Waiting for the Train

I am in the Virgin/Brightline Station in Miami waiting for my train to return to West Palm Beach.

Sitting in the station and looking out onto the street, the once neglected neighborhood is being reborn with new rental, office and condo buildings. The station will be the hub for not only transportation but also for revitalization of this neighborhood. Thousands of new residents, businesses and tourists have begun to flock to the area.

No one believes in or wants such massive development in Martin County. However, it wouldn’t be bad thing (on a much-reduced scale) for Stuart. Instead of thousands of apartments, how about a couple of hundred? A hotel of a hundred rooms instead of one of thousands. New businesses would open to service new residents, and the visitors that would come for a day or two.

We went to Miami Beach for the weekend. We had done this in the past and had driven to get there, which was a nightmare. This time we took the train from West Palm and it was cheaper and less aggravating than driving and paying for parking which was $44 per day plus tax at our hotel. The last time we went, we didn’t drive our car once while we were there but rather used Uber or Lyft. We did again this time.

For years, I fought against the train. Now that Martin County has accepted Brightline/Virgin, so have I. It would be foolish to continue a fight that will not be won in the courts. I have taken my own advice and decided to let the market determine the fate of this business.

In the meantime, I believe it is in the interest of Martin County and Stuart to work in partnership with Virgin/Brightline to mitigate any problems. We need to use this as an opportunity to bring residents, businesses, and tourist dollars to the area. Virgin Trains are no more the enemy than the people who want to build Savannah Place or Seminole Bluffs. In those instances, we work with them to achieve the best possible project. The same should be done with this business.

We can have the best possible outcome by taking this more inclusive stance. There are several possible sites for a station to be located which would be to Stuart’s best advantage. For those worried about development of the possible City Hall site, I agree that would be the worst of the options. The peninsula only has one way in or out. That is not where the biggest bang for the buck would be.

Second best would be the fairgrounds. The cons are it is not near downtown nor does it offer the economic advantages that should and could be maximized. When that site becomes available, it should be used in conjunction with the airport to add more light industrial space. These are high-paying jobs, and the more we can cluster them together, the more synergy will be derived.

The ideal spot is the Erneston/East Coast Lumber Yard properties adjacent to MLK Blvd and Dixie Highway. There is the opportunity for finally constructing a parking garage on the Court House parking lot. It would be an economic stimulus for East Stuart and a tie-in to the Colorado Avenue corridor. It is eminently walkable to downtown. We could have the tram meet each train. There is room for new businesses, a hotel and residences without adding to the problems of overcrowding downtown.

As I finish writing this, I am still at the Miami station overlooking newly constructed buildings and a few empty lots. More and more of the area is being relieved of blight in this CRA neighborhood. If Brightline ends up going belly up tomorrow, these buildings will remain. The people that have moved here will stay. The businesses with their offices aren’t going anywhere.

The same would happen in Stuart and Martin County. The developed real estate stays. Most of the economic benefit of the new construction remains. That is why we need to work with this company. It is in our own best interest.

What Do Stuart & NYC Have In Common?

What do Stuart have in common with New York City?

At first look, it would seem not much. There are blocks in New York that seem to have as many residents as all of Stuart. There are no tall skyscrapers here, unless you count four stories as a skyscraper. And, while one is known for the hustle and bustle, the other is not. NYC is the “Big Apple” and Stuart is “the best seaside town.”

What they do have in common is a supposed dislike of anything new.  Any change is met with skepticism and foreboding. Just look at what happened with Costco here and Amazon there.

Both Costco and Amazon were offering to set up shop and provide relatively high-paying jobs for each area. In both instances, the NIMBY and “government by tee-shirt crowds” were right there to protest the new. A few politicians brought the rhetoric to demagogic heights of untruths, including economic guru Alexandria Ocasio-Cortez. Never mind that the majorities of citizens in both cases were in favor of the projects.

The United States is now in a world of alternate facts. Anyone can have his/her own reality. Instead of basing an opinion on provable statistics, when those statistics get in the way of what we want to believe, then we go with the heart and never the head. If it is economic, then apparently very few people (including our elected leaders) can remember that without taxpayers, there are no tax revenues. You need both sides of that equation to operate government.

So, in New York, Amazon is a dead deal. It died because the business was only providing $150,000 jobs to those who were qualified and would not commit to provide jobs to those who weren’t. You can’t be a tech employee if the extent of your knowledge is playing video games.

