It's Back: Three Lanes for Main Street

This week I wasn't sure as to what I might blog about.

But after attending the ethics board meeting, reading about the appointment of as business administrator by the Concord School District and downloading the city's TIGER (Transportation Investment Generating Economic Recovery) grant application it wasn’t a matter of what I would write about. It was more what I wouldn’t have time to write about.

Tony Schinella, Concord NH Patch's editor, has done and if you haven't read his article yet I strongly recommend it.

I'm going to wait to comment on the until after their second meeting Friday morning. Except to say that I hope the members of this new board remember that their meetings are public and to use the microphones in front of them.

So, that leaves the TIGER grant.

This is a grant for 60 percent of the funding for the Rethinking Main Street project, $4,710,000.  (Remember the three lane Main Street proposal. It’s back.) This is also the second time the city is applying for this grant. 

If you remember, as I do, that when the city council accepted the Rethinking Main Street report the Mayor assured all that the city council was only accepting the report. He clearly stated that no determination regarding going forward with this project had been made. And further stated that no decision regarding this project would be made until the council had an opportunity to fully vet this proposal in public and hear from all interested parties. 

The grant states that the council has approved this project. It further states if the grant is approved by the Feds, that the city is poised to move forward with expending the grant funds immediately. Let me quote from the last paragraph of Section V from the grant application (page 29). “If awarded a TIGER 2012 grant, this project will schedule the obligation of grant funds for final design and permitting no later the July 2012, with obligation of grant funds for construction no later than April 1, 2013.” 

Sure sounds like it’s a done deal to me. 

If you still don’t believe me go to page 20 of the report; Proposed Project Schedule “The Concord Downtown Complete Street Improvement Project is ready to proceed immediately to final design and construction if we are fortunate enough to be selected....” Following this statement is a table outlining the construction schedule.

And finally on Page 6, the third paragraph. “The “Rethinking Main Street” project was accepted by the City Council at a public hearing in July, 2011,....”

Now it is my understanding that our City Council had an opportunity to read this grant application before it was submitted. And it is my understanding that this project was never accepted by the council. The only item that was accepted was the report.

It gets worse.

In addition to the 60 percent the grant will pay, 20 percent of the funding will come from general obligation bonds and impact fees. And the final 20 percent ($1,570,000.00) from the expansion of a current TIF (tax increment finance) district . Further the grant promises the Feds that TIF district funds will also be used to maintain the TIF district. 

As I’ve written before, taxes from a TIF district diverted to pay for improvements and maintenance for that district have a hard time finding their way into funds that pay for city services (roads, recreation, library, etc) our schools and county services. 

On Page 24 of the grant application, under Project Benefits, is another table outlining the anticipated financial benefits over the 20 year life of the project. Under Economic Competitiveness is a category indicating increased property values as a result of this project. The figure that is used is $3,706,194. That’s the total accumulated additional value over 20 years.

So here goes.

New taxes over 20 years is $3.7 million (generated by the TIF district). At a tax rate of approximately $25.00 per thousand, that comes out to $92,500 for 20 years. The TIF district bond will be financed for 20 years. The 20 percent of the projects costs that the TIF district will responsible for is $1.57 million. Divide that by 20 years and it comes out to $78,500.00 per year. Again on paper we have $92,500.00 in taxes collected for 20 years.That comes out to $4,625 per year to pay for pay for a $78,500 per year bond. And this doesn’t include interest or the cost of maintenance for the district.

This means that for a $1,570,000 bond the city will only collect $92,500 over 20 years. Not counting interest and maintenance costs. So who do you think gets to pick up the difference? Downtown merchants? Possibly. How about you and me? Likely.  

So could someone explain to me who benefits from this. Downtown merchants? Seventy merchants signed a petition concerned that the current plan would hurt their businesses. City tax payers? Nope, no new taxes to pay for services from this project for at least 20 years. In fact you and I are on the hook for part of an additional $1.57 million in costs for this project.

So at what point will our mayor and City Council be forthcoming with us? At what point will they admit that the only ones this current project benefits are the egos of those who submitted the report? At what point will they come up with a plan that benefits all the downtown merchants? And at what point will they come up with a plan that adds money to pay for city services as opposed to diverting and draining our already limited funds?

And they wonder why we don’t trust our representatives.

www.mainstreetconcord.com/ - For a copy of the Rethinking Main Street Report. Scroll all the way to the bottom of the page.

http://intownconcord.org/streetscape/complete-streets-improvement-project - For a copy of the TIGER grant.