Thursday, May 08, 2014

Fort Wayne Public Investment In Downtown Development Project Balloons From $19.5 Million To $39 Million

Fort Wayne city officials told its residents that city taxpayers would be contributing $19.5 million for a high-rise mixed use development in its downtown by Ash Brokerage when the project was announced last fall. Today, city officials are announcing that the public investment in the project has doubled to $39 million in order to accommodate a larger parking garage and other site preparation costs due to poor soil conditions, pushing the total cost of the project from $71 million to $98 million. City officials are relying on TIF funds, revenues from the lease of the former city-owned electrical utility and the local food and beverage tax levied by Fort Wayne's Capital Improvements Board. It is simply beyond belief how much public money is invested by state and local governments in Indiana in private real estate developments in which taxpayers acquire absolutely no ownership. It's strictly a wealth transfer from the taxpayers at large to politically-connected businesses and individuals who hold sway with our elected officials.


Pete Boggs said...

"Public Investment" translation: leveraged property & income of private citizens beyond Constitutional debt limits.

Anonymous said...

I don't like these type or projects, However I believe the city will retain ownership of the parking garage. It is the same deal they have on other projects.