There are some serious problems with infrastructure and transportation that need to be addressed in Long Island City, the chosen location for the Amazon project. The state and the city should have committed to spending the bulk of the $3 billion slated for tax credits to funds for improving local infrastructure. That would have been much more palatable to existing neighbors and Amazon’s new workforce which would have overwhelmed the roads and public transportation in the area.

Politicians are not known for bravery. They may want to do what is right, but, when any opposition appears, they cave. Once in a while, a few elected officials will have a stiff spine even if it means not being re-elected. But as we have moved away from elected office being a civic duty to a lifetime job, showing fortitude can be an expensive proposition.

New York City has closed the book on Amazon. For all its supposed big city sophistication, they blew it. They allowed the clamoring few to rule the day. Stuart hasn’t quite definitively lost Costco yet. It may still come back. Costco may still want to provide some good-paying jobs that, in our case, can be performed by the bulk of our workforce.

Our local elected officials should run and not walk to be of assistance. They should not be throwing up roadblocks and demands that are not rational or economically feasible. The City does not have $3 billion in “giveaways” to give away. Nor should municipalities trip all over themselves to do so. At the same time, the City staff and Commission need to see businesses as economic partners, not the enemy.

Stuart has a chance to do something that will enhance the City and Martin County. We need to embrace the new and seize those opportunities. To be a city means to have development and economic progress. We are not a museum set in time. Stuart began as an economic and residential hub of the County, and we should want to see it become that again.

More Money For A Failed Water Park

How can the County spend your tax dollars more frivolously than they have in the past?

The new planned expansion of Sailfish Splash Water Park brought to you by Abbate Enterprises (Parks & Rec Department) which is 100% owned by the Board of County Commissioners…or, in other words, the taxpayers of Martin County.

Not content to lose hundreds of thousands of dollars currently, the newest addition to something that should never have been built will cost taxpayers $2 million for Phase 1 and eventually a total of $5 million. The money for Phase 1 will come from impact fees. High impact fees are one of the reasons why building a new home or business in the County is so expensive. But what does Abbate Enterprises care about money. They want to compete with the private sector but be subsidized by the taxpayer.

Between our new “Top Golf” fun at the public golf course and this Martin County extravaganza, the County is building losing entertainment ventures with abandon.

The season for the water Park is March 9th through September 2nd in 2019.  A day at the park will cost you $14.95 per adult and $12.95 per kid. A family outing with Mom, Dad, and the two kids, without anything else, is $58. Or, you can go to the beach and spend nothing! What are we doing here?

What happened to public recreation and not subsidies for amusement parks? What about all the kids that can’t afford this? What about those without a pool at home? Isn’t recreation and parks for the people, all the people, and not for just the few?

The private sector won’t touch a water park in Martin County for a very good reason, since it is a money pit! The County Commission is doubling down because one of their rationales is you need to spend more not to lose as much!

I can’t believe citizens think this is a good idea. I can’t believe taxpayers think this is a good idea. This is a vanity project and has no place in County government. Whichever Commissioners vote for this nonsense, after needing to borrow $45 million to fix fire stations, should be retired at their next election. The entire idea needs to never get as far as the dais.

It is time for Parks & Rec to concentrate on our parks and recreation programs. We should demand that the facilities we have currently be maintained and nothing new be built. This utter nonsense is a sheer disregard for taxpayer dollars. Contrary to the popular belief of some, County government is not a private business but rather a public trust.

Impact Fees, Taxes, Jobs & Housing

What do Impact fees, jobs, taxes, businesses, and the lack of middle-class housing have to do with each other?

The answer is everything!

In Martin County (including the City of Stuart), we see the world through a time warp. Many pine for the good old days that were never that good. Some may want to harken back to that time, but it is just not possible. What we need to look at is how can we adjust to a changing world in a rational and sustainable way.

In November, Florida voters approved $1.5 billion in local tax increases. That does not include millage or fee increases that do not need voter approval. In Martin County, the voters approved ½-cent sales tax increase for Martin County Schools’ capital needs and ½-mill increase in real estate taxes, primarily for increasing teacher compensation. In my opinion, both were needed, but it still makes living or owning a business just a little more un-affordable in Martin County.

