Howard Terminal Oakland: Sf Chronicle Reporter J.k. Dineen Doesn’t Know Tif, Writes Wrong Article

Howard Terminal Oakland: SF Chronicle Reporter J.K. Dineen Doesn’t Know TIF, Writes Wrong Article

https://www.youtube.com/watch?v=8eT2toBf34c

Oakland News Now Presents:

Howard Terminal Oakland: SF Chronicle Reporter J.K. Dineen Doesn’t Know TIF, Writes Wrong Article

.

Howard Terminal Oakland: SF Chronicle Reporter J.K. Dineen Doesn’t Know TIF (tax increment financing), Writes Wrong Article or “Report that Oakland ballpark project will get funding from office development is completely wrong.”

J.K. Dineen wrote a post that was passed to me by my long time friend AC Transit Board Member Christian Peeples. He asked for my opinion, and this is what I initially wrote because I did not want to go through the paywall:

First, the title “‘The devil is in the details’: Why the Oakland A’s plan to fund a new ballpark hasn’t worked in other cities” proves he’s got it wrong:

Fact: the A’s privately finance their ballpark. That money will come from a private bond issue, and the revenues from sponsorship and in stadium fees will pay for it. The naming rights, alone, can fetch around $500 million, which would pay for 1/4th of the park, and overall, they could get $2 billion in sponsorship revenue.

Now, let’s turn to the public side and for that, I use SB293 Skinner, the governing document for the EIFD. Now, Chris, I have long argued with Libby that her staff has zero idea what they’re doing, so I am going to tell you how it should be done. OK?

First, there’a a mathematical fact at play here: you want a privately financed sports stadium to fuel tax increment financing revenue TIF because of the giant TIF revenue that comes from the formula. Ever done it? I have and hundreds of times. I even have a spreadsheet. For a $2 billion stadium, a 45 year project TIF zone increasing at 4 percent rate of growth throws off $1.6 billion – half of that is $800 million. Now, guess what? The real rate of growth is assessed value is around 8 percent annually, or about double. And what are we starting with? a $2 billion stadium. So if the A’s need $400 mil in infrastructure subsidy we can give it to them from the base of $800 million, and have $400 million left over for the community projects. By law – SB293 Skinner – my Infrastructure Financing Plan can include projects anywhere in Oakland, and where the Public Financing Authority so chooses. We have not even COME CLOSE to forming a Public Financing Authority – yet the law calls for it. Read SB293 Skinner.

And the TIF money can be used to fund head-start programs, affordable housing, business assistance, child care, libraries and more. We can form a number of programs that we should have done two years ago. The thing is, you have to read the SB293 Skinner law to have a vaid point, and I will bet money your J.K. Dineen did not do that.

Then, Chris wrote back and sent a copy of the J.K. Dineen post pasted in the email. This was my response:

Now, regarding the post you sent to me (and I will vlog about this) I stopped reading when he wrote “The buildings — 1.5 million square feet of office space, 3,000 housing units, a 3,500-seat concert venue, 200,000 square feet of retail, a 400-room hotel — are an economic engine that will pay for hundreds of millions of dollars in infrastructure improvements” I stopped.

CHRIS, PAY ATTENTION. OKAY. HE DOES NOT KNOW REDEVELOPMENT MATH. THE STADIUM IS $2 BILLION ALONE AND THROWS OFF MORE THAN ENOUGH TAX INCREMENT REVENUE TO PAY BOTH INFRASTRUCTURE COSTS AT $350 MILLION DOLLARS AND THE REMAINING COMMUNITY AND AFFORDABLE HOUSING PROJECTS EVEN IF NOTHING ELSE WERE BUILT. OK. WE KNOW THE A’S WILL BUILD THE STADIUM. THAT REPORTER’S WORK IS BULLSHIT AND I AM GOING TO SAY SO. I AM SICK OF THIS CRAP! JUST DO THE MATH.

And the fact is that the real driver here is the A’s private ownership of the stadium and annual property tax payment of 1 percent. That drives the TIF revenue engine. What J.K. Dineen wrote is not applicable to the Howard Terminal situation because it uses tax increment financing., TIF is based on assessed value of the property and not how well it is doing financially. So, once it is built, that’s it: property tax is due. Period. End of story. That fact, alone, completely obliterate’s J.K. Dineen;s reporting.

For example, J.K. Dineen wrote “Meanwhile, in Oakland, the IFD is slated to generate about $517.5 million over the course of the 45-year bond, which would pay for streets, sewers and 18 acres of open space, as well as help subsidize about 1,000 units in affordable housing. IFDs are explicitly prohibited from funding “the costs of ongoing operation or providing services of any kind,” according to city officials.”

J.K. Dineen must have talked to someone who quoted the error-filled Century Urban Report. That report used the wrong calculation of assessed value rate of growth. Think: they left money on the table and the City of Oakland didn’t bother to check. If you use $12 billion in AV and then use the right TIF math, by year 45 at 4 percent rate of growth per year, you get $9 billion.

I’m tired of the SF Chronicle taking a consistently hostile position regarding Howard Terminal and taking zero interest in TIF and Enhanced Infrastructure District Financing legislation. It’s a consistent problem.

Stay tuned.

via IFTTT

Note from Zennie62Media and OaklandNewsNow.com : this video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. What we call “The Third Wave of Media”. The uploaded video is from a YouTube channel. When the video is “liked” by Zennie62 YouTube, then it is automatically uploaded to and formatted automatically at the Oakland News Now site and Zennie62-created and owned social media pages. The overall objective here, on top of our is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours – is the use of the existing YouTube social graph on any subject in the World. Now, news is reported with a smartphone and also by promoting current content on YouTube: no heavy and expensive cameras or even a laptop are necessary, or having a camera crew to shoot what is already on YouTube. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners.

Leave a Reply

Your email address will not be published. Required fields are marked *

Click For Oakland News Now Home Main News Stream Section

Oakland News Now Blog - Recent Posts