Kenny
on "Hardware Wars," River
Cities' Reader Issue
588, July 5-11, 2006:
What
is interesting here is the reasons they need the incentive. The
developer, Mr. Raufeisen, stated that in order to get these business
(Panera and Ace) into the property, they needed lower rental rates
than he could offer, given the price of the land. The land price is
clearly over-inflated by the land owner, who in Mr. Raufeisen's
words "knows what he has."
So,
it seems, to get this deal closed, and keep all the developers in
profit, the City of Rock Island will spend our tax dollars to pay the
difference. That difference is the fat profit to the landowner, and
the developer.
Maybe
the site business case doesn't wash?
The
developer could not care less what happens after the deal goes down.
He will have made his money in one shot. While there is nothing wrong
with making money, I do have a problem with Rock Island favoring this
developer at the expense of two established businesses. Why do it?
It
also seems that the city will need to circumvent the law to even make
it happen. That is not right.
If
this is such a good thing for Rock Island, and Mr. Raufeisen is
concerned at all about the future of the city, let him or the
landowner take less profit and make it happen without spending tax
money that is needed for schools and firefighters.
