Fiscal 2023 DIF Account

Property Taxes In City Owned Facilities

 City owned facilities where the leasee pays property taxes:

  • Mexcal pays property taxes in their leased space downtown in the city owned parking garage
  • Luciano's pays property in their leased space in city owned Union Station

Why then are:

  1. Madison not going to pay property taxes when they lease the city owned parking garage
  2. WooSox not paying property taxes on Polar Park


Anonymous said…
I’m betting that they designed the Deals specifically so that no real estate taxes have to be paid by the ballpark owners or Dennis Dowdle. This is done by structuring the occupancy as a management contract or a concession contract instead of a lease.

A lease is an interest in real estate in an interest in real estate is taxable, even if the owner is a tax exempt entity. Think of a cafeteria in a tax exempt college which is run by a private catering company as a concession.

Mezcal and Luciano’s are apparently not in the old boys TIF/giveaway club so they were not allowed to structure their deals that way. They were treated like the rest of us average taxpayers having to pay there their share. Actually, since it is the commercial rate it is more than twice as much as their fair share.

I wonder how much real estate tax money was given away by the city on the ball park in the Madison properties development?
Anonymous said…
Are the leases with the WooSox and Dennis Dowdle public records?
Anonymous said…
The taxes on Mezcal are billed to the City of Worcester ODPB in the amount of $38,132.85. The bill on Luciano’s seems high. It is billed to the Worcester Redevelopment Authority in the amount of $218,422.82.
Anonymous said…
Real Estate Taxes on a $160,000,000.00 ballpark would be $5,334,400.00. Not a bad tax break if you can get it, but you and I can't.