When Good Tools Go Bad: Eminent Domain & TIF
Eminent Domain & TIF (Tax Increment Financing) are supposed to be good things – mechanisms for serving the greater good. However, both have been abused. From a recent Post-Dispatch story:
St. Charles County has challenged St. Peters’ creation of a “tax increment financing district” in a case that could have statewide implications depending on how the state high court decides to weigh in.
The case focuses on how St. Peters created a special, 581-acre economic development district within the county and how projects within the district were financed. The land involved is south of Interstate 70 and east of Mid Rivers Mall.
Lower courts have upheld the city’s position. St. Charles County objects to how much money it has to contribute to the project and has appealed. The county is also challenging the constitutionality of the “tax increment financing” law.
The City of St. Peters blighted cornfields. Since when is open land blight? Hopefully we will see the courts narrow the definition to prevent such broad application of the term. It was bad enough when affluent suburban shopping mall West County Center was blighted because it wasn’t as new as competitive malls.
Related to this is the abuse of eminent domain. We’ve seen eminent domain used mainly to take people’s homes, businesses, churches and schools for highways, housing projects, and big box developments. Where is the public good? Please tell me when eminent domain was used to take deteriorating properties away from speculators that were sitting on properties simply for profit. I can’t think of any examples.
Next Tuesday, February 22, the United States Supreme Court will hear the case of Kelo v. City of New London, and decide whether the Constitution allows the government to use eminent domain to take one person’s home or small business and give it to a private developer.
On Monday, February 21, in sixteen communities around the country, groups will demonstrate against this increasing abuse of governmental power. Locally, a growing group of your friends and neighbors from all parts and strata of the community will join this demonstration.
St. Louis will join other communities in protesting this abuse with a rally from 11:00am to 1:00pm – St. Louis City Hall (north side of building) on Tucker and Market. I hope to see you there.
– Steve
