Tag: Featured

  • Wichita city sales tax passed

    Wichita city sales tax passed

    Wichita voters might be surprised to learn that they passed a city sales tax, according to city documents.

    In 2014 the Wichita City Council allowed voters to decide on a temporary one cent per dollar Wichita city sales tax. That would have taken the sales tax in the city from 7.5 percent to 8.5 percent. The matter failed to pass, with 62 percent of voters against the tax.

    But wait. According to the agenda packet for the council’s meeting on March 5, 2019, a one-cent city sales tax has been approved at an election.

    In the agenda for that day, as part of item V-3, titled “Private Development Agreement with Wichita Riverfront LP (District IV),” there is a development agreement between the city and a group wanting to develop city-owned land near the new baseball stadium. Section 6.03 of the development agreement holds this surprise:

    The 1% City sales tax has been approved at an election, and the City agrees that the City sales tax revenues generated within the STAR Bond District will be committed to pay the principal and interest of the STAR Bonds.” (emphasis added)

    That’s news.

    This error — if it is an error — is much more than a simple typographical error or misspelled word. I’ve asked the city for an explanation of what this means.

    Something like this must be more than a random mistake. We need to know: How did this statement make its way into an official city document, specifically an agreement between the city and a business partner?

    Are city officials planning another sales tax election? Not only planning an election but banking on the passage of the tax?

    Is the business partner relying on a new Wichita city sales tax? Did the city promise this?

    Is this something else we haven’t been told, like a secret deal to sell city-owned land for $1 per acre?

    Is this someone’s idea of a joke?

    No matter what explanation the city may provide, it’s difficult to fathom how language like this appears in an official city document unless someone is thinking about this — and wishes for new taxes.

    I’ll let you know if I get a response from Scot Rigby, who is Assistant City Manager, Director of Development Services for the City of Wichita.

    Update: It was a mistake, the city says. See Update: Wichita city sales tax not passed.

    Excerpt from Wichita city council agenda packet. Click for larger.
  • Coverage of Wichita baseball owner Lou Schwechheimer

    Coverage of Wichita baseball owner Lou Schwechheimer

    Press coverage of new Wichita baseball team majority owner Lou Schwechheimer.

    We don’t know much about the ownership team of the new Wichita baseball team, led by majority owner Lou Schwechheimer. But here’s a look at some of the press coverage from November 2015, when Schwechheimer was announced as part of the new owners of the New Orleans Zephyrs AAA minor league baseball team (later renamed the Baby Cakes).

    The New Orleans Times-Picayune contributed this quote: 1

    “Our goal is to make the New Orleans Zephyrs one of the top franchises in all of Minor League Baseball. With the great South Louisiana fans, the love of sports here and our hard work, we have every reason to believe that we will succeed,” Schwechheimer said.

    “New Orleans will be in the top tier of attendance, because this is a great town. This is a resilient town. This is a magical town. … I can promise you this ballpark will come alive. We will provide first class family entertainment where families can come out with their kids, where grandparents can bring their grandkids to their first game, where young couples can go on their first date. It’ll be a family place. We only ask the fans in New Orleans one thing: just come once. Let us earn your trust one time and I promise you’ll be back.”

    The news organ of minor league baseball reported this: “Our goal is to make the New Orleans Zephyrs one of the top franchises in all of Minor League Baseball,” Schwechheimer said. “With the great South Louisiana fans, the love of sports here, and our hard work, we have every reason to believe that we will succeed.” 2

    In 2016, local media reported this: “Schwechheimer, announced Monday as manager and controller of a company that has bought 50 percent of the New Orleans Zephyrs, said that type of diligence, dedication and now experience will be used to turn around this city’s Triple-A team.” 3

    In 2018, at least a few people in New Orleans weren’t happy with Schwechheimer’s plans to move the team to Wichita: “Relocating the Baby Cakes to Wichita, a city with one-third the market of New Orleans would be in many ways the final act of betrayal by owner Lou Schwechheimer. First, Schwechheirmer changed the team name from the Zephyrs, which New Orleans embraced, to the Baby Cakes. The name is loathed by most in the New Orleans area.” 4

    An unhappy fan submitted this letter to The Times-Picayune: 5

    The Babycakes were never committed to New Orleans

    After only two years, the cleat finally dropped. The organization that owns the team formerly known as the Zephyrs is decamping New Orleans for the friendlier and far more lucrative confines of a new ballpark in Wichita, Kan. Hope they come up with a catchy nickname.

