Medical mall will bring C.R. large tax income

Some confusion seems to exist in the community regarding whether the city government is making financial commitments to Physicians' Clinic of Iowa to encourage them to build their proposed medical mall in Cedar Rapids. For example, on Aug. 8, an article stated that the city would pay for a parking garage for the benefit of PCI and its proposed medical mall. Unfortunately, the article did not report that the parking garage would be paid for with new property taxes that PCI would pay upon completion of their project.

When the medical mall is completed, the value of the property will be substantially increased. That increase will result in substantial new property taxes paid by PCI. According to a memorandum of understanding entered into a year ago between the city, both hospitals and PCI, it was recommended that the city dedicate those new taxes to recover the cost of the parking garage and other required street changes.

Cities commonly use this type of financing to cover the cost of infrastructure projects that enhance the community's tax base. The city and its citizens are big winners since the taxes are paid for decades whereas the cost of the parking garage will be recouped in only a matter of years.

If the mall isn't built, the city will not receive any new taxes and a huge economic development opportunity will be lost. If the mall is built, the city will have funds for the parking garage and a revenue stream for decades to come.

Randy Easton

Cedar Rapids

(Editor's note: Mr. Easton, chair, St. Luke's Hospital board of directors, did not submit the above letter on behalf of the board.)