THE TRUTH ABOUT TAXES IN THE REDEVELOPMENT ZONE:
Exposing the City's Campaign of Deception
CITY COUNCIL
POLITICIANS and the supporters of the Paso Del Norte Group
plan have repeatedly claimed that the Downtown-Segundo Barrio
businesses and residences only pay $414,000 in taxes. They want the El
Paso public to believe that this is the total amount taxes
generated by the area although they know the real amount they pay is
much higher. The true figure that includes the total taxes for this
business-residential area is more than 1.8 million dollars per year.
When the pro-plan politicians compare the downtown-Segundo Barrio taxes to other parts outside the redevelopment zone, they only use the City tax figure (25% of all taxes) for downtown-Segundo Barrio. Yet they use the tax figures that include taxes paid to all entities (100% of all taxes) to areas outside the redevelopment zone. In other words, they have been comparing a quarter of an apple to a whole orange. These politicians have been engaging in an outrageous and fradulent campaign of deception.
In fact, the commercial and apartment properties within the
"redevelopment area" pay more in property taxes per square foot than
comparable commercial properties in other parts of the city. For
instance, while the El Paso Limousine Express facility on S. Oregon is
valued at about $14 per square foot, the Verde Realty (Bill Sanders')
facilities out near the Zaragosa bridge are valued at about $10 per
square foot. Verde Realty goes through the process to fight property
valuation increases at the Central Appraisal District. One of the Verde
properties was lowered in value by one million dollars in this process.
This is exactly what you can expect once Bill Sander's controls the
land in Downtown and South El Paso.
The claim Downtown-Segundo Barrio residents and property owners as a whole are not paying their "fair share of taxes" is an outright lie. It has been used as a justification to whip up support for the impending demolition of a large sector of our community.
What lie will the city come up with next? Weapons of mass destruction?
(The tax figures for the article below are from the Central Appraisal
District and are easy for any interested citizen or journalist to
verify.)
Don't Expect a Reduction in Taxes
by Enrique Medrano
SINCE THE DAY the Paso Del Norte Group Plan for “downtown
revitalization” was revealed in late March 2006, the plan’s
proponents have repeatedly claimed that the area (originally 128 acres)
targeted for “redevelopment” does not produce its fair
share of property taxes. Most El Pasoans now believe that the
“redevelopment area” only pays between $400,000 and
$450,000 in property taxes.
The proponents have repeatedly suggested to El Pasoans that if the Paso
Del Norte Group Plan, which has been incorporated by City Council into
the City’s Master Plan, is implemented, that El Pasoans will
realize a reduction in their home property taxes.
Both claims and suggestions are false. In fact, the
“redevelopment area” paid $1,852,954.19 in property taxes
in 2005. There will be no reduction in homeowners’ property taxes.
As stated above, the great majority of El Pasoans are under the
impression that the area targeted for takeover and
“redevelopment” under the City’s “downtown
revitalization” plan only pays between $400,000 to $450,000 in
property taxes. On April 24, 2006, City Representative Ann Morgan
Lilly stated on the David K radio show (1650AM) that the target area
produces “only $450,000 in property taxes.”
The truth is that the area targeted for takeover and “redevelopment” paid $1,852,954.19 in total property taxes
in 2005. The appraised value of all the properties in this area
was $59,343,756.14 in 2005. The breakdown of the total 2005 property taxes, by taxing entity, for the “redevelopment” area is as follows:
Taxing Entity
Tax Rate
Tax Levy
City of El Paso
0.696677 $ 413,434.30
County of El Paso 0.432259 $ 256,518.73
El Paso ISD
1.673500
$ 993,117.76
EPCC
0.132844 $ 78,834.62
R.E.T.G. Hosp.
0.187128 $ 111,048.78
Total: $1,852,954.19
This total does not include the Downtown Managment District Assessment,
which is roughly equivalent to the El Paso Community College tax rate
and is assessed against the commercial downtown properties within the
target area.
Why have the
proponents of the plan only talked about the City's portion of the
total property taxes produced by this area, which is less than
one-fourth of the total? Why haven't the proponents given out the total
amount paid in property taxes by this area? Why this deception?