    This group of carpetbaggers from New England were on their way out the door the day they walked into New Orleans. They clearly demonstrated their utter lack of regard for this community and for the game of baseball when they adopted the most demeaning, the most nonsensical and the least authentic nickname they could have come up with. It wasn’t even a part of our community’s well-known idiosyncratic idiom.

    Sure, they sold tons of merchandise the first year, then in only two years presided over the dissolution of a quarter of a century of AAA baseball in a major league market. That was no accident. To demonstrate how bush league these guys are, they didn’t even sew the logo or the numbers — much less player names — on their jerseys. They simply printed the shirts. Even Little League teams have numbers and team names sewn on.

    The New Orleans Times-Picayune also reports that the Baby Cakes will be leaving before the end of the team’s stadium lease: “The New Orleans Baby Cakes have filed an application to relocate the team to Wichita, Kansas, according to the Louisiana Stadium and Exposition District. The LSED said in a release Thursday (Sept. 6) the team is expected to stay until the expiration of the lease through the 2021 season. The Wichita Eagle reports the city hopes to have a team in place by 2020. That would make 2019 the final season for the Cakes in the New Orleans market.” 6 Minutes of the October 25, 2018 meeting of LSED confirm that the lease runs through 2021. 7 This means the Baby Cakes, if playing in Wichita in 2020 as planned, will have left New Orleans with two seasons remaining on the lease.


    Notes

    1. Boudwin, Julie. New Orleans Zephyrs announce new ownership group, day-to-day management team. The Times-Picayune, November 30, 2015. Available at https://www.nola.com/baby-cakes/2015/11/new_orleans_zephyrs_1.html.
    2. MiLB.com. Schwechheimer introduced as Z’s owner. November 30, 2015. Available at .
    3. Williams, Darrell. New owner Lou Schwechheimer tasked with turning New Orleans Zephyrs around. The New Orleans Advocate, April 22, 2016. Available at https://www.theadvocate.com/new_orleans/sports/zephyrs/article_0119ed0a-4d00-5a7e-be97-00d430c0f819.html.
    4. Boyd, Kevin. BREAKING: New Orleans Baby Cakes Are Heading To Wichita After 2019. Available at https://thehayride.com/2018/09/breaking-new-orleans-baby-cakes-are-heading-to-wichita-after-2019/.
    5. Letters, September 14, 2018. Available at https://www.nola.com/opinions/2018/09/babycakes_leaving.html.
    6. Dabe, Christopher. Baby Cakes on the move: team to leave after lease expires, LSED says. The Times-Picayune, September 6, 2018. Available at https://www.nola.com/baby-cakes/2018/09/baby_cakes_moving_wichita.html.
    7. Available at https://www.lsedgov.com/uploads/1/0/9/6/109696749/october_minutes.pdf.
  • Slow down on Wichita ballpark land deal

    Slow down on Wichita ballpark land deal

    A surprise deal that has been withheld from citizens will be considered by the Wichita City Council this week.

    Wichitans were probably surprised to learn Sunday that the city plans to sell land near the new baseball stadium to the owners of the new baseball Wichita team.

    Surprised for several reasons: First, while the city completed an agreement with the new team last year, the land sale was not disclosed to the public. There appears to be no prior public mention of this.

    Second, the city plans to sell land for $1 per acre.

    Third: While the Wichita Eagle reported this story Sunday 1 We might have known as early as Friday, except that city council agendas were not available due to a website problem. The website was fixed Monday afternoon.

    Here’s what the agenda packet holds for item V-3, titled “Private Development Agreement with Wichita Riverfront LP (District IV).”

    “As part of the City’s effort to attract affiliated baseball to Wichita and secure development activity to help pay for the stadium STAR and TIF bonds, the City extended the invitation for interested team ownerships to have development opportunities surrounding the stadium. The New Orleans’s team ownership did express that as a requirement for their interest in Wichita they required development rights around the stadium.”

    This is the first time the city has revealed that development opportunities surrounding the stadium were a requirement of the baseball team deal.

