Doing business carries an element of risk. It’s a key part of the formula that produces success and, therefore, wealth. Smart planning, good research, wise choices and hard work minimize that risk, but it’s impossible to eliminate.
The same is true for a community’s economic development programs and strategies. In order to enhance an economic climate in which businesses can flourish and good jobs are created, a community takes risks by investing in itself and providing incentives to encourage entrepreneurs, lure business prospects and keep existing businesses in place.
Among the common tools used by communities to fuel an economic development engine are tax abatements — government-induced property tax breaks for facility construction or new equipment purchases and installation. Tax abatements generally last for 10 years and gradually decrease through the period until the owner is paying a full property tax bill.
Tax abatements have always been somewhat controversial because they are inherently unfair to other businesses in a community that continue to pay full price on property tax bills. The tradeoff is when one business flourishes, others also will flourish. Success breeds success. So government leaders are willing to give one entity a break in order to help it succeed and, ultimately, benefit the entire community.
Economic development is a competitive arena. As long as one community is willing to take risks and provide incentives, others will follow suit in order to keep up, even if they find some to be distasteful.
Being known as a business-friendly community is important to economic development. With that in mind, we encourage Terre Haute’s and Vigo County’s elected officials to tread lightly in their current efforts to review tax abatements and evaluate whether those receiving them are living up to the job-creation promises made when obtaining them.
In the interest of full disclosure, the Tribune-Star has participated in the tax-abatement process. In the mid-’90s, the company was approved for an abatement on its downtown office building but did not use it. A few years later, however, the Tribune-Star did obtain and exercise an abatement on its new production facility on Margaret Avenue.
From a business development standpoint, the community has benefited from the new production facility. Advanced technology could have permitted the newspaper to build its plant in another county — or even another state. The tax break provided important incentives for the company to keep the facility in Vigo County.
The Tribune-Star fulfilled its jobs-related promises in the abatement. Unfortunately, not all affected businesses have been able to do so, especially with today’s economic turmoil.
We find no fault in city and county leaders seeking accountability from those who have been awarded lucrative tax breaks. In fact, as they have pointed out, the review process is part of state law. Even if it were not, it’s smart to scrutinize all functions of government.
In this instance, there is much at stake. If not handled fairly and in keeping with a community’s overall economic development vision and philosophy, the all-important business climate could be poisoned in such a way that it deters future progress.
So far, city and county leaders have struck an appropriate chord. The city already met once to begin reviewing its abatements. The county will begin conducting compliance hearings on Tuesday.
Despite risks associated with abatements, they are useful tools in the campaign for economic growth. They should be handled as such, and there should be no doubt for business prospects that they are entering a community that values economic progress and the benefits it brings.
Editorials
Tribune-Star Editorial: Officials must be careful enforcing abatements
- Editorials
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EDITORIAL: Remembering Henryville
In the era of instant communication, the past seems to arrive much quicker.
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EDITORIAL: Towering response
It comes as incredibly sad news that a Garfield Towers resident has succumbed as the result of a fire last week at the northside apartment complex.
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EDITORIAL: Independent running mates
Almost certainly, running mates will not influence voters choosing Indiana’s next governor.
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EDITORIAL: Noteworthy in the news
• Cream of the crop
• Keep the ideas flowing
• Remembering fallen officers
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EDITORIAL: Hazards of the spring abundant now on I-70
A major holiday weekend is approaching. The weather has been consistently inviting for travel and outdoor activity. Gas prices are even inching downward.
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EDITORIAL: Embrace the Sycamores
Terre Haute should understand the rarity of an opportunity to celebrate a championship.
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EDITORIAL: Good choice for stability
For the first time in 25 years, Indiana will have a new chief justice for its Supreme Court. For those who value stability on the state’s highest court — and we count ourselves among those who do — the appointment Tuesday of longtime Justice Brent Dickson is good news.
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EDITORIAL: Correcting the prison imbalance
Terre Haute will no longer count federal prisoners when the city slices its population into six equal City Council districts. That decision by the City Council last week to remove the inmates at the Terre Haute Federal Correctional Complex from the council district mathematical formula may not make waves, but it makes sense.
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EDITORIAL: Noteworthy in the News
• Sometimes bureaucracies do listen
• April hours bring May flowers
• Getting our airport off the ground
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EDITORIAL: When it’s IU vs. UK, there’s got to be a way
If the annual Indiana-Kentucky basketball game was not significant, would the coaches of the two universities be talking like this?
