The lobbying effort comes as developers and builders' unions grapple with whether to support some reform now -- or oppose it and risk that a new
"I think it's safe to say that, even though we disagree with this policy and are trying to make it better, there probably is a better chance to make it better under this Council versus next," said
Changes to the tax incentive have long been feared, and strongly opposed, by the real estate industry, developers, and the city's building trade unions. Some kind of change seems likely, with four newcomers -- including
Proponents of the abatement say it pays for itself because it acts as a development incentive that brings more money into
"Any debate as to any potential changes to the bill will take place then," he said.
BIA's proposed amendment would result in a 100% tax break for five years, followed by 20% reductions in the sixth, seventh, and eighth years, before the abatement would be only 10% in the 10th and final year. In other words, while the legislation as currently written would cut the total value of the abatement down to about 55% of its value now, the BIA's proposed amendment would maintain 71% of the value.
"The bill as drafted is a major reduction to the abatement and will have a severe and detrimental effect on the local economy and especially on the thousands of collateral real estate businesses -- realtors, lenders, insurance agents, title, construction, and suppliers -- that are dependent on the residential development industry,"
BIA is also pushing to delay when the legislation would take effect, pushing it back from July of next year to
"Please keep in mind that the vast majority of the development you currently see in
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