" Santa Gilmore says: You in the back of the room jumping up and down with your hand waving, what do you want this time?!

Oh, thank you Santa for letting me read MY wish list! Well, I'd like the city reimburse me for the new roof we put on our home last month, plus I'd also like to have a new HVAC system to replace the inefficient one we've had for 45 years now. I mean, if that's OK with you, Santa. You don't think the taxpayers would mind too much, do you? Oh pretty please.

Whaddaya mean I can't have any money? Whaddaya mean it just doesn't work that way? Come on, Santa, how come you give Ken and Bob my money so they can buy their stuff but you won't let me have any of their money so I can buy my stuff? Hey, that's not fair!! Dont you know how the new version of Capitalism works in Mattoon? Arent we all supposed to play nice and redistribute capital? Whaddaya mean the end of my nose isnt the right color? Hey, wait a darn minute! Is that a racist comment? "

" Dear Gringa,

I too am bothered by this TIF but what can we expect from a local government that is dominated by Republicans. They love nothing more than to take money from the public coffers and give it to private business and the well-to-do.

That said, I hope Dr. Myracle will return the favor from our community and provide dental care to the indigent. Of course it would have been nice to get a prior agreement on that but no doubt our leaders would have fretted about intrusive big government! "

" 2007, this TIF con job has nothing to do with party affiliation. But you know, you do make an excellent point about getting something for the community in return for the $65,505 agreement with Myracle.

These three giveaways total over $130,000! On top of the $4-million giveaway to the mall just last week. My wife and I drove by all three of them today just to see the sites where our tax dollars will be spent. Of course, our question is: whats the difference between the Vonderheide's and Reid and Myracle receiving this money and us receiving this money? The recipients are all property owners. We are too. None of the recipients provide public services to taxpayers (in the sense of police and fire protection, etc.). We dont either. Were all supposed to be taxpayers, not taxing agencies. So, why cant my wife and I be awarded tax money to fix up our property?

It has now become impossible to distinguish between public and private investment, between traditional banking functions and city treasury functions, between critical public services and political favors.

What happens to our tax money if the city helps fund the Vonderheide's maintenance project and then they sell the properties?

What happens to our tax money if the city funds Reids maintenance project and then he sells the property and moves his business to the renovated mall?

It's beginning to sound like any business owners in Mattoon who maintain their property on their own dime are absolute fools.

I don't know about the rest of you, but I can hardly wait for April 2009 to roll around. My opinion, the entire bunch goes out the door in less than 8 months! "

" Where do I go to get some of this free money? My garage needs a coat of paint, and I do have a garage sale every few years. Would the city consider paying to paint my garage too? "

" I am wondering if the Ball diamond at Peterson Park fits into the TIF requirements? The diamond and area have had some improvements and look fantastic but the press box is about to fall down. I think the money spent there would benefit the community better than giving it to a Dentist. I agree the leaders of the community need to explain that one. "

" I located the below information for background on TIF districts on the Internet. Some may question this information as it came from WIKIPEDIA may not always be correct. Due to length, I have not included the information from that site that includes information about those who disagree with and are opposed to TIF districts. Put TIF district into any Internet search site and more information can be obtained.

Essentially TIF agreements should help improve an area which may increase business which increases taxes and jobs. It may also keep an existing business in town which means it stays on the tax roles and keeps its employees.

Hopefully this background information will allow readers to better understand the purpose of TIF agreements as it is believed there is a lot of misunderstanding of TIF agreements

Steve Senteney

"Tax Increment Financing, or TIF, is a public financing method which has been used for redevelopment and community improvement projects in the United States for more than 50 years.

With federal and state sources for redevelopment generally less available, TIF has become an often-used financing mechanism for municipalities. Similar or related approaches are used elsewhere in the world.

The theory.
TIF is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project such as a road, school, or hazardous waste cleanup is carried out, there is often an increase in the value of surrounding real estate, and perhaps new investment (new or rehabilitated buildings, for example). This increased site value and investment generates increased tax revenues. The increased tax revenues are the "tax increment." Tax Increment Financing dedicates tax increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur. TIF creates funding for public projects that may otherwise be unaffordable to localities.

Currently, thousands of TIF districts operate nationwide in the US, from small and mid-sized cities, to the State of California, which invented tax increment financing in 1952. California maintains hundreds of TIF districts and leads the nation in debt issued through tax increment financing.[citation needed]

49 states and the District of Columbia have enabling legislation for tax increment financing. Arizona is now the only state without a tax increment financing law. While some states, such as California and Illinois, have used TIF for decades, many others have only recently passed or amended state laws that allow them to use this tool.

