To the editor:

Lawrence’s City Commission is faced with making important decisions, among them tax breaks for developments and providing affordable housing.

Per the June 7 Journal-World, the “Vermont Place” development application seeks a 10-year tax rebate under the Neighborhood Revitalization Act. In the first five years the rebate would be 85 percent of the new tax value added to the property as a result of the project. In the next five years the rebate lessens to 50 percent. A majority of the commission has indicated that they would likely not favor such large rebates. The developer has also requested $7.7 million in industrial-revenue bonds which exempt him from paying sales tax on construction materials for the $8.8 million project.

The rebates would delay an increase in the property taxes collected on the new property. Furthermore, given red flags recently raised about Lawrence’s financial position, substantial sales tax exemptions may ultimately result in the need to increase Lawrence’s already high sales tax.

Perhaps Vermont Place provides a clue as to how the affordable housing issue might be addressed. For affordable housing locations scattered throughout Lawrence, could a developer apply for industrial-revenue bonds to eliminate sales tax on building materials? Could a mortgage program be established jointly between the city and local banks to allow tax rebates under the Neighborhood Revitalization Act for buyers of these, even more affordable, homes?

I suspect that most Lawrence taxpayers would rather see any resultant increase in their taxes support affordable housing rather than developers of projects like Vermont Place.