Voice For Liberty

Tag: Carl Brewer

Wichita Mayor Carl Brewer

  • Kansas and Wichita quick takes: Sunday October 31, 2010

    Wichita city council this week. The agenda for November 2 includes two instances of corporate welfare in the name of economic development (Approval of Forgivable Loan Agreement, Nex-Tech Processing and Approval of Economic Development Incentives, TECT Power, Inc.), an ordinance that cancels the Save-A-Lot TIF district, and revisions to Wichita’s Community Improvement District policy. I’m told that the last item may be deferred at the request of some developers, which — if I were a cynic — might cause me to wonder who is really running things at city hall. When the city had a meeting to discuss the CID policy, the meeting was stacked almost exclusively with those who have an interest in extracting as much economic subsidy as possible from the city.

    Mayor Brewer speaking on Save-A-Lot. On the October 24 edition of the KNSS Radio program Issues 2010, Wichita Mayor Carl Brewer spoke about the Save-A-Lot TIF district and what happened at the Sedgwick County Commission. Brewer said “The city said, okay, you can charge an additional two cents, if that’s what you want to do … But what ended up happening is the county voted against it and said no, we don’t want to let them charge themselves another two cents, and so it was voted down.” The “two cents” the mayor is referring to comes from the Community Improvement District that the city passed to benefit the Save-A-Lot store’s developers. Where the mayor is mistaken is in the role of the Sedgwick County Commission and the action that body took. The Kansas law regarding CIDs — the mayor’s “two cents” — gives no role to counties. Instead, the county commission voted to cancel the TIF district that the city created at the same time it created the CID. Now I can understand how people make misstatements when speaking on live television or radio. But the mayor seemed quite sure of himself. Host Steve McIntosh didn’t pick up on this error. KNSS shows have had other quality control problems recently, as when a host and guest discussed Wichita city council member Paul Gray and his prospects for reelection. Gray can’t run again due to term limits.

    Shop this way. Before addressing the proposed Planeview Save-A-Lot store, the mayor said that regarding the existing Save-A-Lot store at 13th and Grove, the city had to educate people in the surrounding area that they couldn’t buy just a loaf of bread or one item at at time, they had to buy an entire week’s groceries.

    Rasmussen tells us. “With less than a week to go before midterm elections, 32% of Likely U.S. Voters now say the country is heading in the right direction.” See Right Direction or Wrong Track. “Just 12% of Likely U.S. Voters now think Congress is doing a good or excellent job. Sixty-one percent (61%) rate their performance as poor. More at Congressional Performance. “With midterm congressional elections just a week away, the number of voters who view Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid Very Unfavorably have reached their highest levels yet.” See Congressional Favorability Ratings.

    Kansas high schools turn out graduates, but many are unprepared. At the end of a Lawrence Journal-World article on Kansas community colleges, “Responding to a question Thursday, [Jacqueline Vietti, president of Butler County Community College in El Dorado] noted that K-12 schools perhaps needed to place less emphasis on tests and more on the learning process and pointed to what she saw as ‘a disconnect between ACT scores and the preparedness of students’ coming to Butler County…. In a later interview, she acknowledged that 65 percent of recent high school graduates coming to her school require developmental work in math, English or reading.” This tracks with my reporting from earlier this year, which found that “only 26 percent of Kansas students that take the ACT test are ready for college-level coursework in all four areas that ACT considers.”

    Government or private sector. In today’s Wichita Eagle opinion line: “Why would anyone want to take the power away from the government, which is an elected body, elected by the people, and turn the power over to the private sector, which is elected by no one and in which very few have a say?” I might point out to this person that private sector firms must meet the test and demands of consumer preferences each and every day. Politicians, on the other hand, face the voters only every few years when their terms are up. Furthermore, in the private sector, I can choose to buy my produce at Dillons, canned goods at Wal-Mart, snacks at Target, meats at the carneceria, etc. In government, we usually have to choose between Candidate A and B, each in their entirety. We can’t select the things we like about each candidate as we can in the private sector and free markets.

    MSNBC’s Olbermann unhinged. “On Wednesday’s Countdown show, during a 21-minute ‘Special Comment,’ MSNBC host Keith Olbermann warned American voters against electing Tea Party Republicans to power, whom he suggested are ‘unqualified, unstable individuals’ who will take America ‘backward to Jim Crow, or backward to the breadlines of the ‘30s, or backward to hanging union organizers.’ He then made a play off MSNBC’s ‘Lean Forward’ slogan to disparage the Tea Party movement as he declared: ‘Vote backward, vote Tea Party.’” More, including video, at Newsbusters.

    Wichita Eagle to be protested. A little birdie told me: “I have heard that a group calling themselves Women Against Violence plans to picket the Wichita Eagle building on Monday from 11:30 am until 1:30 pm and again at 4:30 pm until 6:30 pm showing their opposition to the Eagle’s endorsement of a political candidate who allegedly assaulted his wife.”

