Thursday, July 23, 2015

Melvin Nimer Utah GOP Treasurer

Mel Nimer is someone I trust that has the knowledge, experience and ideas to tackle keeping track of and protecting the Utah Republican Party funds.

Monday, July 13, 2015

Moving the Prison for money does not pencil out

Basically, the $95 Million in taxes that are expected to be generated each year from a fully developed Commercial Draper site will Not be used to pay back the cost of moving the prison as it is likely the development would be commercial office and not retail, so the taxes would be Property Taxes benefiting the city and the local school district and Income Taxes, that benefit education.

the $1.8 Billion economic effect per year is similar to GDP per year where Utah is doing almost $150 Billion currently (so a small percentage wise) and Utah can now grow more than that in a year now not over the 10 years or 20 years it would take to hit that level after someone invests a $1 Billion of private money at Draper. Several have argued that 700 Acres couldn't generate 1/10th of our GDP. The good news it can't and won't, (closer to 1%) but it isn't claimed that it will. 

Replace the infirmary at Draper. And the Wasatch cell blocks. The U shaped annex to the South East and the Reception and Orientation building to the north east. Put the new buildings north east of the main complex. Maintain what you have at Draper and you save hundreds of millions. Talk to the staff that work at Draper. We are already building a new Pod of cells at Gunnison. The new reform passed this year will help. Don't move the Draper Prison.

Even if you do decide to replace the Draper Prison all at once now, not moving it will save the property land cost, moving costs, and the utility and infrastructure costs. Moving will not benefit the inmates, the staff, the volunteers, the visitors or the taxpayers.

Who is left? The City of Draper, the local school district, the owners of the proposed properties, and the developers. 

Well, based on the list of who benefits, Keeping it in Draper should be the decision.

Update: Both numbers could be higher or lower depending on what is done with the property if it is sold to the private sector.

One piece not covered is if retail sales are much of the tax revenue the state received, from the 680 acre site, that would come back as sales tax which would help the general fund which is where the money to rebuild a prison would come from.

If however much of the tax revenue came from income taxes or property taxes, (typical of a high end office complex) that would not repay the general fund.

The other point not mentioned is the Value Added (GDP) for Utah is currently between $140 Billion and $150 Billion. The $1.8 Billion proposed, eventually in 2029 is a number we can and have hit in one year statewide, not 10 years.

Certainly Draper City can benefit from increased property taxes if the prison moves.

I look forward to the additional numbers on Thursday, and the additional geotechnical reports coming in the next few weeks.