It seems that the Pittsburgh City Council has approved tax abatements for Downtown and 28 other neighborhoods. Which is interesting in and of itself. So check it out.
I am sure we will hear more about this. But in the meantime, here's one take: About a year ago, I was thinking about all the incentives the city and state were thinking about tossing at a few of the Downtown condo projects. And I said (among other things):
And again, where are all these people who are supposedly going to move downtown going to come from? If I were a property owner in Squirrel Hill or Shadyside I think I would be raising hell right about now.
It seemed unfair for a few developers downtown to be getting all that cash, particularly since the number of people in the city who can afford "high-end" is so low. And particularly since there were already certain property owners, downtown and elsewhere, catering to that limited crowd.
This provoked a ton of comments, on that post and a bunch of subsequent ones. Many of the comments argued that I was, ahem... misguided. One critique said that I was erroneously assuming that the new downtown housing would be a perfect substitute for existing residential offerings in Shadyside and other upscale city markets. Others said that I was wrong because the residents in the new downtown condos would be from outside the city, meaning that they would grow the pie and not harm the existing landlords in any way. Etc. Etc. Etc.
That's all water under the bridge. But it still seems pretty cool and refreshing, if you check out this snippet regarding the council's recent vote:
In the process, they held off adding another neighborhood, Fairywood, in the far western part of the city, to the plan. Fairywood residents made a pitch for inclusion today. Councilman Bill Peduto acknowledged afterwards that the residents had a legitimate argument. "When you choose 29 neighborhoods to be the winner, you're also choosing 60 neighborhoods to be the loser."
So when you do these kinds of plans, you have people called "winners." And the other people are... "losers." Which was what I was trying to say all along. (Yes. I know abatements are different than direct cash incentives. But I think the latter are even LESS fair. Because, as someone once pointed out, when you aim incentives at a neighborhood, which is the case with abatements, anyone building there can take advantage. Which is not the case when the government writes a check to Jack Piatt. That is, I believe that the critique Peduto mentions above applies even MORE in the case I made last year.)
Now let me be clear. I suspect that Peduto does not agree with me about much of anything. Particularly things I have said about housing incentives in the city. And I might also point out that Peduto is an interesting person to be making the critique mentioned above. Because if I am not mistaken, the abatement plan he originally put forward included even FEWER neighborhoods.
All I am saying now is that I think what Peduto says directly above makes a lot of sense. Although, again, I wonder about what he means. If this is about "winners" who get the abatements and "losers" who do not, how can he justify HIS plan, which seems to include a lot fewer neighborhoods--and, therefore, has a lot more losers?
And how, exactly, will the losers lose? I thought that the new housing in the area was going to draw people from outside the city. Right? And I thought they were all going to be tax-positive. Right? If so, the neighborhoods without abatements will not lose population to neighborhoods with the abatement. Right? Even better, the abatements will grow the population pie AND the tax pie. Meaning current residents benefit. Right? I think that, at first, Peduto critiqued the mayor's plan because it said these things about population shifts and tax-positiveness without any rigorous study to back them. And he said his more limited plan made more sense. Now he seems to be saying, at least in this one case, that Fairywood residents have a legitimate arguments. And that picking neighborhoods to get the abatement and leaving others out leads to winners and losers.
Either way, I think this is going to be a humdinger of a political battle. Because the more neighborhoods they favor with this plan, the angrier all the "losers" are going to be.
So is Peduto leaning towards a blanket abatement for the city?