Arkansas (2000)*Washington (2001)*New Jersey (2002)*Delaware (2003)*Louisiana]] (2003)*North Carolina (2005)*New Mexico (2006)
Since the 1970s, a reduction in federal funding for redevelopment-related activities including spending cuts, restrictions on municipal bonds which are tax-exempt bonds and an administrative transference of urban policy to local, lower-level governments, has led many cities to consider tax increment financing. State-imposed caps on municipal property tax collections and limits on the amounts and types of city expenditures have also caused local governments to adopt funding strategies like this." "

" First of all, it would behoove each of you to do just a little bit of homework & find out what the TIF is all about & how TIF is funded. Oh, but wait, that would require some effort! If I were to apply your logic regarding free dental care to the indegent by Dr. Myracle, then all the businesses downtown should be providing free meals, adjustments, furniture, sports gear, etc. to them as well. Take a look around all you naysayers & see the growth & change that has taken place in our community. Do you think it all happened because people like you are supportive of local businesses? "

" Your comments seem to assume that most people on here don't understand how the TIF program works. I would bet that most people do, and that for the most part, most of the comments are making fun of the local politicians for giving money to people who really don't need it, such as Mr Summers and Mr Walker.

Personally, I don't have a problem with TIF funding, but would prefer to see it given to people who are not yet
establish such as the two people I mentioned. Perhaps awarding TIF money on need rather than on political connections.

THe TIF program started out as a legitimate program that is designed to increase business which would result in increased tax revenues, but somewhere along the way it went awry.

The money seems to be going to those who least need it.

Putting the TIF issue aside, the real rip of the tax payers is the tax abatement program, which takes thousands of dollars away from the schools, and communities when established businesses such as the local phone company manage to avoid thousands in property taxes.

People should take a look at the property taxes on the old Masonic home on Charleston avenue, and this rate is based on an assessment after several million dollars was spent on this building. Talk about ripping off the tax payers!

Now that's something that should have people up in arms.

That's one issue you will never see the local paper discuss. LOL! "

" Here, clumpton, behoove this: from Economics 101.

Wise investment of capital requires present value analysis. For example: If an entrepreneur has cash available for capital investment thats currently in a time instrument earning 4%, the entrepreneur may consider moving that money into a capital expansion project IF the Return on Investment over time is greater than 4%. Other factors are considered, such as market risk, escalating construction costs, interest rate trends, general economic trends, etc.

If the invested cash can bring in additional after-tax profit of 10%, then the project could get the nod. If the capital expenditure is slated only for long overdue capital maintenance (such as exterior wall repair or a new roof), that investment is unlikely to produce new revenue or profit, and will have a much tougher time passing the money use test. Why reconstruct the wall and roof if the investment cannot possibly increase profit?

Now, introduce an outside factor into the formula (such as free money from a government entity) and it's a no brainer. Reconstruct the wall and roof, expand the building, whatever.

TIFs are supposed to have strings attached - such as jobs creation. These giveaways have no such strings attached. In these cases, theyre simply about redistribution of taxpayer wealth. There are absolutely no performance-based guidelines in order to receive this tax money. These folks should be borrowing money at the bank where, coincidentally, many important questions would be asked and answered before any money changes hands: such as How and When are you going to pay this money back?

Now, clumpton, do you still think the citizens of Mattoon don't understand how TIF money is being (ab)used here? Its as plain as the nose on your face. "

" Harry and Gringa are both right. TIFs are being widely and badly abused in Illinois. The well-off and connected hand each other nice, fat checks while the local taxing bodies wring the difference out of less-favored taxpayers. "

" It has been mentioned that only those well connected receive TIF benefits. Can anyone site a business in Mattoon that was turned down and met the criteria for a TIF agreement according to state law?

Referenceing tax abatements. It is believed that some communities that do not agree to tax abatements for some businesses lose those businesses to another community. Many communities in competition for business, to include getting new businesses and to retain current businesses offer tax abatements in order to get the new business in the community or to keep that business in town.

Businesses do have other options than just staying in Mattoon or at least keeping the current number of jobs they currently have in Mattoon.

I suspect Champaign or Effingham would be or were willing to offer TIF agreements and tax abatements to many of those in Mattoon who have received those agreements. Cmmunities in other states may offer even more than is permitted in Illinois.

