P.O. Box 1222, Madison, WI 53701 | www.prodane.org | office@prodane.org | (608) 257-4985

May 18, 2010

$16 Million TIF for Edgewater...Is the Public Getting a Fair Deal?

Progressive Dane would say NO that the public is not getting a fair deal.

Primarily, there has been the lack of public input and process during this entire ordeal with many concerns about what has happened to our city process, but that would fill another page or two.

The biggest issue now is regarding the $16 million of TIF being “required” to complete this project. Hammes Co. has said the project cannot be done without $16 million of Madison taxpayer money. Bob Dunn has given testimony about the benefit of the public space with access to the water and associated parking as the public benefit for this taxpayer money.

First of all, is this public space worth $16 million to the public, Madison taxpayers, and residents of this TID? For the same money, three more Goodman Pools could be built throughout the city, that seems like a more popular choice.

And as far as this new public plaza, Hammes Co. can close off up to 75% of that public space at anytime or 100% of the time on 30% of prime weekend days if they want for their events. And if the public wants to use the space, they need to use the high-end caterers of the hotel. James Madison Park is just a little way down the lake shore with full public access to the water and use of the park for individual food and drink 100% of the time.

Besides the public space, Hammes Co. has also stressed the 230-240 jobs that will be created. This is great, but the same number and similar type jobs could be created as well if $16 million of TIF were used to provide low-interest or no-interest loans to all the home owners in that TID to update and weatherize their homes. There are many other ways that TIF funding could be used in Madison that are more creative, would create similar jobs, and have an immediate and long-term benefit directly to the taxpayers.

But if $16 million of TIF were to be granted to Hammes Co. for this project, the due diligence of the Common Council would be to put in more public requirements for this money. The alders could ask that there are guarantees for the percentage of local hire for all the construction jobs. They could require there be prevailing wages paid for all the construction jobs along with a certain percentage of apprenticeship/training opportunities be guaranteed. They could require “card check neutrality” and the Unions should be lobbying strongly for this provision. They could require living wages for all future employees of the hotel; if this is about jobs, lets make it about jobs for the long-term.

Progressive Dane strongly supports economic development for the city of Madison, it just supports smart development that uses taxpayer money in a smart way and guarantees maximum benefit to the public and workers if we are going to use TIF. The challenge to the Common Council is to consider the same.

Jacque Pokorney
Co-chair Progressive Dane

Posted by prodane at 09:12 AM ">

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