Thanks for the history lesson fren. I appreciate it.
Tax abatements are used all the time in every major city. It's called Tax Incremental Financing or TIF. Cities set up Tax Increment Districts or TIDs as a way to incentivize development. They are usually in blighted areas that have fallen into decay and no longer produce a Tax base. The new development, which typically involves a tax abatement for many years, is offered to first movers to get projects started. As the area becomes revitalized the second and third movers do not receive the abatements and the overall Tax base goes up with all of the new developments.
There is nothing nefarious about this at all. It's a great way to mitigate risk for first movers.
In fact, Trump took this concept nationwide during his first term with the Opportunity Zone program. It was one of the many economic miracles that Trump created and it benefitted the poorest areas of communities more than anything else.
If you look into this one, the Grand Hyatt Hotel, it's hard to conclude it's anything other than sketchy.
By 2016 the abatement returned 3x times the amount of the cost of building the Hotel and still had 4 years to go. This is because it went for an absurd 40 years. NYC has never ever given any other project a 40 year abatement. it also was not available to other developers only to Trump because again the mayor and the governor had known him since was a kid. And it was in a place where development started taking off, it's right near Grand Central, superb location....meaning it wasn't needed in the first place.
but my larger point, was Trump got his first deals done entirely through his family connections. If no Fred, no Donald. Fred had to sign for the bank loans, because Donald couldn't get financing and his political connections got him the project in the first place.
Thanks for the history lesson fren. I appreciate it.
Tax abatements are used all the time in every major city. It's called Tax Incremental Financing or TIF. Cities set up Tax Increment Districts or TIDs as a way to incentivize development. They are usually in blighted areas that have fallen into decay and no longer produce a Tax base. The new development, which typically involves a tax abatement for many years, is offered to first movers to get projects started. As the area becomes revitalized the second and third movers do not receive the abatements and the overall Tax base goes up with all of the new developments.
There is nothing nefarious about this at all. It's a great way to mitigate risk for first movers.
In fact, Trump took this concept nationwide during his first term with the Opportunity Zone program. It was one of the many economic miracles that Trump created and it benefitted the poorest areas of communities more than anything else.
If you look into this one, the Grand Hyatt Hotel, it's hard to conclude it's anything other than sketchy.
By 2016 the abatement returned 3x times the amount of the cost of building the Hotel and still had 4 years to go. This is because it went for an absurd 40 years. NYC has never ever given any other project a 40 year abatement. it also was not available to other developers only to Trump because again the mayor and the governor had known him since was a kid. And it was in a place where development started taking off, it's right near Grand Central, superb location....meaning it wasn't needed in the first place.
but my larger point, was Trump got his first deals done entirely through his family connections. If no Fred, no Donald. Fred had to sign for the bank loans, because Donald couldn't get financing and his political connections got him the project in the first place.
So The Donald is the first to use his dad's credibility and connections to get some opportunities?
⚡️Shocking⚡️
I understand you are not a fan of President Donald J Trump and I am fine with that.
u/#trumpflag