Iowa City Grants Another TIF Request For A Luxury High-Rise

From the Iowa City Press-Citizen:

The Iowa City Council unanimously voted Tuesday to grant up to $16.4 million in tax breaks for the $40 million, 13-story Hieronymus Square project.

"It's been a long-time coming for that area," said City Councilor Mike O'Donnell about the high-rise proposed at the southeast corner of Burlington and Clinton streets. "We have been talking about developing that property, and we have the opportunity now."

Under the tax increment agreement, Hieronymus Square Associates -- a local development group that includes the Hieronymus family and Hodge Construction Company -- will receive tax rebate money for up to 13 years after investments have been secured and the project is built...

...Kevin Digmann, a representative for Hieronymus Square Associates, said the project had a "zero percent chance" without TIF financing.

That's bullshit and he knows it.

TIF money was originally intended to help develop blighted or undeveloped areas. This is a prime location in downtown Iowa City that any developer would have wanted to build on. And you just know that the apartments and condos built will go for top dollar due to their location and view.

Plaza Towers, a 14 story commercial and upscale housing building built by the Moen Group a couple blocks away, was finished this past year in downtown Iowa City. It also got TIF money. The condos, some of which were priced over $800,000, sold out quickly. The luxury hotel located inside the tower has rooms with plasma TVs that go for up to $249 a night.

I'm not saying this stuff shouldn't be built, but why do the taxpayers have to subsidize it? Don't give me this "investment" or "it'll eventually increase the tax base" nonsense. You know that the guy opening a new retail location or building a new middle class house doesn't get these sorts of breaks.

The Daily Iowan has a similar story. Supposedly the spin is that there's no risk to Iowa City. Well, duh. You've got this plot of land that has been empty for decades, but not because people didn't want to build there.

The problem is that eventually some elected leaders will pull some stunt that puts the taxpayers at risk. Prairie Meadows Horse Race Track, anyone? Iowa Agricultural Finance Corporation?