OpenCDA

July 19, 2008

No Money, Honey

Filed under: General — mary @ 7:31 am

This morning’s Press reveals the City’s revenues are down, waaay down.  “No new police officers, no new detectives, firefighters, no new dog park, and no one new to staff the new public library or cut the grass at the new $1 million Landings Park.”  Did the City not anticipate this downturn in the economy when they planned their spending priorities?  City Councilman Mike Kennedy said…

“We could be looking down the barrel of some increasingly difficult times.”  Gosh, Mike, most of us already figured that out and have tightened our belts at home and in our businesses.  But our taxes keep going up.

I want to help and have a serious suggestion for the City Council: Take back the tax increment from LCDC! LCDC has been skimming the tax increment off the whole downtown core commercial area for more than a decade.  All those increases in property tax from every single building, old and new, have been going to LCDC, not the city.  Maybe it’s finally time for change.  The city council can re-draw the boundaries of the urban renewal district, creating small, specific areas for the active projects only.  Then all the tax increment from everything else will go back to the city.  Voila!  It really could be that simple.

43 Comments

  1. 2 years ago the LCDC tax increment was around $2 million. It had grown by close to 200% from the previous year. But this was before anything from Riverstone started contributing and I imagijne several other new contributions have been added as well. How much is it this year? Educated guesses anyone?

    Comment by Wallypog — July 19, 2008 @ 7:44 am

  2. Santa Claus is why. Her Sandiness made gifts, hah-uge gifts to her favorite charities last year. What was once a $10,000,000 ‘rainy day fund’ became a builder of church buildings fund. And now they take foregone taxes and propose more new taxes. Good job Sandi!

    Comment by TheWiz — July 19, 2008 @ 7:57 am

  3. Say what?

    “‘We knew we would come up against this,’ he (City Finance Director Troy Tymesen) said,” according to the last line in the Press article.

    How long have they known? Were the City Council’s 2008/09 Top Ten Priorities selected for show to impress people but with foreknowledge there was no way they were going to be able to achieve their goals?

    Comment by Bill — July 19, 2008 @ 8:19 am

  4. Mike is a reasonable guy, more liberal politically than I am comfortable with, but reasonable and he is willing to listen and engage. So I expect Mike will, in fact, respond to the challenge about LCDC’s use of tax increment to the detriment of the city revenue, and Mary’s suggestion that LCDC realign its boundaries to make the districts project specific. What say, Mike?

    Comment by Gary Ingram — July 19, 2008 @ 8:22 am

  5. mary why should not the city ignore you as you have ignored the citizens who have asked you to comment on your ‘alleged’ taping of sgt wood? do you feel that your credibility has been impaired by this issue? if so, what are your plans to repair your credibility? if not, why not? thank you, i await your reply.

    bill thank you for ask wallypog to tone it down. it is unfortunate that when some people get uncomfortable with questions they lash out at others calling names. it is important to keep the discussion rational.

    Comment by reagan — July 19, 2008 @ 8:39 am

  6. Gary, fat chance!! That boy’s been nodding his head like a bobble head doll since he set foot here.

    Comment by Will Penny — July 19, 2008 @ 10:02 am

  7. Gary, you need to look at Bill’s post. A reasonable view suggests that either they were clueless or they are not telling the truth. They now say:

    “‘We knew we would come up against this,’ he (City Finance Director Troy Tymesen) said,”

    What they said a few months ago was:

    GENERAL FUND – TOP 10 GOALS
    1. Parks: FTE(1.5)/Funding – Implementation of Parks Master Plan – Landings
    Park (Staffing and Equipment) – (Parks)
    2. Fire: Funding – Grant Match for New Communications Frequency
    3. Police: FTE (3) – Additional Officers in Patrol
    4. Parks: FTE (.5) – Increase Building Maintenance Position to Full Time
    5. Streets: Funding – Construct Brine Solution De-Icer Facility
    6. Fire: FTE (3) – Additional Firefighters
    7. Library: FTE (4.25)/Funding – Staff Needs for Growth for New Library
    8. Recreation: Funding – Skate Park/BMX “Trick”
    9. Parks: FTE (.75)/Funding – Dog Park Development and Maintenance
    10. Police: FTE(5) – Hire Additional Detectives

