$3 Million of TIF Money (Taxpayer Money) Going To Enrich IndyStar

Resolution 2014-B-002 goes to the MDC for a vote Wednesday.

This resolution would float $5.5 Million in bonds as taxpayer investment in two projects - the "Pulliam Place" and "Millikan-On-Mass" projects.

The Pulliam Place project will take about $3 M of the money.  The agreement was worked out an unknown number of months ago, and has been wending its way through the MDC system - first being discussed at the Economic Development Committee meeting in early May, and then again by all of the Commissioners at their May 21 pre-meeting.

During this time, the Star failed to inform readers of its many editorials and opinion pieces that the deal was pending, a clear violation of the Code of Ethics as expressed by the Society of Professional Journalists.  Under "Act Independently", the third item on its Code of Ethics webpage, the SPJ says in part:

Journalists should be free of obligation to any interest other than the public's right to know.

Journalists should:

—Avoid conflicts of interest, real or perceived.
— Remain free of associations and activities that may compromise integrity or damage credibility.
— Refuse gifts, favors, fees, free travel and special treatment, and shun secondary employment, political involvement, public office and service in community organizations if they compromise journalistic integrity.
— Disclose unavoidable conflicts.

The Ballard Administration gift of taxpayer money would be repaid by revenues of the Consolidated Downtown TIF.

And what do you get for your gift?

 Some vaguely described improvements to N. Talbot, E. New York, and E. Vermont Streets, a dog park, and improvements of the existing Star building parking garage.

And how does this benefit you, the taxpayer?

Why the Pulliam Project is anticipated to create 49 new full-time jobs by mid-2017.  There is no mention in the resolution of the average salary of those positions.  And, there is no requirement that this number be reached.  That works out to a taxpayer investment of over $61,000 per job.  Of course the sales price of the Star building will rise concomitantly with the taxpayer gift.  One would also expect the time to sale would shorten with this sweetener, as well.

What also interests me is the last part of the resolution, where it states that the resolution to float the bonds will not be effective unless the Bond Bank "consents to and approves the adoption" of the resolution.  Anyone who follows City government knows that the person who envisions these projects is the same person to negotiates the taxpayer terms of these projects and is the same person who runs the Bond Bank; one Deron Kintner.  Why are they even pretending that there is any independent review of the taxpayer financing of these projects?

The taxpayers who pay attention to such things, are familiar with the extravagant accumulation of TIF funds and equally extravagant expenditure of the same, all while elected officials, including Mayor Ballard, seek tax increases to pay for basic services.  This one is different in that it calls into question the independence and integrity of the Indianapolis Star.

Yes Kids, TIF Bases Really Did Erode

I was pretty taken aback when alerted recently to a Twitter exchange between City-County Councillor Zach Adamson and Mayor Ballard's Chief of Staff, Ryan Vaughn.

Yes, Ryan Vaughn actually stated that "TIFs don't touch the base.  That's why it's called Tax 'Increment' Financing."

It is discouraging that someone so involved with spending our tax dollars, does not understand the difference between the promises made about TIFs and the reality.

The erosion of the base was so prevalent in Indiana, that two years ago the Legislature enacted changes in how the base is recalculated each year (the TIF neutralization). 

I have obtained all of these forms for all Marion County TIFs from 2008 to 2013.  Below I chart the increment and base for all TIFs whose base was not already zero in 2008.  I did not include 2013 data because they grouped the TIF numbers - for instance, all the component TIFs of the Consolidated Downtown TIF are no longer reported individually.  Suffice it to say, the new base recalculating method is most helpful in preserving the base.

Some notes to the graphs:
Assessments are done in one year, and the taxes are billed the following year on that assessment.  Thus, the x-axis reports time in the format of 2008pay2009.
The y-axis for the increment is on the left and increment is shown in red.
The y-axis for the base is on the right and base is shown in blue.

29 TIFs had non-zero base in 2008.

 

 

 

I think TIF 151 had a transcription error on the pay 2011 form

 

TIF 640 had been dormant before 2012, when it was reactivated.  The base was reconfigured at that point in time.

 

 

 

 

Regardless of what happened to the increment - rise or fall - the base always fell.  The combined erosion of the bases between 2008 and 2012 (not counting TIF 640 - the Dow Elanco TIF because its base was reconfigured during that period) amounted to $283,579,872.  The taxes on that eroded base did not continue to flow to the schools, libraries, or the city, as was promised.  Instead it went into the increment to fatten the TIF slush funds.



