Downtown Parking Tax

[ghettopalmetto]

"Taxing land based on "highest possible use" rather than "current use" can also have undesirable consequences."

The idea would be to land somewhere in the middle. As ghettopalmetto said, the tax would be location-based and I would see the value derived from an average of all the properties in a defined area. In the CBD, that would give a tax break to those who have occupied buildings and a tax increase to those with parking lots, vacant lots or unoccupied buildings.

Nonetheless, it would discourage slumlording of vacant high-rises downtown, as the owners would have every incentive to lease the space or sell the building to cover the tax liability. Such a restructuring changes the numbers game entirely as far as "feasibility" of renovation projects is concerned.

On the other hand, what happens in the case of say, a Lafayette Building, where the slumlord in question is the City itself???

[Novine]

"On the other hand, what happens in the case of say, a Lafayette Building, where the slumlord in question is the City itself???"

Fair question. But if the system was changed so that those owning buildings paid less in taxes than they do now, it would make a Lafayette renovation potentially more attractive to a private development group since the payback on an investment in the building wouldn't be offset by an increase in taxes. I'm sure someone can chime in with the pros and cons of such a plan and the kind of financial considerations that would come into play.

[iheartthed]

Nonetheless, it would discourage slumlording of vacant high-rises downtown, as the owners would have every incentive to lease the space or sell the building to cover the tax liability. Such a restructuring changes the numbers game entirely as far as "feasibility" of renovation projects is concerned.

On the other hand, what happens in the case of say, a Lafayette Building, where the slumlord in question is the City itself???

In the best case scenario, it would make the Lafayette more attractive to a developer who would come in to buy it from the city. The city owned the Lafayette Building because no one was interested in owning the property. If other building owners are forced to invest into their properties and attract tenants then that would have driven up the worth of the Lafayette.

[fryar]

In the best case scenario, it would make the Lafayette more attractive to a developer who would come in to buy it from the city. The city owned the Lafayette Building because no one was interested in owning the property. If other building owners are forced to invest into their properties and attract tenants then that would have driven up the worth of the Lafayette.

Well, until they find someone to unload that location on, they should build another Premier Parking Garage there. Make it the same thing, we've built the garage, we await your construction. In the meantime, let people park there.

[iheartthed]

Well, until they find someone to unload that location on, they should build another Premier Parking Garage there. Make it the same thing, we've built the garage, we await your construction. In the meantime, let people park there.

Was this sarcasm? A parking garage for people to park and visit the huge parking garage that they just constructed directly across the street?

[ghettopalmetto]

In the best case scenario, it would make the Lafayette more attractive to a developer who would come in to buy it from the city. The city owned the Lafayette Building because no one was interested in owning the property. If other building owners are forced to invest into their properties and attract tenants then that would have driven up the worth of the Lafayette.

I find it almost comical that now, with the announced Free Press renovation, that's three big renovation projects within a couple blocks stagger of the Lafayette within the past few years. I guess there's just no market to reuse a building in that location.

Oh wait, that's right--the Lafayette was "structurally unsound". Can Detroit implement a tax on trees that grow out of buildings?