Citizens for a Better Centennial

Below is a letter to City Council from a concerned citizen regarding PIFs:

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While a Public Improvement Fee may seem like the only way for large dollar public improvements to be built, the PIF is unfair to the smaller, mom & pop entrepreneurs. 

 

I acknowledge that larger developments also include public infrastructure requirements that smaller developments may not have, and that larger developments may offer a larger sales tax revenue to the city. Even so, the PIF essentially picks winners and losers in the development world by giving preference and a perk to the big guys while ignoring the little guy.  

And while I believe the PIF is a better option than Tax Increment Financing (TIF; as done as S@SG), the PIF is really just a hidden tax (even though it’s called a fee) that every sales transaction charges. Most of the retail/hotel locations I’ve spent money at did not disclose that there is an additional charge beyond sales tax. Hospitality industry is especially guilty of hidden fees or taxes (pillow tax, landscaping fee, etc). 

 

Locally, Park Meadows is an example where a PIF is charged and it feels sneaky when the charge is discovered on the receipt. 

 

For transparency purposes, if PIF is part of the model city council is willing to support to encourage development in the city, I’d like to suggest including a requirement to post signs that inform shoppers (whether Jones District or any other retail area within the city) that a PIF is part of the cost they will pay at retail or hotel.