Good morning, RVA! It’s 59 °F, and, look out!, highs today will hit 76 °F. Yeah, it’s November, but, whatever! Expect clear skies until tomorrow when some rain shows up.
Water cooler
Whoa, Mark Robinson at the Richmond Times-Dispatch has a big update on the proposed Coliseum redevelopment plan. The TIF is now a BigTIF. First: Take all of the words that follow with a grain of salt as we still have not seen the official proposal from the Mayor’s office and are working from Robinson’s early FOIA and comments made to him by four unnamed members of City Council. Next, some background: To pay for all of the many things the Mayor included in his RFP for the redevelopment of the entire neighborhood around the Coliseum, developers have proposed a TIF district (that’s a Tax Increment Financing district). It works like this: The City begins to redevelop a district and just the increase in tax revenue from that district (which ostensible comes from all the new stuff being built) goes towards paying off the redevelopment. So technically the City is not paying for anything out of its general fund, but there is, of course, an opportunity cost of what could have been done with any organic increase in tax revenue from the District. The original size of the Coliseum TIF covered just the area of redevelopment, then it was expanded to included Dominion’s new towers a bit further south, now the new BigTIF captures half of Downtown, Monroe Ward, and Jackson Ward. I don’t know how big TIFs typically are in other American cities, but, dang, this is a massive expansion and would dedicate all new tax revenue in most of Richmond’s downtown toward a single neighborhood and do so for a long, long time. I understand that the North of Broad area (aka NoBro) has an extremely limited tax base due to all of the land owned by VCU, the City, and the State, but I have a hard time seeing how tax revenue generated in the newly rezoned Monroe Ward, or the currently exploding Arts District, needs to be linked to an arena and the surrounding neighborhood for decades. To be fair, we don’t yet know what the new revenue in the BigTIF will pay for—more affordable housing, better transit, new schools, all things I love and am in favor of. The most important question, though, is could we do more of those things I love if we forgot about replacing the Coliseum, let Downtown grow organically, and dumped all of the tax revenue into the general fund? I don’t know the answer to that question.
Here’s another piece by Mark Robinson in the paper, that is…something to keep an eye on. I guess?