Why would a business locate to Martin County? There is not much to choose from when looking for existing space. It is very difficult to build a building to meet your needs. Then, if an employer were to look at the skill sets of the local talent pool of potential employees, he or she would find very few qualified applicants in a number of fields. That holds true even if you use the entire Treasure Coast as your base to draw applicants. Why wouldn’t an employer just move to where the talent pool already exists and where it is easier to find built or to construct new space?

Even for a retailer like Costco, we have effectively created so many barriers by our rules and NIMBY mindset that they have fled. Those would have been jobs that do not require as much knowledge as most manufacturing, medical or office type jobs currently require. They would have paid $20 per hour, and more than 200 jobs would have been created.

On top of that, because of the excessive impact fees charged, the cost of construction becomes more expensive. These impact fees not only prevent the business sector from entering the market, they prohibit construction of middle-class housing. If you build a 1500-square-foot house, the Martin County impact fees are over $8000.00. That may be more than the profit margin to a developer unless the sales price is higher. The result is that more expensive units are built which leads to a shortage of middle-class housing.

There are ways around these government-made problems. How about lowering or eliminating impact fees in municipalities and County CRAs? These are our urban centers and the infrastructure is already in place. Here is where development should occur. Infill projects and more re-purposing of old strip centers and other antiquated uses should be encouraged.

Our governmental systems, including our taxes, are interconnected. If we continue to be unrealistic about how we approach government and economics, we will not succeed in the things we say we would like to achieve. Hoping for no development will ultimately lead to sprawl, which is everything we were trying to avoid. The actual result will be no jobs, little business, expensive housing, and high taxes.

THAT’S ENTERTAINMENT! (From this Weeks Friends & Neighbors)

Kevin Abate and the team at Parks & Rec will be giving the residents of Martin County another entertainment experience. They have now proposed that they turn the Martin County Golf Course into an entertainment golf experience. Let me explain.

 

For $5.5 million, the County will be building a new clubhouse described as modest (4000 sq. feet). The Blue and Gold Courses will be improved, and a new executive course will be built on the old Red & White courses. It includes a new parking lot and other needed improvements.

 

As every expert stated during the long review process, 27 holes is the perfect size. Martin County Taxpayers Association authored an extensive article analyzing the golf course and came to the same conclusion. That report used a budget of $2,750,000, without such an extensive clubhouse. They recommended that the 9 holes that would no longer be needed be sold to the airport’s enterprise fund which would offset some of the costs of the makeover.

 

Naturally a simple amenity for the residents of Martin County is just not good enough. The County Commission was beside itself with joy when it heard the latest from the Abate Entertainment Division of Martin County Government. The theme will be “Let’s have a cool experience.”

 

They are going to build (wait for the drumroll) an entertainment facility where there are bays where the customers will hit balls at various targets plus enjoy food and drink while they hang with friends and relations. Martin County’s very own impresario Kevin Abate (by the way he lives in Broward) has modeled his latest extravaganza on Top Golf in Orlando and Big Shots in Vero Beach. Both private businesses. Further there is something similar being constructed in Tradition that will be operated by the private sector.

 

To know more, look at their websites:

 

https://verobigshots.com

 

https://topgolf.com/us/

 

 

The BOCC fell all over itself to invest your tax dollars in another boondoggle. Did they even realize what they had voted for? How many times are they going to take us for a ride? Why can’t we just have a place for our residents to play a game of golf? Shouldn’t amusement parks be run by the private sector?

 

One other thing the Martin County Golf Course will be renamed to capture that new cool factor. Maybe Abate Enterprises and the BOCC can name it “Idiot’s Delight” after that old Clark Gable Movie.  Or better yet, from a verse from Proverbs: “A fool and his money are soon parted”

 

To read the Martin County Taxpayers study:

 

 

http://tomcampenni.com/2019/01/17/martin-county-taxpayers-association-review-of-martin-county-golf-course/

 

***

Virgin Trains, Fort Pierce & Stuart Can All Be Winners

The Treasure Coast and Virgin Trains are no longer adversaries.

With the signing of the agreement with CARE and Martin County, the court battles are over. So, what is next for the future of the relationship? Will we be able to work together to find mutual benefits for all of us? Of course, we can! Further, I believe that both Fort Pierce and Stuart can both end up with a stop.

