[Vision2020] AHA returns?

John Danahy jdanahy@turbonet.com
Fri, 12 Dec 2003 15:22:50 -0800


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Visionaries:

=20

The recent post by Bill London regarding a city report by Gary Riedner
contains some comments that should be of interest to all area residents.

=20

First, is:

Current buildings in Alturas Technology Park are not acceptable and =
rents
are too high to be attractive, especially with the current tax structure =
in
place in Idaho.

=20

This highlights some of the problems the Alturas Park has had attracting =
new
businesses.  The other parks that are often compared to Alturas =
apparently
are wholly owned by their respective governmental agencies, and can =
charge
lease rates that are competitive and also have a reasonable tax/fee
structure.  Moscow doesn't, and therefore cannot compete on a level =
playing
field.  This makes comparisons untenable.

=20

Second is:=20

After reviewing costs, AHA determined that moving to Idaho would cost =
the
company an additional $370,000 per year.  After reviewing AHA figures =
with
the Idaho Department of Commerce and the Idaho Tax Commission, the LEDC =
has
brought the cost down to $50,000 per year.

=20

This, in a nutshell, is the problem that Moscow must address.  It is a
problem that is exasperated by an economic plan that relies solely on =
the UI
for economic well being.  The UI pays no property taxes to the area, and
thus we, the residents and other businesses, must make up for the =
missing
tax base.  If UI did pay, then the current tax rate would be, IMHO, at =
least
fifty percent less.  This would make the cost of doing business here in
Moscow competitive, if not down right lucrative, for businesses looking =
to
move here.

=20

Third is:

CEDA has prepared a Rural Community Block Grant application to the Idaho
Department of Commerce, requesting $500,000 to assist in the design,
development and construction of a building within the current Phase of =
the
Alturas Technology Park. The entire cost of the building is =
approximately
$1,300,000 and the balance will be paid by means of a commercial loan. =
CEDA
and LEDC have requested City sponsorship of the RCBG application.

=20

This is a great idea, as long as it does not include an expansion of the
current park into Phase Two.  But it is also a band aid approach to =
solve a
festering problem.  Time has come to look again at our community and =
where
we really want to go over the next twenty years and how we are going to
achieve our goals.

=20

John

=20

=20

=20

=20


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<div class=3DSection1>

<p class=3DMsoNormal><font size=3D3 color=3Dblack face=3DArial><span =
style=3D'font-size:
12.0pt;font-family:Arial'>Visionaries:</span></font></p>

<p class=3DMsoNormal><font size=3D3 color=3Dblack face=3DArial><span =
style=3D'font-size:
12.0pt;font-family:Arial'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3DArial><span =
style=3D'font-size:12.0pt;font-family:Arial'>The recent
post by </span></font><font face=3DArial><span =
style=3D'font-family:Arial'>Bill
 London</span></font><font face=3DArial><span =
style=3D'font-family:Arial'>
regarding a city report by Gary Riedner contains some comments that =
should be
of interest to all area residents.</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3DArial><span =
style=3D'font-size:12.0pt;font-family:Arial'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3DArial><span =
style=3D'font-size:12.0pt;font-family:Arial'>First,
is:</span></font></p>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;text-indent:-.5in'><b><i><font
size=3D3 color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;
font-weight:bold;font-style:italic'>Current buildings in =
</span></font></i></b><ST1:PLACE><ST1:PLACENAME><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Alturas</span></i></b></ST1:=
PLACENAME><b><i><span
 style=3D'font-weight:bold;font-style:italic'> =
</span></i></b><ST1:PLACENAME><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Technology</span></i></b></S=
T1:PLACENAME><b><i><span
 style=3D'font-weight:bold;font-style:italic'> =
</span></i></b><ST1:PLACETYPE><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Park</span></i></b></ST1:PLA=
CETYPE></ST1:PLACE><b><i><span
style=3D'font-weight:bold;font-style:italic'> are not acceptable and =
rents are
too high to be attractive, especially with the current tax structure in =
place
in </span></i></b><ST1:STATE><ST1:PLACE><b><i><span =
style=3D'font-weight:bold;
  =
font-style:italic'>Idaho</span></i></b></ST1:PLACE></ST1:STATE><b><i><spa=
n
style=3D'font-weight:bold;font-style:italic'>.</span></i></b></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>This
highlights some of the problems the </span></font>Alturas Park has had
attracting new businesses.&nbsp; The other parks that are often compared =
to
Alturas apparently are wholly owned by their respective governmental =
agencies,
and can charge lease rates that are competitive and also have a =
reasonable
tax/fee structure.&nbsp; Moscow doesn&#8217;t, and therefore cannot =
compete on
a level playing field.&nbsp; This makes comparisons untenable.</p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>Second is: </span></font></p>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;text-indent:-.5in'><b><i><font
size=3D3 color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;
font-weight:bold;font-style:italic'>After reviewing costs, AHA =
determined that
moving to </span></font></i></b><st1:State><st1:place><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Idaho</span></i></b></st1:pl=
ace></st1:State><b><i><span
style=3D'font-weight:bold;font-style:italic'> would cost the company an
additional $370,000 per year.&nbsp; After reviewing AHA figures with the =
Idaho
Department of Commerce and the </span></i></b><b><i><span =
style=3D'font-weight:
  bold;font-style:italic'>Idaho</span></i></b><b><i><span =
style=3D'font-weight:
bold;font-style:italic'> Tax Commission, the LEDC has brought the cost =
down to
$50,000 per year.</span></i></b></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>This, in a
nutshell, is the problem that </span></font>Moscow must address.&nbsp; =
It is a
problem that is exasperated by an economic plan that relies solely on =
the UI
for economic well being.&nbsp; The UI pays no property taxes to the =
area, and
thus we, the residents and other businesses, must make up for the =
missing tax
base.&nbsp; If UI did pay, then the current tax rate would be, IMHO, at =
least fifty
percent less.&nbsp; This would make the cost of doing business here in =
Moscow competitive,
if not down right lucrative, for businesses looking to move here.</p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>Third is:</span></font></p>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;text-indent:-.5in'><b><i><font
size=3D3 color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt;
font-weight:bold;font-style:italic'>CEDA has prepared a Rural Community =
Block
Grant application to the Idaho Department of Commerce, requesting =
$500,000 to
assist in the design, development and construction of a building within =
the
current Phase of the =
</span></font></i></b><st1:place><st1:PlaceName><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Alturas</span></i></b></st1:=
PlaceName><b><i><span
 style=3D'font-weight:bold;font-style:italic'> =
</span></i></b><st1:PlaceName><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Technology</span></i></b></s=
t1:PlaceName><b><i><span
 style=3D'font-weight:bold;font-style:italic'> =
</span></i></b><st1:PlaceType><b><i><span
  =
style=3D'font-weight:bold;font-style:italic'>Park</span></i></b></st1:Pla=
ceType></st1:place><b><i><span
style=3D'font-weight:bold;font-style:italic'>. The entire cost of the =
building is
approximately $1,300,000 and the balance will be paid by means of a =
commercial
loan. CEDA and LEDC have requested City sponsorship of the RCBG =
application.</span></i></b></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>This is a
great idea, as long as it does not include an expansion of the current =
park
into Phase Two.&nbsp; But it is also a band aid approach to solve a =
festering
problem.&nbsp; Time has come to look again at our community and where we =
really
want to go over the next twenty years and how we are going to achieve =
our
goals.</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>John</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in;text-indent:-.5in'><font =
size=3D3
color=3Dblack face=3D"Times New Roman"><span =
style=3D'font-size:12.0pt'>&nbsp;</span></font></p>

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