You can support city, vote no

CORRECTION (published May 3, 2011, regarding the following column) - Hatch Development Group, which is building the Oakhill Jackson Brickstones apartments in southeast Cedar Rapids, has not received property-tax-exempt status from the city, and the company purchased the land for the buildings at the assessed value, according to company officials and Gazette news reports. Hatch did receive $150,000 in upfront assistance from the city, but that must be repaid. The Hatch projects also received federal income tax credits through the Iowa Finance Authority to help keep the housing affordable for lower-income workers. A Sunday guest column  by Lisa Kuzela incorrectly referenced the city's assistance in the projects.By Lisa Kuzela

-----

In “Inherit the Wind,” Spencer Tracy defends a teacher who teaches the theory of Evolution in a God-fearing town. In the film, if someone disagreed with the town, then you must be against God.

Some supporters of the proposed 20-year extension of the local-option sales tax want voters to feel that if you vote no Tuesday, you are against protecting Cedar Rapids. But this is not true!

I am in favor of flood protection, but against the current proposed tax because:

l The broad ballot language enables the city to fund pre-flood riverfront plans previously rejected by voters. While the city says “road repairs,” the ballot language reads “street improvements,” which could include a wide variety of costly projects. These aren't priorities!

l This city is wasting current flood recovery money. The city bought a $1.5 million assessed property from the city's largest insurance carrier, TrueNorth, for $7.5 million; $4 million came from the current LOST. They also received $990,000 in property tax assistance. How about the properties and 10-year tax exemption granted Hatch Development? The city paid

$5.2 million to Armstrong Realty for two properties assessed at less than $2 million for the Events Center.

l Our current LOST “10 percent property tax relief” is being transferred into the general fund. There, the city can spend as it pleases, without any accountability. The city did raise property taxes by raising valuations, but just on the residential properties.

l This is a bond disguised as a sales tax. The city will quickly bond for the projects, putting taxpayers into serious debt, and property taxes could be raised to pay for this debt. The mayor compares this to a mortgage. Look at how much interest is paid throughout the life of a

20-year mortgage!

l This tax extension takes effect July 1, 2014, but repeal can't begin until a year afterward and only if “there are not outstanding obligations reliant upon revenue from the tax.” Because this is a bond, we will have four years of debt before we can attempt to repeal.

l If flood protection is the priority, why hasn't the city spent any of our current LOST toward flood protection?

l We already have our “local match!” The city claims if this doesn't pass, we won't get federal funding because we can't show we have our local match. The federal government estimates east side protection at

$99 million. Our local match

is $35 million. Quaker's $8 million flood protection wall

count toward our local match, leaving $27 million needed. LOST brings in about $18 million annually. This City Council just needs to commit funds from our current LOST and we have more than our local match. We need to prioritize local dollars in case federal funding never materializes at the level we need.

l The math doesn't add up. If the state approves the city's $200 million request, the west side would be funded without this tax!

If this LOST passes, even with “outsiders” paying 40 percent of it, each Linn County household (averaging 2.5 people) will contribute about $5,500 over the 20 years.

All Linn County residents deserve greater accountability for this $750 million tax - 20 years guarantees less accountability.

The Cedar Rapids City Council can come back quickly with a more efficient, detailed, five- or 10-year plan.

Lisa Kuzela, member of We Can Do Better CR, is a flood victim, community activist and vice chair of the Local-Option Sales Tax Oversight Committee. She also has served on the Neighborhood Planning Process Steering Committee and the Cedar Rapids school board. Comments: www.wecandobettercr.com