Virgin Train’s primary market was always going to be those going from the cruise ship ports of Miami and Fort Lauderdale to the amusement parks of the Orlando area. But another market can be developed between the Treasure Coast and South Florida. It is an ideal mode of transportation for the South Florida resident looking for a quick getaway. The same is true on the Treasure Coast for those of us wanting a weekend in Miami or Fort Lauderdale, or for the college student going to and from school.

The last time we spent a long weekend in Miami, it took us nearly three hours to drive from Stuart to Miami Beach. Once there, the hotel charged us $30 a day to park our car. We never once drove our car until the return drive. We caught cabs and Ubers. We would have gladly taken a train that brought us to our destination without the hassle.

Fort Pierce and Stuart are not competitors but rather we compliment each other in what we can offer. Virgin Trains and the two cities should see how they can work together to bring stops to both places. In Fort Pierce, the property is available for a station and hotel complex. In Stuart, the railroad already owns property right downtown that can be used.

The agreement states that the cost of the station will be split between the station location and Virgin. For Stuart, I don’t believe that the City should contribute, nor can we afford to do so. What the City can do is work with Virgin to go after Community Development Block Grants, transportation funds and any other possible funding. There may even be a way to obtain federal funds to rebuild the bridge and raise it so that boats can pass under.

This is the time to use our imaginations and work with our federal and state elected representatives to make this a win-win for all of us. Will Virgin succeed financially? I don’t know about that. If the history of railroads is to be believed, the answer is no. But, if we can further transform our City, then we should, and the same is true for Fort Pierce. And, if funds can be made available to rebuild the St. Lucie River bridge, then, once it is raised, it will remain that way regardless of Virgin’s success. The freight trains are not going away no matter what happens with Virgin.

We should not let the feuds of the past stop us from having a better future.

Local Wants Or Federal Needs

A few weeks ago, I was at the ribbon cutting for the Customs House at Whitham Field.

The five County Commissioners attended. Martin County’s new Florida House Representative, Toby Overdorf, gave a good speech. The elites of the County were there such as the Business Development Board, Marine Industries, and the Economic Council. Afterwards, we were invited to tour the facility. It was what one would expect. There were six or seven Customs & Border Protection Officers available to answer questions. All in all, a fine ribbon cutting as far as ribbon cuttings go.

The facility was built mainly by using grant money. According to the airport’s website, the cost of running the facility will come from user fees. The Customs & Border Protection Agency will operate the facility under a Memorandum of Understanding with the County. They will assign one officer from 11 am-7 pm, but it will be closed on Tuesdays and Wednesdays. The purpose is to alleviate the problem of planes and boaters having to go to Fort Pierce or West Palm Beach to clear customs.

Most boaters that need to clear customs have visited the Bahamas. Those that make the trip with regularity, such as fishing boat captains, can in almost every instance do away with face-to-face reporting by enrolling in a special program. Those that do not must report to a facility within a set time.

If everything goes according to plan, the new facility at Witham should cost the taxpayers nothing. Any shortfall will be picked up by the Airport Enterprise Fund. The airport is expecting to make more revenue from planes now landing at the field purchasing their fuel at Witham instead of Fort Pierce or West Palm Beach.

Then, why was I against having the County operate such a facility and am still not in favor? There are philosophical and practical reasons for not supporting it.

Customs and Border Enforcement are federal responsibilities. The Constitution clearly gives oversight for immigration, our borders and international commerce to the U.S. government. The Supreme Court has ruled consistently that Washington has absolute authority under the Constitution to do so. It is their responsibility to provide for immigration, border security and commercial enforcement.

Therefore, if the U.S. government believed that there was a need to have such a facility at Witham Field, then they would have placed one there. This idea that Martin County should buy a federal service for convenience is anathema to my understanding of the purpose for government. Whether that service is paid for by the levying of local fees collected by the County or our local tax dollars is immaterial. It is an erosion of the separation of powers under the Constitution.

This opens the door for government adopting policies that allow the purchase of services by more affluent communities. It leads to wealthier constituents not having to endure idiotic government procedures. They can buy convenience, leaving those not as well-off to deal with government red tape. The most influential citizens, therefore, will not be calling their friend the senator, congressman, or president to complain about inept laws and policies.

In the years to come if things do not turn out as expected, then, like the Martin County Golf Course and Sailfish Splash Water Park, Martin County taxpayers will pay. For the most part, government is not inherently very good at running businesses. Our brand-new Customs House is a business.

