When is a tax abatement really necessary?

Last month Porter County took steps to vote in favor of a 10 year tax abatement for the former Porter Memorial Hospital, with a new campus expected at 49 and 6. There was a bit of controversy because the hospital is required to build a new facility by contract, so some questioned why the county would allow an abatement for an entity required to build anyway.

Recent news that the City of Valparaiso is working to create an economic development district along US 30 south of downtown, but extending all the way into Washington Township, has raised additional questions on the application of tax abatements.

• Should abatements be reserved for industrial projects only?
• Should abatements be allowed in mixed use, retail, or even residential?
• Do abatements create a negative impact on existing businesses that are paying their property taxes, and having to compete with new businesses that are only paying a portion?
• Do the jobs actual get created, and are these jobs tracked to make sure?
• Is there a case to be made that "all" abatements should be approved, especially during a recession?
  

I have some opinions, but would prefer to open this thread for comment and input prior to weighing in with my personal thoughts. So, fire away.