On June 10, 2006, City Representative Robert “Beto”
O’Rourke was a guest on the Leon Metz radio show (690AM).
O’Rourke stated that it was widely known that the target area had
only produced $413,000 in City property taxes. A caller to the
show expressed outrage that this area only paid $413,000 in property
taxes and that the property taxes on his home were high as a
result. It was apparent that this caller understood that $413,000
was the total property taxes paid and not only the City’s
portion. Nevertheless, O’Rourke made no effort whatsoever to
correct the misunderstanding for the caller or for the listening
audience.
How many times have
the proponents, who are aware that the $413,000 amount is only the
city's prortion, allowed the public to continue to believe that the
$413,000 figure is the total amount of property taxes?
The next question is whether this $1,852,954.19 amount paid in property
taxes is low, average, or high. The best indicator is a
comparison of the property values, per square foot, of the properties within the target area with properties engaged in similar uses elsewhere in the City of El Paso.
The results of such a comparison cast serious doubts
on the claims by the proponents of the downtown revitalization plan
that the target area’s property tax production is too low.
Here are some comparisons (properties inside the “Redevelopment Area” are in italics):
Name of business Address Value per squre foot CAD Acct. #
Comparisons of CAD property values for businesses operating within
“Redevelopment Area” with same-name business operations
elsewhere in the City:
Starr Western Wear 112 E.
Overland
$55.62
M47399903408500
Starr Western Wear 11751
Gateway West $ 6.34
V89399929700300
Regis Bernard Furniture 304 S.
Stanton
$50.71
C05099914905300
Regis Bernard Furniture 1446 Lee
Treviño
$11.27 V89399915700100
Firestone
1031 Texas
$18.77
F60799900308500
Firestone
4224 N. Mesa
$ 6.30
M32599900105000
Martin Tire
901 Texas
$16.80 C05099922600100
Martin Tire
8008 N. Mesa
$19.18
C96199900105300
Martin Tire
12110 Montwood
$18.41 L64999900100180
Chevron, Central
220 E. Paisano
$32.93 C05099913503700
Chevron, University
2119 N.
Mesa (UTEP) $16.45
A46299915303100
Chevron, Airway
6631
Montana
$13.22 E37899900508550
Chevron, Wedgewood
10101
Montana $
8.73 I32699900305700
McDonald’s, Paisano
217 Paisano
$35.64 M47399903501300
McDonald’s,
901 Resler
$25.27
W18999900100200
McDonald’s
6101 N. Mesa
$17.65
T23899900100100
McDonald’s
1100 Yarbrough
$12.26 V89399901100100
Warehouse facilities within the target area:
El Paso Chili Co.
909 Texas
$29.58 C05099922601500
Galeria San Ysidro
801 Texas
$35.60 C05099922702400
Warehouse facilities elsewhere:
Verde 360 Americas
360
Americas $
7.88 M43099900100500
Verde 420 Pan American 420
Pan American $ 7.37
P196999002A0150
Verde 424 Pan American 425
Pan American $ 8.99
P19699900100100
Verde Joe Rodriguez
9660 Joe
Rodriguez $10.96
A52699900201000
Retail store properties within the “Redevelopment Area”:
MSG Properties
800 S. El Paso
$55.20 C05099908805700
Sunview Inc.