Elected officials probably do not like to agree to tax abatements either, but it seems to be a necessary evil in order to get or keep a business.

It essentially comes down to whether we want jobs in Mattoon or have them go to other communities in Illinois, other states or out of the country.

No one wants to pay more in taxes than they have to and we all expect others to pay their fair share. It is just hard to determine what is that fair share in the current business climate of keeping and recruiting new businesses.

If we all had to pay our taxes in cash each week to the various taxing bodies, I suspect all of our various taxes would be lower. "

" I agree with some of your points, Steve, but not all.

Certainly, when you state *If we all had to pay our taxes in cash each week to the various taxing bodies, I suspect all of our various taxes would be lower.*, I agree wholeheartedly!

The problem with taxes, and the way they're collected, is that MOST of the tax burden we all share is hidden from view.

With the current budget in Illinois at close to $60-billion, the average household total tax bill in our state exceeds $12,500! I've made that statement on here before, but most folks have a hard time getting their head around the fact business does not pay taxes, only the end consumer does. For example, let's say Consolidated pays a total tax bill of $10-million (I have no idea what their tax bill is. It doesn't matter anyway.). Those taxes are considered a cost of doing business for them and they add it in with all their other costs when determining what prices to set for their products and services. When their customers buy their products and services, they pay 100% of Consolidated's tax bill.

In the end, whatever tax a business pays to any government entity, their customers reimburse them 100% of that amount.

So, why tax business activities at all? The only reason to do so is to hide as much of the tax bite as is possible in retail prices. "

" You make some good points, Steve, but the problem in Mattoon is that more and more of the burden is put onto the individual tax payers. Modest income seniors do have the ability to get their property taxes frozen at their current rate, but as a ratio, the percentage of taxes paid in this area are falling more and more on the individual home owner.

Every time a mini storage unit goes up in Mattoon, by a particular family, they apply for and get the taxes abated, that is they pay the rate for the property as if it weren't upgraded. Now how many jobs are created by mini warehouses. That's just one small example.

I don't blame the people who apply for these breaks, I blame our city officials. I would like to see some sort a system along the lines of some college scholarships, that is based on need. You have to admit that when you see the names of prominent business people getting tax dollars for their businesses that it would leave a sour taste in the mouth of a lot of people who are seeing their taxes go up year after year. I have lived in the same house several years and have seen my taxes go up almost three times what they were when I bought my house. I have not made any changes and have only maintained my house, by keeping it up. "

" Harry Potter, the Willaredt family has received one abatement (wrongly given) in the 1990's. Mini Storage does not qualify for enterprise zone abatements. If you want to actually know what you are complaining about I would suggest you call Coles Together or the City they have the listing of who has received abatements or the County Clerk as she has the official list for the county. Most of the people getting TIF grants are not the people you say they are. Again if you want the truth instead of the crap spewed on this blog by idiots like you call the City and get a list of the TIF grants and you can see all the huge business owners who have gotten grants. They are the small business owners that are investing in downtown Mattoon. "

" I agree with mattoon.party.line completely. What's the matter with you Potter? Your should be grateful for all of the tax money being spent on the refurbishing of the dilapidated down town area. It's the tax payer fault that it got that way, so it's the tax payers responsibility to fix it back up. I'm sure that once all of that cash is spent there it will become the talk of the state. It will no doubt be a Mecca for shopping. People will rush in droves to spend cash there and increase the tax revenue in Mattoon by literally millions of dollars. There might even be enough money for the city to mow again, and possibly replenish their stockpile of boiler slag.

I think the real culprit here is the paper. They must have mentioned those abatement's in error, and as far as mentioning Summers and Walker by name, obviously that was an error on their part too. According to mattoon.party.line it wasn't them, so he is right, you must be an idiot for spewing that crap.

And as far as the mini storage units go, I'm sure that they never recieved any type of abatement's, and that goes for Larry Traxler too. I'm sure he never got any either (wink wink).

mattoon.party.line didn't mention anything about the phone company building, so that must have been an error on the part of the paper too. I'm sure they didn't get any type of abatement's and are paying their full assessment rate in property taxes too, Shame on the paper for printing misinformation!

People like you, Potter, just don't know your place in the world. How dare you criticize our community leaders, who only think of the citizens when they do anything.

And the same for you, gringa, you seem to be lacking in your gratitude towards our esteemed leaders of the community too. How dare you suggest that the business owners go to he bank and take out a loan. Why should they do that, when the city fathers hand out cash on a regular basis? Ungrateful idiots like you and Potter need to stop being critical of our esteemed leaders decisions. You need to be more like mattoon.party.line, who obviously knows his place.