Even with an analytical study that purports to show this want, I do not doubt that in the future there will be a need for either the Airport Enterprise Fund to be used or taxpayer dollars to continue operation. Plato wrote: “A good decision is based on knowledge and not on numbers.” To paraphrase my friend, Harold Markey, this is a want and not a need. That way of operating (wants over needs) has permeated Martin County’s leaders and has led to hundreds of millions of dollars in unfunded infrastructure repairs not being done.

Marie Antoinette never said, “Let them eat cake” when seeing the starving peasants from the palace.  The phrase was a bad English translation of “Let them eat brioche” that first appeared in Rosseau’s works a decade before. Whether one thinks of cake or brioche, taxpayers should remember the golf course, water park and now Customs House.

 

 

 

Sail Fish & Development

Friedrich Nietzsche was a 19th century German philosopher.

One of Nietzsche’s ideas was “eternal recurrence,” also known as “eternal return.” The concept, that incidents in life continue to repeat, was proven to be correct by the Stuart Commission when they did not decide what to do for the umpteenth time with the Sailfish Ball Fields. For a decade, the City has been trying to determine whether those fields should be developed. To date, there still is no clear way forward…. only the same outcome of indecision.

Much of the problem seems to be that there is no systematic approach. Government, for all its vaunted keeping of records of past actions or inactions, refuses to ever read and learn from them. Consequently, the past is never studied by either staff or Commissioners to see what transpired earlier. While Nietzsche’s concept of “eternal return” is esoteric, the Spanish-American philosopher, George Santayana said something more apropos: “Those who cannot learn from history are doomed to repeat it.”

By not knowing what transpired earlier, there cannot be forward movement. At the meetings, the City Attorney attempted to give a history to the Commission, but it was not in prepared remarks and was superficially insufficient. Even the two Commissioners who had sat through discussions in past sessions appeared not to have remembered what was previously discussed and voted upon.

So, once again, there was the specter of Little Leaguers and their parents, the vast majority of whom do not live within the City limits and pay no Stuart taxes, crying about “their” ball fields. I resent the fact that, as a Stuart resident and taxpayer, I must subsidize the recreational pursuits of children that live outside the City. There are hard costs of $85,000 to maintain those fields which are not even under the City government’s control.

It is nice to hear about the past at Sailfish and the “poor” kids from Jensen Beach and Palm City waxing poetic about their baseball. The parents of those children pay taxes, not in Stuart, but to Martin County to provide recreational fields. So, why then, should City of Stuart residents pay for ball fields when only about 10% of the players are residents of the City? For the Commission to continue to allow this is ridiculous and a gross misuse of tax dollars.

The Commission and staff lost sight of the fact that there should have been no discussion about whether to sell those fields or not at the meeting. That decision was already a foregone conclusion, or so it would appear to any business person when the Commission decided to put out an RFP for developers to build there. Both the development applicants have spent considerable time and thousands of dollars to put these proposals together. Should that effort and expense be treated in such a cavalier fashion? I don’t think so.

Staff had an obligation to lay out a coherent vision of what was to be achieved by the Commission that night. If they had done so, then the Commission would have had the obligation to check the boxes outlined. Instead, the entire matter devolved into a morass of indecision. There were no rhyme or reason about how to proceed. The Commission concluded to once again make no decision.

Before this moves forward again, certain questions need to be answered. The first is whether the Stuart Parks and Recreation Department will provide recreational programs. Presently, besides the after school and summer camp program, programs are de minimis. In my mind, both are needed and should continue but so should sports, both organized and ad hoc.

Currently the role of organized baseball is filled by Martin North Little League and their sub-programs. According to the information provided by them to the City, there are currently 20 City of Stuart children enrolled in their league out of the 192 kids in total. Stuart tax payers are subsidizing the fields to the tune of $85,000, or $4,250.00 per Stuart kid. That is more than half the amount per capita that the School District pays to educate a child.

When I was a youngster there was Little League and Pop Warner football. I had friends and classmates that belonged to those programs. Most of us, however, didn’t play in organized sports. We showed up at the park and played ball. There were city recreational staff available to watch our behavior and hand out equipment, but you could just drop by and play ball on an ad hoc basis.