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EDITORIAL: Sen. Lugar’s compelling message
Richard Lugar, no stranger to reading political tea leaves, undoubtedly knew for weeks that defeat was coming Tuesday night in his primary fight for re-election against a more-conservative-than-thou opponent. A statement Lugar released just hours after his loss of titantic proportions indicates that the six-term incumbent saw the reality even before he knew Richard Mourdock was to be his opponent this May.
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EDITORIAL: Reviewing the landscape
The compelling story line surrounding the race between Richard Lugar and Richard Mourdock dominated most of the local primary election chatter. With those stunning results now in the books and Mourdock heading toward a showdown with Democratic Party nominee Joe Donnelly of South Bend (the current U.S. House rep from the 2nd District), it’s time to survey the landscape for other general election races that will be worthy of attention.
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EDITORIAL: GOP changed; Lugar didn’t
Six terms. Overwhelming popularity. A statesman and a gentleman. A visionary. An icon in the annals of U.S. Senate leadership, even world leadership. So dominating on the political landscape that the opposing party did not even produce a candidate in the last election.
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EDITORIAL: An exercise in democracy
Primary elections rarely draw the same levels of participation as general elections.
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EDITORIAL: Fight against child abuse demands ongoing attention
As with many of our nation’s most maddening and perplexing social problems, one hardly knows how to fathom the egregious wrongs that occur when a child is abused.
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EDITORIAL: A ‘giant’ for his hometown
Home is where the heart is. That’s true for all of us. In addition, your heart can take you home.
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EDITORIAL: Curbing corruption a worthwhile crusade
If you are cynical about government, down to its most local levels, you may think it is overrun — or even controlled — by corruption.
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EDITORIAL: The politics of Primary 2012
In less than a week, voting Hoosiers get a chance to make a statement about the future of politics in their state and beyond. But whatever that statement turns out to be, the final punctuation marks won’t be added until November. It’s possible that nothing will be settled by the end of the night May 8.
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EDITORIAL: Noteworthy in the news
• Their footsteps can lead us
• It would be music to his ears
• Feeding a genuine need
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EDITORIAL: Hoosier Republicans should stick with Richard Lugar
Until late 2008, most Hoosiers were quite pleased — and in many cases, darn right proud — to call Richard Lugar their senior U.S. senator.
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EDITORIAL: Matt Branam: 1954-2012
The sudden death of 57-year-old Matt Branam on Friday morning continues to leave an air of sadness hanging over the community.
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EDITORIAL: A transplant from St. Ann’s
It would be understandable, for most of us, if we were madder than the opposite of heaven if a beloved, historic, personal part of our lives was to be taken away against our will.
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EDITORIAL: Pragmatic approach to downtown development benefits community
Terre Haute has known for some time now that Indiana State University’s master plan includes creation of student residential centers off-campus in the nearby downtown area.
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TRIBUNE-STAR EDITORIAL: A salute to pride of ’55
Terre Haute gets the chance to witness and appreciate the extent of its rich baseball legacy this Saturday. Its past and present will merge at Bob Warn Field.
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EDITORIAL: A match of Mitt and Mitch?
Not every Indiana governor’s endorsement of a presidential candidate has made instant national news as did Mitch Daniels’ support for Mitt Romney on Wednesday.
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EDITORIAL: Drilling for fairness
Consistency and fairness were on trial Monday as the Vigo County commissioners grappled with a controversial rezoning request from a property owner who wants to drill for oil on his land near Hawthorn Park northeast of Terre Haute.
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EDITORIAL: Noteworthy in the news
Cheers, jeers and tears
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EDITORIAL: Be fair, consistent, but keep smokefree ordinance on track
The steps toward a healthier, more vibrant community should continue moving forward.
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EDITORIAL: Inspired by tradition, celebration
With the observance of Orthodox Easter on Sunday, the spring holy holidays for Christians and Jews will have passed for another year.
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EDITORIAL: No need to sing the blues
The words from Terre Haute Board of Works President Bob Murray on Monday afternoon were as sweet to the ear as a blues riff from an electric guitar: “The bottom line is, [Blues at the Crossroads] should be able to operate just as it has before. It will get worked out.”
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EDITORIAL: Remembering Henryville
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