In an effort to avoid mistakes made in the past and inspire confidence in the process, parties wishing to receive economic development subsidies for projects in downtown Wichita are evaluated on a variety of measures. The evaluation matrix released for a project to be considered next week by the Wichita City Council, however, ought to be recalculated. City documents describe one of two competing projects as this: "River Vista is proposed by River Vista LLC, a development group comprised of George Laham, Dave Burk, Dave Wells and Bill Warren." It's this ownership team that ought to cause the city concern. Two of the evaluation criteria are "Past project experience with the City of Wichita" and "References, especially from other municipal partners." This development team was awarded the maximum number of…
For a video presentation of this material, click on Wichita performs a reference check, the video. Citizens of Wichita are rightly concerned about whether our elected officials and bureaucrats are looking out for their interests, or only for the interests and welfare of a small group of city hall insiders. Cronies, if you will. A recent application filed with Wichita City Hall regarding the West Bank Development Project raises two questions: Did the government officials listed as references give their permission, and were any of the references contacted to learn what they knew about the applicants? The application filed by the River Vista development team shows this: The team, consisting of George Laham, Dave Wells, Dave Burk, and Bill Warren listed numerous local, state, and federal officials as references. Here's…
Actions of the Wichita City Council have shown that campaign finance reform is needed. Citizen groups are investigating how to accomplish this needed reform, since the council has not shown interest in reforming itself. Consider recent actions by the council and its members: The council voted to give a movie theater operator a no-interest and low-interest loan, after having already received the benefit of tax increment financing. A minister dabbling in real estate development made a large contribution to his council representative just before he asked the city council for tax increment financing. The council voted to give a construction company a no-bid contract for a parking garage. When later put out for competitive bid, the same company won the contract, but with a bid 21 percent less costly to…
Everyone who cares about Wichita -- the entire city, not just special interests -- ought to be opposed to the continued use of tax increment financing (TIF) districts and other forms of subsidy that direct benefits to a small group at the expense of everyone else. Proponents of these programs such as Wichita Eagle editorial writer Rhonda Holman, most elected officials, and nearly all bureaucrats, need to justify these incentives. They make their case, of course, but the case is shallow. We need to look at research that studies these programs. We need to consider the effect of these programs on the city as a whole, and on the civic attitudes of Wichitans. When we do, we find that these programs just don't deliver what they promise, unless you focus…
A Wichita developer makes generous campaign contributions to a city council candidate, raising questions about both parties. (more…)
The Wichita Business Journal reports that without historic tax credits, some redevelopment projects might stop. In other words -- the Business Journal isn't quite so blunt -- if taxpayers don't give developers money, some of their projects might not be economically feasible. Or so the developers say. Spotlighted in Wichita Business Journal reporting is Dave Burk, a well-known developer in Wichita who specializes in getting the taxpayer to fund portions of his developments. Often the funding comes in the form of TIF district financing or special assessment financing used in ways it's not normally used. These complicated financial arrangements serve to hide what's really happening. Developers like Burk say that these financing schemes don't cost government or the taxpayer anything. But they go to great lengths to secure them. In…
In a free society with a limited government, taxation should be restricted to being a way for government to raise funds to pay for services that all people benefit from. An example is police and fire protection. Even people who are opposed to taxation rationalize paying taxes that way. But in the city of Wichita, private tax policy is overtaking our city. The Douglas Place project, a downtown hotel to be considered tomorrow by the Wichita City Council, makes use of several of these private tax policy strategies. By private tax policy, I mean that the proceeds of a tax are used for the exclusive benefit of one person (or business firm), instead of used for the benefit of all. And in at least one case, private parties are being…
In a free society with a limited government, taxation should be restricted to being a way for government to raise funds to pay for services that all people benefit from. But in the city of Wichita, taxation for private gain is overtaking our city. The Ambassador Hotel, part of a project known as Douglas Place, makes use of several of these private tax policy strategies. By private tax policy, I mean that the proceeds of a tax are used for the exclusive benefit of one person (or business firm), instead of used for the benefit of all. In one example related to this hotel, the Wichita City Council is allowing private parties to determine the city's tax policy at their discretion, not the city's. The tax in question is Wichita's…
Yesterday's op-ed by Rhonda Holman in The Wichita Eagle reveals a crucial need for a newspaper with at least one conservative voice on its editorial board (Say ‘no’ to naysayers, October 9, 2011). Here are a few ways in which Holman and her newspaper's editorial section are wrong about downtown Wichita development and a few other issues, and how the op-ed is a disservice to the people of Wichita: The real world, according to Holman While Holman cites the "real world" as the need to pour massive subsidy into downtown Wichita, I might ask this question: Why is downtown Wichita such an unattractive investment that lavish subsidy must be heaped upon those who invest there? Actually, the broader question needs to be asked, as the city often subsidizes development all…
This week there will be two dedication ceremonies for the "Waltzing Waters" display at Wichita's WaterWalk. One is an invitation-only affair for VIPs, while the other is open to the public. While these events are promoted as celebrations, we might use this opportunity to review the history and impact of this project that has absorbed many millions of taxpayer subsidy with few results. In 2009 a Wichita Eagle editorial started with this: "Seven years into a project that was supposed to give Wichita a grand gathering place full of shops, restaurants and night spots as well as offices and condos, some City Council members and citizens remain skeptical at best about WaterWalk's ability to deliver on its big promises. ... True, the skepticism to date is richly deserved." The editorial…