  • Kansas and Wichita quick takes: Sunday October 17, 2010

    Roots of tea party. Richard A. Vigeurie writing in Politico: “Asked about what stirred the tea party movement, [Former VU.S. Senator from Virginia George] Allen blamed President Barack Obama and the Democrats. ‘It’s what has happened in the last year,’ he said. Allen is flat-out wrong. Americans didn’t elect Obama, Senate majority leader Harry Reid (D-Nev.) and House Speaker Nancy Pelosi (D-Calif.) as much as they threw out Republicans in 2006 and 2008. Americans were angry about the GOP officials’ lack of discipline and courage, and their profligate spending and abandonment of small-government, Republican principles.” Washington Examiner’s Mark Tapscott reacts: “Viguerie is right, of course, and his oped ought to be a reminder to all professional politicians in both major political parties that the Tea Party movement is at its most fundamental a reaction to the horrendous mess they have made of things in the nation’s capital.”

    Wichita Mayor Carl Brewer announces run for reelection. Here’s a list of Brewer’s prominent supporters, as reported by the Wichita Eagle’s Brent Wistrom: “Jack DeBoer, chairman of Consolidated Holdings and owner of WaterWalk; downtown developer David Burk; theater mogul Bill Warren; council member Sue Schlapp; Dave Wells, president of Key Construction; and Jeff Turner, CEO of Spirit AeroSystems, where Brewer worked before being elected in 2007.” As noted in comments to the article, the business people listed have benefited mightily from the city’s corporate welfare programs, which Brewer wholeheartedly supports as he readily accepts campaign contributions from those who benefit. Curious is the inclusion of city council member Sue Schlapp, who is quick to remind us of her conservative credentials, but nearly always votes for developer giveaways that end up costing city taxpayers. One name that is surprising to see on this list is Dave Burk. Earlier this year the Wichita Eagle reported this: “Downtown Wichita’s leading developer, David Burk, represented himself as an agent of the city — without the city’s knowledge or consent — to cut his taxes on publicly owned property he leases in the Old Town Cinema Plaza.” It’s telling that Brewer would have him stand nearby as he announces his reelection plans.

    Overheard on This Week in Kansas. Referring to Louisiana possibly using federal relief funds to pay for incentives to entice Wichita’s Hawker Beechcraft to relocate near the Baton Rouge airport, I said: “If we’re talking about Hurricane Katrina money being used to get these jobs, to my knowledge Baton Rouge wasn’t destroyed by Hurricane Katrina. It’s not like these jobs are going to the ninth ward in New Orleans, which was hurt.”

    Many Americans see government as a threat. Gallup Poll via ARRA News Service: “The percentage of Americans who think the federal government poses ‘an immediate threat’ to the rights and freedoms of ordinary citizens has increased significantly over the last seven years, rising from 30 percent to 46 percent, according to a Gallup poll. Only 51 percent of Americans now say they do not think the federal government poses ‘an immediate threat’ to the rights and freedoms of ordinary citizens. Similarly, the percentage of Americans who think the federal government has too much power has also significantly increased, from 39 percent in 2002 to 59 percent today.” I would be interested in seeing similar polls for state, county, and city government, as well as school districts.

    Markets tell us the worth of things. William Anderson writing in the Freeman: “A public-works project such as the proposed tunnel makes sense if over time the marginal benefits outweigh the marginal costs. If they do not, then it provides a benefit to some at the expense of others, something the ancients might have called ‘unjust.’ Since the output of public works is not priced in the market, how would we know if costs exceed benefits? … Today, we see economic analysis turned on its head. Projected cost overruns suddenly are justified because ‘they provide jobs,’ as though higher costs mean more wealth created.” As Wichita begins to plan for spending on downtown Wichita revitalization, we need to rely on market signals for the relative worth of things. Despite the claims of planning firm Goody Clancy that downtown Wichita will be market-driven, it is in fact driven by politics, which is the opposite of markets. Nonetheless, the Wichita Eagle covers downtown revitalization as a business story, when it is really a political story.

  • Kansas and Wichita quick takes: Thursday October 14, 2010

    Wichita mayor to lead LKM. City press release: “Wichita Mayor Carl Brewer was elected as the 81st president of the League of Kansas Municipalities (LKM) during the organization’s annual conference Tuesday morning in Overland Park. … He also urged his fellow local leaders to restore the public’s confidence in government. ‘We need to have our citizens recognize the value of competent government, and why our freedoms and security depend on it,’ he said.” As noted a few days ago on these pages, the League of Kansas Municipalities is a special interest group working in favor not of the citizens who live in Kansas towns and cities, but the politicians and bureaucrats that run them — and their cronies — who benefit from the LKM’s advocacy of things like TIF districts, STAR bonds, tax abatements, and eminent domain for economic development. So I don’t know if we should be proud that our mayor is the president of this group.