Life is different now.  I wonder if kids would come if they knew they could go to 10th Street and be given a football or basketball and be able to play ball. As to organized recreation, there is nothing wrong with our own City staff providing it for Stuart children.

Let’s spend Stuart tax dollars for Stuart kids.

In order to provide organized recreation, the City would need to appropriate some money for the Recreation Center field, as well as for equipment and additional staffing. The staff needs to present to the Commission a modest plan on how to pay for this. It does not need to be grandiose with 4 baseball fields, a soccer field, and a football field. The important thing will be to make sure that there are adequate programs for all Stuart kids to participate.

The Recreation Center is not just for East Stuart but for all of Stuart. It needs to accommodate residents from Bahama Street as well as Manor Drive. A City of Stuart’s size cannot afford to have more than one Recreation Center and 10th Street is it.

The second matter that needs to be addressed is the Public Works Garage. It is not practical to decide about moving Public Works without knowing the cost and, just as importantly, where it is going. Supposition and rough estimates may result in faulty decisions. It should be up to the Public Works Director and City Manager to devise a budget and location before any further thought is given to selling either the current location or the Sailfish Ball Fields.

Third is the question of housing. Staff and the Economic Council gave a masterful presentation of declining City economic projections. The Finance Director provided a very significant statistic. The City of Stuart is still not collecting the amount of ad valorem taxes that it did in 2006. The real estate taxes currently collected by the City of Stuart are only half the amount needed to pay the public safety budget.

The tax bill for a median condo is $266 and single-family home $494. If you count every parcel in the City, 610 parcels pay nothing, 700 parcels pay $100 or less with 3102 parcels paying $500 or less. Yet, the cost per parcel for City services is $700. If, the City were a business, you would not like the trajectory.

Our housing stock is old. There is a useful life determined by both functional, economic, and physical obsolescence. Many of our homes have reached one or more of these forms of obsolescence. A home that is 60 years old but in good condition could be just fine for a resident that moved into the home in 1958 when it was new. That same home, even in good condition, would not be attractive to a 30-year-old because some of the features of that home are no longer functional for today’s families and the improvements needed cannot be economically justified.

There is a dearth of residential properties. From rental stock to owner occupied, there is not enough product. This results in higher prices being charged either to lease or buy in the Stuart market. The only way to solve the problem is to build new housing of every type. At last week’s Commission Meeting, a planner stated that there was a shortage of 4000 units in the City. That may sound high until you factor in the 21,000 people according to a DEO report that commute to the City every day because they either can’t afford to live here or the type of housing they are looking for is not available.

Does that mean that the City needs to make sure that there are units available for under market prices? I would say the answer is yes and no. A city of Stuart’s size does not have the resources or the expertise to provide those subsidies of under market rate housing. What it can do is make product more available by increasing supply through smart development policies.

I hear over and over that the proposed housing is too expensive and that it will fail. What exactly does failure mean? Take the worst-case scenario, which is nothing will be rented for the price needed to pay the mortgages and taxes. Then two things will occur. The bank will foreclose and sell the project to someone else at a reduced amount, and then the rents needed to carry the project will be less. The market will find what is known as equilibrium.

At the same time, if the project is successful from the very beginning and the rental rates are achieved, then pressure is lessened on the existing housing stock. The supply has increased but the demand will remain the same allowing those older units to rent or sell for less. The best thing that can happen to Stuart is to increase supply. In the rental real estate market, a 5% vacancy rate usually equates to equilibrium which means that supply and demand are in sync.

So, should the ball fields be developed? The answer is yes if the above items occur. It is imperative that the City not allow nostalgia or fuzzy thinking to influence what is best for Stuart. If you want to have an economically diverse and generationally friendly place to live and work, you cannot keep the existing quid pro quo.

As to “workforce” or “affordable” housing, I would like to see one example of a city of the size and with the economics of Stuart in the housing business. There aren’t any. You cannot compare Stuart to New York, Miami or even West Palm Beach. Those cities’ size and tax base afford different opportunities.

Here is what I believe can be done. The City administration can put together a pilot program of duplexes in East Stuart with one side owner occupied and the other a rental unit. They can be built on smaller lots. This type of project would encourage home ownership and demonstrate feasibility.

In respect to the ball fields, when the City does an RFQ, it can ask that a limited number of units be kept to 70% of the average medium income. The project needs to be mixed-use in nature. It needs to be open with residential and businesses fronting all streets including Martin Luther King Blvd. This should be planned as an economic generator for East Stuart, not a gentrification project.

