[Vision2020] The Future

[Chris Storhok]

Tom,
 
I will share with you the effect of a healthy growing economy has had on my
property taxes, but first a bit of background:

The Fairbanks North Star Borough's economy has been expanding at a healthy
clip of around 3.5% a year now for 4 years. During this time the current
Mayor and Assembly of the borough has been rather business friendly, they
have not given tax breaks to anyone, nor has there been special treatment;
instead just a open for business policy.  In the year and 1/2 I have lived
here a Wal-Mart, Lowes, Fred Meyers, Old Navy, Barnes and Noble, Boston
Pizza, Chilies, Sportsman's Warehouse, and several mom and pop stores have
opened; add in the 600 housing units, a new motel, a new railroad station,
and several tourist attractions and you have growth.  Now I know you would
shudder at the thought of all of this but this has had nothing but a
positive impact on the community.  Because of the growth in the tax base the
school district was able to replace two old elementary schools this year
with energy efficient and entirely ADA accessible schools without the need
of a bond. (Mark, you would appreciate the beauty of the new schools - both
were designed with take in light, eliminate long shadows in winter, and both
have a great artistic flair to them).  The University of Alaska (as Phil
Nisbet mentioned in a previous post) has been able to attract top flight
faculty and over a hundred million in federal grants just this year.  The
University is able to attract people here because of the areas quality of
life and modern conveniences - which like it or not people with families
look for.  What I really like about all the new construction is that it has
occurred on classic brownfields property.  Instead of ripping up new swamps
and permafrost, these stores were built on ground that has seen uses such as
a tank farm for the US Army, staging area for construction of the pipeline,
and old airport, three smaller shopping centers and an abandoned city dump.

All that being said, the end result is:
1) Fairbanks has replaced Anchorage as the supply hub for northern and
interior bush villages, the North Slope, the Yukon Territory, and even
villages and towns in Siberia with the end result of bringing in millions of
dollars to the community not only to the big stores but to the motels, the
restaurants, the tourist attractions, the airlines, and to the small mom and
pop stores who sell items such as snow machines, boats, fish smokers,
knives, and so forth that the big boxes do not carry.     
2) The Borough was able to implement for the third straight year a drop in
the mill rate.  The property taxes on my home have dropped from $2018 in
2002, to $1979 in 2003, to $1902 in 2004, and now $1856 in 2005 (yet the
assessed value of my home has risen from $98,900 in 2002 to $126,000 in
2005)
3) The school district has been able to replace almost every school with a
new energy efficient, artistically attractive, ADA accessible building
without a bond levy.  (One high school and one middle school are all that
are left that were built before 1970 and they will be replaced within the
next couple of years).
I could go on but I hope you get the point.  The town has grown yet because
of decent comprehensive planning (used by citizens to guide growth, not
oppose it) and brownfield re-use plans the overall development foot print
has not changed that much.   
That being said, instead of using government to stop growth, use it to guide
how the town grows.  For example, Moscow has some great brownfield property
with Tidymans, the old railroad yards downtown, and several small lots on
the Troy Highway.  You also have empty space in two malls (the old Sears in
Eastside Marketplace and the old JC Penny's in the Palouse Mall) that can be
recycled.

Last night in your Daily News a letter was written opposing the ice
rink...again the good old anti-everything approach has reared its head.  The
author did not offer up alternatives just the standard threat and whiny
attitude that has become so prevalent within the media and Vision 2020 site.
For goodness sake if you are going to whine and complain offer up viable
alternatives instead of threats.

Take Care, 

Chris Storhok  



-----Original Message-----
From: Tom Hansen [mailto:thansen at moscow.com]
Sent: Wednesday, July 06, 2005 4:49 AM
To: 'Donovan Arnold'; 'Andreas Schou'; 'Chris Storhok'
Cc: vision2020 at moscow.com; 'Mark Seman'
Subject: RE: [Vision2020] The Future


Arnold stated:

"I think the way to go is for Moscow to be more business friendly and lower
the property taxes for incoming business for a year or two so we can lower
taxes for everyone with a bigger tax base."

Huh?  Let's break this down.

1.  " . . . lower the property taxes for incoming businesses . . . "

Much like the state of Idaho has done that resulted in a state deficit,
forcing the state to reduce various programs and increase sales tax.
Remember.  Idaho is one of the few states that taxes groceries (a staple).
In effect, the state of Idaho had managed to arrange for poor families to
pay for business tax cuts.  I vote "No".

2.  " . . . so we can lower taxes for everyone with a bigger tax base . . .
"

Once you have lowered the property taxes for incoming businesses, the tax
"base" does not increase, it decreases.  It is the tax "burden" of the
remaining property tax payers that increases. 

If your intention is to reduce the property tax liability of the remaining
tax payers after a year or so, just how do you intend on making this a
reality?  Inquiring minds want to know.

Take care, Moscow.

Tom Hansen
Moscow, Idaho

"What is objectionable, what is dangerous, about extremists is not that they
are extreme, but that they are intolerant. The evil is not what they say
about their cause, but what they say about their opponents."

-- Robert F. Kennedy