    Goody Clancy in Topeka, too. The Topeka Capital-Journal reports that Goody Clancy, the planning firm working for Wichita is also working in Topeka.

    FactFinder 12: Pompeo campaign ad. Analysis of an advertisement by Kansas fourth Congressional district candidate Republican Mike Pompeo by Michael Schwanke of KWCH 12 Eyewitness News concludes that Pompeo used some of the techniques that he and Republicans strongly criticized Democrat Raj Goyle for using. Schwanke concludes: “Goyle made those statements, but the ad doesn’t provide complete context.” This is the same issue that got Republicans riled up a few weeks ago.

    Pompeo poll released. The Pompeo campaign has released a poll that was commissioned and paid for by the campaign. The results are Pompeo with 58 percent of the vote, and Goyle with 31 percent. Two minor party candidates get three percent each, and undecided voters are at 16 percent. In its analysis the polling firm notes “the confrontational attacks by Goyle have backfired and have resulted in Goyle’s negative rating increasing substantially.” Candidate-produced polls need to be considered carefully. Goyle’s campaign has released their own polls in August and September which showed a smaller Pompeo lead than public polls. FiveThirtyEight indicates it flags polls which meet its definition of a partisan poll, which it defines as a poll conducted [on behalf of] any current candidate for office. It also says “Nevertheless, they are included in the ratings. If a pollster releases a poll into the public domain, we assume that they are interested in doing their best and most accurate work, regardless of whom the poll is conducted for.” The firm that conducted this poll for Pompeo conducted a poll for the same campaign July 6th through 8th, about a month before the August primary election, with results of Pompeo leading Wink Hartman 27 percent to 21 percent. The actual results were Pompeo 39 percent, Jean Schodorf 24 percent, and Hartman 23 percent. Public polls underestimated Pompeo’s actual vote total, too.

    Kansas legislator Merrick honored. American Legislative Exchange Council, described as a “nonpartisan individual membership organization of state legislators which favors federalism and conservative public policy solutions” has recognized Kansas Representative and Majority Leader Ray Merrick with its highest award. “The American Legislative Exchange Council (ALEC) is pleased to announce that Representative Ray Merrick of the Kansas House of Representatives recently received the highest honor that a setting legislator can receive from the organization — Legislator of the Year. Rep. Merrick received the award at ALEC’s 37th Annual Meeting, held in San Diego, Cal., August 5 — 8, 2010. Nearly 1,500 state legislators, policy experts, and private-sector leaders from across the United States attended three days of intensive discussions on the critical issues facing the states and our nation. This award is given to state legislators who are ALEC members in good standing and have distinguished themselves by advancing, introducing, and/or enacting policies based on the fundamental Jeffersonian principles of free markets, limited government, federalism, and individual liberty.”

    Education reform setback. Wall Street Journal Review & Outlook: “Michelle Rhee described her decision yesterday to step down as Washington, D.C., schools chancellor after 3½ years as ‘heartbreaking.’ We share the sentiment. That one of the nation’s most talented school reformers was forced out does not bode well for students … Ms. Rhee’s resignation ‘won immediate support from the Washington Teachers’ Union,’ a strong signal that her departure is a victory for the adults who run public education, not the kids in failing schools. … One reason education reform is so difficult is because unions believe their political influence and money will outlast even the bravest reformers in the end — which is why they’re cheering today in the District of Columbia.”

    Wichita Eagle voter guide available. Click here. You can get a list of the candidates, along with their responses to questions, customized for your address. The first advance voter ballots were mailed yesterday.

    Kansas Jackass blogger guilty. Kansas Watchdog reports: “Former blogger Jason Croucher entered a plea of guilty to 3 counts of child pornography on Wednesday morning at the U.S. Court House. Croucher’s progressive ‘Kansas Jackass’ blog was widely read by members of the Kansas Legislature and others in Kansas in 2009. The blog is no longer online.” Croucher operated anonymously until “outed” by Earl Glynn and myself, although he planned to become known on his own at some time. His style was to poke fun at his opponents, using anything negative about them as material for his attacks. Rarely was public policy discussed in a meaningful and serious way.

    Wichita Eagle Opinion Line. “Gov. Mark Parkinson: I have six employees. I need to expand my business or quit. Please loan me $1 million to be paid back with my employees’ income tax. Thank you.” A fine example of government intervention crowding out private investment and initiative.

  • In Wichita Planeview neighborhood: Yes, we have!

    Developers of a proposed Save-A-Lot grocery store in Wichita’s Planeview neighborhood have made the case that without two forms of subsidy, the store won’t be profitable and won’t be built.

    There is a counterexample, however. On Hillside, just south of Pawnee and just across the street from Planeview, sit two grocery stores that together occupy 13,000 square feet of space. This is close in size to the proposed Save-A-Lot store’s 16,500 square feet.

