Thursday, March 04, 2004

Government Gone Wrong Part I

Why do local governments think they can predict the successful development projects better than the market? And why do they insist on subsidizing them? What is truly really amazing is doing this with a developer who has a history of problems and has routinely failed to deliver on his promises. From the Tribune:

The Oak Grove project was proposed to the Village of Necedah in 1999 by developer Conrad Seymour and his company, MPC Systems.

The village created a TIF district and borrowed $4.9 million to assist with the project. Infrastructure costs for sewer and water hook-ups were to be repaid with special property assessments.

But the project has been riddled with problems since its inception. The golf course and home sites — few of which sold — have accrued hundreds of thousands of dollars in back taxes, and many of the assisted living units remain empty.

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