> Their reasoning is that CBD-based businesses are somehow entitled to pre-COVID customer levels
It's more like downtown property prices are based on those levels, and property is leveraged, and if banks collapse do to commercial property prices plummeting, you're in for a bad time.
Also, although downtown is a very small part of the city - in many cities, downtown property taxes make up a relatively large chunk of total property tax revenues.
You either death spiral downtown property prices by keeping taxes steady while values decline, or you increase tax everywhere else to make up the difference.
Either of those options leads to a bad time for politicians.
It's more like downtown property prices are based on those levels, and property is leveraged, and if banks collapse do to commercial property prices plummeting, you're in for a bad time.
Also, although downtown is a very small part of the city - in many cities, downtown property taxes make up a relatively large chunk of total property tax revenues.
You either death spiral downtown property prices by keeping taxes steady while values decline, or you increase tax everywhere else to make up the difference.
Either of those options leads to a bad time for politicians.