    Comment by Pariah — July 19, 2008 @ 10:10 am

  8. Gary, I know the LCDC has at least 1 million set aside for the Ed. Corridor, maybe more. That would be a good start for the city after they rearrange the districts. And all the tax increment from downtown, McEuen Terrace was paid off last year so all that increment would be nice, plus all the taxes for all the buildings downtown and on NW Blvd that haven’t been involved with LCDC but still get their taxes sent there anyway.

    Comment by mary — July 19, 2008 @ 10:54 am

  9. Mary – that is part of the problem, the ed corridor that is. It is a giant leach sucking monies up from every nook and cranny of Kootenai County. No real plan, just pass the cash to the developer who isn’t Duane. Ten MILLION bucks is a huge amount of money when times are good. Now that (finally) even the polyannas who “dream big” admit that, “We could be looking down the barrel of some increasingly difficult times.” Maybe they will wake up. But they still have the pesky problem of what to do with Chesrown. If he doesn’t get his money, what then?

    Comment by Pariah — July 19, 2008 @ 11:06 am

  10. Pariah,
    Please clarify. What is Chesrown getting money for?

    Comment by SteveW — July 19, 2008 @ 11:26 am

  11. Chesrown owns some sort of option on the DeArmond Mill Site adjacent to NIC. He says he paid $10,000,000.00 for that and has offered to sell that to the City or NIC for the same price. If he doesn’t get the money, the ed corridor concept changes or dies. He then has to develop the mill site or find another buyer plus he has to build a new mill for the DeArmonds I believe.

    Comment by Pariah — July 19, 2008 @ 11:32 am

  12. Pariah,
    My understanding is different from yours. My understanding is that no significant money has changed hands.A modest amount may have been paid for the option. Chesrown has an option to buy the site from Stimson but as of a certain date that option expires and Stimson is free to sell it to someone else. I dont think he has paid Stimson 10 million. In addition Stimson is responsible for all environmental cleanup. The deal for Chesrown to build another mill for Stimson was discussed at one time but I dont believe that deal is in the works at this time. That is my understanding. Not saying I am 100% correct. If someone knows this completely I would hope they could clarify the deal in more detail.

    Also the mill was sold years back to Stimson.

    Comment by SteveW — July 19, 2008 @ 11:46 am

  13. Steve you may well be right. I have no ‘inside connections’, I just know what has been reported and that certainly can be less than accurate. What is certain is that the taxpayer is being asked to put up ten million dollars. At a time when taxes are going up, gas prices are going up, unemployment is going up, foreclosures are spiking. Oh yeah and CDA has run out of money.

    Comment by Pariah — July 19, 2008 @ 12:03 pm

  14. Reagan,

    Here we go again.

    Did Mary do something illegal? NO!

    There are a lot more people than just Mary that are asking the city these same questions. They do not have to answer her but it would be nice for them to answer us!

    Your and their problem with Mary is just that, your/their problem. The rest of us would still like answers.

    Comment by concerned citizen — July 19, 2008 @ 12:14 pm

  15. Steve, I think your info is pretty accurate. Chesrown bought the option for the DeArmond Mill but I believe he may have actually purchased the Atlas Mill, or the sale may be contingent on its annexation into the city. None of the facts are crystal clear because it is all a private deal and no public disclosure is necessary. The price that Chesrown negotiated for the purchase of the DeArmond Mill will never be verified because it is private. Now, with real estate prices tumbling, the asking price of $10 million for the DeArmond Mill site appears to be recession-proof; it has not changed.

    Why did NIC not deal directly with Stimpson on the option for the Mill site? Don’t tell me it’s because they couldn’t afford the option price because I won’t believe it. They’ve been paying over $200,000 to hold onto the option on the Rathdrum Prairie property. An option which I think runs out this next November.