    While the developer says the Save-A-Lot store can’t be profitable without over $800,000 of taxpayer subsidy, the existence of these grocers proves that it can be done. They are in business, earning a profit, and doing so without government subsidy. The City of Wichita, apparently, is not aware of these success stories, or doesn’t care.

    Reviewing the September 14th meeting of the Wichita City Council gives us an idea of how little the city cares how its actions affect existing business.

    At that meeting, Rob Snyder, developer of the proposed Save-A-Lot store, said he has “researched every possible way” to make the project work. Without the subsidy, he said, there won’t be a grocery store. But the existence of several grocery stores in or near Planeview, operating profitably without government subsidy, shows that Snyder’s claims are false.

    I’m not claiming that Snyder intentionally lied to the city council about the necessity of subsidy for his store. But he has an $800,000 motive to get the council to approve his subsidy. And there’s evidence that corporate welfare like what Snyder requests is not necessary to open and operate a successful grocery store in this part of Wichita.

    During his talk to the council, it became apparent that Snyder thinks corporate welfare is a wise business and political strategy. Snyder lamented the fact that earmarks are now unpopular with the American public and not available to finance his proposed grocery store. An earmark — that is to say, a grant of money paid for by U.S. taxpayers — was used as a large part of the financing for the other Save-A-Lot in Wichita at 13th and Grove. An article by James Arbertha tells of the roll earmarks played in the opening of that store.

    While it may be necessary for Snyder’s store to be propped up by taxpayer subsidy, citizen Wendy Aylworth told council members of the several grocery stores already operating in the Planeview area. Mayor Carl Brewer appeared surprised to learn of these stores and asked Aylworth for their locations.

    The mayor’s surprise is evidence that the city simply does not care about the impact of its corporate welfare policies on existing business. Several people have pointed out to me that these existing stores — with the exception of one large supermarket — are ethnic grocers, although most carry a wide variety of food and household items.

    Is the CID tax necessary?

    One of the issues relating to CIDs is their very necessity. If a business feels it needs to generate additional revenue, why not simply raise its prices? Why is it necessary to have the government collect taxes in order to generate additional revenue for the merchants in the CID?

    Ron Rhodes, who developed the existing Save-A-Lot store in Wichita, addressed the Wichita city council that day. Rhodes referred to the “people who have ability to pay” an extra sales tax, and those who don’t have the ability to pay. Listening to him I couldn’t help be reminded of another slogan: “From each according to his ability, to each according to his needs.”

    Rhodes also spoke of neighborhood pride. But how proud can a neighborhood be when merchants have to rely on corporate welfare to open a store there?

    In later questioning, Rhodes said that a Save-A-Lot store can’t raise its prices due to a “price deck” policy that says that most prices should be uniform in Save-A-Lot stores. This is an internal business policy of Save-A-Lot that should not bind the City of Wichita. It is not relevant to the formation of public policy in Wichita.

    The issue of tax increment financing

    At the same meeting, Greg Ferris, a lobbyist for Snyder, told the council that “there will not be a building on that corner if this is not passed today. There will not be any tax revenue, so we are not taking away any tax money away from schools, police, fire, etc.” He said we have “spent months” trying to figure out how to finance a project in that area. He said that “a grocery store is not going to move into the Planeview area to service those people,” alluding to how a grocery store did not move to the 13th and Grove area until the city subsidized it.

    Ferris contended that there is no city tax money going in to this project that is taken from something else.

    While presenting himself as speaking for the public interest, Ferris is a hired lobbyist for Snyder, the developer of the proposed grocery store. He is being paid to present Snyder’s interests, and those alone. He invokes the standard argument of those seeking corporate welfare through tax increment financing: the “but for” argument. This is the claim that without the benefit of the TIF district, nothing will happen.

    It may be true that without the corporate welfare provided by the TIF district and the CID, Snyder won’t develop the Save-A-Lot store. But that doesn’t mean that it is not possible to run a successful grocery store in that part of town, as we have evidence that it is.

    Ferris’ claim that no tax money from something else will go into this project is false, too. Will the Save-A-Lot store pledge to forgo the use of police, fire, and other city services? As this store wants to escape paying the same taxes that others have to pay, the rest of Wichita has to pay to provide services that Snyder doesn’t want to pay for.

    TIF is not a wise policy. Research on tax increment financing indicates that TIF is a zero-sum game. When someone wins, others lose an equal amount. TIF does not increase the total amount of development that takes place in a city. It simply transfers development from one part of the region to another. This intervention by government may actually decrease the amount of development in a city.

    In the case of Snyder and Ferris, the city’s actions in favoring a politically-connected developer and lobbyist with taxpayer-funded welfare may result in small ethnic grocers and one large established supermarket going out of business. How is this progress?

    The moral hazard

    In visiting with the owner of the large building and one of the grocery stores on Hillside, I asked him if he sought government assistance when developing that property. He answered no, that he didn’t know — speaking in his broken English — “where to dig the money” at that time.

    Now he knows to get a shovel.

