Meijer Tax Break Would Come At Expense Of Key Services

I’m generally skeptical of many tax breaks given to corporations for development projects. All too often, the projects come at the expense of tax revenue that could be otherwise used to provide social services. In many cases, projects fail to deliver on their promises of economic and neighborhood revitalization.

Most often, the local media acts as a cheerleader for development projects and never questions the need for tax breaks nor do they explore the basis on which the request was made. However, a recent article in The Grand Rapids Press–“Michigan rejects Brownfield tax credits for 28th Street Meijer store, but Grand Rapids may grant project local Brownfield status“–recently caught my eye because it was one of the few articles that I have seen that actually says what it will mean to give Meijer a tax break.

Meijer is asking for “brownfield” status on a project to redevelop their 28th Street and Kalamazoo store. According to Meijer, a 1 acre parcel of land that will be used in the development is contaminated. Interestingly, Meijer admits that it was the source of the contamination–its leaky gasoline storage tanks contaminated the groundwater.

However, The Grand Rapids Press reports that if the tax break is granted, it will come directly from money that could be used to provide key services:

If approved, the money will come from new property taxes generated by the store over the next 27 years. Those new taxes would otherwise fund city services, local public schools, Kent County operations, the Kent County jail, the local transit millage and Kent County’s senior millage.

So, the choice is clear–we can either fund critical social services, or we can have a redone Meijer store.

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Author: mediamouse

Grand Rapids independent media // mediamouse.org