City Council Agenda and Packet 2024 01 09 - SP

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with the parking impacts associated with special events such as parades and the street faire. These major events make our town special. However, having increased impacts on a regular basis is another thing. Economic Impacts 1. Taxpayers in Louisville have long supported the preservation and vitality of downtown businesses. As a result, the taxes collected from these businesses may not cover the total costs associated with the services they need. (These services include such things as police, street and alley maintenance, parking lots, and snow removal). This was especially true when the underpass under the railroad track was built. Whenever large capital projects are involved, net downtown revenues are at times marginal at best. 2. Along with providing services and products for residents, revenues produced by commercial areas are needed to fund city wide services. Residential units do not pay their way. Commercial revenues, in excess of the revenues needed for serving these commercial are needed to fill this gap. At the same time, it is important to note that sales tax revenues are paid by customers not retail outlets. Philosophically, sales tax spent by residents is credited to them, and sales tax from nonresidents is credited to the business collecting the tax. 3. The repeal of the Gallagher Amendment is going to reduce, albeit gradually, the property tax contributions we get from commercial properties. This means we may need to be more cautious with investments we make in support of our commercial areas. Equity for Competing Businesses 1. We do not make the same investments in other retail areas of the city that we make in the downtown area. For example, we require parking lots, but do not foot the bill for building or maintain them; nor do we allow them to expand their business onto public rights -of way. Again, we treat the downtown in a special way because of the character it brings to Louisville. But fairness requires us to put limits on how much we may be creating disadvantages for businesses in the rest of the city. 2. Furthermore, in our fiscal analysis for new businesses, we assume 30% of the revenue they are expected to receive will come from the cannibalization of existing competing businesses. When we help existing businesses expand the same phenomena is in place. Summary I fully expect this is in the Work Plan because somebody expects closing Main Street is a good idea. I and many of my neighbors do not share this presumption.