    From the agenda: “City grants the Developer exclusive right to purchase the Private Development Site for the development of the hospitality, commercial, retail, office and residential uses, as contemplated herein, for $1.00 an acre.”

    How much land at one dollar per acre? Earlier, the agenda holds this: “The City owns approximately 24 acres at the former Lawrence Dumont Stadium site. After securing the final footprint of the stadium site, adjacent streets, infrastructure and riverfront enhancements, it is estimated that the remaining property available for private development will be 4.25 acres.” (The Eagle article reported the sale would be 24 acres, but the agenda contradicts that.)

    It is troubling that the city has not been forthright in sharing this with us before now. Besides the agenda, the Eagle reported this:

    “It goes back to the partnership that we have worked out with the team,” said Scot Rigby, assistant city manager and director of development services, whose department came up with the agreement.

    “That’s where we struck that agreement on the value of the ground. For the city, we’ve already owned that property,” he said. “If we didn’t do anything with it, it would be undeveloped property. So the value for us is to get it in development as quickly as possible.”

    Also, from the Eagle:

    Having the baseball team expand its operations from baseball to real estate along the river has been part of the plan since talks started between the team owners and city officials about three years ago, and it played a major role in attracting the team to Wichita, officials with the city and the team said.

    “We needed a team that played the level of baseball that was attractive for the community and important in terms of affiliated baseball at the Triple-A level. But we also wanted a team that could deliver on the development,” Layton said.

    Why didn’t the city feel it could share that with us at the time the deal was struck for the team to move to Wichita?

    There’s also this. We don’t know much about the ownership team, led by Schwechheimer. At least some in New Orleans weren’t happy with his plans to move the team from there to Wichita: “Relocating the Baby Cakes to Wichita, a city with one-third the market of New Orleans would be in many ways the final act of betrayal by owner Lou Schwechheimer. First, Schwechheirmer changed the team name from the Zephyrs, which New Orleans embraced, to the Baby Cakes. The name is loathed by most in the New Orleans area.” 2

    More troubling is this: Schwechheimer bought the New Orleans team in 2016. At the time, local media reported this: “Schwechheimer, announced Monday as manager and controller of a company that has bought 50 percent of the New Orleans Zephyrs, said that type of diligence, dedication and now experience will be used to turn around this city’s Triple-A team.” 3

    The Eagle reports this: “Having the baseball team expand its operations from baseball to real estate along the river has been part of the plan since talks started between the team owners and city officials about three years ago, and it played a major role in attracting the team to Wichita, officials with the city and the team said.”

    If all this reporting is true, talks about moving the team from New Orleans started in 2016, the same year Schwechheimer purchased the team and said he would use “diligence” and “dedication” to turn around the New Orleans team.

    That’s something to think about. Is this a reliable person?

    Also: The $1 per acre reminds us of other $1 dollar deals the city has crafted. In 2012, the city leased land it owned in Waterwalk for $1 per year for 93 years. There were apartments built, but the city did not follow through on an important part of the deal. 4 Other developments in Waterwalk were leased for $1 per year. 5

    In these instances, apartments and a hotel were built. But in general, Waterwalk has been a dismal failure, and in recent years its fortunes have declined farther.

    In 2011 the city decided to build a parking garage downtown with retail space. It leased 8,500 square feet of that space to Dave Burk for $1 per year. Much of that space has remained vacant since it was built.

    Can’t we see some progress on these projects before the city does it again?

    Then, these developers are from out-of-town, like — dare I say — the Minnesota Guys. At one time the toast of the town, their multi-count criminal indictment for securities fraud is on appeal to the Kansas Supreme Court on a jurisdictional matter. Other than that, they left a trail of broken promises and bad debts in downtown Wichita.

    For these reasons — a surprise announcement that has been withheld from citizens, a broken website, repeating a pattern that hasn’t been successful — we need to take at least a few weeks to mull over this deal.

    Then, there’s this: In the agenda packet, section 6.03 of the development agreement holds this surprise: “The 1% City sales tax has been approved at an election, and the City agrees that the City sales tax revenues generated within the STAR Bond District will be committed to pay the principal and interest of the STAR Bonds.”

    I have no idea what this means. But how did this appear in an official city document and an agreement with a developer?


