Who loses and who gains?
The City loses $200,000.00 annually for 8 years or $1.6 million.
The County loses $330,825,000 or $2,656,000.00 over 8 years.
The City provides all the services required to the owners and the tenants for those eight years.
Total net loss to the City and County: $4,256,000.00.
The School board gains $2,844,800.00 over 8 years
The DIB gains $800,000.00 over 8 years
Net loss to all governments over 8 years: $611,200.00.
Against this of course is the benefit of jobs in construction, materials purchased and the benefit to downtown businesses.
These tax benefits have been so misused here locally that our poor county hands out more tax benefits than Miami-Dade. This project however may well be worth it.
The long term tax benefit to the City is questionable; the overall benefit to our larger community appears to be beneficial.
This calculation ignores the tax benefits after year 11 which would have to be reduced to present value. Even over a total of 15 years the present value benefit would be positive.
This calculation assumes millage rates will remain constant.
This calculation does not factor the tax benefit to governments of an undeveloped site.
EDATE = Economic Development Ad Valorem Tax Exemption