Scott Yost reports that the city is going to be providing financing for development of marginal commercial properties in partnership with several commercial banks.
This is yet another sell-out to development interests. The money to be loaned by the city will be amounts the private markets are not willing to provide. That ought to be a red flag.
What happens if the projects fail? Creditors theoretically must be paid.
Who gets paid first– the bank or the taxpayers? The Rhino article does not say. However, if the project fails, it is conceivable neither party will get paid especially if the entity is under bankruptcy protection.
This amounts to yet another “forgivable loan” project implemented by the city of Greensboro. We have seen at least a couple of these in the past. The taxpayers will be left holding the bag.
Obviously, the city of Greensboro is swimming in excess monies in part due to water revenues. It is reaching for grand designs to fund.
Our elected officials ought to cut taxes and fees– and restrain their ambitions with regard to spending our money. Unfortunately, socialists are unlikely to do that.
Vectigalia deminuere…..Vae!
Absolutely, Fred! Too much mischief when there is too much money floating around for the bureaucrats and the socialists to distribute!