The Emporia Gazette

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Yes, USN retired. In a healthy democracy the press acts as a watchdog over elected officials. The Gazette needs to dig in here.

Also, the Commissioners aspirations to bring Emporia forward are the right ones. I fear what they fail to realize is that Emporia will only be brought at far as the quality of its leadership. That means high standards for ethics, no conflict of interest, and complete transparency about how decisions get made. That is how communities become excellent-- through excellence at the top.

October 17, 2008 at 9:09 p.m. ( permalink | suggest removal )

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Joe Joe2,

No, car dealers have not approached the City. However, given the huge loss in business ($35 million) in that segment, the RDA should be doing more to attract those businesses, not just passively waiting for a sales presentation from the likes of DJ Christie.

Also, if you look at what the standards are for public officials, the City should never have concealed that report. That should have been public knowledge. Secondly, once the car dealer segment showed up so prominently, the car dealers on the commission should have recused themselves.

I do not believe the commissioners in question have intentionally done anything underhanded, but in the realm of public accountability, that does not excuse officials from being transparent and getting out of the way of decisions that effect them personally in the pocketbook. The whole thing points to a misunderstanding of ethical standards and the tendency in insular communities for leaders to confuse their good intentions with proper conduct.

-Bob Sutherland
Sutherlands

October 17, 2008 at 3:47 p.m. ( permalink | suggest removal )

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Joe, there are no "grapes" here, or fear of competition.

I do believe in fairness and transparency. If you disagree with my points regarding conflict of interest, then debate me on the substance of my arguement rather than criticize me. Do you have a logical argument about why concealing information or failing to recuse oneself in the face of conflict of interest is not improper for public officials?

There is a difference between a personal attack and a well reasoned criticism of the process. My voice has been about the latter.

I would also point out I'm the only one in this conversation who is not hiding behind anonymity. Fear is cowardly, fearlessness has nothing to hide.

October 17, 2008 at 2:42 p.m. ( permalink | suggest removal )

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http://www.complaintsboard.com/compla...

October 17, 2008 at 11:19 a.m. ( permalink | suggest removal )

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Dear Ms. Boyce, No one knows why the study was not made public. I've seen parts of it, and it lists the stores Emporia would do well to attract-- none of which are in the lumber or home center segment.

I believe there is a conflict of interest with certain commissioners. (Please do not remove this entry, as people have a right to know-- it is not a baseless opinion and public officials should be held to a standard). The study demonstrates that the single biggest loss to out of town businesses is in auto retailing. Powerful people associated with the Commission make their money in that segment and know that if the City tries to attract that type of business it would hurt them.

I confronted the commissioners about this, only to get a vague "trust me" type of answer. People who know about how smaller communities work and how public officials are often prone to self-dealing should dig deeper here. I believe the Gazette has a responsibility to find out why the report was concealed and if there is conflict of interest.

Thank you,

Bob Sutherland
Sutherlands

October 16, 2008 at 9:49 p.m. ( permalink | suggest removal )

Developer: Plan a win-win

Emporians need to apply a dose of healthy skepticism to Mr. Christie's "assurances".

The reason there are more than one large home center in Joplin is because that market is several times larger than Emporia, and none of these received taxpayer money to open. Joplin is an invalid analogy.

What hard data does Mr. Christie have about "expanding the market", or that retailers competing with TIF financed competitors "prosper"? Sutherlands has been in business 90 years and we have no data to support this. The vast majority of scientifically based academic studies show that TIF subsidies merely move sales around without creating more.

Please see this link: http://www.reason.com/news/show/33053...

The "letters of intent" Mr. Christie references are no more than wishful thinking. Those with knowledge of the real estate business understand that these types of commitments are non-binding. Brokers send these "letters" off to one another to create buzz and hopefully lure naive local officials into throwing them a subsidy. Where is this mythical Chili's in Pittsburg? We can't find any mention of it in Pittsburg. Did Christie talk to the Sutherlands manager in Pittsburg? No. What proof does Mr. Christie have that Staples is coming because of Home Depot? None.

Is Mr. Christie willing to put his money where his mouth is? Is he offering even one penny of guarantee that the financial risk Emporia would be taking will pay off?

Why has the City development team not offered a TIF to businesses that professional research (Buxton, Development Strategies, Downtown Retail) shows should be lured to town? These include: Cars, Trucks retail with a total leakage of $32 million, far more than any other category.

Here is a quote from the report that Development Strategies prepared for Steve Commons in 2006:

"A new Home Depot [or Lowes] would certainly steal significant sales from existing stores that sell similiar goods." The report goes on to equate TIF subsidies for home improvement in Emporia to "aiding and abetting" the demise of existing merchants.

