TDDs: Who’s watching the money and who’s calling the shots?
July 30th, 2007 . by Ed RicciottiTDD or transportation development districts are used by developers to recoup for the cost of the added infrastructure needs their development generates. This is usually by charging an added sales tax to all the patrons of businesses that are part of that commercial development. Many see this is taxation without representation. Proponents of TDDs will tell those opponents they could shop elsewhere. But how many citizens know which developments have these special districts? It is not posted anywhere and only after a purchase is made will the consumer know of its existence. Another problem, brought up by Karl Skala, 3rd ward councilperson of the Columbia City Council during a campaign forum this spring, is that TDDs are dictating how Columbia is growing. He believes that the city should have more oversight and input on how Columbia should expand. So not only is this a taxation without representation issue, it’s also an urban sprawl without city oversight issue as well.
October 21st, 2007 at 7:01 am
http://www.auditor.mo.gov/news/20070719tdd.htm
MONTEE FINDS TRANSPORTATION DEVELOPMENT DISTRICTS CONTINUE TAXING MISSOURIANS WITHOUT THEIR KNOWLEDGE
FOR IMMEDIATE RELEASE
Thursday July 19, 2007
CONTACT: Samantha Brewer, Public Affairs Coordinator
(573) 751-5313
E-mail: Samantha.Brewer@auditor.mo.gov
“In their current form, Missouri’s TDDs are about as close as you can get to taxation without representation,” State Auditor Susan Montee said. “The General Assembly needs to take action or Missourians will continue to pay these higher taxes with little or no input into what they are paying or how their money is spent.”
(JEFFERSON CITY, MO) – Today, Missouri State Auditor Susan Montee released an audit of Transportation Development Districts (TDDs). As of December 31, 2005, 98 TDDs had been established in Missouri, including 29 established in 2005. An additional 22 were established in 2006. While previous audit of TDDs (SAO Report No. 2006-12, issued March 2006) reported various issues in the areas of public awareness/involvement, accountability, and compliance, the 2007 General Assembly made only one change to the TDD statutes addressing issues reported in the prior audit.
TDDs are established for the construction of transportation-related projects, and governed by a board of directors with the authority to impose sales taxes within that district to pay those costs. In 95 percent of the districts the property owner/developer petitioned for its creation. All of the districts have additional sales tax on retail items sold within the districts’ boundaries imposed by the property owner/developer. This results in higher sales tax than the retail establishments outside the district’s boundaries. The TDDs are created without public input and sales tax is increased without a public vote.
Officials or representatives of 97 of the TDDs reported total estimated transportation project costs of over $923 million, while 87 of those TDDs reported total estimated revenues of over $1 billion would be collected over the lives of the TDDs.
The current audit found issues in the areas of construction contracts and project management, professional services, budgetary matters, and financial reporting. Competitive bids were either not solicited or appropriate bidding procedures could not be determined. Written contracts related to the construction or construction management services were not always prepared or approved in a timely manner. Requests for proposals for various professional services were either not properly solicited or documentation was not available to provide assurance that such proposals were solicited.
Various matters were noted related to transportation projects costs claimed for reimbursement by developers. For example, it appeared the costs claimed by a developer for reimbursement were included twice, overstating reimbursement requests by approximately $123,800. In addition, in one district, customers of the major retailer in the district were incorrectly charged sales tax at a rate higher than that approved by the district for an 8-month period, resulting in an overpayment of sales taxes by the retailer to the district of approximately $60,000 for this time period.
October 21st, 2007 at 7:08 am
http://www.auditor.mo.gov/press/2007-28.htm
Susan Montee, CPA
Missouri State Auditor
Report No. 2007-28
July 2007
Review Crestwood Point TDD page 53-57 with No deed transfer for reimbursement of $295,000!
October 21st, 2007 at 7:10 am
http://missouri-tdds-cids.blogspot.com/2007/09/cid-crestwood-point-for-kohls.html
Check out
Crestwood Point TDD in MO
Olive Blvd TDD in Creve Coeur, MO West Oak TDD in Creve Coeur, MO
October 21st, 2007 at 7:15 am
What do you think about the Mayor, Alderman and/or Council Members as Directors of a TDD Board which is a State Separate Political Subdivision?
Isn’t this against the MO Attorney General’s opinion No 2-1961 and No 25-88-1988? Incompatibility Issues with local officials - only can hold one position.
How can a Mayor, Alderman and/or Council Members hold an local elected position and a State Separate Politicial Position? Two different government levels. Conflict of Interest applies?
January 1st, 2008 at 1:21 am
Check the deed transfers of all of the properties within a TDD boundary.
Why is there a L.L.C. after the TDD is created?
Is the L.L.C. to benefit the property owners and developers buy the bonds while deducting the expenses for the TDD?
January 1st, 2008 at 1:25 am
Check who is buying the TDD special allocation bonds and which law firms and banks are involved?
Armstrong Teasdale?
Thompson Coburn?
Southwest Bank?
THF Realty?
Great Southern Bank?
UMB Bank?
LaSalle Bank?
Stifel Nicolaus?
Lewis, Rice, and Fingersh?
E. Stanley Kroenke?
Michael H. Staenberg?
Harvey Cantor?
Grewe?
January 1st, 2008 at 1:40 am
TDDs are a sweat deal for private swim clubs like Crestwood Swim Club aka Rosebrook Real Estate Company who received $800,000 or more from the Kohl’s TDDs, CIDs, and TIF.
Ask THF Realty how they received their money on no deed transfer between Rosebrook Real Estate Company and City of Crestwood.
Crestwood Swim Club is for our elected and paid officials because it is a “safe” pool.