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I have been asked by some to expand and further
detail my thoughts regarding the socio-economic ramifications of agreeing
to allow Conoco Phillips to lease the fuel depot and build its hulking,
landscape dominating, LNG import and conversion facility. I call this
model the:
SOCIO-ECONOMIC EFFECTS OF INDUSTRIAL EXPANSION DRIVEN BY PROPERTY TAX
DEPENDENT MUNICIPALITIES
|
Stimulus |
Response |
Consequences & Considerations |
|
Industry comes |
Lowered Taxes |
Effect is temporary (See below) |
|
Lower taxes |
Development |
Low taxes spur development pressures. Population
density grows as people gravitate toward lower living costs. Sprawl
increases as commercial development ensues, drawn by both population
growth and reduced cost of doing business. |
|
Population Growth |
Land value rise |
Supply and demand market mechanism kicks in.
Property values increase due to limited resource under increasing
demand. Worst affected are low income residents, as values rise to
unaffordable levels. |
|
Development |
Municipal Spending |
Needing to meet the needs of a growing population
and commercial base, town spending rises as accommodations become
necessary and unavoidable. Schools are built, roads are expanded and
improved, water and sewer lines are installed and/or expanded to serve
the needs of the growing populace. Waste management becomes a greater
issue…Social services expand…etc..
These types of expenditures are astronomically
costly, which is common for all shared, public spending. The
government is the only body capable of this level of expenditure. |
|
Municipal Spending |
Higher Taxes |
Obviously, when a town spends more, it raises
revenue by increasing taxes. The difference this time, is that
property values are much higher and large scale spending is underway
and ongoing. |
|
Higher taxes |
Need for industry |
The cycle continues as municipal leaders strive
to control higher taxes by soliciting more industry. Ironically, as an
inducement, they will often offer industry tax reductions, shifting
the tax burden further to local property owners. Net result: More
people and greater sprawl. |
This is not a theory. The above model is based on
empirical analysis and time tested, tried and true, documented studies and
observations.
Conclusion:
Although taxes drop for a short period, eventually
any immediate benefit is more than offset by the unavoidable increases in
taxes required to fund municipal spending. Usually, the net result is
ultimately an increase in taxes. In any case, at the very least, the two
wipe each other out. Short term gains are eliminated by long term losses.
The money promised by this project is a null set.
Meanwhile, if one discounts the monetary benefits of
this project (BECAUSE THERE ARE NO ONGOING WIDESPREAD JOBS AVAILABLE AT
THE COMPLEX AND NO LONG TERM TAX BENEFITS);
Then what is Harpswell left with in the long run?
Answer: A huge, invasive and environmental
challenged industrial complex; higher ongoing town expenses with
commensurate higher taxes; crowding with higher population density; more
commercial sprawl; higher property values with even more displaced lower
income residents; devastated fishing grounds and the ever present threat
of a major explosion.
Why is this a good idea?
Answer: It isn’t.
There are better industries to grow with; Ones that
bring more overall jobs, which leads to slower, more manageable growth;
Ones that promise continuing healthy economic vitality by providing many
stable, ongoing jobs; Ones that don’t bring with it the dark possibilities
of environmental disasters, ruined livelihoods, and risk of fire storm
devastation to an entire area.
I keep saying it:
It is NOT about the money. If you weren’t making a
lot of money prior to this project, you most likely still won’t afterward.
Select people will benefit. The vast majority will be worse off.
It is all about the future of Harpswell…whether or
not you like pristine shorelines, beautiful vistas, quiet settings, a
healthy environment, great fishing and clamming and a friendly small town
atmosphere. Versus: Bringing Cook’s Corner to the intersection of Mountain
Road and Rt. 123…that type of thing. Some may nay say…contending there is
not enough land in town. I disagree. It looks to me like there is a lot of
available opportunity. Where there is a will…they build the way.
I frequently sit out in my front yard and there are
many times, even in the middle of the day, that I cannot hear the “sound
of man”.
DO YOU FULLY COMPREHEND HOW RARE AND VALUABLE THAT
IS???
That’s what Harpswell will be losing.
Forever.
The situation calls to mind a biblical analogy: Judas
Iscariot made a terrible mistake in trade for a few silver coins. He
deeply regretted his decision and ultimately killed himself over it.
Such is the fate of folks who sell what is truly
important for some quick money.
There are better ways…….
Best Regards,
Kevin White
Basin Point Rd.
Beautiful Harpswell Maine.
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