LaCrosse Tribune, WI
07-15-06
Gundersen TIF district is an inappropriate use
By JAMES P. GRENISEN / La Crosse
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For several years, there have been discussions about a parking ramp at
Gundersen Lutheran. Tax incremental finance district No. 14 is being proposed
as a financing tool for redeveloping the sites.
A 1,000-car ramp at $18.5 million, 85 residential subsidized units at the Gund
Brewery building, a restaurant, hotel and other major housing developments are
included. The TIF expenditures will pay for the improvements over a period of
time.
Also, the city of La Crosse will implement a housing replacement program within
the Powell, Hood and Hamilton neighborhood, with 100 housing units during the
20-year life of the TIF district and replacing/renovating new housing.
Three years ago, the city of Onalaska decided to provide a $6 million bond
toward the construction of a parking ramp at the Onalaska campus of Gundersen
Lutheran. The ramp was built between the Clinic and the Stoney Creek Hotel.
The state contributed $750,000 in grants.
In 2001 study by Iowa State University, economist David Swenson
questioned the effectiveness of TIF districts. The study yielded several
conclusions:
“The ease with which TIF districts can be designated, along with the multiplicity
of uses for TIF districts, amounts to an entitlement for new industry and
housing development; Iowa counties are burdened by TIF districts since they
primarily depend on property taxes to finance county level services.
“Existing businesses, industries, farmers, wage earners, retirees and property
owners are aggressively subsidizing business growth and population, since
their taxes are often increased to make up for the loss of tax revenues caused
by TIF districts.
“Though the TIF programs are highly popular among city government officials,
there is virtually no evidence of broad economical or social benefits in spite of
the cost.”
There is no reason Powell, Hood or Hamilton projects should be included in TIF
district No. 14. This is not a blighted area, and the private sector has been
rehabilitating the neighborhood and will continue to do so without any public
funds. The spending of public funds will result in additional taxes for those not
in the TIF district.
An article in the Carolina Journal of Charlotte, N.C. , said: “Research suggests
that TIF, as typically used, produces few if any of the benefits claimed and in
some circumstances are counterproductive.”
There is a real question whether the bonds provided by taxpayers of La Crosse
and Onalaska are for a public purpose or are really a form of corporate welfare.
James P. Grenisen has lived in the neighborhood for 52 years and served 16
years as La Crosse County Board member in the proposed TIF district, which
includes Gundersen Lutheran’s clinic and hospital.
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