Thursday, May 28, 2009

Tax breaks for local developments?

Saw this in the Washington Business Journal the other day, apparently the developers of the Highland Park project at 14th and Irving are asking for $8.5 million tax breaks to offset the lower demand for their places - they've converted Highland Park and Park Place from condos to apartments. Council members Jim Graham and Muriel Bowser proposed a bill that says "the city would provide 100 percent real property tax exemption for 10 years and a reduced relief for the following 10 years." Other developsers asked for more money.

Seems kind of odd - development is good and all, but any business that lose money because of a bad economy just ask for tax breaks? I guess it depends on how much benefit you see the projects giving.

2 comments:

  1. I don't agree with that one bit. If they can't get their places leased and rented it's because they're asking for too much! Reduce the rents to a reasonable level and those places would be filled. When apartments in Cleveland Park are cheaper, bigger, and include utilities/amenities in the rent then something is wrong when a transitional ghetto is asking for way too much money. They do not deserve tax cuts. They should be allowed to fail so rents come back to a level that normal people can afford.

    ReplyDelete
  2. That's how a capitalist system works. Poorly planned development that didn't consider all possible economic outcomes deserves to fail. That's just how things should work. If the DC government props them up then why shouldn't they give me a tax break?????

    ReplyDelete

Please don't advertise in the comments, and please enter some kind of name when you comment instead of being anonymous.

If the post is more than 28 days old, your comment must be approved first.