Watchdog.org 'Cultural' shopping centers race to claim your tax money » Watchdog
1. [2]
CULTURAL RETAIL: The Outlets of Mississippi has pavilions
representing each region of the state with a few displays and
a visitors center that qualified the developer for a $24 million
tax break.
[11]
TAXPAYER FUNDED: A big chunk of the
construction costs for the Outlets of Mississippi in
Pearl was picked up by Mississippi taxpayers
‘Cultural’ shopping centers race to claim your tax money
Posted By Steve Wilson On April 22, 2014 @ 5:00 pm
By Steve Wilson | Mississippi Watchdog
While the Mississippi Development Authority is ending its program of incentives [1] to “cultural retail attractions,” a pair of shopping
center projects have slipped in under the wire.
The program ends July 1.
The Mississippi Legislature last year passed Senate Bill 2463 [3]
, expanding the sales
tax rebate program to include “cultural retail attractions.” Under the law, the state
returns 80 percent of the sales tax revenue for the next 10 years until the total reaches
30 percent of construction costs. The MDA has already issued up to $155 million in
rebates for shopping centers in Pearl and planned developments in Southaven and
D’Iberville.
Greg LeRoy [4] is executive director of Good Jobs First [5], a grassroots organization
seeking to bolster the accountability and efficacy of economic subsidies.
LeRoy, author of “Great American Jobs Scam [6]
.”said these type of incentive-boosted
developments are sold as way to bolster local economies.
“We have long argued that retail does not deserve any subsidies, period,
unless it is genuinely to fix a “market imperfection” such as a food desert,”
LeRoy said. “Retail is a tertiary economic activity and not a generator of new
wealth. You and I do not have more money to shop with because we have
more places to shop. Retail is what happens when people have disposable
income. It will take care of itself if people have paychecks”
A bill [7]
to reauthorize the program died in this year’s legislative session. But it hasn’t
stopped several developers from trying to beat the buzzer.
In Southaven, the ADA approved developer Poag & McEwen for up to $34 million. The
Southaven board of alderman set a public hearing [8]
May 20 to discuss the possibility
of a public improvement district [9]
for the proposed $165 million Outlet Shops of the
Mid-South, which would allow the developers to appoint a board of directors. The board
could issue bonds and collect assessments from property owners in the district for
infrastructure improvements.
Three of Mississippi’s biggest shopping centers — both built and planned — were built
with taxpayer money.
Spectrum Capital was approved to receive $24 million for its $80 million Outlets of
Mississippi [10]
, which opened in November.
The largest is proposed for
D’Iberville, just north of Biloxi. The
Gulf Coast Galleria [12]
would have
750,000 square feet of space and
an aquarium. The MDA approved
developer CBL & Associates
Properties for $96.3 million of the
projected cost of $321 million for
the Galleria.
LeRoy said these types of subsidies
are unnecessary and don’t bring the
high-paying jobs to the areas
they’re supposed to benefit.
“Big box retail’s ripple effects
are paltry,” LeRoy said.
“‘Upstream,’ most of the jobs
are in China, and ‘downstream’
ripples are few because the
wages and benefits of direct
retail jobs are so poor.”
Contact Steve Wilson
at swilson@watchdog.org [13]
Get regular updates on Mississippi
through our Facebook [14]
or Twitter
[15]
accounts
Article printed from Watchdog.org: http://watchdog.org
![[2]
CULTURAL RETAIL: The Outlets of Mississippi has pavilions
representing each region of the state with a few displays and
a visitors center that qualified the developer for a $24 million
tax break.
[11]
TAXPAYER FUNDED: A big chunk of the
construction costs for the Outlets of Mississippi in
Pearl was picked up by Mississippi taxpayers
‘Cultural’ shopping centers race to claim your tax money
Posted By Steve Wilson On April 22, 2014 @ 5:00 pm
By Steve Wilson | Mississippi Watchdog
While the Mississippi Development Authority is ending its program of incentives [1] to “cultural retail attractions,” a pair of shopping
center projects have slipped in under the wire.
The program ends July 1.
The Mississippi Legislature last year passed Senate Bill 2463 [3]
, expanding the sales
tax rebate program to include “cultural retail attractions.” Under the law, the state
returns 80 percent of the sales tax revenue for the next 10 years until the total reaches
30 percent of construction costs. The MDA has already issued up to $155 million in
rebates for shopping centers in Pearl and planned developments in Southaven and
D’Iberville.
