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Fisher Properties Tax Abatements

Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: City Council
Forum Description: Discuss individual members and council as a legislative body.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=6934
Printed Date: Nov 21 2024 at 3:25pm


Topic: Fisher Properties Tax Abatements
Posted By: buddhalite
Subject: Fisher Properties Tax Abatements
Date Posted: Feb 04 2019 at 9:30pm
I was just reading through the last city council workbook.....

I find here that a guy named Fisher bought some distressed properties downtown.

The council through CRA is wishing to give this guy a 100% tax abatement on each of the properties.

He's rehabbing each of them to lease them out to future tenants.

There's no guarantee that the properties will ever hold a tenant, ever house a profitable business nor the owner actually following through with the plans.

Is this really something for which we should consider a tax abatement?  

He's not actually engaging in putting people to work, or commercial activity - just being a landlord.  If the investment doesn't make sense without government (and BTW, the city not only abates the tax, but has to pay 25% out of pocket to the school systems....so it's more than a 100% abatement in reality) funding - it doesn't make sense at all.

Plus.....if we are going to start giving landlords tax abatements- watch out - there'll be a line at the door.


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"Every government intervention [in the marketplace] creates unintended consequences, which lead to calls for further government interventions." -Ludwig van Mises


Replies:
Posted By: swohio75
Date Posted: Feb 05 2019 at 10:26am
I believe the way the CRA abatement works is that the 100% tax abatement is only on the increased value of the property due to improvements and rising property values.  

I am not an expect in CRAs but from what I know--they do not give 100% abatement on the entire property's value.

Posted By: MattR
Date Posted: Feb 06 2019 at 10:15am
Meanwhile the mgr humblebrags about taking a record amount of citizens income as taxes in his blog. Along with sky high rates for services it is another reason Middletown just doesn't get any better. Taxes for residents, tax breaks for absentee landlords.

Posted By: VietVet
Date Posted: Feb 06 2019 at 5:09pm
Always glad to see vacant buildings put to use in the downtown area. Lord knows this area of town needs all the help it can get. (so do other parts of town but the city seems not to care about any development outside the downtown zone) The end result remains to be seen as to any success with regard to actual use and occupancy after everything is said and done. We all know the history of the Rose Furniture fiasco. We all have heard promises in the downtown area involving the old Seniors Center which still remains dormant with regard to any BMW dealership occupancy. We all have seen little to no activity with the Goetz Tower plans. We see businesses like Blast Furnace Pizza and Quizno's open, stay for a year at most, then suddenly close down, no doubt due to a lack of foot traffic and interest in the product sold. We have witnessed the back and forth activity involving the old Liberty Restaurant property. We all are very familiar with the Manchester Hotel/Sonshine story which is now in the city buy back phase in the courts I believe. (The Manchester property and the old senior center buy back, with the city still insisting in being involved in real estate, is quite puzzling to me) Just don't understand why the city keeps saying they want to get out of owning any property in town, then buying back seemingly somewhat worthless property they finally unloaded on some poor unsuspecting buyer. Is owning and controlling property their way of protecting what goes on in their downtown utopia? Unwilling to let free enterprise develop the downtown in a natural progression I guess.

This latest news concerning a private developer having interest in vacant downtown buildings is certainly good news for now. It can turn bad news if he doesn't succeed in his endeavors after remodeling and attempted occupancy of his properties. I wish him success but if you tend to rely on history, this latest attempt in the downtown may be bad news. The private developer who bought and wants to remodel the old library on First Ave. has yet to show any signs of progress as well. I hope this doesn't make two who have made promises and may balk at success. We have had more than our fair share of developmental failures in the past. Just want to know why other cities can have legitimate developers have success without a hitch with their plans but Middletown seems to be striking out with any developer successes.

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I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.


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