In 1997, City Council passed a bill (thank you Councilman DiCicco) giving developers a 10-year real estate tax abatement when they converted buildings into apartments or condominiums. In 2000, another bill (thanks again Councilman DiCicco) provided a 10-year abatement to developers building new projects. All indications are that the breaks are facilitating an unprecedented construction boom and significantly impacting components of Philadelphia's economy; currently, the City has approximately 9,000 new residential units coming online in the near future. Based on the market value of conversion projects (as opposed to new construction), the City will eventually receive $3.5 million annually in taxes, about half of which will hit in 2009 (see article). Financial statistics don’t say as much as experiencing the vitality Center City in person; the restaurants, the street life, the retail, the throngs of people – it wasn’t like that in the late 1980s when I moved to Philadelphia. The conclusion about City governance to be drawn from all this? Think locally and act locally. The tax burden in this City is too high and complicated; policies that strategically mitigate this burden can do much to improve economic and social vitality. Of course, policies that provide universal tax relief and de-complication are beneficial as well, but that's another topic.
Tuesday, September 27, 2005
- A Smoke Filled Room
- Above Average Jane
- Akkam's Razor
- All for the Taking
- Boundless Philadelphia
- East Falls Development Corporation
- Greater Philadelphia Sustainable Business Network
- Kiko's House
- Mere Cat
- Our Green Cities
- Philadelphia Animal Welfare Society
- Philadelphia Bicycle News
- Philadelphia is My Home
- Philly Future
- Pound for Pound
- The Next American City
- The Tattered Coat
- Young Philly Politics
- ► 2007 (110)
- ► 2006 (196)
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- Philadelphia’s World Renowned Mural Arts Program G...
- Philadelphia: America's Next Great City
- Real Estate Tax Abatement: It Worked
- New FLP Website
- Relocation vs. Rebuilding?
- Ford to Dramatically Increase Hybrid Production
- Masterman: #1 Public High School in the Region
- Nutter and DiCicco: Politicians of the Year
- Where do all the Yuppies Meet, South Street, South...
- A Demonstration Wetland Takes Shape in East Falls
- Translating the Politics of “We” into the Politics...
- LaSalle Contributes to North Philadelphia’s Econom...
- More Pro-Hybrid Legislation in PA
- Plug it In, Plug it In
- ▼ September (15)