closed meetings by city officials and council members and others pertaining to this project. Ive been
told that requests for information during these meetings were denied.
In a presentation to the Common
Council Oct. 27 the following was
stated:
City TIF contribution: $2 million.
City contribution of existing library building: $800,000. (Previous figures stated the value of that contribution at $575,000. When questioned, it
was stated that the $800K was a misprint.)
Guaranteed tax increments:
$2.685 million by the developer over 20
years starting in 2017.
The Development Agreement
Risk section of the presentation indicated there is no guarantee the library
will be turned over to the city after the
seven years.
In that same Common Council meeting a handout, Library Block Redevelopment Frequently Asked Questions,
stated:
Over 20 years the city will recoup
$3 million on its $2 million investment
(this is just less than 2.5-percent accumulative return on investment).
Only $2.685 million in tax payments are guaranteed by the developer.
To reach the $3 million return, if
the tax increment of the project does
not cover the $3 million the $315,000
shortage will be generated in a TIF
donor district. (It is my understanding that TIF 7, where this project is
located, is a distressed TIF distrcit,
effectively meaning that the tax increment from that district will not support the districts debt. With that designation the city can then direct TIF
funds from another district to TIF 7.
TIF 5, the Keystone Development, is
currently a donor to the distressed TIF
7 with monies from TIF 5 going to TIF
7 to support its current debt.)
The statement the project includes a $6 million commercial building that will house a new public library infers the library will be a
$6 million building, or $273 per
square feet. Compare this to the new
6,800-square-foot library being built
in Muscoda at a cost of approximately
$200 per squqre foot. Considering
economies of scale a 22,000-squarefoot building should cost even less per
square foot.
Instead of paying $1 per year, the
city will now pay a monthly lease payment to the developer in the amount of
$18,333 per month. The cost to the city
initially represented for those seven
years increases from $7 to $1.54 million yes, thats right, a 22 million
percent increase!
To be very succinct, here are my concerns:
The city is subsidizing a non-resident developer to put up a hotel which
will compete with local businesses that
receive no city subsidy whatsoever.
Original representations have
been changed significantly behind
closed doors with what appears to be
very little public input.
The city is doing this to be given
a library. A new library is a laudable goal, but it was originally represented as costing the city no more than
$1,200,007. It is now represented at
costing the city $3.54 million during
the first seven years, not including operational costs. Plus, there is no guarantee that the library will be turned
over to the city at the end of the seven
years.
It seems that almost all information
made public on the Library Block project has been to sell the project to the
public and not an objective assessment
of the positives or negatives. Since
public information on the process and
the final outcome has been minimal as
best, one is left to wonder why the deal
See LETTERS page 8A u