Fun little tidbit I learned about recently. Ever wonder who benefits the most from our development incentive policies? We often point at the evil developers (how dare they invest in our city!). But what about the land speculators? (1/6)

Consider this: You are a land speculator and own a vacant block for many years. Since property taxes are mostly based on improvements, you have little incentive to do anything with your land. You just hold it, and wait for someone who will pay you big bucks one day. (2/6)

“One day” arrives because the area is now hip and cool. A developer offers you $50K for your lot. You say you won’t sell for less than $250K. “There’s no way those numbers will work!” says the developer, “Those rents would end up being enormously high!” (3/6)

Another developer comes along. They offer you $65K. You still won’t sell. Why would you? It’s not like you’re paying much in taxes. You, land speculator, are entitled to hold that land for so long as you please! This is AMERICA! (4/6)

Then comes another developer, one with all the right connections and attorneys. They know the price you are asking, and go down to the city to get an incentive deal. That incentive deal justifies the $250K price-point for the land, demanded by you, the land speculator. (5/6)

You, the land speculator, get your payout. The developer gets their project. The true market price of land is distorted and unknown. We all live happily ever after. Except the taxpayers. F*ck the taxpayers. (6/6)