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YourHub.com \\ Jupiter \\ Stories \\ News \\ Government

Kelo Day

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Contributed by: Anna Current on 6/20/2008

Monday, June 23, is Kelo Day! It marks the third anniversary of the shocking Supreme Court decision on eminent domain.

Thanks to the outrage citizens felt in the Suzette Kelo case, Florida stopped eminent domain abuse and ensured that once again every person's home or business is protected. Unfortunately, both the Community Redevelopment Agency (CRA) and the Tax Increment Financing (TIF) that funded the eminent domain abuse remain in effect.

Jupiter used deception in order to establish a CRA by designating the properties along A1A as "blighted" (rundown and seedy). Later, the Town included properties south of the US 1 Bridge within the CRA overlay district. There is no way these areas are blighted.

Primarily, the Town Council established the CRA to set up an external source of money they could tap without voter approval. Under the CRA, Jupiter implemented "tax increment financing." TIF is a shell game that reallocates property tax revenues away from the General Fund.

CRA property taxes are kept separate from the taxes of all other properties in Jupiter, and can only be spent on the Inlet/US1 areas. There is little transparency and accountability for millions of tax dollars from CRA areas because those dollars don't get run though the budget process. This tax diversion will last 30 years.

It shifts the town's tax burden to the remainder of taxpayers who are not in the Inlet/US1 areas. The upshot is Jupiter's TIF is diverting tax money that would otherwise would be available for government services for the entire town.
The tax shift is huge, but almost no one knows it. It adds to the incredible financial pressures facing almost every department of our local government,

Due to State mandates to cut taxes, some people ask why those funds can't be spread around to offset budget shortfalls citywide--an effort that's bringing a fair share of criticism from residents who say budgetary problems wouldn't exist without the TIF.

In other words, millions could be going every year to police, flood control, and street maintenance --but instead the millions go for administration, overhead expenses, consultant studies, handouts to developers, attorneys, tearing up streets to put in decorative pavement and lots flowers, 15' wide pedestrian/bicycle path, decorative lighting, and oh, did I mention attorneys and consultant studies?

Already, the Town has borrowed $3.5 million from the general fund to supply the Redevelopment Trust Fund. By the year 2035, incremental tax revenues (TIF) are expected to produce a surplus in the Trust Fund of almost $8 million.

The Mayor and Town Council are micromanaging CRA areas to the extent that it will change the nature of our town. You ask how? Jupiter will become a destination point for millions of tourists. The primary project of Jupiter's CRA is the Riverwalk. Where does the Redevelopment Agency get the money to indulge in such folly as building a $25-30 million riverwalk without voter approval? (Not to mention future maintenance and security). As a CRA they have authority to proceed with this project without ever asking the citizens to vote on it.

This kind of arrogance was recently exhibited when West Palm Beach exercised in their plan to move the City Hall and Library to City Place without a vote of approval by citizens. The premise behind the creation of a redevelopment agency is that the market does not work, and that a bunch of city commissions, with little or no training in land use or economics, can do better than the market. CRA city officials seem to believe that they have a personal sandbox to play in.

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