Dear Editor:
The Dispatch editorial last Thursday (March 20) raised some very
constructive ways to provide incentives for downtown economic
development.
Dear Editor:
The Dispatch editorial last Thursday (March 20) raised some very constructive ways to provide incentives for downtown economic development. It is ironic that Council proponents of incentives for big box stores haven’t thought of them already, and, by their very action of subsidizing new regional shopping on our outskirts, are making it more difficult for downtown to be successful.
I am puzzled and very concerned about the two $5 million incentive packages approved by the Council recently. Without a deadline to produce a like amount of sales tax or pay the difference in their traffic infrastructure costs (as the city has had on other incentive agreements), Gilroy residents may end up footing the bill.
There is a risk that if the cost of the infrastructure isn’t paid back, then we won’t have enough money in our traffic impact fund to pay for street improvements needed in other parts of the city, like downtown.
Relying on an increase in sales tax in these difficult economic times sounds problematic. Recently we have all read about VTA’s financial problems because their sales tax income has dropped so significantly.
It seems to me that those who truly believe in the free market system would come to the conclusion that if new shopping centers can’t bear their own infrastructure costs, the market place might not be ready to support them yet. Let the center developer take the risk, not Gilroy residents!
Connie Rogers, Gilroy, former City Council Member
Submitted Monday, March 24 to ed****@****ic.com
