Thursday, March 15, 2001
The University Daily Kansan
Section A · Page 3
Tax abatements spark controversy
By Erin Adamson
writer @kansan.com
Kansan staff writer
City Commission candidates are debating whether the city should offer businesses tax abatements as incentives for moving to Lawrence as the April 3 election draws near.
Tax abatements have been a divisive issue in Lawrence since American Eagle Outfitters applied for an abatement for a
warehouse and distribution center in Lawrence. The company eventually set up in Ottawa but the Lawrence City Commission offered the abatement, which would have excused American Eagle from paying 80 percent of its taxes the first ten years it was in business in Lawrence.
Mayor Jim Henry voted to grant American Eagle the tax abatement and said the public's lack of understanding of the tax abatement process gave him the idea to create a task force on the issue.
"The tax abatement task force grew out of the controversial request for a task abatement by American Eagle," Henry said.
Supporters of tax abatements say they help bring industry to Lawrence that would not otherwise locate in the city. Even with a tax break, the company contributes money the city wouldn't have otherwise.
Opponents worry luring businesses with tax breaks brings in the wrong kinds of businesses saying the city doesn't have data to support the claim these businesses help the city in the long run.
Adam Mansfield, a City Commission candidate and manager of Louise's Downtown, 1009 Massachusetts St., decried the lack of public input in the process of awarding tax abatements.
He said the newly formed tax abatement task force was a good start at community involvement, but much more needed to be done.
"There's really no public input,"
Henry said it was reasonable for the city to recruit businesses to town with abatements.
Mansfield said. "There needs to be."
"You need a good mix of industrial and residential in the community," Henry said.
Mansfield and other opponents of the current tax resolution said there were alternatives to offering tax abatements and the city should consider them.
Vicki Pratt, president of Regional Economic Development Inc. in Columbia, Mo., said Columbia didn't offer tax abatements or other incentives to bring businesses to town and never had.
Pratt said businesses located in Columbia because of the quality of life and the workforce, and because the costs of operating a business in Columbia were low.
The commission was divided on the American Eagle tax abatement. Incumbent candidates Erv Hodges and Marty Kennedy voted for the abatement. Challenger Sue Hack said tax abatements necessary, but the city should hold those companies to high standards.
TAX ABATEMENTS
What's happening: Lawrence City Commission candidates are divided about whether to use tax abatements to lure new businesses to Lawrence.
What it means? Tax abatements are essentially tax breaks exempting new businesses from paying part of their taxes. Proponents say it draws in new business and boosts the economy. Opponents argue business brought in by the tax breaks don't always benefit the city in the long run.
Incumbent candidate David Dunfield voted against the abatement. Challengers Scott Bailey and Adam Mansfield have said any tax abatement the city granted should have the overwhelming support of the community, and four of the five commissioners should be required to vote in favor of the abatement. Edited by Malissa Coulley
STOP BY DODSON FOR ALL OF YOUR SPRING BREAK DRINKING NEEDS
DODSON LQUOR
Earn $5000-$8000
WWW.THEBIKESHOPLARRYVILLE.COM
Why surf the web,when you can cycle it?
Local Cycling News/Online Auctions/Local Racing Info/Close-outs
this Summer
Fry-Wagner Moving Storage offers excellent wages potential overtime, and long term job security for college students looking for summer employment.
Call Doug Morgan at 1-800-394-0049 ext.250 Have your spot on the summer crew
your spot on the summer crew
SHARK'S SURF SHOP
GREAT SELECTION OF MEN'S SWIM
$22
TO
BOARDSHORTS
$50
813 MASS/841-8289
No Cover
Red Bull & Smirnoff
--or just read them for the fun of it!!!! ON THE WEB AT www.kansan.com
8 East Street • 312.7116
Rolling Rock Bottles
Find it, sell it buy it in the Kansan Classified
Professional Tooth Whitening Now through the month of March! A $250.00 Value for $150.00!
Call Dr. Patrick Moriarty's Office for an Appointment Today!
832-2882
Pat Moriarty,
DDS
3514 Clinton Parkway at Kasold
Available at KU Bookstores
Kansas &
Burge Union
804-4040
visit the KU Bookstore' website @ www.jayhawks.com
Graduation Regalia
"The Ultimate Tanning Experience"
Lawrence's Mega Salon
Featuring:
21 Wolff System Beds
Top of the Line Lotons
Open 7 Days a Week
Saves Time in Business
Money. Saving Packages
"Don't let your Spring Break tan fade away, come visit us today!"
SUNFLOWER OUTDOOR BIKE
Cheap Spring Break Accommodations!
Get outfitted for your Spring Break adventure at The Sunflower Outdoor & Bike Shop! Everything from backpacks to bikes, tents to Tevas, and clothing to canoes...we've got you covered!
804 Massachusetts St. • Lawrence, Ks. • (785) 843-5000