Commissioners comment on conveyance increase
Written by Toledo Free Press Staff Writers | | news@toledofreepress.comCommissioner Ben Konop’s statement on Conveyance Tax Increase to fund LCIC:
Today, in the worst economy since the Great Depression, my colleagues ignored the will of the public and outvoted me 2-1 to raise taxes on any person in Lucas County who wishes to sell their home or business.
The average home seller in Lucas County will now pay an extra $120 at closing, making our tax on real estate the highest in the state. Whether you are a senior on a fixed income, or a laid off Jeep worker, this tax increase will take money out your pocket that could go to prescription drugs, food, or education costs.
And if that’s not bad enough, this tax hike will go directly to fund Commissioner Gerken’s pet bureaucracy, the LCIC. This agency has been marred by scandal, double dealing, ineptness, and wasteful spending. And this year they are DOUBLING their taxpayer funded budget from $400,000 to $800,000. There is not a person, business, or government anywhere that I know of that would have the hubris, in these economic times, to ask for a 100% raise on the taxpayer’s dime.
Sadly, what occurred today at the Commissioners meeting is indicative of why Toledo has one of the highest unemployment rates in the state and has experienced one of the greatest population and business flights in the history of the United States.
Commissioner Tina Skeldon Wozniak’s statement on Conveyance Tax Increase to fund LCIC:
This fall I asked Dan Johnson, President Emeritus of the University of Toledo to convene a task force to make recommendations on the role, governance structure, and funding of the Lucas County Improvement Corporation.
The ideas and recommendations that came out of this task force are invaluable and I would like to thank Dick Anderson, Olivia Summons, Bob Maxwell, Ed McNeal, Rick Yocum, and of course Dan Johnson, for their service and commitment to the work of the task force and to our community.
I want to respect the recommendations of the task force and I strongly
agree on the need to:
- Focus the scope and role of the LCIC on the government side of
- economic development
- Create a reliable and adequate funding source
- Recruit strong professional leadership
- Depoliticize the governance of the LCIC by establishing an
- executive committee comprised of members from the private sector
In recognition of the importance of economic development in our community, I have decided to support a $1 increase in the conveyance fee as the Task Force recommended.
My first priority is to fund the Lucas County Improvement Corporation because I believe that during these difficult times, we must support economic development.
It is with this in mind that I recommend that any funds remaining after the funding of the LCIC be devoted to other important economic development initiatives, most significantly housing.
Because housing is a critical piece of a community’s long-term economic development efforts, I want to ensure that $150,000 annually goes to the Toledo-Lucas County Housing Fund in order to:
- Rehabilitate our existing affordable and market rate housing
- New construction of affordable and market rate housing
- Redevelop vacant homes and strengthen our neighborhoods
- Prevent Foreclosure
It is my belief that economic development is essential if we are to overcome our current economic crisis. I also believe that in order to strengthen our local economy we must have a strong and stable housing market. There is no reason that we cannot be successful on both fronts.
Furthermore, I have asked my colleagues to amend the sunset provision of the conveyance fee increase from four years to two. After two years, we’ll have the opportunity to evaluate the fruits of this effort and consider if this increase is necessary going forward.
I understand that there are many in this community who strongly disagree with the need to raise this fee, but I hope that we can come to some agreement about its most effective use to get our economy moving once again.
As an economic developer who has been foloowing this story. I understand the concerns of Commissioner Ben Konops. These are legitimate, given the status and recent history of the LCIC.
On the other hand I have to agree with the assesment completed by the University of Toledo.
If the efficiencies and competencies of LCIC can be improved, with accountability and transparent communications to the Public, and the LCIC’s role clearly defined in the regional economic development scheme, and this is linked to a cutting edge economic development strategy, then it will be a good investment over time, of Public Tax dollars and add value to those sales prices.
If not, then I would have to defer to Mr. Konop’s opinion.
If this was a good move, will ultimately come down to selection of the Executive Committee steering members.
And yes, the politics must be taken out of the organization other than advisory.
This comment was posted on December 16th, 2008 at 6:09 pm