Renaissance Farce & Government Looters
Recently former mayor Graham Richard sat down with WANE TV to discuss his role as part of the Obama campaign and as member of the urban development policy team. And what, of all things, is he pushing for the Obama administration to pick up on?
One of Richard’s proposals that may become policy under President Obama: making it easy for mayors to share examples of innovative urban housing projects -like Fort Wayne’s Renaissance Pointe- on the internet site You Tube.
I’m certainly all for sharing innovative ideas via YouTube or using information technology in general to make government more efficient. But promoting the failed Renaissance Pointe project as solid public policy strikes me as ridiculous.
The gentrification project that was originally going to create 400 new homes has only built 14 homes to date. Now the developers are considering building 50 homes and renting those out. Oh how far the project has fallen.
Of course who benefited from the original plan and who would benefit from this latest scheme? Builders of course. But they aren’t willing to build where the demand is - no, no - see they are going to create the demand and they are going to do it with government handouts:
With the help of state tax credits, local builders Granite Ridge, Lancia and Ideal would erect homes costing about $120,000. Some would be available on the open market, others to residents of certain income levels.
When are we going to call this what it is? Looting. That’s what all public-private partnerships are. It’s a way to use government, and the personal connections within government, to pad your own pockets. It’s a disgrace. That’s what Harrison Square was, Renaissance Pointe, Public Safety Academy, Maplecrest Extension, etc.
It’s a con game perpetuated by a gang of looters and enabled by an apathetic citizenry. Of course when you’re a bunch of poor folk taking some fishing poles after your own government has abandoned you in the wake of the worst Hurricane in modern history you’re a criminal. But when you put on a suit and tie and backslap your way through the system to con your way into taxpayer riches, you get invited to ribbon cutting ceremonies and are considered a pillar of society.
What a farce…
The US Senate
The US Senate this week voted unanimously to extend the deadline to switch from analog to digital television to June 12th. Supposedly this was done because as many as 6.5 million US households MIGHT lose the ability to watch television for a few days until they can go out and buy a $50 converter box.
With all of the problems we have in this country the idiots in the US Senate have wasted their time getting involved in this saga, again.
Good grief.
Mike Sylvester
Some National Republicans should stop whining…
There are several recent media reports from various Congressional Republicans who seem upset that our new President and the Democratic majorities in Congress are going to pass initiatives that the Democrats strongly believe in.
I likely oppose many of these initiatives; however, I do not oppose all of them.
I want these Republicans to understand a simple concept: “Elections have consequences.”
The only reason the Democrats are in power is because the Republicans became a party of big government and alienated too much of their own political base.
These Republicans should stop whining and should start espousing smaller government.
Mike Sylvester
Simple Minded Thought of the Day
If the government wants people to spend their stimulus check instead of paying off debt then why not just issue the money as a Visa gift card?
Optimism Run Amok
Mayor Henry recently gave a speech to the rotary club where he made the following statement
He also said the Harrison Square project “is a huge win for the city of Fort Wayne and the region.”
This quote reminds me of a scene from an old Weird Al Yankovic movie called UHF. I watched this and died laughing envisioning the first person to purchase a Harrison Square condo receiving the same treatment.
Huntington Mayor Likens Citizens Requesting Budget Cuts To Terrorists
The entire political establishment around Huntington is a corrupt organization filled with nepotism and incompetent cronies - watching this circus from afar is almost comical. From deleting government documents, screaming at citizens during town meetings telling them to move because they oppose annexation, knowingly taxing residents at a higher rate and then lying to the DLGF about it - well you get the picture.
But all of this fails to describe truly what a disgrace the Huntington mayor, Steve Updike, has become. In his latest state of the city address he likened citizens requesting budget cuts to terrorists and specifically called them Taliban:
Updike likened residents constantly demanding budget cuts, to terrorists.
“They’re like a little Taliban. They’re pecking on the sides of you and saying, ‘You need to do this…’” Updike said, adding, “Stay out of it. Stay out of my city business okay?”
Somebody, I don’t know perhaps a soldier returning from Afghanistan, might want to explain to Updike the difference between citizens wanting lower taxes and actual Taliban.
And while they’re at it, they might want to inform Boss Hog that it isn’t HIS city - it’s the people’s city. And if they want their city government to change the way their doing things then maybe he ought to consider listening to him. I know, I know, a foreign concept to be sure but just because Updike and his family and friends are in charge of the city doesn’t mean they know what the hell they’re doing…
President Obama’s first day in Office
The President issued some Executive Orders and Presidential memoranda per Daily Kos.
I overall like them and think they are steps in the right direction.
The first freezes his White House senior staff pay at current levels to the full extent allowed by law. I like this a lot.
Next and first it prohibits executive branch employees from accepting gifts from lobbyists. Second, he closes the revolving door that allows government officials to move to and from private sector jobs in ways that give that sector undue influence over government. Third, he requires that government hiring be based upon qualifications, competence and experience, not political connections. All of these are very good; however, the devil is in the details and we will see if this is followed; I certainly hope it is.
