The TIF for Everyone (At Least More)

For purposes of this idea, the basis of a TIF is the following:
- Redevelopment occurs in blighted areas, as required by state law.

- TIFs in Oshkosh often focus on higher-end developments, including: higher-end condos, hotels, "luxury" apartments, class-A offices, and industrial park development. These developments are generally prosperous for developers, higher-income individuals who can afford higher-end apartments and condos, and business owners

- The benefits of the TIF are almost exclusively felt by the developer / owner, who often receives free or significantly price-reduced land as well as "reimbursement" funds for costs of developing and preparing the land. Sometimes, as we're seeing with the EAA development proposal, the request for "reimbursement" can go well beyond this. There is no direct evidence that these projects provide benefits to neighbors, or the rest of the community. While the statement "we're increasing our tax base" may be true, few in city hall and none on the council can articulate just exactly how that helps the average citizen, whose services haven't improved while cost of living (including property tax, water and energy costs, etc) continues to rise.

- TIFs in Oshkosh last up to 20 years.

- TIFs are not simply cookie-cutter tools, meaning that a city can tweak, alter, and improve the framework of each TIF as determined necessary to best serve the interests of the city and its residents.

With these points in mind, lets consider a TIF that occurs in a mixed-use neighborhood that includes residential and commercial development. The TIF project is used to develop a large commercial spot, taking a low property tax plot and transforming it into a high value plot. Meanwhile, the residential properties in this neighborhood receive little to no benefit. While the value of their home may rise, so would their annual property taxes. As this development is occurring in blighted areas, the residential property is likely owned by landlords (who pass the increased costs on to their renters) or low-income families living paycheck to paycheck.

In some communities, this scenario is unacceptable. Some communities have determined that if the city is going to be involved, then the benefits of the city assistance are going to affect more than just the developer/owner, by providing assistance to qualified homeowners, homebuyers, and even landlords.

How? Simply by requiring that as little as 5% of the incoming TIF funds be available for affordable housing development in the form of partially forgivable loans to qualified homebuyers, homeowners, and landlords with property within the TIF area. The details of the funding could vary, but could look like this: zero % interest loan payable over 10 years following initial 2 year no-payment period, with 1/2 of loan forgiven following successful repayment of initial 1/2.

Homebuyer: Home ownership is a value to a community and an individual/family. The community benefits from individuals taking ownership and responsibility for their property, reduced crime, stronger community neighborhoods, and more. The benefits of home ownership to the individual are asset accumulation, freedom to improve house to meet needs, often times a yard, etc. Funds can be used for down-payment assistance or initial rehab costs (including lead abatement, heating, electrical, etc).

Homeowner Rehab: Rehabs of homes improves the living setting and often safety of the dwelling. In addition, it may eventually increase the value of the home. Funds can be used for rehab costs on projects approved by the program guidelines established, which may include lead abatement, heating, electrical, etc.

Landlord: Rehab of rental properties is something drastically needed in Oshkosh, for reasons including safety of renters, health of environment, appearance, and health of neighborhood. By accepting funding, the landlord then agrees to maintain an affordable rent level, similar to the existing rental property development program administered by the city. Funds can be used for rehab costs on projects approved by the program guidelines established, which may include lead abatement, heating, electrical, etc.

In conclusion, the way in which the city approaches development can be expanded to provide benefits for all members of the neighborhood, while still providing the city with significant gains in property value, stronger more attractive neighborhoods, reduced crime, and more. The extensive use of TIFs in Oshkosh provides numerous opportunities for development and improvement of the housing stock in these neighborhoods, while providing residents the opportunities to own a home, to improve the safety of their home, to create a better neighborhood, and more.

Why something like this could pass: Bain, King, and Palmeri all should be in support of housing programs that support low to moderate income families simply based upon their social and political values. Mchugh and Esslinger often state that they are for the average citizen, in which this type of program directly benefits. Businessman Burk should understand that development for a few is not as beneficial to an economy or community as the development of many. Mayor Frank would never vote no if everyone else supported it.

Why something like this couldn't pass: Odds are we would either see a direct split between the "pro-business-welfare alliance" and the "common joe alliance", or we'd see 1-6 with only Palmeri supporting a progressive community-oriented notion such as this. The reasons are that this type of proposal would likely be opposed by the community development staff as well as all of the business men you see at council meetings begging for handouts. In addition, I suspect staff would not be very proactive in providing valuable and usable examples of these types of programs currently being administered in communities across the country, which would result in a rather vague, uninspiring idea that is easy to ignore or vote down. Finally, it would take a sort of collective leadership that we haven't seen in this council - working together to creatively and proactively develop a community program that benefits a significant and important population of Oshkosh.