Why Does the City Pay Business to Relocate to Georgetown?

There is an excellent opinion piece in the Wilco Sun today (5-10-17) that asks the question; why does the city subsidize development?

"If Georgetown is so great, and if people are clamoring to come here, then why are we subsidizing builders and businesses to make that happen? When you have something that’s in high demand, then people should pay extra for it, not receive a bonus for taking it. That’s like having a party that turns out to be wildly popular and over-attended, then mysteriously deciding to actually pay certain people to come, with full knowledge that they’ll also be dragging along a whole new gaggle of revelers. 

If you have a bunch of folks wanting to join the fun, wouldn’t it be more prudent to ask them to pitch in on the beer? Maybe they could bring along an extra keg."

Yet, the city has a wholly owned corporation that uses sales tax money to subsidize development (Georgetown Economic Development Corp). This entity has 1/8% sales tax dedicated for its use and its budget this year is $1.47M.

Another city owned corporation, Georgetown Transportation Enhancement Corporation (GTEC) also uses sales tax money to build and improve roads for developers. GTEC has 0.5% sales tax revenue dedicated for its use and its budget this year is $5.9M.

Couldn't this $7.4M be better used to provide core services to the citizens of Georgetown? Or, how about reducing the tax burden?

As the author of the opinion piece asks; if Georgetown is in such high demand as a place to live and do business, why not let the developers pay for the installation of the infrastructure as property is developed?

This blogger has personal knowledge and experience in living in a city where there is very little long term debt and the developers pay for all the infrastructure, including providing land for schools and parks. This has been going on for 30 years and it works for a city that now is about twice the size of Georgetown.