jducoeur: (Default)
[personal profile] jducoeur posting in [community profile] davis_square
I just got a scare robo-call, apparently from alderman Tony Lafuente, asking me to come to tomorrow night's aldermen's meeting because of the "unprecedented tax increases" in Somerville. Sounds like he's trying to get a mob with torches and pitchforks there, but I haven't the foggiest notion what he's talking about. Anybody have info?

Date: 2014-02-04 03:12 am (UTC)
From: [identity profile] josephineave.livejournal.com
I think the tougher problem is for businesses that don't own the property. Many of the leases have clauses that pass through the property taxes to the renter, so you end up with a much higher bill even though you aren't getting the benefit of ownership.

Date: 2014-02-04 04:22 pm (UTC)
From: [identity profile] achinhibitor.livejournal.com
The problem is pretty much unavoidable: Because the average business in Davis can now make significantly more money, landlords can charge more rent. (As far as I know, essentially no retail businesses own their location.) So the value of the property increases. The city increases the assessment and the tax bill increases. (Except in the unlikely event that the city cuts the rates enough to fully compensate.) Businesses start paying for the tax bill through either pass-through leases or increased rent the next time the lease rolls over.

The problem is felt by businesses that aren't seeing as much of an increase in profits as the "average" business is. Additionally, the increase in "average" business profit is significantly due to changes in the mix of businesses, the mix includes more upscale businesses. What ultimately happens is that downscale businesses start to get squeezed by the increasing costs of the location.

if the landlords aren't sensitive to the neighborhood and the kinds of business that make Davis what it is

The landlords will rent to whoever is willing to pay the most.

As for avoiding Harvard Square-ization, all of this is driven by the increasing presence of affluent people. How do you propose to drive out the yuppies? Worse, "We have met the enemy, and he is us."

Date: 2014-02-05 03:27 am (UTC)
From: [identity profile] achinhibitor.livejournal.com
I'm unclear on who *likes* Harvard Square in its current state

Clearly there are people who buy the things for sale in Harvard Square's stores.

The problem is that while you like the look and feel of Davis Square, there's no mechanism for you to contribute money to support it. The only way people can support it is by buying things there. And clearly, if the stores are replaced with more expensive stores, and people buy at the new stores, they're willing to support the new stores more than the old ones -- because they're paying more. I suppose you could arrange for a tax levy on the houses in the neighborhood for some sort of "stabilization fund" that would subsidize the leases of "old style" businesses in the Square.

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