    This creates an increasing cycle of dependence on government, particularly Wichita city government, for managing economic development. Entrepreneurship is replaced by bureaucracy and politics, not only for the revitalization of downtown Wichita, but across the city too.

  • Drury request for more Broadview Hotel subsidy should be rejected

    Tomorrow’s meeting of the Wichita City Council features a public hearing on the creation of a Community Improvement District to benefit Drury Southwest, developer of the Broadview Hotel in downtown Wichita.

    CIDs are a creation of the Kansas Legislature from the 2009 session. They allow merchants in a district to collect additional sales tax of up to two cents per dollar. The extra sales tax is used for the exclusive benefit of the CID.

    In this case, Drury is asking hotel guests — these are visitors to Wichita, usually — to pay an extra two cents per dollar sales tax. This CID is being constructed as “pay-as-you-go,” in which the extra sales tax is sent back to the applicant as it is collected.

    The agenda material for this item tells us that Drury suffered increased costs due to “delays to the project caused by legislative changes to the value of historic tax credits.” Last week I told the council how economic development management by government adds political uncertainty to the entrepreneurial process. The Broadview developers chose to operate in the political arena rather than the marketplace. They were hurt — they claim — and now they want politicians to make up for that.

    Drury has already received, or will receive, a huge amount of assistance from government for its work on the Broadview Hotel. Its participation in Kansas’ historic preservation tax credit program means a grant to the developers of perhaps $4 million. It is just as though the state wrote a check to Drury for that amount, and this is money that Kansas taxpayers have to make up.

    Further, Drury will escape paying much of the taxes that the rest of us have to pay. According to city information provided last week, Drury plans to spend $22,797,750 on the hotel. If we use this as the appraised value for the property when it is complete, the annual property taxes due for this property would be $22,797,750 times .25 times 126.323 divided by 1000, or $719,970. This calculation may be rough, but it gives us an idea of the annual operating subsidy being given to this hotel for the next ten years.

    Then, as part of the industrial revenue bond program this hotel is participating in, the hotel will avoid paying sales tax on purchases related to its renovation and furnishing. It’s a little ironic, then, that the hotel asks its guests to pay a special additional sales tax that benefits only the hotel.

    Finally, the city accelerated riverbank improvements that benefit the Broadview, and there’s a sweetheart sale by the city of a parking garage across the street.

    So this hotel is receiving plenty of subsidy from Wichita and Kansas taxpayers.

    Does Wichita trust its planners?

    This request by Drury for more Broadview Hotel subsidy poses a challenge to Wichita city council members. Goody Clancy, the firm that has been planning the revitalization of downtown Wichita, has proposed what seems to be a tougher stance towards government handouts to downtown developers. David Dixon, principal planner for Wichita’s planning effort, was reported in the Wichita Eagle thusly: “Dixon was clear: There will be enough private development downtown to repay taxpayers for the public investments through increases in the tax base.”

    In January’s preliminary findings, Goody Clancy told Wichita that there is a strong market for hotels in downtown Wichita. The final report states: “Downtown Wichita offers a strong potential for new lodging developments.” That implies that hotels ought to be profitable without requiring massive subsidy. But right after the preliminary finding, the city broke new ground in granting millions in subsidy to a hotel developer to build a Fairfield Inn downtown.

    The Goody Clancy plan has not yet been before the Wichita city council for formal acceptance. But most members, especially Mayor Carl Brewer, are enthusiastic about the plan.

    Tomorrow’s meeting and the action by the council will let us know if the city has the political will to take Goody Clancy’s findings and advice to heart.

  • Good intentions, and planners, can sap a city’s soul

    The following article by Kansas City writer Jack Cashill, courtesy of Ingram’s Magazine, explains some of the problems with city planning of the type Wichita is undertaking at this time.

    There are two connections to Wichita in this article. The first connection is the Power & Light District in downtown Kansas City, a meticulously planned — and heavily subsidized — redevelopment that has been mentioned by Wichita Mayor Carl Brewer as a model for Wichita. It’s also been featured heavily on the city’s television channel.

    The second connection to Wichita is Cashill’s description of Louisville. That city is the hometown of Wichita Downtown Development Corporation President Jeff Fluhr, not that this fact means anything substantive regarding public policy. But Louisville was one of four cities praised in a case study that is part of a Wichita-produced document that makes the case for downtown revitalization. Also, Visioneering Wichita has a trip to Louisville planned for October.

    I recently spent some back-to-back time in two cities, one run by merchants and one run by planners. The difference between the two is that the planners’ city, a veritable clone of Kansas City, does not work. The merchants’ city does.

    Since 1955, my family has been spending a chunk of every summer in and around the wonderfully vulgar New Jersey burg called Seaside Heights.

