Bart: We've Had Enough! Update 12/13/07
We spoke too soon. We appreciate the comments from LifeLine on this blog and the input from others in the community who know better than us. We apologize for making such a bold sweeping judgement too quickly and trust that our audience will understand that we are learning too were unfair in this judgement of Bart Peterson.
The Indy Star reports this morning that outgoing mayor Peterson could be planning to put more burden on homeowners with a re-development plan for Eastgate mall. The announcement is clear: Eastgate is eligible for a 10 year abatement. Aren't all those abatements a big part of our problem Bart? Why is he doing this three weeks before he leaves office?
We will update later as we learn more.
UPDATE:
"The city will grant about $1.4 million in property tax abatement to Lifeline. "This is such a happy day," said Peterson, who noted the redevelopment will fill a property that has been vacant for three years. The mall site is owned by a Dallas real estate company."
Hoosiers For Fair Taxation is curious how much the Dallas company WAS paying in property tax? We also are curious exactly what Peterson is personally getting out of this deal.
The Indy Star states that Lifeline's sales pipeline demands they seek more space. Perhaps their sales are so high because they are selling storage too low based on the promise of a huge property tax break. Should not the Dallas based company that owns the eye-sore take the financial hit for its demise? Why does Peterson always hit the taxpayer?
Hint: follow the money. Our bet is all roads point to Bart & Co.
2nd UPDATE: We found these comments on the Indy Star comments page:
Melyssa wrote:
Was the Dallas real estate company that was sitting on an unoccupied property paying property tax? What's Bart's personal take from the back door of this deal.
"Indy East" replied:
I had wondered that myself. Why wouldn't they have paid
property tax?.Let's see Bart is a good friend of my ex boss,my ex boss has a
direct interest in Lucas property and the airport property. My ex boss cried and
screamed for two days after the election and said "we may not get the contracts
we needed".No I won't say who and no I didn't tell that I voted for Ballard.
I've seen too many good buddy deals going on for my taste. Guess I have a
problem with the "buddy system".
4 comments:
It's a done deal. Lifeline Data will use the place as super secure computer "warehouse" of sorts.
Picture how a Federal Max Prison looks and that may give you an idea of what Eastgate will look like. Very inviting don't you think.
Oh, and we don't get a dime in taxes for what could be 15 years.
Bart did what Bart has done all the time he's been in office.
You ever notice how these things are hidden until the deal's done?
Open government? Not in this town.
Thanks for the update. Please keep us informed. Our email is hoosiers.for.fair.taxation@gmail.com
Wonder what Bart's getting out of the back door of that deal. Do you have any idea? I would know nothing about this except for a blurb in the paper.
Hello All. I am one of the owners of Lifeline and felt compelled to respond. To begin with, Bart and his administration got nothing out of the deal. We have been working on this piece of property since July, so it was not something that just got put together at the last minute.
Secondly, the way a tax abatement works we do not get a pass on current taxes. Lifeline will pay around $100,000 per year in property tax, which is the current bill. What is abated for a short time are the taxes on improvements. The current abatement is only for five years and it is my understanding that it is sliding where you first pay 20% of the tax, then the next year you pay 40% and so on until you are up to 100%. Also, we are still paying Indiana sales tax on the applicable improvements.
I grew up on the Eastside close to Eastgate so let me assure you it will not look like a "Federal Max Prison". You can go to our website and pull down the preliminary site plan for a look.
Finally, one last thing about the tax abatement: Eastgate is located in the Eastside Revitalization District. Any person or company that wishes to go into this zone and invest hard dollars can apply for the abatement and will very likely receive it. I would expect that the Ballard team would continue to honor this enterprise zone and probably create a couple more of their own in Marion County.
I hope this answers a few questions and feel free to ask any others.
Lifeline owner: Thanks for speaking up and we hope you will continue to let our readers know about the improvements you make to the property.
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