Perkins/ Lincoln Financial Land Development Tax-Exempt?

There was an intriguing letter-to-the-editor in the most recent edition of the Rhino Times (ht: Keith).  It reads as follows:

I read with interest about Councilmember Robbie Perkins and his effort, through city staff, to incentivize the running of sewer lines to the property on High Point Road that he is marketing for Lincoln Financial. The property is supposedly being considered by a developer for a continuing care retirement community (CCRC). Now it appears we know why Mr. Perkins decided to run for City Council again. Commission on a $10 million sale would be attractive to anyone. Mr. Perkins should level with the citizens of Greensboro and Guilford County and reveal that a CCRC is a tax-exempt facility. CCRCs purport to be nonprofit and the North Carolina General Assembly, with efforts from lobbyists, has played along by passing a statute recognizing CCRCs as nonprofits, hence tax exempt. CCRCs, as defined by the statute, pay no property tax. Imagine a property valued at $10 million being removed from the Guilford County tax base. Who will make up the lost revenue? The quick answer is: The property owners of Greensboro, High Point and Guilford County. As of May 5, 2008, there were seven CCRCs in Guilford County – four in Greensboro and three in High Point. The property owners in all of Guilford County are indirectly subsidizing these CCRCs. Property tax is not the only tax not paid by CCRCs, but the property tax issue is the one that most property owners are concerned about just now; after all, property taxes have increased for the past four years and will increase again this year. There are 105 CCRCs in North Carolina. The citizens of our state cannot afford to subsidize these CCRCs through higher property taxes. The vast majority of our senior citizens struggle to pay their own property taxes. Subsidizing CCRCs where only a fraction of senior citizens live, many from places other than North Carolina, is unfair. What to do: Request the Greensboro City Council deny all requests by the CCRC that is attempting to buy the High Point Road property and write the North Carolina legislature asking for repeal of property tax exemption for CCRCs.

This is a very important, potentially explosive revelation if it is true.  Consider the inappropriateness of incentives being arranged-- or even discussed-- for a project in which a city councilman is involved, and which would yield little or no tax revenues for the city.

Comments

[Brenda Bowers]

We can thank this letter writer for bringing this to our attention. I made note of it last week. Of course we are both keeping a sharp eye on Robbie Perkins. I appreciate your special series on him Joe.

We also have to keep a sharp eye out for this scam being pulled off. BB

[Joseph Guarino]

You are right, Brenda. This merits some degree of vigilance.

[keith]

no problem on the hat tip, you can also add this tax advantage of the ccrc's for a person considering living there check out this web site, http://www.retirement.org/ccrc6.htm

[keith]

greensboro politics has a post linking to this one,

http://greensboropolitics.com/?p=418

[keith]

joe, check out item #24 on city council agenda for July 15, 2008. I think this is a different issue but very interesting .

http://greensboro.granicus.com/ViewPublisher.php?view_id=2

[Joe Guarino]

Interesting, Keith. It would appear this merits the attention of the media. The claim, over at Ryan's site, is that 125 jobs will be created in a senior care facility-- not a nursing home?

Does this mean the property truly will be tax exempt? Is this the type of facility that should receive economic development incentives if there will never be any property tax income?

And, of course, the entire set of circumstances that initiated this public discussion still remains.

[keith]

greensboro politics visa vi ryan is right in that this is the same item as what we are talking about in Kisco Senior Living is looking at the property. It was hard to download a 50 mb attachment. The citizens of Greensboro should wake up to this agenda item , right in the middle of all these bonds, it is hard to keep up.

[Brian]

Just curious, does anyone know if the county or the city of High Point set a precedent for incentives relating to CCRCs with River Landing at Sandy Ridge, the Presbyterian Homes owned facility. I'm sure the infrastructure had to be upgraded to accommdate a facility of that magnitude.

[Joe Guarino]

Good question, Brian, and I do not know the answer. Regardless of whether that happened, however, I am not sure it justifies doing it in this situation.

[keith]

greensboro news and record has a article in today's scoop click here,

http://blog.news-record.com/staff/scoopblog/2008/07/councils_millio.shtml

with no mention of the ccrc's and the tax exempt status.

[Joe Guarino]

Thanks, Keith. The issue of the tax-exempt status-- if true-- is a critical dimension that demands some public airing out.

[keith]

greensboro politics visa vi ryan , has a new post out today and one aspect is that Greensboro would need to annex this property into the city but maybe someone could let them know that there is a moratorium on annexation in North Carolina right now. So this land can't be annexed at this time , correct me if I am wrong.

[keith]

council approves incentive deal, it is time to look further into the ccrc's and also the annexation of the property

[Joe Guarino]

Incredible, Keith.

[keith]

the one no vote was Mary Rakestraw

[keith]

here is the article

http://www.news-record.com/content/2008/07/15/article/1_million_incentive_request_approved

[Joe Guarino]

Machine government at work. And if Barber voted in favor, it is a bit difficult to figure out.

Has the city indicated what the property tax revenues will be at the property?

[keith]

I am sure they haven't but I also forgot to add the unethical part of Robbie Perkins in this whole affair. The closed session by Jim westmoreland should not have been closed to the public . Reporters should have been allowed to be in meeting. There are a lot of aspects of this case that need further scrutiny and to see it play out like it, you just have to shake your head.

[Brenda Bowers]

One issue that gets to me in all this is the cost to live there. It appears t it will be at least $2-3 thousand a month for the Independent Living apartments if compared to the company's other Senior Living facilities. This is rather steep to be asking for tax money from property owners who will probably never be able to afford to live there. BB

[Joe Guarino]

I agree, Keith, that there should not have been a closed session. I wonder if it was used to reassure council members that nothing improper took place. You are right to shake your head and want more scrutiny.

That's interesting information, Brenda, about the monthly costs of living there. Is this what we are using incentive dollars to subsidize?