    “Vulgar” has several basic meanings. In this case, all of them are apt, and none is necessarily bad. One is “deficient in taste, delicacy, or refinement,” and that certainly fits. So too, in spades, does “offensively excessive in self-display.” It is the third and original definition — “associated with the great masses of people” — that makes the other two come to life in so fruitful a way. Yes, at Seaside, great masses of indelicate people wander about in excessive self-display, but, writ large, it is all glorious to behold.

    If the natives are excessive, it is because they can be. An ethnic hotbed since its inception, Seaside Heights educates international visitors in one visual sweep on the difference between their working classes and ours. If theirs shuffle, heads down, ours strut, swagger even, heads up, plumage on full display. Ours believe in themselves and their futures.

    It was not without calculation that MTV chose Seaside Heights as the locale for its improbable hit, “Jersey Shore,” a show that captures the larger gaudiness of the place and distills it to its truly vulgar essence. Vulgar or not, when my brother-in-law and I spotted two cast members on the beach, we were the envy of every female in our 50-member family compound, almost all of whom have college degrees. Vulgarity sells.

    Seaside Heights works in ways that most cities don’t. Each summer evening, its main thoroughfare, the boardwalk, is jammed from end to end with throngs of people of all ages and stripes spending goo-gobs of money at miscellaneous shops, many of which have no parallel in the free world.

    On the mile-long commercial stretch of the boardwalk, there is not a single vacancy. I don’t remember there ever being one. The Seaside chamber boasts, only a little bit grandly, of thrill rides, a water park, fun-filled amusements, action-packed arcades, Ferris wheels, merry-go-rounds, an overhead chair lift, ski-ball, frog bog, squirt-gun games, balloon darts, ring toss, mini golf, go-karts, old-time photo shops, tattoo parlors, trendy boutiques, massage parlors, bars, discos, numerous Italian restaurants, pizza shops, Philly cheesesteak restaurants, a Mexican Cantina, an Irish Pub, frozen custard and soft-serve ice cream shops, saltwater taffy and fudge shops, a new bakery, and, of course, shops that serve “Seaside Heights staples like the Fried Oreo.”

    Of the above services, how many can you find in the Power & Light District? City planners would hock their first-born to create this kind of pedestrian traffic, but they don’t know how. They can no more plan “fun” than they could anticipate a popular demand for a fried Oreo. This hodgepodge of stuff was driven by the consumers as gauged and tweaked by savvy, on-site merchants over decades.

    Seaside represents America’s money culture at work. There is no public transportation anywhere near the town. There is not a single sign on the boardwalk in any language other than English. There is nothing even resembling a dress code. There is no convention center, no hotels, no buildings higher than three or four stories, no parking garages, no subsidies, no strip clubs, no “adult” book stores. Nothing is free, including the beach. And yet each weekend, 100,000 or so people speaking a dozen or so different languages find their way to the boardwalk.

    After a week at Seaside, I flew out of Newark to Louisville, a city I had not yet visited. To round out my New Jersey experience, I sat across from Dominic Chianese, a.k.a. Junior Soprano, on the little express jet. I struck up a conversation, never letting on that I knew who he was. I am sure I had him fooled.

    I arrived on a Sunday evening for a conference at the convention center. Had I not known any better, I would have thought the plane had been diverted to KC’s Power & Light District. Other than the occasional horse statue, there was nothing remotely indigenous about Louisville’s downtown. It had all the stultifying cookie-cutter charm of a place that had been planned and heavily subsidized precisely for the benefit of ungrateful visitors like me.

    My hotel was nice enough, but aren’t all hotels? On Sunday eve, my little group and I wandered up Fourth Street to the city’s entertainment district. I passed a Border’s, a Panera’s, an Einstein Brothers, and a Hard Rock Café. The street was blocked off, and a rock band was playing loudly and badly in the created space. The only problem was that there was little foot traffic and even less audience.

    We ducked into an elaborately fake British pub. To say the least, there was no wait. Our waitress was tarted up to look like Twiggie, but happily, her inner cracker showed through. She was delightful even when botching our order. “Y’all wanted a shepherd’s pie?” My younger comrades wanted to hit the Hard Rock Café next, but I ducked out to watch the season premiere of Mad Men. I had watched not a minute of TV at Seaside.

    There was a time, not that many years ago, when Kansas City competed against the likes of Chicago and Denver and Atlanta. Today, we compete — often unsuccessfully — with Louisville. The reason Louisville can compete with us is because we have become Louisville and Louisville has become us.

    We have taxed our distinctive merchant-driven centers like the Country Club Plaza and Westport — and cannibalized their customer base — to subsidize a soulless, planner-driven Downtown.

    Only four years after its creation, city officials now project that the allegedly self-sustaining Power & Light District will require long-term life support to the tune of $10 million to $15 million in an annual cash subsidy.

    It may be time to scrap all plans, exile all the planners and embrace the fried Oreo.

    The link to the original article is Good Intentions, and Planners, Can Sap a City’s Soul.

