Sunday, November 11, 2007

Letters to MOCO

This one comes from a frequent contributor, but it needs to be shared.

Todd,

I know that you are aware of the new auto mall in Lake Havasu. The city is not only crowing about all the sales tax revenue their going to get (and we do not), but they did a deal with Anderson Toyota so that there is NO UP FRONT COST TO THE CITY.

Here is the quote from the Economic Development Journal….Page 19….

Havasu City officials see the Airport West Properties project as a win-win situation because of the way the development agreement is structured. The city does not have to ante up any “front money” by rather will reimburse Anderson Toyota with a 50-percent reimbursement of all new sales tax revenues the expanded dealership generates as part of the auto mall.

Lenkowsky, formerly city attorney of Bullhead City,negotiated the agreement with assistance from the Development Agreement Team assembled shortly after a city council retreat. The team consisted of the city manager Richard Kaffenberger, the public works director, development services director and finance director.

“The city is very excited about the agreement,” said Lenkowsky. “In the past, the city negotiated agreements that required city to advance a subgstantial investment of public monies as a component of those agreements. I think this agreement represents a significant departure from that pas model.” Lenkowsky said.

The article goes on to say that the entire development will bring 300 jobs to the town!

Golly! This is exactly the way things are structured these days between government and business! In our town, people say that this is a “give away”. In Lake Havasu, it is called a “win-win”.

Ken


Keep them coming folks.

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