Doug Majewski, highlighted in green, gives testimony in favor of the proposed Downtown TIF during the City Council’s Finance & Government Operations Committee meeting on Nov. 25.On Nov. 25, Doug Majewski, chair of the Greater Albuquerque Chamber of Commerce’s Downtown Transformation Bold Issue Group and CEO of Hartman + Majewski, offered testimony in support of the proposed Tax Increment Financing (TIF) in Downtown Albuquerque during the City Council’s Finance & Government Operations Committee meeting.
The Finance and Government Operations Committee has jurisdiction over all ordinances, resolutions and other matters relating to city finances, taxation and indebtedness and the appropriation of city funds; the lease, purchase and sale of real estate, and all other financial business of city government including other business that may be referred to it by the Council. Members of the committee are Louie Sanchez, who is chairman, and Dan Champine, Tammy Fiebelkorn, Dan Lewis and Klarissa J. Peña. If the committee approves a proposal it goes to the full Council.
According to the city, tax increment financing is commonly used to improve downtowns in other cities.
In the case of the proposed Downtown TIF, which would span 20 years, the city will take an “increment of the property tax growth in the area and reinvest it from where it came.”
While the TIF will be property-tax based, a new state law will also allow up to 75% of the increment of growth of city, county and state gross receipts taxes to be reinvested in the area over that period.
- Majewski said in reference to the two proposals, the Chamber understands:
- Successful and thriving cities have vibrant downtowns, bustling with people.
- That successful downtowns have a diverse economic base, with adequate housing, shopping and dining options, entertainment venues, public transit and open spaces that support congregation and recreation.
- That this takes investment – and a Tax Increment Financing mechanism will capture and invest additional revenue for Downtown development projects, up to twentyfold.
“To be clear – this is not about picking Downtown over other parts of town,” Majewski said. “Councilor Joaquin Baca’s proposed TIF can – and should – be applied to other areas. But someone has to go first, Downtown is ready for this, and a vibrant Downtown will bring economic and quality-of-life benefits for the entire city and send a strong message to prospective employers and employees as well as residents that Albuquerque invests in itself.”
Majewski also highlighted that the program is a hold-harmless proposal.
“There is no tax increase. Critical services continue to get their full tax share. Taxes from a specific district are reinvested in that district,” he continued. “And it will put the Metropolitan Redevelopment Agency on a path to self-sufficiency so it doesn’t have to put projects on hold as it asks you councilors for additional funds. The Chamber respectfully asks you to approve the TIF and get Albuquerque reinvesting in itself.”
The Finance and Government Operations Committee approved the property-tax and GRT TIFs unanimously, voting 5-0 on each and sending them to the full Council for consideration either Dec. 2 or Dec. 16. We’ll be watching for the agendas and will keep you informed on this important mechanism to invest in Downtown and in Albuquerque.
