Local Businesses Band Together to Stop Domain Subsidies
AUSTIN November 14, 2007 — Over a hundred Austin business owners have joined the community group, Stop Domain Subsidies, which is pushing to reverse the city of Austin’s multi-million dollar tax giveaway to Simon Property Group, current owner of the ‘mixed-use’ development, The Domain.
Petitioners contend that massive tax rebates granted to Simon Properties give the corporation an unfair advantage over local retail businesses. If the petition drive is successful, Austin residents will vote as soon as May 2008 on an amendment to the city charter that would prohibit tax subsidies for retail businesses.
The Domain is a shopping center and residential development in northwest Austin that opened earlier this year to much fanfare. City officials who approved the corporate welfare program in 2003 claim they were simply ’shoring up’ the municipal sales tax base when they conspired to grant the Domain’s developer at the time, Endeavor Real Estate Group, between $37 and $65 million in relief from taxes that all other retail businesses must pay. Simon Property Group, which also owns Barton Creek Square and Highland Mall, has since purchased the development from Endeavor.
By promoting this charter amendment, local businesses are attempting to level the playing field and head off further unfair financial support for out-of-town interests by city of Austin policymakers.
Stop Domain Subsidies must turn in 20,000 valid signatures by the end of January for the proposed amendment to be on the May 2008 ballot, so the organization is now stepping up the push for signatures by offering cash to those who help circulate the petition.
Linda Curtis, head of the political action organization Independent Texans, and a prime organizer of the petition drive, clarified the legality of paying signature gatherers. ‘It is perfectly legal for us to pay someone to collect signatures,’ said Ms. Curtis, ‘It is not legal to offer someone money or any payment to sign a petition.’
Stop Domain Subsidies organizers also plan to sweeten the deal with fun and prizes for concerned citizens who help document the public’s opposition to corporate tax breaks. In an e-mail blast, Ms. Curtis told signature gatherers that, ‘for every 100 signatures you donate, you’ll have a chance in a small drawing for $1,000.’
For the next few weeks until the January deadline, organizers plan to hold Tuesday luncheons at Jovita’s on South First, along with weekly Happy Hours around town, where supporters can turn in signed petitions to be notarized.

Posted November 14, 2007


















From the Austin American Statesman:
What’s in it for us?
By The Editorial Board | Tuesday, November 27, 2007, 04:33 PM
Governments at the state, county and city levels are taking a closer look at the use of financial incentives to attract or keep businesses, and such a review is welcome. In a highly competitive, global market, government incentives such as tax breaks are a useful, even necessary, tool. But they should be used sparingly and subjected to scrutiny.
Read more here:
http://www.statesman.com