There is a way forward, but it must be logical and methodical. The City Manager needs to take steps now. The Commission kicked this down the road for 90 days. That was idiotic. Once the steps that I outlined are taken, then the RFQ process should begin again, but only if the Commission realizes that, once an RFQ is released, the decision has been made to sell those fields. It cannot be taken back. At Monday’s meeting, City Manager Dyess said that the Commission needed to get off the merry-go-round. He was right.

Edmund Burke, an 18th century member of Britain’s Parliament, a philosopher and historian wrote: “When the leaders choose to make themselves bidders at an auction of popularity, their talents, in the construction of the state, will be of no service. They will become flatterers instead of legislators; the instruments, not the guides, of the people”.

It is time the City Commissioners show leadership for the good of the City of Stuart. They were elected to make decisions, not sway in the winds of fickle popular opinion.

Good Ole Boys

Are the “Good Ole Boys” at it again in Stuart?

It appears that they are. And, if so, why is this still happening, especially for something as mundane as Flagler Place?

First, a history. What is now known as Flagler Place was originally built as a USO center during WW2. It became a recreation center for Stuart until the “Great Recession” a decade ago. At that point, the City decided to cut staff and lease out the space. For a time, the Lyric Theater ran the facility but because of a few community “activists” the Lyric decided it was not worth the aggravation they were put through.

So, the City decided to lease out the place about five years ago. They put out an RFP and the Commission had to choose between two competing bids. One was an artist group and community members and the other was the current occupant. The current occupant bid less but received the lease anyway. It was pointed out at the time that the other group was not as fiscally responsible and business oriented. Fair enough.

But the real reason — I believe that the lease was simply given as part of the “Good Ole Boys” network. The owner was a business partner in another business with Stephen Leighton. At the time Mr. Leighton was married to Commissioner Leighton and the tenant was a good friend of the Commissioner. I was there that night at the Commission Meeting as a member of the public. Though Commissioner Leighton recused herself from the vote, there was no doubt who was going to get the lease.

But times change and friendships fade. When Ms. Smith (the current lessee) wrote a letter to the City exercising her option for renewal, the City wrote back that the answer was “no.” In his letter to Ms. Smith, the City Manager based his refusal to renew on the following reasons: she had not paid her rent on the first of the month  and that she had failed to do so several times. When she paid after the tenth of the month, late fees were charged in the total amount over the years of $597.86. Because of these reasons, the City sent her a letter refusing her option.

Only the City made an error. Since Ms. Smith books events for up to a year in advance, she sent her renewal in early to make sure she could book without causing problems for some poor bride. So, the City had to walk back their refusal, at least for another year.

Why is it important and why should citizens care? Because our government should not be treated as if it is the purview of a few insiders whether awarding a lease or taking it away.

Did a Commissioner step over the line in settling a personal score? What will the City do with Flagler Place? Does it intend to go into the banquet hall business? There already is a City Community Center where one can rent space for events. How many does a small city of about seven square miles need or afford? The last time the City ran this as a Community Center, it cost hundreds of thousands of dollars to do so. This was the “white center” and the other the “black one.” We do not need to go back to Jim Crow days.

When I spoke to staff, I was told that most Commissioners didn’t care about what it cost. When I spoke to Commissioners, they told me they did.  With so much in government, there is never a straight answer.

How many other City tenants owe money and or late fees? When I spoke with Ms. Smith, she claimed to be unaware of even being in arrears and upon receipt of the letter she told me she has paid those fees. If push came to shove, would a judge agree that this was enough of a breach to put someone out of business? It would be interesting, perhaps we will find out.

I do know that, if it was such a serious breach of the lease, why didn’t the City move against Flagler Place regardless of a renewal? I think it all comes back to what is going on behind the scenes — like the 55% Commissioner raise and the $3 million poison pill clause in the Mulligan lease. It comes down to being a “Good Ole Boy.”

 

 

What Government Services To Provide & How To Pay (Part 2)

A month ago, I wrote the first installment of a two-part series on how we pay for government services and what services should government provide.

The first piece concentrated on which services to provide and the difference between what the government should do and what private industry can do. This installment will concentrate on how society pays for those governmental services.

