Hanover Handover

So, let me get this straight... The theater at the beginning of Southbridge Street that's named after a big insurance company is the property of a not-for-profit corporation. Since they're non-profit, their property comes off the taxable property list in Worcester. BUT, since they need more funding, they will be converting their status to a profit-making business in order to qualify for various funding sources, including the recently approved TIF deal. THEN, after the seven year TIF has run its course, the corporation plans to revert back to non-profit status because they'd never be able to afford the taxes on the property...

...BUT it's perfectly okay because the city stands to enjoy a $40 million side effect infusion from the mere presence of such a fabulous theater.

The thing that's really interesting to me is that this whole operation, were it to be a for-profit endeavor, would be completely unviable, according to this money quote:

"...the change in status would have put the building on the tax rolls at an estimated $325,000 a year, or about 25 percent of the theater’s operating budget. 'Such a tax burden would have made the theater financially infeasible', said Julie A. Jacobson, assistant city manager."

I can't seem to figure how a fundamentally unviable operation is going to somehow generate a $40 million infusion to the city. An operation that can't afford $325k a year is going to magically generate $40 million for the city? Where do they get these numbers? Is it just a coincidence that this oft-mentioned $40 million makes tossing around figures like $7 million seem like chicken feed?

What really floors me is the fact that a scam like this is perfectly legal in today's modern world...

Of course, it'll be good for the city...