Next the President instructs all members of his administration to operate under principles of openness, transparency and of engaging citizens with their government. To implement these principles and make them concrete, the Memorandum on Transparency instructs three senior officials to produce an Open Government Directive within 120 days directing specific actions to implement the principles in the Memorandum. And the Memorandum on FOIA instructs the Attorney General to in that same time period issue new guidelines to the government implementing those same principles of openness and transparency in the FOIA context. All of these are very good; however, the devil is in the details and we will see if this is followed; I certainly hope it is.
And this order ends the practice of having others besides the President assert executive privilege for records after an administration ends. Now, only the President will have that power, limiting its potential for abuse. And the order also requires the Attorney General and the White House Counsel to review claims of executive privilege about covered records to make sure those claims are fully warranted by the Constitution. I am not sure about this one.
I think the big one about “Gitmo” will come out tomorrow.
Mike Sylvester
Fannie Mae is broken
I got permission from one of my clients today to post about what happened to that client today in general terms.
During the entire credit crisis I have been talking about how anyone with good credit, good income, and a strong balance sheet can borrow money. That is still the case; however, one such client of mine was turned down for a loan with Fannie Mae today. That client can get a loan with anyone except Fannie; however, Fannie is offering a lower rate than anyone else, so this client wants to get a loan from Fannie.
Our firm has about 500 clients at this time. The client who got turned down today would certainly be in the top twenty of all of our clients as far as “credit-worthiness”; likely in the top ten.
Consider the following:
- The client has little debt. Over 90% of the client’s debt is in a home loan for less than $200,000.
- The client had a taxable income of between $150,000 - $200,000 per year from 2004 - 2006 while running a small business.
- The client expanded that business in 2007 and had a taxable income of between $50,000 - $100,000 that year. The client’s income dropped due to the expansion.
- The client will have a taxable income of between $100,000 - $150,000 this year.
- The client’s business has over half a million dollars of cash, CD’s, and short term investments with no debts.
- The client has enough money in cash and other investments personally to more than pay off the house they want to finance.
- The client has a personal credit score of 810.
The client is not trying to take out a new loan; they are trying to re-finance their current home loan at a record low interest rate through Fannie Mae.
They were turned down today.
They were turned down because their business had a loss in 2007 of between $50,000 - $75,000 in 2007. Note that even including this loss the client still had taxable income of $50,000 - $100,000 in 2007.
Fannie Mae turned down the loan because of the loss in 2007. I applaud lenders for investigating loans and for doing their due diligence; however, who-ever looked at this case file has no idea of how to assess the “credit worthiness” of this client and should be fired.
For goodness sake I have never loaned anyone money in my life and I would loan this client money. This client is as safe a bet as you could possibly have.
Rather then loan money to a strong client like this Fannie is re-negotiating with deadbeats who are behind in their payments.
The taxpayers are going to end up pouring a lot more money into Fannie if they keep making stupid decisions like they did today.
Mike Sylvester
I Read the JG Editorials So You Don’t Have To
The JG’s latest editorial regarding a Fort Wayne casino starts off making some sense:
But just as gamblers should not count on hitting the big jackpot to solve their own financial problems, Henry and other city officials would be short-sighted to rely on gambling as a solution for city government.
Instead, the mayor, the City Council and other city leaders should do what many citizens are doing in these tough financial times – look for places to cut expenses and, if that isn’t enough, ways to increase income.
At this point you might be wondering if some rational-thinking writer has hijacked the editorial staff, but if you stick with them long enough…
Henry and the council should not let the glimmer of hope of a casino keep them from seriously considering raising the local income tax, as the legislature has permitted local governments to do.
Doubling an already regressive income tax during the worst economic crisis since the Great Depression - now that is the error laden thinking we’ve all come to enjoy mocking. Seriously, do they just sit around and try to come up with ways to make our local economy even worse than it already is?
Capital Improvement Board & Extending the “Temporary” Food & Beverage Tax
State representative Phil GiaQuinta has submitted a bill that will create a new city-controlled board to run the Coliseum and control the county’s 1% food and beverage tax. You remember that tax right? That’s the one that was “temporarily” put in place to fund the Coliseum. And then it was extended to fund the Coliseum expansion. And now it looks like they want to “temporarily” extend it again - but for what you ask?
The board would use non-property tax revenue to pay for projects that would enhance downtown and benefit the entire community, said Ozzie Mitson, business and legislative liaison for Mayor Tom Henry.
You know a cynical person might think this is measure being taken to save their ass if Harrison Square fails. Nah, surely not.
But the bill is not meant to be a money grab for the food and beverage tax nor is it intended to pay for Harrison Square, Mitson said. Tax revenue from a planned hotel adjacent to Parkview Field is supposed to pay off a bond that built the new minor-league baseball field.
And the tooth fairy might buy up the remaining condos. Look, the argument that the food and beverage tax should be extended to fund the Coliseum expansion was tenuous at best. But nobody could argue that the original intent was to fund downtown development projects so let’s call this what it is - a tax increase. That’s the only honest definition…