    Notes

    1. Swaim, Chance. Wichita plans to sell riverfront property near new ball park for $1 an acre. Wichita Eagle, March 3, 2019. Available at https://www.kansas.com/news/politics-government/article226994834.html.
    2. Boyd, Kevin. BREAKING: New Orleans Baby Cakes Are Heading To Wichita After 2019. Available at https://thehayride.com/2018/09/breaking-new-orleans-baby-cakes-are-heading-to-wichita-after-2019/.
    3. Williams, Darrell. New owner Lou Schwechheimer tasked with turning New Orleans Zephyrs around. The New Orleans Advocate, April 22, 2016. Available at https://www.theadvocate.com/new_orleans/sports/zephyrs/article_0119ed0a-4d00-5a7e-be97-00d430c0f819.html.
    4. Weeks, Bob. Wichita WaterWalk apartment deal not good for citizens. Available at https://wichitaliberty.org/wichita-government/wichita-waterwalk-apartment-deal-not-good-for-citizens/.
    5. Weeks, Bob. Waterwalk hotel deal breaks new ground for Wichita subsidies. Available at https://wichitaliberty.org/wichita-government/waterwalk-hotel-deal-breaks-new-ground-for-wichita-subsidies/.
  • Kansas GDP

    Kansas GDP

    In the third quarter of 2018, the Kansas economy grew at the annual rate of 2.3 percent, down from 4.7 percent the previous quarter.

    In the third quarter of 2018, the Kansas economy grew at the annual rate of 2.3 percent in real (inflation-adjusted) dollars, according to statistics released today by Bureau of Economic Analysis, a division of the United States Department of Commerce. GDP for the quarter was at the annual rate of $165,415 million.

    Kansas real GDP growth through 2018-Q3. Click for larger.
    The rate of 2.3 percent ranked thirty-eighth among the states. In the second quarter of 2018, Kansas GDP was seventh-best in the country.

    Quarterly GDP growth for states can be volatile, as shown in the nearby chart.

    For Kansas, industries that differed markedly from the nation include agriculture, durable goods manufacturing, real estate and rental and leasing, and government and government enterprises.

  • Sedgwick County job growth exceeds national rate

    Sedgwick County job growth exceeds national rate

    In the third quarter of 2018, Sedgwick County quarterly job growth exceeded the national rate for the first time in nearly ten years.

    Data released today by the Bureau of Labor Statistics, part of the United States Department of Labor, show an improving jobs picture for Sedgwick County.

    Data from the Bureau’s Quarterly Census of Employment and Wages (QCEW) program show that from September 2017 to September 2018, Sedgwick County gained 5,200 jobs, which is a rate of 1.9 percent, as calculated by BLS. For the nation, growth was 1.6 percent.

    While the rate in Sedgwick County for the third quarter of 2018 exceeded the national rate, for the most recent four quarters the average rate for Sedgwick County was 0.85 percent, and 1.55 percent for the nation. This was the first quarter since 2009 in which Sedgwick County job growth outpaced the nation.

    Average weekly wages in Sedgwick County increased by 3.8 percent over the year to $880. For the nation, wages rose by 3.3 percent to $1,055.

    Click charts for larger versions.

  • Is the Wichita mayor satisfied with this?

    Is the Wichita mayor satisfied with this?

    A gloomy jobs forecast is greeted with apparent approval by Wichita Mayor Jeff Longwell.

    We have to wonder: Did Wichita Mayor Jeff Longwell read before tweeting?

    Click for larger.
    A recent Longwell tweet references news reports regarding a forecast from Intrust Bank Wealth Services. Titled 2019 Economic Outlook and Market Perspectives, it contains this regarding Wichita:

    The Wichita economy saw jobs lost in 2017, but improved last year. Job growth is expected to trend slightly higher in 2019, buoyed by manufacturing and professional services. We anticipate the Wichita economy to expand this year, but grow at slower rate than the U.S. and the majority of metro areas. Business/consumer optimism and aerospace demand should help power the local economy; however, trade issues, commodity prices, lack of skilled labor, and slow population growth will likely limit growth in southeast Kansas.

    There’s not much good news in this forecast, except that job growth is expected to grow rather than decline as it did two years ago. So we have to wonder why the mayor retweeted — presumably approvingly — this grim forecast.