Actually, I would imagine mattoon.party.line and his ilk would be happy if the Chamber of Commerce or Coles Together were the only ones allowed to speak on this topic. All of you idiot peasants should just shut up and be grateful for the decisions being made with our money by our esteemed leaders. It doesn't matter if it's the tax payers money, they know better and you idiots should all just keep quiet and learn to stay in your place. "

" Early Bird, I am not saying that no one can speak on the subjects. Your opinions on the merits of TIFs and abatements are welcome. Harry Potter is spreading lies about which he (or she) knows nothing (and apparently you too as I know for a fact that Larry never got an abatement, he wanted one but they turned him down). I never said anything about Limpkin or the phone company getting abatement. I am sure that they have gotten abatements and I am sure that they were very large sums of money. Last time I checked without them Mattoon would be a ghost town. My point it that you should not be on here saying that people are getting money or the City is giving money to someone unless you know what you are talking about. All that information is public record and it takes one trip to City hall to find out the truth. "

" I might be wrong on this one, Bird, but I believe it was mpl who came on here and defended the boiler slag fiasco too. Kind of makes you wonder if he has a dog in this fight, doesn't it? I have my suspicions as to who his is too. LOL! "

" If there is any doubt about those needing help getting it through the TIF grants just wait for the convention center to go up on Rt.16.

The Rt. 16 TIF is the biggest rip off of them all. A group of investors buy a parcel of land and sit on it. They refuse to sell any of it and block any attempts to develop it. Why, because they want to claim it can not be developed without a TIF district. Pretty smooth operators. Since they control the land they can allow it to sit thus demonstrating how blighted it is. Once they can get a TIF district established, low intrest public money, they suddenly can do something with it. The rich get richer and the public pays for it.

The only thing of any value regarding the deal is it will create some jobs. Minimum wage jobs no doubt but jobs none the less. "

" mpl, is there any difference between your assertion that Lumpkin has *...gotten abatements and I am sure that they were very large sums of money.* and what HP and EB have asserted about others receiving abatements? Did you research that at City Hall before making that claim? If not, arent you being irresponsible?

You say *Last time I checked, without them (Lumpkin/Consolidated), Mattoon would be a ghost town.* Do you remember a few years back when Lumpkin did his best to make Mattoon a ghost town? I personally lost over $14,000 of share value in that sell-out fiasco, while Lumpkin came out smelling like a rose. Have you forgotten those days, or are you just too young to remember (as in *forever born yesterday*)?

In politics (which is what this is all about, my friend), public perception is reality! The public perception of Mattoons version of TIF districts is that its a good ol boy network. If we can miraculously come up with $4-million to give to the owners of the mall (I might add, with NO strings), whats next? Are we going to somehow find $10-million to fund the new company formed when GE spins off the Mattoon bulb plant? Why not? Thats less than $1,500 per Mattoon household. Yeah, we can do that!

Tell me how all this wealth transfer activity, where public funds are being moved to private bank accounts, is supportive of long term market forces. It doesnt matter whose money is used to seed investment, if the market doesnt exist for the product or service, the venture will fail! Ask any McDonalds franchise owner, any economist, or any bank loan officer which comes first: the retail outlet or the traffic necessary to support one? The only answer youll hear is that the traffic must be there first. If it isnt, the retail venture will fail. "

" A local newspaper, would be a great place for gathering and reporting pertinent information. One might think. With all the years of this continually going on, and the continued budget short falls, some public factual accounting of the actual state of the TIF responsibilities, needs to be presented. Responsible concerned peoples interests in mind reporting, would have long ago dug into this matter, and seen the true state of things. This could be said of many aspects of how local entities, have done business. Printing predominately released statements, from governing bodies, is not responsible journalism. More needs to be done by the only local paper serving this community, to hold the responsible parties feet to the fire, for the decisions they make. Consequences for improper actions, being irresponsible, or just lacking common sense, needs to be more of a deturrent to what has become the status quoe. We should not have to individually dig through the mountain of data, to find the facts one person at a time. This paper needs to be more of an advocate of the community as a whole, than it has been. Not doing its job, has contributed to the delinquency of others not performing theirs. Hard nosed rooting out of pertinent information, and unbiased factual presenting of the bottom lines, would go along way to turning things around. People in public service, need to have their actions and their consequences, truely scrutenized properly. An accurately informed public, is the best tool to turn this community back in to a prospering, growing, and self sustaining community. All would benefit and circulation would increase, if real information affecting many, were to be found handily in this publication. Some toes might get stepped on, some probably need to be, but continuing to set back and present provided information, as has too long been the case, is a huge disservice to the community this paper is supposed to be representing. Letters to the editor, should not be the only window into determining truths, from the percieved and actual events that occur here. "