    Comment by mary — July 19, 2008 @ 12:41 pm

  16. A key to the mill site purchase will be the appraisal. I know a few people have questioned the connections of the appraiser. If there is still any doubt as to value an appraisal can also have an independent review. I think that the option price on the mill site will be known because title to the property is not scheduled to go from Stimson to Chesrown and then to NIC.I believe that it is structured that Chesrown will sign the option over to NIC. It is just my opinion, but I dont think that Chesrown is looking to make money on this deal nor is he looking at any sweetheart deals dwon the road. I just dont believe he does business that way and I dont see that there is any evidence in all his dealings here that he has been anything but straight forward. If anyone has any information to the contrary, I would be interested in seeing it. I have never met Chesrown so I am not acting as his cheerleader. I am just stating my opinion from watching his developments as an outsider.

    Comment by SteveW — July 19, 2008 @ 2:18 pm

  17. Pariah,
    I will agree with you that the timing of the purchase is not good. The economy is in the tank and alot of folks are struggling. I dont know the amount of assets that are in the NIC Foundation but maybe they should look at that as a source of some funding. I am sure someone has looked at it but if they feel that the mill site is really critical maybe that would be a source of funds to ease the taxpayer burden. I happen to be in favor of the ED Cooridor. But I also understand that it comes at a price and that there are people that are concerned with that price. I respect those concerns. I just feel alot more comfortable with my tax dollars going to this project than I do with 146mil for a new jail and all the fixings.

    Comment by SteveW — July 19, 2008 @ 2:29 pm

  18. I happen to be in favor of the ED Cooridor.

    Cool, maybe you can answer some of the basic questions I have about it.

    What will it be? More classrooms for NIC? For UI? For Lewis-Clark? Academic focus or PTE focus? If classrooms, how many and what capacity?

    Comment by Pariah — July 19, 2008 @ 2:40 pm

  19. I saw a rerun of the City Council meeting. Woody gets it. He asked a pointed question about carving up the LCDC districts to return the icrement. It was a good question that got no reaction. Kennedy tried to reply to it, but his answer seemed to imply that Woody was after getting rid of the LCDC and all urban renewal in Idaho, not just releasing portions of the district. Based on his answer, I’d say Kennedy doesn’t understand the LCDC or how it’s negatively impacting everyone in the city and preventing the hiring of new public safety officials.

    It would be nice for Mr. Kennedy to come on OpenCdA and explain his answer, and ask why no one on the City Council supports Woody’s good idea.

    Comment by Dan — July 19, 2008 @ 4:10 pm

  20. …but his answer seemed to imply that Woody was after getting rid of the LCDC and all urban renewal in Idaho, …

    Classic answer by attack. Sad but not a surprise. Can Woody build a coalition? Are there any on City Council who might switch?

    Comment by Pariah — July 19, 2008 @ 4:17 pm

  21. Sorry Pariah. I am not in any position to answer your specific questions. Nobody has asked my opinions on planning it. At least not yet! I certainly have a vision of what I would like to see and at some point I will offer suggestions.

    Comment by SteveW — July 19, 2008 @ 4:38 pm

  22. dan one of the principals of this website refuses to answer a question that goes right to the heart of the matter: truthfulness and integrity.why should mr kennedy. or anyone for that matter come on here and answer any questions? i believe mary souza stonewalling tactic will do major damage to the credibility and integrity of everyone connected to this website. too bad.

    Comment by reagan — July 19, 2008 @ 4:50 pm

  23. Steve,

    What are you supporting then, if you do not know any of the specifics? A $10,000,000.00 initial cost acquisition of land will certainly cost many multiples of same over time. Shouldn’t we have specifics before decisions get made?

    Comment by Pariah — July 19, 2008 @ 5:38 pm

  24. SteveW wrote under the heading of:

    It’s All About Commercial Development

    “Kageman, you need to get out more. Both the old YMCA Building and the “old tavern” have been extensively remodeled.
    I should know. We spent alot of hard earned money doing it!

