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9overr~ent. l~everthel-__~, a city 9overr~ent should be able to prepare alte~¥mtive est~mtes of th. size of th. final Rackage, un, er different assumptior~ about What specific mechanisms, in what amcamts, axe finally appr~. I I I I I I I I i I I I I I i The affected city goverr~ent'.s ':overhead';--that is, the expense it incurs in makirg the assistar~e avai~ble--shculd be estimated publicly at the same time. Gosts should be carefully defined and measured ar~ be based on the ~x~i~ly valid notion of opportunity ~ost (actual oosts are measured ar~ cc~ps~ed to other opportunities foregone). %~hat this means is that a city gover~nent needs to oc~pare the benefits of an investment in real estate assistance a~air~t the benefits of spendin9 the dollars on _sc~e~ _thirg else. Determine in advance the potential consequences of redevelc~m~_nt projects on ~ersc~ wPD are livir~ in areas targeted for redevelopment--Sometimes so much attention may be given to the claimed benefits of the proposed new buildirgs that any negative ~ct on persons who may be displaced is overlooked. It is likely that such perso~ will be low income. Oorseguently, a good system of public assistance to real estate develoim~ent should include sc~e method of fully analyzir~ the potential impact on existir~ residents and providing that t~ are assured oontinuir~ ao~ess to affordable h~using. Pro~cts s]x~uld be audited--A credible system slx)uld be established for auditing: (a) the results of assistar~e ar~ (b) the specific uses of the dollars. Estimate how kurdens ar~ benefits am~rg tax~yers will be distributed~ty councils should m~ke efforts to estimate how the tax ~urden and the benefits of assistance will be distributed among its resident taxpayers, to avoid imposirg oosts cn lower-inoc~e taxpayers and benefits on higher-inccme taxpayers. T~day'.s system is failir~ to live ~ to these ~taticns. ~ s~stem is generati~ enough re%~nue. But several flaw should be c~rrected: The beneficial impact of selective assistance is diluted if help is a~ilmhle in almost ar~ location. W~_n dollars fc~ real estate assistar~e are made available broadly, the ~ ~.T~ct of the assistance on location of develol~ent is significantly diluted. Tt~s the total public investment is ~uch higher, but its impact on guidirg growth is ~ less. Dollars of investment are not always known. It is possible for a city gover _r~-nt to approve an assistar~e package for a developer without ever est~m~tirg the total current value, in dollars, of ail assistance, direct ar~-ir~irect, beirg provided ~ ar~ in the future. Public _mc~e_ y sl~uld not be spent in this ~y. Taxpayers might not ur~erstand ~hat is happening. Because of the way assistance is provided, taxpayers might have an ~mpressic~ that the assistance is ~ost-free or, bec~ase of ~ mechanisms .beir~ used, have no way to ur~erstar~ the package of benefits.