    It’s a continuation of a trend:

    • Several times Longwell and other city officials have promoted a study claiming Wichita is a highly “recession-proof” city. That study is nonsense and ignores key economic data and the definition of a recession. See Wichita mayor promotes inaccurate picture of local economy and Wichita, a recession-proof city.

    • Responding to a different forecast of job growth in Wichita for 2019, Scot Rigby, who is Assistant City Manager, Director of Development Services for the City of Wichita, tweeted “great news.” But that forecast is as gloomy as the Intrust forecast, with job growth expected to be about half the national rate. See Job growth in Wichita: Great news?

    • Generally, Wichita officials are pleased with the local economy (Former Wichita City Council Member Pete Meitzner: “We have enjoyed great progress and growth during my two terms as a City Council member and I plan to do my part to assure Sedgwick County is part of this continued success.”) But the available statistics are grim and are improving only slowly. See Growing the Wichita economy.

    If Wichitans don’t read beyond the rosy headlines and tweets from the mayor and city officials, they will be uninformed, and unfortunately, misinformed by people we should be able to trust.

  • Sedgwick County Commission needs to slow down, get things right

    Sedgwick County Commission needs to slow down, get things right

    Sedgwick County needs to make sure past issues are known and settled before proceeding with hiring a new county manager, writes former commissioner Richard Ranzau.

    While most members of the Sedgwick County Commission are eager to move on from events of the past two years, it’s important to know what really happened. Some important questions:

    • A majority of commissioners wanted to fire former manager Michael Scholes, with chair David Dennis presenting Scholes with an ultimatum on September 28, 2018. Later, in November, the same commissioners hired an outside law firm to investigate Scholes so that a politically correct reason could be given for his dismissal. We need to know more about the real reason why commissioners wanted to fire Scholes.

    • What is contained within the report (identified in county documents as “Management study – Stinson, Leonard & Street”) used as the cover for firing Scholes? The county will not supply the document, citing attorney-client privilege and personnel confidentiality. This allows commissioners to make all sorts of claims that we can’t verify. For example: The many high-level employees that purportedly quit because of Scholes — can’t we get even one name?

    • Some conclusions from the Stinson report has been leaked, and the bad conduct by Scholes was really quite minor.

    • The Wichita Eagle has reported: “Commission Chairman David Dennis said Wednesday [November 26, 2018] that he’s ready to move forward with a probe examining commissioners’ actions and whether they’ve contributed to low morale and an exodus of top county employees.” As Ranzau writes below, the commission is being asked to cancel this investigation.

    County Commission needs to slow down, get things right
    By Richard Ranzau

    Members of the Sedgwick County Commission have two very important decisions to make, and they need to get them both right.

    First, they need to decide if they are going to conduct the badly needed ethics investigation into commissioner misconduct that occurred in 2017 and 2018. Previously, the Commission voted to conduct this investigation but they have yet to follow through. Failed leadership and improper behavior by the some of the commissioners during those years has led to multiple FBI investigations and a soon to be completed KOMA investigation by the District Attorney’s office. The reputation of the Commission has been shattered.

    Public faith and confidence in this once highly respected organization can only be restored if the Commission hires an outside entity to investigate unethical and inappropriate commissioner behavior and to make recommendations for policy changes that could deter future misconduct. This must be an honest and sincere effort by the Commissioners to find out the truth, no matter how painful it may be.

    All staff members and employees should be allowed to fully participate in the investigation without fear of repercussion. Senior staff members with extensive knowledge of what happened, including the interim county manager, should be supportive of this investigation and provide honest and candid information about what they know.

    Citizens may wonder why we need another investigation, given that an expensive effort was recently completed and used to justify the dismissal of the previous county manager. But that investigation was a sham. A majority of commissioners had already decided to fire the manager. They needed an investigation to cover up their real reasons for firing him. This is the behavior that needs to be exposed.

    This investigation needs to be completed BEFORE the Commission makes its second important decision: hiring a new county manager.

    The current rush to appoint the interim county manager without a nationwide search is imprudent for multiple reasons. First, he has intimate knowledge of what happened over the last two years and the public needs to be assured that he will fully support and participate in the ethics investigation.

    Secondly, there is an ongoing effort by four commissioners to put forth a public vote to rescind the decision to proceed with an investigation. Commissioner Howell is being pressed to support this effort, not only by the Chairman, but also the interim county manager and county counselor. In fact, the interim county manager has asked Commissioner Howell to make the motion to end the investigation.