" Mattoon went years without TIFs and other incentives that are routinely offered by other municipalities. There wasn't much going on in those times. It was a long slow bleed downtown. Now something is happening downtown; it is livelier than it has been for thirty years. Most citizens understand and appreciate these facts. Many bloggers do not. "

" Gringa, I actually did ask for the list from Coles Together and I got it. So I can tell you who actually received an abatement. (It is about a year old now.) You can debate the right or wrong of TIF but TIF and business districts are what is driving businesses in the comunity. Gone are the days of new plants opening up and employing hundreds of people. Look at what Effingham has done, that is all TIF and business district money.

Are you going to blame the City for Lumpkin selling out? Lumpkin didn't loose your money, that outfit out of Iowa was who cleaned you out. They should be held criminally reaponsible.

Tell me what good ole boy owns the mall? It is probably some outfit out of timbucktoo, they certainly ain't local.

The traffic downtown is being generated by the TIF and business district money, look at downtown Mattoon. There are more businesses down there than at any time since 1980. That traffic is generating an interest by more and more businesses. If the City can ever do something with Young's Radiatior the whole are will be pretty nice. "

" mpl, I am familiar with what Effingham did in their downtown TIF. The city dressed up the sidewalks and streets. The city did NOT give money to the building owners to reconstruct privately owned buildings.

As to the Consolidated sell out, yes, I do blame Lumpkin. He led a lot of folks down the primrose path on that deal, but like I said, he came out smelling like a rose. The rest of us didn't.

As to your claim that traffic in downtown Mattoon has increased, I say prove it. Personally, I haven't noticed any increase in traffic. Seems strange that an area of increased traffic now has a need for fewer stop lights than before.

My opinion, Mattoon's shopping area has shifted from the old mid-town east to the Wal-Mart area. The area between 19th Street east to 6th Street would be a great place for eminent domain to create an in-town public golf course. "

" Mentioning Mr Big is a sure was to get this thread to disappear. "

" Downtown shopping is dead all over the country. Pouring more money into that area seems rather lame. All the little specialty stores, law offices and the like will not generate all that much tax revenues. The decision to put 80 thousand into the building that houses a store that sells beat up used furniture was really a smart move too. "

" Funny how changing 4 lanes to 3 one being a turning lane, in the Broadway area, might give the appearance to some of a bustling trafic area.

Probably didn't ever see downtown, when there were two theatres, video store, many small shops, and few office fronts. Less than 20 years ago. Odd how sometimes Our View, seems a bit short sighted, or as if seen through rose colored glasses. Glad some folks are cheerleading for something, as far as conditions in this city go, I guess.

Without a big draw venue, downtown will never be what it once was, or even much more than it has been for the last several years. The theatres moving out to a corn field, is what brought bustling to a trickle, and only a reason for many to be in that area regularly, will allow for business to grow and be sustainably profitable on Broadway again. The three lanes now there, tell me the city expects things not to be close to what they once were, but doesn't mind throwing some free TIF money at it just the same.

I can see the city making Broadway oneway, from 14th to 19th, and the two outer lanes becomming turning lanes the length of it. That would give the illusion, of traffic being even heavier, to some. I still remember trying to find a place to park to go get something to eat, or to go to a show. When people kept up their own property, or sold it for what it was actually worth, to someone interested in making it into someplace people would want to come to.

There used to be a time when business had to build them selves up, not have the tax payers prop them up, in hopes they could get going, or keep going. There are loans and grants designed specifically for that. Buisness is a risk, more don't make it than do. TIF money, is like taking tax dollars to the horse track, in my book. Sure the city should give a small hand in some instances, but the hand out abyss, is way beyond their scope of taxpayer responsibility. There needs to be an annual cap, on how much of tax dollars they can bet with. I mean these people supported betting big, on the old nag Sheraton behind the lumber yard. No big deal, there are no consequences, when their horses don't come in, its all free money they play with anyway.

We need to just put an off track betting place next door to city hall, or down town, and let them bet tax dollars in there. An accounting attourney, could throw darts at the racing forms to pick the winners, and be more above board and objective than the last several years of TIF handouts have been. "