Comment Re: Not terribly new issue (Score 1) 95
I'm confused - what are local businesses entitled to?
If I open a coffee shop in an up and coming neighborhood, the neighborhood was ascending before my shop opened...if you want to profit from increasing property values, you have to OWN property, not rent it.
Well, if I understand the argument, the property values are going up because the coffee shop opened. They may have been going up beforehand but the growth continued because of the added flair of having hip coffee joints in walking distance.
I can see their point: I put in the work to open a coffee bar and can only make so much from it (because competition from other coffee stores prevents me from charging over $X for a latte). OTOH, the homeowners and landlords don't have the same constraint so they make much more money out of the deal.
While I'm somewhat sympathetic with the issue, I'm not sure what to do about it. Rising property tax rates in certain hip neighborhoods and giving the extra revenue to shop owners doesn't seem like a great long term plan. I think it's just the nature of operating a business. You'll create a lot of value you can't capture. You have to instead go into the enterprise understanding you can only capture what you can capture and if that's not good enough, don't start.