Agenda - Council - 05/31/1983 - Laserfiche WebLink

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I I I I I I i I I I I I I I I A resource recovery faci.lity, such as a waste-to-energy plant, may increase industrial or commercial development around it. Because these facilities produce steam or electricity, they may encourage other energy intensive industries to locate close by. Such development increases tax revenues to the local units of government. Some resource recovery facilities, such as transfer stations, compost facilities or waste processing plants, may encourage adjacent development around it if a volume or quality of waste product can be guaranteed, (for example, tires, glass, paper or finished compost). However, there are many factors involved with such development and any potential for such development around resource recovery facilities is speculative at this time. Consequently, counties and legal governmental units should evalu- ate the effect of resource recovery facilities upon the market value of adjacent property. TAX LOSS If taxable land privately owned were acquired by a county for a landfill, the municipality or township, school district, or other special taxing district would lose property tax revenues. Private acquisition and devel- opment of a landfill would likely increase tax revenues for a community, particularly if the site weren an area zoned agricultural. Should com- munities be compensated for property taken off the tax rolls through public ownership of a landfill? If so, should communities be compensated for tax losses resulting from other public lands--for example, regional parks, airports, sewage treatment plants and interstate highways. Airports, highways and similar facilities generate income to the commu- nity that encourages and stimulates other businesses. They also increase employment and property tax revenues. Solid waste landfills, on the other hand, do not generally encourage other businesses. Despite their size, landfills generally do not provide many jobs or much tax revenue because they are not capital intensive. During their operation, land- fills may also affect surrounding property that is difficult to measure or analyze. Furthermore, most solid waste landfills once closed have limited uses for subsequent development. Similarly, if taxable land, privately owned were acquired by a county for resource recovery, the municipality or township, school district or other special taxing district would lose property tax revenues. Although the amount of land acquired may be much less than for a landfill, the lost revenues may be substantial. The reason is that a resource recovery facility is more likely to be located in th higher density, urban por- tions of the Region, where land uses generate more property t~x revenue than rural areas. Resource recovery facilities may initiate adjacent development, but it is by no means clear that they will do so. Consequently, if property is taken off the tax rolls because of public ownership~ then a payment in lieu of taxes (PILOT) should be paid to the 14