Jeff Branscome writes about Spotsylvania County.
Cosner’s East Special Tax District moves forward
Just a late, real late, note: Supervisors voted 7-0 after closed session to have the county attorney move forward on the creation of a special tax district for Cosner’s East to help pay for critical infrastructure once the hospital opens in May 2010. Reading the comments on my story from yesterday told me that some people misunderstood what this tax district does. You can debate that, in the end, the people who buy goods from these business end up paying the tax because it is wrapped into the cost of the goods, but isn’t that true with any kind of tax on businesses? It’s late, so tell me if I am wrong.
I am not trying to advocate for any decision, but in speaking with supervisors and some people in the public last night, somehow the impression was left that the county is bailing out Silver Companies. Does my story really leave that impression? How could I have made it more clearer for some average reader?
The county is going to have to have two public hearings: one to amend the proffers with Silver Cos. and another to create the service district. How does a service district operate? Well, let’s use Harrison Crossing as an example. There’s some new roads down that way, and probably more work to come. The businesses that rent or locate to Harrison Crossing are levied an extra tax and that money is used to pay off the road project costs for that area. Last I checked, the tax is 35 cents per $100 of assessed property value.The county still gets the normal tax assessment from the land and businesses. No money is lost. This is an additional tax.
Silver Cos. owns the land that is likely to be placed in this service district, but we will soon find out if supervisors decided to expand the boundaries to other property. Silver Cos. tenants will pay the extra tax or Silver Cos. will pay the extra tax. But since credit markets are not strong, apparently Silver has had a difficult time securing a loan to build a bridge and some pavement. There’s no credit security to a bridge and pavement, so a bank is going to wonder: What if Silver Cos. goes bankrupt? Then what?
With a 7-0 vote, it is apparent that supervisors believe this is the best way to make sure the road work is done with the least impact on residents.But if you look at the map in the newspaper, I think you can clearly see the importance this infrastructure is for the new HCA hospital.
Now, go ahead and debate their decision here. I hope this all made sense, as it is about 1 a.m. I’m going to bed.