Ken Mair

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Introduction Economic Development offers local government, the private and not-for-profit sectors, and local communities the opportunity to work together to improve the local economy. The often-controversial practices allow of political action groups to cry foul over the appearance of political corruption and Cronyism. Background As the largest city in the small Mid-western state, Air City has a rich tradition of local economic development. Air City the hub of the regional economy has a population of approximately, 400,000 men, women and children. Like most mid-sized cities, Air City has diverse landscape of regional neighborhoods. One of the oldest and most impoverished is the historic African American enclave known as the Northeast Community. Throughout the years, the community has experienced decay, gang violence, drugs and civil unrest. While the city council, local universities, and community leaders have made multiple attempts to rehab the area, it is still a hub for gang activity and other undesirable events. One trouble stop is a dilapidated shopping center knows as Scion Plaza. Located in the heart of the community, this icon of 1950’s shopping became a popular gathering spot for troubled youth. A local community activist, champion of the region, and preacher at Savor of the World Christian Church, Roger Draper approached a local development group about purchasing Scion plaza and restructuring the building to accommodate more tenants with less smaller more manageable shops. Additionally, the plan called for four outparcels surrounding the mall. In order for the project to be completed, Draper and his well-known-business partners, now operating under the name, Canyon View Holding, sought economic incentives from Wichit... ... middle of paper ... ...espite having sold the LLC’s sole asset, and they intended to fulfill their agreement to cover any TIF shortfall for the full term of the TIF Loan. Samson reported the news of the sale to the City Manager. In his expert opinion, the city had limited options. Because the sell had already closed and the entirety of the profits associated wit the sale ($1,300,000) had been paid to the bank, it was unlikely City could do anything to unravel the sale because the City did not hold any mortgage or restrictions on file against the property. Sampson reported to the council that as a result of the sale, the City has no practical alternative to recover its funds. However, Sampson noted that the council could require full funding of the proposed TIF shortfall as a pre-condition of any future dealings or incentives involving any of the principals of Canyon View Holding LLC.

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