In examining what services should be provided, it became obviously clear that government does certain things quite well and is the best entity for doing those things. I used the example of law enforcement. Consistent and fair policing is a much more probable outcome when government provides it than if the private sector does. Further, the profit motive would preclude the services being provided as economically and as professionally as the public sector.

Unlike the private sector, when government produces a product, it needs to have taxpayers approve of the product — whether they use the service or not. So, while companies can tailor their products to the individual consumers that will buy those products, government does not have that ability. It is a one-size-fits all approach.

Forty-one states have income taxes. Florida has a prohibition against having one in its constitution. This has been a boon to the state’s economy since this is a reason people, especially retirees, re-locate here. Overall, businesses have lower taxes than the national average. Property taxes are higher than average for the nation.

Through their legislature, Florida voters have decided that social services are not where their tax dollars should go. Per capita spending is approximately $1500 per year, including education. Of course, because we spend so little on social services including education, many Fortune 500 corporations have chosen not to locate here. Our educational spending is less than $8800 per student, including administration and security, and this shows in our lower overall national rankings.

So how do we fund our government? On the state level, it is through the sales tax. Roughly 93% of the 6% that is collected on most sales remains in Tallahassee. Local government, such as counties and municipalities, rely on property taxes.

The Florida Legislature has been quite cynical in how they have achieved “tax cuts.” Tallahassee has primarily done so on the backs of local government.

Real estate taxes are one of the few sources of revenue that the Florida constitution permits local governments to levy without legislative approval. However, through pre-emption, edict and constitutional amendments, that ability has been extremely curtailed over the past decade. In other words, “tax cuts” given by Tallahassee have been done through limiting local government’s ability to levy taxes. If Tallahassee wanted to give a tax cut, it could lower the sales tax rate, but then their own pot of money would have shrunk. Instead, they shrunk local governments’ pots.

As counties, school boards and cities have seen their revenue streams constrained, Tallahassee has continued to pass along unfunded mandates. The largest one this year was school security by mandating a law enforcement officer in every school. The state has also cut funding for various programs that will result in programs disappearing or localities dipping into shrinking funds to pay for them.

Martin County already has higher than average real estate property taxes, as compared to other Florida counties. This is due to a lack of commercial and economic development, along with a dearth of residential growth. This was proven most recently with our discussions to keep FPL. The company has an option to relocate to Collier County, which has a lower tax rate.

The level of government that Martin County and its municipalities can afford to buy shrinks with each new property exemption or pre-emption. Many of our local elected officials believe and act as if there is an endless supply of tax dollars to buy services, as was witnessed by the recent golf course Shangri-La discussion. There is a disconnect between wants and needs and the ability to pay for government.

We are fast approaching a point where government departments, such as Parks, will have less and less in order to fund public safety functions. The Commission needs to begin curbing the growth in those budgets. It is easier to do so in Fire/Rescue since that is a department under their direct control. The Sheriff’s Office is constitutionally mandated and, while the funds are allocated from the County, the BOCC has little to say about the budget’s makeup.

I believe the County made a terrible error by not instituting a “Fire Fee” this year. The methodology was flawed, but the principle involved was not. That Fee would have accomplished three things. First, the overall Fire/Rescue MSTU (Municipal Service Taxing Unit) would have been lowered. Second, the nearly 20% of homeowners that pay no real estate taxes would have contributed something to their protection. The third, and perhaps most important, reason is that the public would have a better understanding of how much the Fire portion of the budget is. This would have been an eye-opener for many. They would also understand how much it costs to provide that service. The Legislature should also give localities the option of having a “Law Enforcement Fee.” This would bring more scrutiny to Sheriff’s budgets.

The State of Florida and Martin County are in denial, as is much of the rest of the nation, as to the costs of government. Our nation is facing trillion-dollar deficits during a booming economy. Those deficits will surely increase once a slowdown occurs. Unlike Washington, state and local governments can’t run deficits. Martin County is already experiencing a $200 million or higher infrastructure maintenance backlog.

The boomer generation I am part of has done a poor job in taking care of government finance. We have buried our heads in the sand. We have lived on a credit card that, in many cases, has already reached its limit. Unless we have a serious national, state and local conversation on what government is expected to do and how it is to do it, we will continue to erode our fortunes. No amount of sloganeering and pandering to the crowd will place us on a solid financial footing.