Greg LeRoy [4] is executive director of Good Jobs First [5], a grassroots organization
seeking to bolster the accountability and efficacy of economic subsidies.
LeRoy, author of “Great American Jobs Scam [6]
.”said these type of incentive-boosted
developments are sold as way to bolster local economies.
“We have long argued that retail does not deserve any subsidies, period,
unless it is genuinely to fix a “market imperfection” such as a food desert,”
LeRoy said. “Retail is a tertiary economic activity and not a generator of new
wealth. You and I do not have more money to shop with because we have
more places to shop. Retail is what happens when people have disposable
income. It will take care of itself if people have paychecks”
A bill [7]
to reauthorize the program died in this year’s legislative session. But it hasn’t
stopped several developers from trying to beat the buzzer.
In Southaven, the ADA approved developer Poag & McEwen for up to $34 million. The
Southaven board of alderman set a public hearing [8]
May 20 to discuss the possibility
of a public improvement district [9]
for the proposed $165 million Outlet Shops of the
Mid-South, which would allow the developers to appoint a board of directors. The board
could issue bonds and collect assessments from property owners in the district for
infrastructure improvements.
Three of Mississippi’s biggest shopping centers — both built and planned — were built
with taxpayer money.
Spectrum Capital was approved to receive $24 million for its $80 million Outlets of
Mississippi [10]
, which opened in November.
The largest is proposed for
D’Iberville, just north of Biloxi. The
Gulf Coast Galleria [12]
would have
750,000 square feet of space and
an aquarium. The MDA approved
developer CBL & Associates
Properties for $96.3 million of the
projected cost of $321 million for
the Galleria.
LeRoy said these types of subsidies
are unnecessary and don’t bring the
high-paying jobs to the areas
they’re supposed to benefit.
“Big box retail’s ripple effects
are paltry,” LeRoy said.
“‘Upstream,’ most of the jobs
are in China, and ‘downstream’
ripples are few because the
wages and benefits of direct
retail jobs are so poor.”
Contact Steve Wilson
at swilson@watchdog.org [13]
Get regular updates on Mississippi
through our Facebook [14]
or Twitter
[15]
accounts
Article printed from Watchdog.org: http://watchdog.org](https://image.slidesharecdn.com/6f5a803b-3b9b-4884-ae57-8fd83c5e4e3d-150928195426-lva1-app6891/85/Watchdog-org-Cultural-shopping-centers-race-to-claim-your-tax-money-Watchdog-1-320.jpg)
![URL to article: http://watchdog.org/140205/shopping-center-tax-incentives/
URLs in this post:
[1] program of incentives: http://www.mississippi.org/index.php?id=508
[2] Image: http://watchdog.org/wp-content/blogs.dir/1/files/2014/04/IMG_3092.jpg
[3] Senate Bill 2463:
http://index.ls.state.ms.us/isysnative/UzpcRG9jdW1lbnRzXDIwMTNccGRmXHNiXDI0MDAtMjQ5OVxzYjI0NjNzZy5wZGY=/sb2463sg.pdf#xml=http://10.240.72.35/
[4] Greg LeRoy: http://www.goodjobsfirst.org/about-us#greg
[5] Good Jobs First: http://www.goodjobsfirst.org/
[6] reat American Jobs Scam: http://www.greatamericanjobsscam.com/pages/book.html
[7] bill: http://billstatus.ls.state.ms.us/documents/2014/pdf/HB/1200-1299/HB1233IN.pdf
[8] a public hearing: http://www.southaven.org/DocumentCenter/View/2106
[9] public improvement district: http://billstatus.ls.state.ms.us/documents/2012/pdf/HB/1200-1299/HB1261SG.pdf
[10] Outlets of Mississippi: http://www.outletsofms.com/
[11] Image: http://watchdog.org/wp-content/blogs.dir/1/files/2014/04/IMG_3091.jpg
[12] The Gulf Coast Galleria: http://www.cblproperties.com/pag.nsf/AvailParcelsforWebCorp/B3C72BAF71C687DA85257B6D00063C24?
opendocument
[13] swilson@watchdog.org: mailto:swilson@watchdog.org
[14] Facebook: http://watchdog.org/wp-admin/facebook.com/mississippi.watchdog
[15] Twitter: http://watchdog.org/wp-admin/twitter.com/MissWatchdog
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