[Peace-discuss] Letter in today's NG

[David Green]

The Champaign City Council is on the verge of approving a new tax increment financing district for the sole purpose of giving Kraft Food Inc. a $3.6 million tax subsidy to build a new warehouse. According to City Manager Dorothy David, the TIF has no other purpose and can be terminated once the warehouse project is funded.
One might ask how the city council was convinced that a Fortune 500 company, with recent quarterly profits of $500 million, revenue over $4.4 billion and investments in the local plant of $20 million to $30 million each of the past 10 years, suddenly needs a taxpayer subsidy.
Could it be because the city allowed Kraft's agent, Grant Thornton, a high-powered corporate tax adviser, to play the lead role in writing the redevelopment project plan and to conduct the eligibility study? City Manager David stated in an August 2013 memo: "Kraft's consultant Grant Thornton will do most of the work to prepare the documentation to qualify this property ... with review by the City." Both reports were submitted on Grant Thornton letterhead and prepared for the city of Champaign.
The benefits to Kraft are obvious. The benefits to the community are less so, and long-term job growth is neither guaranteed nor promised by Kraft.
One must wonder if this TIF project represents the flexing of corporate muscle by threatening the community "not to build if not approved," and when given the opportunity, to directly manipulate TIF laws for corporate gain at taxpayers' expense.
DURL KRUSE
Urbana
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