    The fact that the interim county manager would try to coordinate a vote to stop an ethics investigation that he would be a key witness in is as surprising as it is troubling. He knows what happened and he shared many of the same concerns as the previous county manager and county counselor. So why would he support and COORDINATE an effort to cancel this badly needed investigation? Is he under pressure by commissioners?

    The timing of this effort to stop the ethics investigation coupled with the rush to hire a potentially key witness as the new county manager, certainly raises the question as to whether or not there is a quid pro quo going on. I certainly hope this is not the case, but the optics are horrible. The commission does not need another scandal or coverup.

    The Sedgwick County Commission and interim county manager need to take a step back and reconsider what they are doing. Everyone involved needs to demonstrate the courage to do what is right for the community. It is imperative they demonstrate a commitment to open, transparent, and ethical government.

    The citizens need to have confidence that the shenanigans of the past, are in fact, in the past. We can’t afford to have the Commission get this wrong.

  • Another Wichita survey, another set of problems

    Another Wichita survey, another set of problems

    The Wichita Eagle editorial board notices problems with a survey gathering feedback on Century II.

    What will we learn from a survey gathering public opinion on the future of Century II in downtown Wichita? Not much, according to a Wichita Eagle editorial. 1

    The editorial presents evidence from an expert indicating the survey will produce results that “will be neither scientifically valid nor representative of the city as a whole.” The problems lie with the nature of the questions and self-selected participants unlikely to be representative of the city.

    I commend the editorial board for bringing this issue to our collective attention. It’s important, and not unprecedented in Wichita. If we look beyond this survey, we’ll find other examples of the same:

    • The Project Wichita survey suffers from the same faults, as I show in Project Wichita survey.

    • In 2014 the city was quite proud of its engagement and positive response regarding the proposed city sales tax. But on election day, 62 percent of voters said no to the tax.

    • In 2013 the city established a website and program called “Activate Wichita.” It was a virtual town hall where citizens and officials could propose ideas and collect feedback. But as I showed, when using the voting system there was no option for expressing disagreement or disapproval with an idea. “Neutral” was as much dissent as Wichitans could express in this system.


    Notes

    1. Wichita Eagle Editorial Board. Will Century II survey tell city leaders what Wichitans really think? No. February 15, 2019. Available at https://www.kansas.com/opinion/editorials/article226286910.html.
  • Naftzger Park costs up, yet again

    Naftzger Park costs up, yet again

    The cost of fixing an oversight in the design of Naftzger Park in downtown Wichita is rising, and again we’re not to talk about it, even though there are troubling aspects.

    Last week the Wichita City Council was scheduled to consider an item regarding the rebuild of Wichita City Council. That item was removed from the agenda the day before the meeting. It now appears on the agenda for the February 12 meeting, and with a higher price tag.

    (“Consider” is not quite the right term, as the item was on the council’s consent agenda. That’s where items are passed in bulk, usually without discussion.)

    As the city explains in the agenda packet for this week, “Naftzger Park currently has a small pond that acts as a storm water retention facility during rain events. Proposed improvements to Naftzger Park will eliminate the pond and all available storm retention. The project does not include funding for replacing the retention capacity.” The cost is given as $115,000, up from last week’s $85,000.

    As explained last week, this seems like a major oversight in the original project plans. The city has regulations regarding stormwater retention that private sector developers must follow. Didn’t any city planners consider these regulations as the project was planned? Didn’t any council member or bureaucrat look at the plans and wonder about stormwater drainage? Wasn’t there a highly-regarded architect designing the park? What about TGC Development, the developer of the surrounding property, to whom the city effectively outsourced the development of Naftzger Park? The construction manager?

    Of note: This week the agenda tells us this: “Funding is available for transfer due to the scope of project being adjusted to remove some the structural repairs and the abutment treatment after discussion with the railroad were not successful.” This sounds like structural repairs were planned but not executed. This deserves discussion, but with the item being on the consent agenda, discussion is not likely.

    Of further note: The February 5 agenda stated, “Funding is available for transfer due to underruns of bid items upon project completion and favorable bid pricing.” This made it sound like all planned work was completed and the city spent less than budgeted, even if through happenstance. This week we’re being told something different.