Tax Abatement
The recent debate surrounding the tax abatement for The Crossing, a $72 million building from GTE Properties, marks a historic decision as the City of Clayton has granted its first tax abatement for residential property.
Fears that the tax abatement will set a precedent for future decisions have spurred petitions calling for referendum.
However, it is unlikely that these fears will ever be realized and mayor Harold Sanger insists that each decision in the future will be evaluated individually.
While it is true that the tax abatement will give The Crossing a 50 percent break on new taxes for the next 20 years, GTE partner Jerry Crylen says that even with the tax abatement, the new development still create about four times the amount of tax revenue as the existing properties.
This means that The Crossing will still generate approximately $8 million in tax revenue, with $4 million going towards Clayton schools.
The Crossing will also replace the existing outdated and inadequate infrastructure with newer, more modern facilities.
In their proposal to the City of Clayton, GTE argued that the interior components of the existing buildings showed signs of neglect as they displayed evidence of cracks, warping, damage, and mold growth. GTE further showed that these defects could not be fixed through normal maintenance and needed replacement, renovation, or rebuilding.
Joe Connolly, the owner of two duplexes on the development site has been a strong supporter of the tax abatement saying that “there’s not a big market for a duplex in the center of Clayton.”
Other criticisms for the tax abatement include worries that the new residents The Crossing brings will contribute to the traffic congestion in downtown Clayton.
However, plans for The Crossing include transit-oriented developments that encourage the use of the MetroLink and bicycles.
The Crossing will be designed to meet the needs of young professionals, corporate travelers, students, and young couples who want to live in an urban area, thus attracting people who cannot afford Clayton’s million-dollar condominiums, which make up the majority of all other residences in downtown Clayton.
GTE has plans for a $350 million development project in which The Crossing is just Phase I. The City of Clayton cannot afford to lose a project that will increase tax revenue while modernizing the downtown area and attracting new demographics of people to Clayton. The tax abatement should not be seen as an attempt to drain money from the City of Clayton but as a necessary measure that to benefit the overall community.
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Nicholas Lee is a senior at CHS and this is his third year on Globe. This year, Nicholas is working as one of the managing editors and the webmaster. Nicholas enjoys Globe as it...