Local Self-reliance

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One way to speed the renewal of this dying area would be to build a new combined retail shopping center and parking garage. Of course, that proposal raises questions about how the planned structure would be financed, and who would own, operate, and reap any profits from the facility.

A community that formed a special district for managing such a project could both acquire the necessary capital for the shopping center and keep neighborhood control of the enterprise. First, the local group would ask its state legislature to draw up a bill to stipulate the needed parking/shopping complex, allow the community to sell revenue bonds to obtain startup capital financing, and establish a repayment structure for the debt through minimal user fees. Also, the proposed law would cover such areas as eminent domain and limited taxing powers.

Several other kinds of special districts might be set up by neighborhoods to provide local health care services, build solar power generating facilities ...or even institute a cable television distribution system! Some people will object to the notion of local special districts, though, on the grounds that wealthy neighborhoods might form their own governments and abandon poorer areas. But that shouldn't happen because the setting up of the new structures wouldn't put an end to the existing services provided by city, county, state, and federal governments. (Special districts can't secede from established higher lawmaking institutions!)

Nor would the new government's principal effect be to add more taxes to an already overtaxed population. After all, one of the biggest advantages special districts have is that they can attract investors by selling securities that pay tax-free interest. In addition, the organizations are also eligible to receive money from local, state, and federal governments.

The main issue at stake in considering neighborhood—run special districts is one of control. We have, in this country, a legal framework for the organization of special districts. Thousands of the systems have been set up, often by the wrong people for the wrong reasons. Yet the same tool can give ordinary citizens a nearly ideal model for gaining public powers in their own neighborhoods.

You can have a free catalog of ILSR's selection of books and pamphlets by sending the Institute a self-addressed, stamped envelope. To get on the mailing list for the organization's bi-monthly magazine, Self-Reliance, send $8.00 ($15 for institutions) to ILSR, Dept. TMEN, 1717 18th Street N. W., Washington, D .C. 20009. Or, send $25 ($17 of which is tax-deductible) to become an associate member of the In stitute ...and—in addition to receiving the magazine—you'll obtain a 20% discount on all other Local Self-Reliance publications .—MOTHER.

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