Ellen Smith for Oak Ridge Rotating Header Image

Mall site TIF is a partnership to achieve community goals

cityseal This is a letter to the editor that I submitted to The Oak Ridge Observer on Tuesday. The editorial it responds to (expressing support for plans for mall redevelopment and tax increment financing to help pay for it) isn’t online, but the free paper is still on newsstands:

To the editor:

I thoroughly agree with the headline of your editorial of October 31, which declared “We vote ‘Yes!’” for the mall redevelopment plan and the proposal for tax incremental financing (TIF) to help pay for it. This is an extremely important project to revitalize Oak Ridge’s commercial core – something that has been needed for years. The TIF mechanism is a good way for the city and county to help the project financially without borrowing money or putting public assets at risk. The entire community should vote “Yes!”

I can’t agree, however, with your description of the TIF as a “discount” or an “incentive.” The TIF is not about enticing businesses to build stores in Oak Ridge. (Retailers should want to be here because they can make money selling products and services to local consumers. Not only do Oak Ridgers clamor for more retail, but we have some attractive demographics – like median household income 21 percent above the state average.)

This TIF isn’t about “discounting” Oak Ridge to attract business. It’s about local government leveraging its resources (specifically, the ability to collect property tax) to enable a private developer to help the city accomplish the critically important public objective of revitalizing our city’s commercial core (the mall site). It’s possible that an investor could have bought the mall site and reused it without the help of a TIF, but the community wouldn’t be happy with the kinds of uses that might possibly be commercially viable without the extra help. This proposed TIF starts a public-private partnership aimed at achieving our community’s goals for the mall site as well as the developer’s business goals. Here’s hoping it succeeds for both sides of the partnership!

Ellen Smith

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