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Stories Posted on August 26, 2008
Initiative will aim to cut subsidies to retail stores
Category: City Government · State: Texas · Source: Austin Daily Texan
On the Nov. 4 ballot, Austin residents will not only face a decision between McCain and Obama, but also whether to prevent the city from subsidizing retail stores. If approved, a new citizen-led initiative called Stop Domain Subsidies will halt any tax rebates or subsidies provided by the city to retail stores. City officials designed the subsidies to generate more tax revenue by attracting more retail stores. In its last meeting, the city council approved the initiative's wording for the Nov. 4 ballot. Brian Rodgers, a local real estate investor, started the campaign in response to the 2003 city council decision to provide Endeavor Real Estate Group and its partner Simon Property Group Inc. with tax rebates for 20 years to develop retail space in Austin. In May of that year, the development company proposed to build a large mall center with 700,000 square feet of luxury retail and restaurant space called The Domain. In a 6-1 decision, council members approved the project and included a $65 million tax rebate to be provided over 20 years to the developers in the contract, Rodgers said. If Rodgers' initiative is unsuccessful, the city will also return 50 to 80 percent of the mall's sales tax to the developer. The money would allow The Domain to further generate profit.