It’s the City Council’s call

By The Gazette Editorial Board

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Iowa City residents have every right to request a public vote on a City Council decision to devote taxpayer money to facilitate a high-rise downtown development. But we're not convinced it's such a great idea.

After all, the decision to offer a $2.5 million tax increment financing agreement to help developer Marc Moen build a $10.7 million, 14-story structure on the Pedestrian Mall is exactly the kind of task voters elect city council members to perform.

There's nothing fishy about the deal, made in the open and after careful research. We see no evidence that the council has ignored public input on this issue.

If citizens don't like councilors' unanimous decision to approve the funds, they can communicate their displeasure to the council in meetings, through correspondence or on Election Day.

Putting development decisions to a public vote could bog down the process and discourage responsible developers.

The building, which will include retail, office and residential space, is expected to increase the property's value dramatically - from $569,520 to an estimated $9.8 million.

But opponents say Moen has plenty of money, and shouldn't need help from public funds.

Moen has said the $2.5 million is essential and the project won't happen without it. His assertion is backed up by the National Development Council, which looked at the project and concluded earlier this year that there was a demonstrated need for the public funds.

Because the city plans to sell general obligation bonds to cover the cost - which, counting interest, will likely be closer to $3.7 million by the time all is said and done - citizens have the right to scrutinize the deal. But the city already is contractually bound to the project, officials have said. The project is going through.

If voters nix the current proposal, the city would have to find a different way to fund the assistance. That could add even further to the cost.

Residents should respect the City Council's decision on this one.

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