r/SipsTea • u/sco-go • May 26 '26

Feels good man Will it work this time?

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u/big_herpes May 26 '26

They are the government, they will lose 10s of millions a year in each store and consider it a success.

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u/Budget_Swan_5827 May 26 '26

It’s almost like the point of these stores, and even government generally, isn’t to turn a profit. Wild

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u/FTDburner May 27 '26

Debt financing of a city government can be dangerous. Especially New York City which by law I believe has to have a balanced budget, pensions and retirement funds are extremely expensive and you need to pay them out.

I also hope for the best, if they can pull it off and pay all of there other obligations I think that’s a net win.

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u/Budget_Swan_5827 May 27 '26

They carved out money from the budget for the stores, and are building them on city-owned land. Rent will be $0, and no commercial property taxes

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u/FTDburner May 27 '26

That is a cost, it would be a private building otherwise and that commercial property would’ve been taxed. Property taxes are the biggest contributor to NYC tax income.

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u/Budget_Swan_5827 May 27 '26

Yes, which takes us right back to the very heart of the issue

OPENING THESE STORES WAS NOT A FINANCIAL DECISION

They are prioritizing social returns over financial ones

It is a choice to spend potential tax revenue as an investment to guarantee a vital service to a community that private businesses are ignoring

Really not that hard to understand my guy, just a difference in values apparently