Friday, June 4, 2010

Burke questions whether developer who wants Wal-Mart paid taxes

Another excuse to NOT allow another Wal-Mart store in the city:
But Finance Committee Chairman Edward M. Burke (14th) showed up anyway to question why the developer of the proposed Wal-Mart-anchored Pullman Park did not pay the city or the CTA a transaction tax after a change in ownership.

The ownership change — to an entity known as North Pullman 111th, Inc. — was triggered by the takeover of Park National Bank, an original partner in the development, by the Federal Deposit Insurance Corp. (FDIC).

David Reifman, an attorney representing the developer, argued that the Far South Side property is located in an enterprise zone and, as a result, would be “exempt” from the transaction tax.

But he was not as certain about the CTA portion of the transaction tax and acknowledged that additional research would be needed.

Burke let him have it.

“If an applicant is [in] arrears on a tax — just as we have disclosure requirements for scofflaws or deadbeat dads — if it isn’t now an invalid application, it ought to be,” Burke said.

Even if Reifman is correct and enterprise zone transactions are exempt from city taxes, it may not apply to the CTA portion of the tax, Burke said, adding, “I don’t think we included that in the ordinance.”

“I, for one, will oppose any further action by this committee until such time as we get answers to these questions, and until we learn whether there’s an obligation for a transaction tax, what the [financial] consideration was for a transfer of ownership,” the alderman said.
Via CapFax morning shorts!

1 comment:

  1. Here is a someone with a different view on the parking situation.


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