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Candidates: Tax incentives not a ‘silver bullet,’ a ‘last resort’

Posted at 12:30 pm July 11, 2012
By John Huotari 10 Comments

Terry Frank

Terry Frank

Warren Gooch

Warren Gooch

Like their counterparts running for Oak Ridge City Council, the two candidates running for Anderson County mayor disagreed on the use of tax incentives to assist commercial developments.

Warren Gooch, an Oak Ridge Democrat, said one type of tax incentive known as tax increment financing, or TIF, is “a tool that can be used to spur retail development.”

It has been used in Oak Ridge to help the developers of Woodland Town Center, a commercial project on South Illinois Avenue that will include an Aubrey’s restaurant and Panera Bread.

When used appropriately, TIFs can move a project forward, Gooch said, but they are not “a silver bullet.”

But Terry Frank, a Clinton Republican, said TIFs ought to only be used as a last resort, and she would prefer to lower the regulatory and tax burden.

Frank said TIFs, which use increased property tax revenues at a site to pay for improvements, are sometimes used by one developer who received them to compete against other business owners who didn’t.

She said she wants to make Anderson County great for everyone, not just those who have the right connections or know how to work the system.

Frank, a business owner, and Gooch, a health care lawyer, are running for Anderson County mayor in the Aug. 2 election.

They participated in a Tuesday night candidate forum in Clinton. About 150 people attended.

Both candidates have pledged to not raise taxes, and both said that expanding the county’s tax base could ease fiscal pressures.

“When there is growth, there is plenty of money,” Frank said.

Gooch said he couldn’t promise that taxes can be cut, but “if there is an opportunity to cut taxes, we’ll do it.” He promised a top-to-bottom review of county government services.

Frank said she would “love to cut taxes and that is an item that is definitely on my agenda,” but tax cuts don’t have to equate to service cuts.

Gooch has pledged to advocate daily for Anderson County and its “outstanding” manufacturing facilities in Oak Ridge and Clinton.

“We have to go out every day and compete for new business investment,” he said.

Frank said economic freedom is the key to prosperity.

“The key is letting you do what you do best,” she said.

Gooch said he will be an advocate for public schools and will “aggressively support” the U.S. Department of Energy mission.

Frank said she wants government to serve as an aid, not a hindrance, to innovation.

A previous story on the race between Frank and Gooch is available here.

Filed Under: 2012 Election, Government Tagged With: Anderson County mayor, candidates forum, Terry Frank, Warren Gooch

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Comments

  1. John Q Publius says

    July 11, 2012 at 1:49 pm

    I’ll reiterate what I said in an earlier thread. If Warren Gooch thinks retail TIFs are a good idea, then he has no business in the Mayor’s seat. Taking taxpayer money to give to a millionaire to build space for a restaurant to compete against the other already existing local taxpaying restaurants is not the purpose of the government or the collection of property taxes. This difference of opinion appears to highlight the fundamental divide between Mr. Gooch and Mrs. Frank. Mr. Gooch thinks more marketplace manipulation by the government through the use of retail TIFs is a good thing, while Mrs. Frank seems to have the opposite view. Come to think of it, Mr. Gooch’s support of retail TIFs does tend to dovetail nicely with President Obama’s view of the government’s raison d’être. No wonder Mr. Gooch was (still is?) such a big fan. At least we know one thing is sure, Mr. Gooch has T.K. Wheeler’s vote all locked up.

    Reply
  2. John Q Publius says

    July 11, 2012 at 1:59 pm

    Addendum: although this story did not address Mr. Gooch’s previous statement of his support of Woodland Town Center, it is available on this site, here: http://oakridgetoday.com/2012/06/28/anderson-county-mayoral-candidates-spar-over-doe-support/

    ‘”Gooch, though, said he thought the $625,000 TIF for Woodland Town Center, which could open this fall, “was a very good idea.”’

    Reply
  3. T J says

    July 11, 2012 at 6:50 pm

    It’s discouraging to me that no other restaurant owners in town complained of the blatant favoritism.
    In a true capitalistic society, governments should not play favorites. Only when there are ordinances or laws passed to give one business advantage over another do we have a monopoly, or in this case, crony capitalism.
    When it is done repeatedly over many different employers, it is fascism.
    The planners and developers needed something in the “win” column to justify their budgets.
    The increase in sales tax will be small and the new jobs created will average less than minimum wage.
    The restaurant”pie” will be divided into smaller parts.

    Reply
    • B Smith says

      July 11, 2012 at 8:14 pm

      If “no other restaurant owners in town complained,” what does that tell you? Do you think you should complain on their behalf?

      I think you need to look up the definition of “fascism.”

      Reply
  4. John Q Publius says

    July 11, 2012 at 8:38 pm

    Let’s see, the same people they would be complaining about are the same ones who issue their permits. I can’t imagine why no one complained. It is a true mystery.

    Reply
    • B Smith says

      July 11, 2012 at 10:52 pm

      Their permits for what?

      I’ve yet to meet anyone in Oak Ridge that was afraid to complain about anything. We cherish our complaints the way an Olympic champion cherishes his medals. I’m having trouble believing you live in Oak Ridge.

      Reply
      • John Q Publius says

        July 11, 2012 at 11:43 pm

        But, I agree. Oak Ridgers do like to complain. I’m glad to see we’re finding some common ground. 😉

        Reply
  5. John Q Publius says

    July 11, 2012 at 11:06 pm

    You truly have no idea, do you? Opinions are worth the facts their based on. If you don’t know what permits a government issues to and the regulations they enforce on restaurants then you’ve lost the plot.

    Reply
    • John Q Publius says

      July 11, 2012 at 11:07 pm

      Edit: they’re*.

      Reply
  6. T J says

    July 12, 2012 at 5:49 am

    Fascism is public/private partnerships.
    I shiver every time i hear politicians utter the phrase.

    Reply

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