October 14, 2008 at 4:03 p.m. ( permalink | suggest removal )

Developement will benefit ESU

Before we take Dr. Lane's opinion as definitive, perhaps Emporia should listen to the many other academics who have questioned the value of TIF handouts:

Tax increment financing is usually sold to the public with assurances that ‘TIF does not increase your taxes.’ However, NCBG’s study indicates clear warning signs that the liberal use of TIF captures the natural growth in property tax base, putting more strain on every taxpayer and all taxing bodies, a strain more acutely felt in public budget belt-tightening times.” -- Neighborhood Capital Budget Group, which includes economists at University of Illinois and Loyola, DePaul, and Chicago State Universities.

“Our analysis of 235 municipalities in the metropolitan Chicago region finds cities, towns, and villages that had TIF districts actually grew more slowly than municipalities that did not use TIF.” -- Professors Richard F. Dye and David F. Merriman for a study published by the University of Illinois.

“TIF does not tend to produce a net increase in economic activity; favors large businesses over small businesses; often excludes local businesses and residents from the planning process; and operates in a manner that contradicts conventional notions of justice and fairness.” -- Developing Neighborhood Alternatives Project, a consortium of Chicago neighborhood groups and university economists.

Economists who have studied TIF almost universally agree with these findings.

Also, I encourage the press and citizens, as well as Dr. Lane to contact the following communities and get their opinions on TIF:

Hays, KS
Pittsburg, KS
Harrisonville, MO
Lake Zurich, IL
Oakton, IL
Chicago Public Schools
Hugo, OK
Ada, OK
White Bear, MN
West Bend, WI
Chanhasson, MN
...just to name a few

October 12, 2008 at 9:35 a.m. ( permalink | suggest removal )

Developement will benefit ESU

Whether or not the property owner is a willing participant, other property owners in other places have seen their property condemned for commercial redevelopment. It sets a bad precedent.

Mr. Christie has not produced any real data to show the zip code sales assertion, which the community at large should be able to see. The figure Mr. Lane cites is OVER HALF of what the Downtown Market Analysis of Emporia's total home improvement market shows. It's not logical that most Emporians' dollars in this category are driving an hour away. The Downtown Market Analysis was an independent study.

And speaking of hard data, why has the Commission not released the results of its Buxton Retail Market Study to the public. Has Mr. Lane seen this?

The University is mistaken in thinking this project will benefit them because it is relying on DJ Christie for its information. It has a responsibility to weigh all the information. Mr. Lane is free to call me at 303-775-2790.

October 11, 2008 at 5:53 p.m. ( permalink | suggest removal )

Developement will benefit ESU

It's not realistic to expect an extra $15M in "capture" from a Lowe's. The Downtown Market Analysis Study shows the total market for L&G and Home Improvement in Emporia to be $25M. That is currently being served by Walmart, Bluestem, Waters, Mark II, and Sutherlands. Mr. Lane's math takes no LOSS in business that other retailers might suffer by a Lowe's into account.

The Buxton Retail survey identifies a strong opportunity in automotive retail, a segment that Emporia loses much more money to other markets. Why is the city doing nothing to attract those businesses? Has anyone examined the potential conflicts of interest around this issue with regard to elected city officials?

The fact that the data comes from Lowe's and Christie is dubious.
Christie has a track record of promising communities more than they end up getting as a way of extracting subsidies. Hays can't service their bonds from Christie's project due to low sales volume. If Christie and Lowe's are so confident in their data, where is the guarantee? Why should Emporia take risks with no risk to Christie?

Mr. Lane ignores evidence that TIF-based retail development generally does nothing to grow overall economic activity or create more net jobs. Why wouldn't an important citizen like him demand a little more from local economic development efforts?

Having a Lowe's is fine, but not in a way that favors one developer and one retailer over another. Ada, Oklahoma refused Home Depot a TIF subsidy and they opened anyway. The notion that Emporia can't attract development without corporate welfare is false. Every current business in Emporia came here without taxpayer giveaways, why can't Lowe's? Mr. Lane's warnings about Emporia's "reputation" are speculative and have no basis in the experience of other communities who have thrived by intelligently and strategically using tax incentives to actually grow their economies. This project is neither intelligent or strategic.

I will also point out that Mr. Lane's remarks do nothing to address the abuse of the condemnation laws this project represents and the threat to private property. Also, neighbors of the project should be heard in their concerns about traffic, noise and the impacts to the appeal of their own property.

These discussions are important. I urge concerned citizens to be on hand October 15th to voice our opinions to city leaders and become more acquainted with the deeper facts.

October 11, 2008 at 1:54 p.m. ( permalink | suggest removal )