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In a statement, CDPHE said the project would “support the needs of the public and support local businesses.” While CDPHE officials do not say how much of the contract’s value could be divvied up among the eight projects, their press release states only that their “principal value” “includes all property taxes generated from the sales, leases and use tax levied on buildings adjacent to the property, including all development, redevelopment, land use and permitting fees.”

So, the value of the contract includes all taxes on property that would not otherwise be counted as a sales, use or use tax. The same thing applies to the remaining properties, too, including any development, redevelopment, land use or permitting fees. In other words, these funds go to pay for building upgrades, but there should be no consideration given to tax increases for those projects that should be paid for by the businesses that are already contributing to the development costs.

That said, CDPHE is not doing any of this through a tax increase. Rather, the new project is taking into account the value of the tax on existing property, which means the project and any tax increases will be passed along to residents whose properties will be affected by the upgrades.


According to data compiled by the Bay Area Council, the district has a median assessed value of $1,841,000. Because most businesses are located in the city, the value of the property will be greater. This means that the increase to the property tax is a $27.2-per-home tax increase, while the developer’s tax bill is just $3 a year, but the developer will still owe $34,000 in property taxes to the city.

For those who might be thinking it’s time to give up, that’s exactly what the New York Times did back in March when it decided to end their $1.3 million sponsorship of a gay pride parade in San Francisco.

The Times’ decision to abandon the parade follows in the footsteps of ABC’s The View and NBC’s Today, both of which have said they will no longer participate in gay pride parades as well.

In addition, CBS News and other major print publications have reportedly backed out of their advertising deals with the city. The last major advertising company that was involved with the parade was Nike, and the company pulled its support earlier in May.

But, in case you were wondering, we have the answers.

As the New York Times

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