Jill KIng’s bizarre notion that public bonds are not public finance

FACEBOOK EXCHANGE: Jill King: you keep parroting the refrain that the bonds proposed to be issued by various public entities on behalf of this hotel project are not public money. That is so ridiculous. Do not even simple words mean anything to you?

The bonds are issued by public agencies and supposed to be repaid by extra taxes generated by the hotel/conference center. So instead of going into the general funds of state, county and city government the tax revenues are set aside for hotel/CC debt service. In other words the general funds are starved of tax money they’d normally get. At the City level they are talking of doing tax increment financing (TIF) which reserves all the increased taxation revenue from the development to service the debt. That means that revenue won’t be available to help pay the hotel/CC’s demand on city services, the way the rest of us do.

This is ALL public money we are discussing. This boondoggle represents the worst of Trump type crony capitalism. It is a big rip-off of taxpayers on behalf of a bloated project that cannot pay its way.

I too would like to see a hotel (or two or three hotels) downtown but they should be fully investor financed. If the first hotel plans cannot be financed by investors then instead of running to government they should cut the frills, scale down, maybe build in phases, and fashion a project which does pay its own way.  Peter Samuel 2016.02.13


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