Page 40 - Cuero, TX Downtown Plan

ƒ Owner inertia – i.e., lack of owner motivation Very low taxes coupled with a weak regulatory regime (the
usually the result of a combination of the above current situation in Cuero) allows unmotivated property
along with abnormally low real estate holding costs owners to basically “sit” on their property without being
such as taxes, insurance and maintenance. compelled to maximize the use and income that can be
derived from them. More neglect is the likely result.
The recommendations contained in this plan Likewise, too high of taxes also acts as a disincentive
attempt to work on all of these factors simultaneously. to make major property improvements. Striking the
DOWNTOWN CUERO PLAN
Financing tools such as revolving loan funds, the right balance and applying it evenly and consistently
proposed heritage fund, tax increment finance, tax is crucial in helping to instill investor confidence and
credits and façade grants help address the “creditable” facilitate a virtuous cycle of reinvestment.
and “marketable” issues; whereas, the proposed
Main Street Cuero program and the Certified Local Another way to promote reinvestment in Downtown
Government (CLG) can help neutralize technical buildings is to provide tax incentives for those
fear. The business development strategies outlined in making substantial investments in their property.
the virtual incubator concept begin to improve the Such incentives can range from abatements of taxes
demand side, and regulatory enforcement begins to for a certain period of time – otherwise known as a
work on owner inertia. tax “phase-in” – or more powerfully by providing tax
credits against the costs of improvements.
One of the most important and sensitive issues facing
Downtown Cuero’s regeneration, however, hinges on Currently, a large section of Downtown is listed on the
bringing the tax code more in line with redevelopment National Register of Historic Places. This opens up the
goals for Downtown. This also gets to owner inertia. possibility of investors being able to reap federal tax
Taxes shouldn’t be so high as to unfairly burden credits of up to 20 percent for rehabs that meet the
property owners and discourage reinvestment, nor National Register’s rather exacting criteria. The tax
too low causing deterioration in public services credit applies toward one’s federal income tax and can
or effectively reducing property holding costs to be taken over a period of years.
abnormally low levels.

Market-Making

Localism Entrepreneurship
Business
Development
Organizational
Regulatory
Structure and
Correctness
Alignment
Place Development
Bricks & Mortar Programs Strategic
Catalytic

Incentives
Assistance Projects Business Climate

Promotion and Real Public Finance
Estate
Branding Public Amenities Housing Mixed-Use Tools
Development

40 ADOPTED 03.04.13