  • For downtown Wichita, Mayor Brewer has a vision

    In Sunday’s Wichita Eagle, Wichita Mayor Carl Brewer penned a piece that states his belief in the importance of downtown and prepares the people of Wichita for the start of a prescriptive planning process, with accompanying subsidy to politically-favored developers willing to fulfill the plan.

    The mayor used the word “vibrant” twice. Asking citizens a question like “Would you like to have a vibrant downtown?” is meaningless. Who doesn’t? It’s only when the question is accompanied by context that citizens can start to understand how they should answer.

    For example, in the mayor’s article, he mentions the use of special assessment financing that funded suburban infrastructure, and that this is not sufficient for downtown needs. This statement reveals a misunderstanding by the mayor about the various forms of financing that might be used to help development.

    Special assessment financing means that the city spends money to build something, like the new street to serve a site where someone wants to build a house or a shopping center. The cost of this street, plus interest, is added to the property’s tax bill over a period of years. The property owner doesn’t get anything for free.

    But in the forms of financing that the mayor and city hall planners favor for downtown, developers do get something for free. Under tax increment financing (TIF), developers get to use their property taxes to pay for the same infrastructure that everyone else has to pay for. That’s because in TIF, the increment in property taxes are used to pay off bonds that were issued for the exclusive benefit of a development. Or, as in the case with a new form of TIF called pay-as-you-go, the increment in property taxes are simply given back to the developer. (Which leads to the question: why even pay at all?)

    Some deny that TIF directly enriches the developer. They’ll make arguments such as “it’s only used for infrastructure and eligible expenses” or “it’s not lending, it’s bonding” or “it wouldn’t happen but for TIF” or the biggest lie: TIF doesn’t have any cost. But despite these claims, TIF has a cost, and it does directly enrich the developer. That’s its entire purpose; its reason for being. If TIF didn’t enrich the developer, how does it change something that is claimed to be not economically feasible into something that is?

    While city leaders say that public participation in the revitalization of downtown is to be limited, we should be cautious and skeptical. Goody Clancy planners have said that public participation will be limited to TIF. This is bad in its own right and should be opposed on its merits.

    We need to be skeptical of the mayor and downtown planners because there isn’t enough TIF money available to do what they want to do. I fully expect a citywide sales tax, probably in the amount of one cent per dollar, to be proposed for the benefit of downtown subsidized developers. City leaders speak fondly of such a tax that Oklahoma City has used for many years.

    City leaders have already shown themselves to be not averse to imposing additional sales taxes in Wichitans and our visitors, having granted several Community Improvement Districts the ability to charge up to an additional two cents per dollar sales tax. This means that when visitors check out of the Fairfield Inn in downtown Wichita, they’ll be faced with a sales tax rate of 9.3 percent. That’s in addition to the six percent guest tax, which in the case of this hotel is collected for the exclusive benefit of itself, rather than funding general government and tourism activities.

    More community improvement districts are in the works. Wichita may soon be peppered with them.

    No faith in free markets means no faith in people

    The unwillingness of Wichita city leaders to let Wichitans freely decide where they live, and Wichita businesses freely decide where to locate, is a sign of lack of confidence in free markets and the people of Wichita. Because Wichitans do not choose to live and locate their business firms where politicians like Carl Brewer and Janet Miller — to name just two — and city hall bureaucrats like Wichita city manager Bob Layton and Wichita economic development director Allen Bell want them to, they deliver a slap in the face. It appears in the form of a vision backed up by planning, regulation, and the power to dish out favorable tax treatment, as outlined above.

    Once formed, a vision is a powerful force. Randal O’Toole, author of The Best-Laid Plans: How Government Planning Harms Your Quality of Life, Your Pocketbook, and Your Future has written about visionaries and government planning:

    The worst thing about having a vision is that it confers upon the visionary a moral absolutism: only highly prescriptive regulation can ensure that the vision overcomes an uncaring populace responding to a free market that planners do not really trust. But the more prescriptive the plan, the more likely it is that the plan will be wrong, and such errors will prove extremely costly for the city or region that tries to implement the plan.

    An example of planning that many see as having gone wrong is the government planning that led to growth on the city’s fringes. An example that helped make this possible is the government’s decision to build the northeast expressway also known as K-96. Acts of government like this are claimed to have caused the demise of downtown, the very situation that planners now want to correct.

    With government making “mistakes” (their claim, not mine) like this on a grand scale, why are we willing to trust that politicians and bureaucrats are making correct decisions now? Especially when you look at the campaign finance reports of most city council members and see the same names giving repeatedly to all council members, with these same names appearing repeatedly before the council asking for their subsidy. This is not a decision making process that gives citizens confidence.

    It bears repeating: the existence of the downtown planning process tells Wichitans they’ve made a mistake in where they chose to buy a home or build a business. Not only will Wichitans have to pay for what they freely chose, they’re going to be asked to pay again so that those with purportedly superior vision can have their way.

