Quote:
Originally Posted by rage2
Indirectly, it's everyone outside of the CRL district that pays it back. Anyone building in the district pays the same taxes based on the same rates as outside the district, except all that revenue is diverted straight to the CRL and not into the city's tax revenue. So for whatever budget the city sets, the CRL district doesn't pay much into the budget, meaning everyone outside of the district is indirectly subsidizing them until the CRL is paid off.
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The theory, of course, is that without the CRL to kickstart development in the area, there would be nobody paying taxes inside the CRL district. This is a dodgy assumption at best, but it does have the effect of reducing the outright subsidy.
The East Village CRL is a big drain on the general revenue, because all the taxes from the Bow project are diverted into the CRL fund – yet the Bow was already approved for construction before the CRL was passed, and the boundaries of the CRL were gerrymandered to include that block. Basically, the East Village project was given a free gift of all the property and business taxes from the Bow building.
If that doesn't raise anybody's hackles, it's not so easy to see why the West Village should.