    Comment by SteveW — July 11, 2008 @ 8:54 pm”

    Above SteveW wrote,

    “I happen to be in favor of the ED Cooridor. But I also understand that it comes at a price and that there are people that are concerned with that price. I respect those concerns. I just feel alot more comfortable with my tax dollars going to this project than I do with 146mil for a new jail and all the fixings.”

    Of coure anyone with something to gain would be for the ED Corridor. If you look at the drawings/pamphlet handed out you will see that there are NO facilities for education in the picture. Just retail spaces and condos. The EC has NOTHING to do with higher education. It is ALL about profit for the speculators and the “stakeholder” of the LCDC. If one wants to develope property it should be done at their own expense. I do not believe it should be at taxpayers expense.

    Comment by concerned citizen — July 19, 2008 @ 5:45 pm

  25. Well, I am back with my original question from this morning. Mike, will you lead the city council in an effort to regain lost property tax revenue from the give away of tax increment to the LCDC? What say, Mike?

    Comment by Gary Ingram — July 19, 2008 @ 6:59 pm

  26. Gary there is, imho, zero chance you’ll get an answer. Woody is the guy that may lead, Mikey is too tied to the LCDC/ED/NIC group to have any freedom of movement.

    Comment by Pariah — July 19, 2008 @ 8:18 pm

  27. Gary, I fear Pariah is right on this one. Councilman Kennedy is employed full-time by Steve Meyer, who is business partners with Charlie Nipp in their real estate development company Parkwood Properties. Charlie Nipp is also Chairman of the LCDC. Steve Meyer’s wife, Judy, is on the NIC Board of Trustees. That’s a lot of strings,and there are too many more to mention here. So the chance that Mike Kennedy will speak out about realigning the LCDC district boundaries in order to capture the tax increment for the city and the taxpayers is nil.

    Comment by mary — July 19, 2008 @ 10:08 pm

  28. I think that the idea of realigning the districts has some merit and should be explored.

    Comment by SteveW — July 19, 2008 @ 10:26 pm

  29. pariah wrote this: “Gary there is, imho, zero chance you’ll get an answer.” my question is, are you referring to mary souza and the oft asked but never answered question about her secret recording of sgt wood? mary, ignore the question at your own peril (to your reputation) but besides detracting from the legitimacy of this website by stonewalling on an honest simple question, you also endanger the reputation of this site by your continuing to repeat the now familiar litany of connections between kennedy nipp and meyers but you never say what that has to do with anything. do you have any proof that something is amiss? any? because some sort of evidence would get a lot of people on your side. continued charges allegations and lists of ‘strings’ will be your undoing. it is time to put up.

    Comment by reagan — July 19, 2008 @ 11:13 pm

  30. stevew i agree that realigning the districts or early termination is worth looking at.

    Comment by reagan — July 19, 2008 @ 11:13 pm

  31. Wow Mary that is quite the conflict of interest list. I assume all of the requisite disclosure forms have been filed and both parties recuse themselves from votes that affect the other, no?

    Comment by TheWiz — July 20, 2008 @ 5:55 am

  32. TheWiz,

    reagan does not seem to think so!

    Comment by concerned citizen — July 20, 2008 @ 8:36 am

  33. Dear Reagan,

    With all due respect, your continued focus on a taping is about as relevent to the discussion here as mark “aint I cute” fuhrman’s use of the “N” word in the oj trial. Your one note samba is as annoying as the “It’s a Small World” music at Disneyland. I wasn’t aware people had to explain, to anyone, why they engaged in legal behavior.

    Comment by Will Penny — July 21, 2008 @ 5:34 am

  34. will penny i understand your point. do you think people should explain why they engage in unethical behavior?

    Comment by reagan — July 21, 2008 @ 8:15 am

  35. Reagan, I’ve no desire to give you further credability by engaging you in your little distraction. If it was unethical it would be illegal, if it’s legal, what’s the beef?

    Adios.

    Comment by Will Penny — July 21, 2008 @ 8:51 am

  36. will penny: “If it was unethical it would be illegal” That is not necessarily true and you know it. at least you should know it.and 1 party recording is illegal in many states, but not idaho. does that mean it is unethical in those state, just not in idaho?

