Posts Tagged ‘Special Improvement District’

El SID And The Poppies

June 1, 2017

The current imbroglio obsessing Newark’s City Council is the future of marijuana in Nerk (whatever became of affordable housing? public transportation? drug addiction rehabilitation? Let alone street paving?). After dissing the local voters’ initiative to “decriminalize” its possession, the council now must wrestle with what to do with a medical legalization of this substance by the legislature (meant, at the time, to stave off a statewide citizen’s initiative). Having hemmed and hawed as long as they could, the good folks in the state’s executive branch need to finally implement the medical marijuana legalization. Ditto for Newark’s City administration. Analysis has already posted about the head slapping irony of citizens wanting something, voting for it (going through the democratic process of self governance) only to find their elected officials deciding something else is in the constituents’ best interest (another episode of Father Knows Best). Stealthily lurking behind all this is the gentrification of downtown Newark. This ongoing epic saga has unfolded over the past 10 years with nary a citizen vote. Conservative blame was needed as “conservative” by definition means “disposed to preserve existing conditions, institutions, etc. or to restore traditional ones, and to limit change” (none of which are found with roundabouts or a covered, block long outdoor entertainment loading dock). That nasty old federal EPA fit the bill marvelously, serving as a catalyst for all this “Federally mandated” change (kinda like “America First” being “printed in China”). So downtown Newark was, by hook or crook, going to be changed, gentrified. No one would vote on it. Everyone (who didn’t get to vote) would pay for it. The latest is the SID (Special Improvement District). This is a plan or rather, a gentrification technique whereby “property owners would pay 7.5 percent of the tax rate applied to the 2016 real property taxable value, providing the district about $110,000 annually. The assessment would first appear on their 2018 property tax bill. The tax would last five years, but could be renewed for an additional five years.” “Property owners must petition city council to create the district. The petition must be signed by the owners of 60 percent of the frontage feet along public rights of way in the district, or 75 percent of the square footage of real property in the district.” (Downtown property owners asked to join new taxing district, The Newark Advocate, Kent Mallett , 5-22-17) “The goal is to use property tax assessments from those within the district to pay for services such as parking maintenance, safety and security, litter control, graffiti removal, visitor ambassadors, special projects and marketing.” One of this blog’s first entries was in March of 2013, Ownership Of Downtown Newark. That research covered the area of this Newark SID. It revealed that close to 24% of the “property owners” within the area were either government entities or religious ones (neither of which would be assessed). At that time Park National Bank owned nearly 10% of all this area property (banks in total about 13%). Which leaves less than two thirds of the property owners to pay the SID. Why is a SID an integral part of gentrification? To increase property values (for the non voting property owners of the district – in 2013 Analysis also found that of the remaining not government, religious, or bank property owners, few were individually named, most were corporate legal entities) rents need to be higher across the board (like the neglected house on the block determining neighborhood value). A SID does specifically that. As a tax, it increases the property owner’s costs which in turn increases the operating expense for any business located there. Marginally profitable businesses will exit as they did prior to the large scale construction of downtown several years ago. Ditto for any other renters (i.e. residential tenants). Upscale enterprises (with capital backing) move in and, Voila! The SID has functioned perfectly as planned. In the meantime Newark’s City Council will wrestle with the tsunami of legalized marijuana while this disenfranchised mandate will pass like shit through a duck.

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