106 Father Rahm
$30.12 C05099908806100
Salom, Anthony &Soledad 810-812 S. El
Paso $33.44
C05099908806500
Santa Ana
814 S. El Paso
$31.66 C05099908807300
Venegas
816 S. El Paso
$67.66 C05099908808100
River Oaks
818-820 S. El Paso
$45.76 C05099908808900
Leeds
210-212 Overland
$41.36 M47399903503700
Columbia
216 Overland
$37/49 M47399903503300
Marcus
300 Overland
$61.34 M47399903605700
Four Jo’s
304 Overland
$65.80 M47399903605300
Rosen
306-310 Overland
$52.98 M47399903604900
Diaz
312 Overland
$48.25 M47399903604500
Rosen
318 Overland
$67.66 M47399903604100
MKI LP
320 Overland
$49.30 M47399903603700
Retail store properties elsewhere:
Wal-Mart
7101 Gateway West
$16.50 C32899900500100
Wal-Mart
10727 Gateway West
$14.66 V89399901104600
Target
1901 George Dieter
$18.49 N24199901300150
Bassett Place (33.2882 acres) 6001 Gateway West $11.38 B22099900102100
Bassett Place (10.0456 acres) 6001 Gateway West $20.50 B22099900102000
Simon Group Sunland Park Mall 750 Sunland
Park $32.79
P39599900400100
(35.3917 acres)
Simon Group Cielo Vista Mall 8401 Gateway West
$103.12 C32899900300100
(23.5037 acres)
Apartment, Multi-unit Housing:
Tenements in Target Area, location:
Union Plaza
305 Chihuahua
$16.84 M47399904500600
Union Plaza
219 Overland
$19.22 M47399902505600
Union Plaza
332 Leon
$23.18 M47399904507100
Union Plaza
315 Overland
$26.31 M47399903106100
Magoffin
1014 Myrtle
$40.22 F60799900101900
Magoffin
1015 Myrtle
$29.26 F60799900206400
Magoffin
800 Myrtle
$36.70 C05099921509100
Segundo Barrio
500 S. Oregon
$17.64 C05099911704300
Segundo Barrio
520 S. Oregon
$79.47 C05099911706400
Segundo Barrio
605 S. Oregon
$25.66 C05099910104100
Segundo Barrio
613 S. Oregon
$23.19 C05099910103300
Segundo Barrio
601-609 S.
Mesa
$37.00 C05099910203300
Segundo Barrio
801-813 S.
Mesa
$32.45 C05099907403300
Segundo Barrio
827-831 S.
Mesa $
8.80 C05099907400100
Segundo Barrio
900 S. Oregon
$12.22 C05099905906100
Segundo Barrio
1021 S. Mesa
$ 8.77 C05099904600100
Apartment Complexes elsewhere:
Villa Sierra
2435 McKinley
$13.86 R84399900702000
West Town
734 Mesa Hills
$19.26 P39399900206000
Legends of El Paso
200 Belvidere
$ 5.27 D46099900300100
Colinas del Sol
945 Mesa Hills
$17.31 C81599900300150
Coronado Villas
6115 Escondido
$20.76 S37399900102000
Crest Apartments
345 Shadow Mt.
$21.09 M84499900100100
Kings Hill
299 Kings Point
$12.43 X21699900008900
Las Norias
2150 Trawood
$22.16 H21399900100100
La Plaza
9578 Sims
$ 9.95
C52299900201000
Lake Fairway
1642 Lomaland
$12.51 C16699900200100
Shadow Ridge
9375 Viscount
$15.90 A765999002D0439
Citadel
9455 Viscount
$13.94 A765999002D0448
Spring Park
9535 Acer
$11.89 C52299900500100
Vista Village
10535 Montwood $ 8.32 V89399904101300
Other Per Square values of interest:
El Paso Los Angeles Limousine 720 S.
Oregon
$16.13 C05099908708500
Phelps Dodge Refinery
7135 N.
Loop
$ 6.30 A76599900400101
Western Refining Co
6500
Trowbridge
$45.08 A76599900300201
As can be seen by the above listed comparisons, many of the properties
in the “redevelopment zone” are valued higher, per square
foot, than properties engaged in similar uses elsewhere in the City,
and therefore produce higher amounts of property tax per square
foot. In general, the truth
is that the properties in the “redevelopment zone” are
paying at least as much, and often much more property tax, per square
foot than properties considered economically productive in other areas
of El Paso. The per square foot comparison is the most reliable
indicator of whether a property is paying its "fair share" of property taxes.
The City of El Paso has no plans to reduce property taxes for
homeowners if the “downtown revitalization” plan is fully
implemented. In fact, under the TIRZ (Tax Increment Refinancing
Zone) which was created by the City Council, any increases in City of
El Paso property taxes from downtown, will only be spent in the
downtown area.
[Click here to download article in PDF format]
|