    Comment by reagan — July 21, 2008 @ 12:22 pm

  37. DFO is at it again.Here’s one of todays SR HBO blogs,covering North Idaho.

    Smith: Secret Taping ‘Unethical’ In Idaho
    HBO Question: Would you condone a reporter or a columnist secretly taping a news source to gather information for a story or column?

    SR Editor Steve Smith: Doing so in Idaho would be unethical. We would not condone it and it is, in fact, against policy. In Washington, it’s also illegal. There is no disputing that. Any exception in Idaho would be tied to extraordinary circumstances and require the editor’s explicit approval and fall under our deception clause which establishes clear criteria for such an action.

    Posted by DFO | 21 Jul 12:06 PM
    There is 1 comment

    BTW-Mary was not working as a columnist for the CDA Press at the time of the alleged taping.

    Comment by kageman — July 21, 2008 @ 1:51 pm

  38. what taping did smith and gang do in tormenting the now dead former mayor of spokane? or is copying internet chat using a fake screen name somehow ethical conduct while taping isn’t? smith and company live in an ethics free glass house. as they pander to the elite of the area they line their masters pockets with illegal and unethical actions time after time. can smith even spell river park square?

    Comment by TheWiz — July 21, 2008 @ 3:26 pm

  39. what an editor of the socialist review had to say about legality and ethics “As long as it’s legal, I don’t have a problem with it,” he said.

    that was bill morlin talking to frontline defending the questionable ethics of the paper.

    glass houses and stones come to mind.

    [Comment inserted by Bill for clarification: This is a link to the PBS Frontline with S-R reporter Bill Morlin TheWiz is referring to. Morlin was responding to the question, “But as a journalist, you must have known that the decision to create an identity that was not authentic was a big decision. … Did you consult anybody about that decision? Did you have concerns about taking that step?” Morlin’s complete answer is below the question.]

    Comment by TheWiz — July 21, 2008 @ 5:00 pm

  40. thanks bill. some interesting points about the question at http://www.spj.org/ethicscode.asp and they make points about the field that ought to make smith and company blush with shame see http://www.camasmagazine.com/ for complete covergae of their shamful behavior and the milking of millions of dollars from the public purse.

    Comment by TheWiz — July 21, 2008 @ 5:30 pm

  41. I like PostFalls URA,more than the one in CDA,which is LCDC.I think the 5 year cap on smaller districts is good and then all tax dollars go to the city,when the 5 years is up.

    Comment by kageman — July 21, 2008 @ 6:42 pm

  42. TheWiz,

    The US Attorney for the Western District of Washington is still reviewing the allegations submitted to USA McDevitt (recused) by Cheri Rodgers and Tim Connor. That review has been going on for quite some time now. There has been renewed focus on the death of Jo Savage when her car penetrated the RPS garage wall and fell to the ground, ultimately causing her death.

    The thing I see as encouraging is more people who really do have better things to do in their lives are beginning to not blindly accept what authority figures tell them. “We’re elected (or appointed). We know what’s best. Sit Down, shut up, go away,” just doesn’t cut it any longer. It amazes me that some public officials never realize that many of us commoners have an almost endless capacity to forgive honest mistakes. But lie to us or try to pull the wool over our eyes or bamboozle us with figures, and the organic fertilizer will hit the spinning impeller.

    Comment by Bill — July 21, 2008 @ 7:21 pm

  43. kageman,

    Yes, Post Falls seems to have a more methodical, reserved approach. It seems to go for projects it can comfortably understand and manage. I’m not sure about the caps, but it does seem to me that Post Falls is using urban renewal the way the original legislators intended. Post Falls will make some mistakes along the way, but because of its conservative management practices, the mistakes are not likely to result in financial catastrophies … or court appearances. It seems to me there is more informed (not blind) trust for the program in Post Falls than there is in CdA.

    Comment by Bill — July 21, 2008 @ 7:26 pm

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