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Show Bill seeks EDA changes' ithin the designated SveSareaareinvoWedin hilt the o"e Madsen says is cntical .Hp distribution of taxes gleaned ThP House bill would require a por-Sno"the por-Sno"the revenue to go into the State Schoc Fund. Right now the cit.es SSly receive the entire increase m PoSng it out to include the school fundlould reduce the revenue to the cities by one-third. It is the contention of the bill's opponent that development projects would not be feasible with such an initial cut in the revenue. Madsen cited the example of the $16-million dollar Excelsior Hotel now nearing completion in Provo. The hotel would have been impossible it we had had to reduce the tax revenue by one-third," he said. Then none of the entities, including the school board, would have realized the benefits that will be forthcoming, he added. Madsen said if the cities are allowed to realize the full tax revenue coming out of the difference between the assessed value and that following development, "eventually the entire value goes on the tax rolls and every entity (city, county, and school) .,..! Iltl I I II II M It I benehts. The Provo official said thp. a net increase in tax revenue' hotel to be about $186,oool)er : property tax and $30,000? sales tax. The third difference i lk deals with interest. Should th!' bill pass, the interest struct" not allow cities to supply T; with such things as sewer J: water line extensions or gutter through the Use crement funds. One of the express pi setting up a Redevelop,) ' ' in Lindon was to get the ner ' funds to complete sewer W industrial area of Lindon t those funds, it is doubtful t)-" could get the work complete? without the sewer, the city ,F, i be allowed to bring any ' development into the indusi "Such use of the tax funds makes it viable," said Wendylj-'. Lindon city administrator. ": Though there are some 20((, in both bills, opponents of fop bill say the Senate bill is a '.1 fair bill to reckon with. Xhev ar feel there are any negative as J it. Madsen said the chang6 would be brought about by fc bill would only serve to tijfJ process and make it flow J smoothly. 1 I II II I ! I Hif I linrih.' By LINDA HARRIS Redevelopment agencies are crLtSbyinvitolctie..nd for the purpose of realizing a ter tax revenue and as a means 01 paromoUng development within their boundaries. Without such agencies some towns and cities claim development would be greatly slowed and the property fax burden shouldered by citizens would have to remain high or increase in-crease even more. Redevelopment agencies are able to acme extra tax benefits by means of tax increment financing wh.ch allows the cities to freeze the property assessment on areas within the city that have been designated economically stagnant or declining in valuation and then reap the extra tax revenue which comes about through development of that property by bBut"fwo bill now before the state legislature would change the way the agencies work, and one of them may change the effectiveness of redevelopment agencies drastically. One of the bills originates from the Senate and one is House-sponsored. It's the house bill that's keeping city officials awake at night. Those cities that already have Redevelopment Agencies such as Lindon and Provo fear that should the House bill pass it would wipe, out redevelopment altogether. There are several differences between the House and Senate bills. Four of these, opponents to the House bill claim, are crucial. According to Ron Madsen, redevelopment director for Provo City, should the House bill pass, a public vote would be required each time the Redevelopment Agency wished to initiate a project within the designated area. This not only could become very costly but would also dilute the power of those who actually own the property to decide the outcome out-come of the project. As it is now, only |