On Wednesday the I requested a copy of the Brownfield Repayment Schedule (Tax Capture Table Exhibit E, Schedule 1).
This exhibit shows how REIS intends to recapture taxes to pay back the $17mln. Brownfield that the Board of Trustees is scheduled to approve on 12/18.
I am NOT an expert on this but there seems to be some distrubing information on the exhibit I will try to outline here:
1. It appears that REIS will capture ALL SCHOOL OPERATING TAXES from this development until the Brownfield is repayed. CPARD is vehemently against this. They intend to add 500 households but not allow the district to use any of the school operating tax revenue generated by the commercial development. (Residential is generally homesteaded and not charged.) For example… in 2010 REIS claims they will repay $1,482,703 of the Brownfield… $602,910 of that will come from the School Operating taxes generated by the development. in 2011 that number more than doubles to $1,245,857 in School Operating Taxes.
2. It appears they intend to capture ALL of the School Operating taxes until at least 2014. In that same time frame 200 homes will be built and supposedly sold. How will the district pay for and support these additional students with no additional School Operating Taxes?
3. The assumptions seem VERY aggressive or even unrealistic. They assume that homes sold on 50′ lots will sell for an average price of $275,000 and those on 70′ lots will sell for $350,000 average. I think they need to check REAL comps. for the area and give a real basis for these numbers. Local agents tell me this is way too high.
4. They also seem to assume that commercial/office/medical will all be at 100% capacity as soon as the space becomes available. Take a drive down 6 Mile, Haggerty, 275, etc. less than two miles from this project and virtually EVERY commercial space has “For Lease” signs in front of it. This assumption is flawed to the core. They seem to assume at 1,110,000 sq. ft. will be 100% occupied in 2013.
5. They assume that all taxing authorities will allow their tax dollars to be recaptured. Such as: PUBLIC SAFETY, Library, State Education Tax, RESA, Schoolcraft, Wayne County Jail, etc.
Chip Snider is quoted regarding the consent agreement as follows:
“The schools can now relax, and with all reality not be faced with another school.”
How can they relax? More students… same School Operating Taxes for years… To make matters worse the Township agreed in the consent agreement to NOT FIGHT REIS if they ask to capture the School Operating Taxes. Good Lord.
I will try to scan these tables so they can be available to all on Monday. An initial review looks quite bad to me and I hope others will review these documents.