Officials made new Ridge TIF sound like the 'golden fleece'; are we getting fleeced?

(Cartoon by HMT/ChatGPT)

Let's be clear. Tax Incremental Financing, or TIFs, often fail. They often don't measure up financially to what city officials had hoped.
Yes, it's true, they don't always necessarily increase property tax rates, but they do take money from city coffers that might have gone to roads or schools. And if the TIF goes belly up, yes property rates will rise.
But if you watch the City Council meeting of May 5, you won't see any city officials, elected or hired, educate the residents of Rochester about the possible pitfalls associated with TIFs.
They sugar coat it like it's the golden fleece.
Mark Sullivan, the city's finance director described the Ridge North TIF as being wrapped in iron clad protections for city residents who are on the hook if anything goes sideways.
And it often does.
TIF financing is way more complicated than an installment loan or a mortgage, or even a 79e.
TIF audits frequently show delays in cost recovery and overestimated economic benefits.
Also, according to The Kansas Policy Institute, "Worse, these government subsidies often crowd out private investment and leave taxpayers footing the bill for developments that may not deliver their promised benefits."
They also note that, "If the redevelopment does not increase property values as expected, the city may have to use its general fund to pay off the bonds, resulting in a direct cost to taxpayers."
In Kansas, a state rep requested audits to assess whether TIF projects were delivering on their promises.
According to the audit, "Three of the six TIF districts reviewed failed to recover their costs on time, with two Wichita districts ... falling behind in debt repayment. This has forced cities to cover shortfalls with non-TIF funds, placing additional strain on the city budgets."
But Rochester city officials, including Sullivan and a city attorney, portrayed the protections as iron clad.
I guess some city councilors just have blind faith in what city leadership says.
At one point, Councilor Tim Fontneau asked Sullivan if he thought this would be a good thing for the City of Rochester.
Sullivan answered yes, it would be good for Rochester.

Shortly thereafter the vote was unanimous to move forward with The Ridge North TIF.
The Rochester Voice recently requested city documents that would specify the amount of money to be bonded for Ridge North infrastructure, which includes roads, water, sewer and much more.
When it comes to TIFs there are benefits and dangers, successes and failures, positives and negatives as well as unforeseen obstacles and extended timetables, which also expend more funds.
City officials like the City Manager and finance director are the professionals. They know the benefits and dangers of a TIF, so why don't they show off their knowledge and give city councilors and residents the real lowdown.
When you go in for surgery. doctors tell you both the dangers and benefits from having the procedure.
If they didn't that would be malpractice.

Think about that!

See another article on TIFs in the Opinion section