  • Wichita, other city elections on horizon

    Next spring Wichita and other cities in Kansas will hold elections for city council members, school board members, and perhaps mayor.

    The filing deadline for candidates is January 25, 2011 at noon. The primary election is on March 1, and the general election is April 5.

    These elections are non-partisan, meaning that candidates don’t run as members of a political party. Instead, the top two vote-getters in the primary advance to the general election.

    The election calendar is a problem. Kansans presently have their political attention focused on our August primary, in which there are many hotly-contested battles. After that comes the November general election, which is likely to feature several races that generate intense interest and participation. Then comes the Thanksgiving and Christmas holiday season, when few want to think about politics.

    Right after that is the filing deadline for city elections, and then quickly, the primary and general elections. It’s a schedule designed for incumbents.

    In Wichita, there are three city council positions and the mayorship that are up for election. In district two, (click here for a map of districts), which is primarily the east side of Wichita, incumbent council member Sue Schlapp can’t run again because of the law limiting council members and the mayor to two four-year terms.

    In district four — south and southwest Wichita — Paul Gray has also served two terms and can’t run again.

    In district five — west and northwest Wichita — incumbent council member and Vice Mayor Jeff Longwell is in his first term and can run again if he chooses. He hasn’t revealed his plans publicly.

    Mayor Carl Brewer is also in his first term and can run again. I’ve not heard him reveal his plans.

    So far three candidates have publicly declared their intent to run. Former Executive Director of the Sedgwick County Democratic Party Jason Dilts has been actively running for the fourth district position for several months.

    In April securities broker and tea party activist Lynda Tyler announced her intent to run in district five against Longwell.

    Last week Galichia Heart Hospital CEO Steve Harris threw his hat in the ring for city council district two.

    There are others — well-known and not — that are considering running.

    Expect these issues to dominate the campaigns: First, downtown development — especially how to pay for it — is likely to be a dominant topic, as the Goody Clancy final plan is scheduled to be completed this fall. We can expect tremendous amounts of campaign funds to be directed to those candidates who favor taxpayer support and subsidy for politically-favored developers.

    As many Wichita political and civic leaders speak admiringly of the city sales tax that has funded downtown redevelopment in Oklahoma City, we might even see a sales tax question on the primary or general election ballot.

    The issue of taxpayer-funded economic development — whether downtown or elsewhere — may receive discussion too. Both Longwell and Brewer believe that Wichita doesn’t have enough “tools in the toolbox” for dishing out subsidy and tax breaks.

    Water is likely to be an issue too, as Wichita’s water rates are going up.

  • Letters on Wichita Bowllagio

    Letters recently appeared in the Wichita Eagle regarding the proposed Bowllagio project, a west side entertainment destination. Bowllagio is planned to have a bowling and entertainment center, a boutique hotel, and a restaurant owned by a celebrity television chef.

    The developers of this project propose to make use of $13 million in STAR bond financing. STAR bonds are issued for the immediate benefit of the developers, with the sales tax collected in the district used to pay off the bonds. The project also proposes to be a Community Improvement District, which allows an additional two cents per dollar to be collected in sales tax, again for the benefit of the district.

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    Property rights

    Imagine paying your mortgage and taxes for many years, only to get a knock on your door one day. A real estate developer tells you he wants your land.

    That’s what happened to a couple on South Maize Road in the boundaries of the proposed Bowllagio sales-tax-and-revenue (STAR) bonds district. They were offered the county-appraised value, plus 10 percent, for their home. But they don’t want to move, as they couldn’t find a comparable property for what the developer offered.

    Now the homeowners are concerned they may be forced out of their home through the process of eminent domain. This forceful taking of property by government is one of the worst possible violations of private property rights.

    Wichita Mayor Carl Brewer said that the city does not intend to use eminent domain for the proposed Bowllagio entertainment complex.

    That’s good news. The city can and should affirm this promise by writing it into the Bowllagio authorizing ordinance. Supporting private property rights is essential; the use of public funds for private projects is bad policy.

    Susan Oliver Estes
    Wichita

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    Let developer fill funding gap

    Bowllagio’s representative told the Wichita City Council last week that the developer needed $13 million in public money to fill the projected funding shortfall for the project to be economically feasible. I believe the developer needs to dig deeper into his own pocket to fill this funding gap, or seek private venture capital.

    As an experienced real estate practitioner, I am aggrieved that the Wichita mayor and City Council members lack the necessary experience to properly evaluate these projects. They have proved to be little match in protecting the public treasury against sophisticated developers accustomed to using the public purse as part of their real estate funding formulas.

    The investment of public money in bowling alleys, restaurants, shops and hotels that compete with existing businesses that offer the same services is not a proper role for government to play and is wrong. It creates an unlevel playing field for those businesses that compete in the same market using their own money.

    If the Bowllagio development venture is an economically feasible project, the private developer will find the private money he needs to fund it.

    John R. Todd
    Wichita