Developers just got dangerous ‘tool’ from Columbus City
If it wasn’t bad enough that the judge on the Greyhound/baron Bus case didn’t reveal Mayor Andrew Ginther’s ex parte communication until after the election, you got to love the timing for Ginther’s and city council’s announcing their new citywide tax abatement policy.
As if these purposeful delays of actions on ethics and tax abatements are not controversial issues for voters.
Creating a city-wide housing tax abatement policy is not just another “tool in the toolbox” to help address our affordable housing crisis.
This tool is just one more developer-driven policy promoted by them and their politically-connected lobbyists who complain when-ever their excessive profit margins are threatened. What the city hides is that this is not about affordable housing, which Columbus lacks.
It is unaffordable housing of which we have too much.
Developers pull the strings in Columbus
Housing “experts” control development policies just as the NRA has over gun laws in the state.
In Columbus, the experts are the developers, their lobbyists, and law firms who control our elected officials at 90 West Broad Street. You only need to review campaign finance reports of the mayor and various city council members to confirm this.
The mayor preaches that a 15-year 100% city wide tax abatement policy is warranted because of the rising cost of materials, interest rates, and labor.
Building materials, especially lumber, steel, and copper fluctuate with the market. Interest rates shift with national and worldwide economic factors. Labor costs never go down. And I’ve never heard a contractor ask trade workers to take a pay cut.
The mayor and city council give away property taxes by falsely claiming them as a necessity and cure-all for housing and jobs. It’s as though they have an ATM machine for developers and corporations. Inject a campaign check and out comes a tax abatement.
The mayor, city council, lobbyists, and even some directors of non-profits who promote housing affordability never include the undeniable repercussions of tax abatements in their comments.
It’s one big happy family where no one rocks the boat. That’s The Columbus Way.
Abatements rob the people
Tax abatements don’t disappear into thin air. They are dispersed among the public. Tax abatements create losers.
The losers are the ones who can least afford the burden higher property taxes and rents. And never forget the hundreds of millions of dollars lost to public education.
New market rate tax-abated housing raises nearby property tax values. Especially in gentrifying neighborhoods, longtime senior and minority homeowners are hardest hit. Renters in these neighborhoods who once paid affordable rents, fall victim to greedy landlords who recognize the neighborhood has become desirable for those with higher incomes and increase their rents. This reduces truly affordable housing units.
City council and the mayor approved spending $75,000 to educate the public with one-sided propaganda marketing on the benefits of this city-wide tax abatement policy.
The public will be denied a fair assessment on the overall impact of a new city-wide tax abatement policy on homeowners’ property taxes, higher rents, social services, public education and their pocket books. Various major media outlets will continue to present the word from city hall as the gospel without providing the public differing opinions or fact-checking.
The city’s department of development claims 20% of the cost of constructing a new apartment comes from land purchase.
Let’s subsidize developers by purchasing the land, allow for greater density, and less regulations. Property tax abatements should apply to projects dedicated to income levels of 60% AMI or less and to landlords who agree to maintain affordable rents.
There are many other ways to tackle our housing crisis besides the never-ending expansion and use of tax abatements.
Joe Motil is a lifelong resident of Columbus, former candidate for Mayor of Columbus and advocate for our unhoused and truly affordable housing.