Open Letter to Mayor Driscoll:
Dear Mayor Driscoll,
$251 million. That is the amount that Syracuse taxpayers will lose over 30 years under the new proposed agreement on the Carousel Mall expansion. That is $8.36 million per year to subsidize the private business venture of millionaire Bob Congel.
The $251 million deficit is calculated from the numbers published in your March 2006 letter to city taxpayers and from the announced details on the proposed new agreement.
According to your letter, the city would give up $374 million in city and school property taxes ($238 million on the existing mall and $136 million for the 850,000 sq. ft. expansion). Under the new agreement, the loss of property tax revenue would be even greater if the second phase hotel and third phase 350,000 mall expansion were included.
Under the new agreement, guaranteed fees from the developer to the city decrease from $54 million to $53.4 million. On the other hand, the projected sales tax revenues increase from $10 million to between $46.6 to $69.6 million depend whether phase one or all three phases are built. This sales tax revenue is not guaranteed. But let's be optimistic.
Assuming that all three phases are built and that they meet sales projections, the city will gain $123 million in developer fees and sales tax revenue. But we give up $374 million in property tax exemptions (and that doesn't include the exemptions for phases 2 & 3).
In other words, Mayor Driscoll, you are giving away $251 million in tax revenue with no guarantee that Congel will build anything more than an 850,000 sq. ft mall expansion.
Why? To subsidize a mall that competes with locally owned neighborhood and downtown businesses, generates more sprawl and pollution, and exploits workers at low-wage, no-benefit, part-time service jobs. No thanks! This deal is a dark cloud and the only silver lining is in Bob Congel's pocket. Tax revenues for the city aside, an expansion of Carousel Mall would undermine many other policy goals of the city.
Four days before the last mayoral election, you signed the city on to the UN's Urban Environmental Accords. Carousel Expansion undercuts many of the actions prescribed in the Accords relating to renewable energy and greenhouse gas reduction, sprawl, and good jobs for low-income people.
Renewable Energy and Greenhouse Gas Reduction: Action 5 of the Accords require the city to “Adopt a citywide greenhouse gas reduction plan that reduces the jurisdiction's emissions by 25 percent by 2030, and which includes a system for accounting and auditing greenhouse gas emissions.”
If city staff are developing a greenhouse gas accounting system, surely they are aware of the researchers at SUNY-ESF who have documented that even if an expanded Carousel Mall were run completely on renewables, it would generate a net increase in fossil fuel consumption and greenhouse gas emissions due to all the workers, consumers, and goods that have to be transported to and from the mall. A display showing the conclusions of this research was featured at the entrance to your recent Sustainability Summit in the OnCenter.
In this regard, it is disconcerting that the proposed new agreement exempts the first phase of Carousel expansion from the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) standards.
Sprawl: Subsidizing a centralized mall like Carousel undermines the official policies of sustainable nieghborhood planning the city and county have adopted, notably the Onondaga County Settlements Plan developed by “new urbanist” planner Andres Duany in 2001 and the City Comprehensive Plan adopted by Common Council last year, as well as the UN Urban Environmental Accords.
Action 8 of the Accords captures the core of the sustainability planning in all of these policy documents when it calls for “urban planning principles and practices that advance higher density, mixed use, walkable, bikeable and disabled-accessible neighborhoods.” Action 15 calls for “Implement a policy to reduce the percentage of commute trips by single occupancy vehicles by ten percent in seven years.” Centralized malls like Carousel generate sprawl, pollution, and commuting far more than dispersing retail and entertainment businesses in local neighborhoods.
Jobs: Action 9 of the Accords says “Adopt a policy or implement a program that creates environmentally beneficial jobs in slums and/or low-income neighborhoods.”
The study commissioned by the Syracuse Industrial Development Agency in 2000 to assess Carousel expansion impacts found that the average hourly wage at the expanded mall would be $6.67. Most of the jobs would be less than full time with no benefits. This is the market rate for these kinds of retail and service jobs.
A new mall expansion deal should have included provision for expanding the city's Living Wage Ordinance so that beneficiaries of economic development subsidies like Carousel Mall are required to employ workers at a living wage with health benefits.
Furthermore, by supporting a highly subsidized competitor to retail and entertainment businesses in our neighborhoods, the expansion of Carousel Mall undercuts job creation and business development in our neighborhoods. The Pyramid partners, the projects bondholders, and the national chain stores that will occupy most of the leasable space will siphon almost all of the profits generated by a mall expansion out of the Syracuse community. It will reduce local jobs in low-income communities and undermine business development by local owners who would reinvest their profits in the community.
There are better alternatives!
For 35 years of state and federal tax policies that have shifted the tax burden from the rich to the working class. The decline of state and federal revenue sharing of relatively progressive income taxes has required municipalities to raise regressive sales and property taxes, which take a much higher proportion of middle and low income working people's income than wealthy people's income.
Yet even while the burden of financing local public services has been on to the local taxes of working people, big businesses like the Pyramid Companies are getting local tax breaks, making the tax burden on ordinary residents and small businesses even greater. The first thing the city should do is got to court to get the Centra decision overturned and put Carousel Mall on the tax rolls like the rest of us.
To stabilize the city's finances, the city should adopt a progressive local income tax, including the incomes of the 40,000 or so commuters who work in the city but do not pay taxes for the city services they rely on. Yes, that requires state legislative approval. We should go for it. And while we are at it, we should lobby for guaranteed state revenue sharing of state income taxes so we don't have to go begging for special financial help every year.
To create good jobs and community-owned businesses that build sustainable, prosperous, mixed-use neighborhoods, the city should set up a municipal bank with an entrepreneurial department that can help plan, finance, and advise new community-owned businesses.
To meet the renewable energy and greenhouse gas reduction goals of the Urban Environmental Accords, the city should establish a public power utility that would, like many public power system are doing, rewire the city for the efficient use of renewable energy. All the construction jobs that would go into building a net energy loser like the Carousel expansion could be created to retrofit city structures for energy efficiency and renewable energy generation.
For the Green Party of Onondaga County,
Howie Hawkins, Syracuse (425-1019)
Bob Kehoe, Baldwinsville (638-8530)
Steve Penn, Syracuse (383-0069)