City Council is currently reviewing options for extending the abatement policies in Oak Ridge. I'm curious about everyone's opinions regarding using abatements to attract investment in our fair city.........is it a good idea to continue offering abatements or should we look at other options?
If you wish to maintain competing on a level playing field with other communities, I think tax abatements are something that will continue. If Oak Ridge is competing against another city for a sizable project, you can be sure there will be abatements being offered by other locations.
The only question is how to dole them out. There should be a criteria followed that makes it more objective than subjective. To get an area established that may be underutilized that would be a difference maker for the community would be one form of usage of an abatement. Where I live, there are economic zones that get preferential treatment for companies to establish businesses. There is a large difference between Indianapolis and Oak Ridge, but the concept could be explored.
My view is that if you want something, you will probably have to pay for it. Tax abatements is one way. A TIF is another. Direct payments is a third. A contract for goods or services in exchange for locating here is a fourth.
I agree with our Outsider that it should not be a blunt instrument and the incentive should be proportional to the value we gain.