Onus of TIFs Not Equally Shared

Anyone who has followed this blog for very long knows that TIF districts cause all of our tax rates to rise, account for at least half of the circuit breaker penalties that plague the delivery of basic services (from cops to schools), and are really slush funds so the Mayor can reward his favorite developers, bond salesmen, and lawyers.

Most of us know that the burden of having TIF'd real estate is not distributed evenly.  I was given a heads up last week, that there is information available on the State's Gateway website related to assessed values.  When I saw that information, I found it also had important data about the distribution of taxable property between the various taxing districts in Marion County.

From this information I was able to calculate the amount of real estate assessed value, personal property AV, and more, as a percent of the total for each Township.

Before I pull you too far into the weeds, let's back up a tiny bit and define some terms.

Property taxes are based on the value of the real estate and the value of personal property owned by businesses - from conveyor belts to manufacturing equipment.  Business personal property is in the crosshairs of Governor Pence and the Indiana Manufacturer's Association for eventual elimination.

The data available on the State's Gateway website go into a fair amount of detail.  It also notes how much of the assessed value of a TIF is being 'passed through' in a given year.  This decision is made each year by Mayor Ballard/Vaughn, through the actual vote of the Metropolitan Development Commission, which he controls.  Each TIF district is examined for how much tax money the Mayor wants to keep, and he 'generously' sends some back to the other taxing units.  But, next year he could simply decide to keep all that value in his slush funds.  It is optional.

I looked at the percentage of assessed value of real estate in each Township caught in a TIF - both before and after the pass through.  (for those who don't mind the weeds - these numbers are the net AVs after deductions, like the homestead deduction, are subtracted)  The number before the pass through is the truer value of the amount of real estate actually ensnared by the TIF.  The number after the pass through is the truer value of the tax base for the TIF in a given year.  I also pulled out the percentage of assessed value of the personal property in each Township caught in a TIF district.  Because Beech Grove, the City of Lawrence, and Speedway have all created their own TIFs, I also aggregated the number for each of these entities.  But, please be aware, that the Township data contains these three city/town data.

Township or City/Town	% Net Real Estate AV in TIF after pass through	% Net Real Estate AV in TIF before pass through	% Net Business Personal Property AV in TIF
Center	39.49%	44.58%	26.72%
Decatur	24.86%	24.86%	0.00%
Franklin	0.03%	0.03%	1.03%
Lawrence Tnshp	4.23%	7.71%	0.83%
Perry	0.70%	0.70%	0.00%
Pike	2.35%	8.91%	2.97%
Warren	0.65%	1.40%	4.16%
Washington	0.01%	4.86%	0.00%
Wayne	9.78%	10.02%	8.41%
Total Marion County	9.77%	13.10%	10.65%
Beech Grove	6.72%	6.72%	2.31%
Lawrence - City	14.06%	14.06%	3.49%
Speedway	4.09%	5.81%	37.52%

Center Township has a frightening amount of real estate trapped in TIFs, at 45%.  To add to the tax burden, they also have the lion's share of personal property in TIFs, at 27%.

My community, Decatur Township, is hit the next hardest for real estate value in a TIF, at 25%.  Luckily, for a while anyway, all the taxes from personal property are outside the TIF.

Wayne Township is hit next hardest with a combination of 10% real estate and 8% personal property value in a TIF.

Washington, Lawrence, and Warren Townships are each home to a 'dormant' TIF district, whose entire AV is passed through each year.  As noted above, that can change with the whim of the Mayor.  The City of Lawrence's TIF districts account for all of the active TIFs inside Lawrence Township.

Pike Township has one TIF district - the Dow Elanco TIF.  This was a dormant TIF just a couple of years ago, but was reactivated recently.  The majority of the value is passed through at the discretion of the Mayor.

The Town of Speedway has evidently gone a slightly different route, capturing far more value from business personal property than real estate inside its TIFs.

 Taking the County as a whole, we are up to 13% of our real estate tax base inside a TIF.  This year some of it was passed through to help pay for basic services, reducing the actual TIF tax base to 10%.  But, as I keep saying, next year the Mayor could decide to keep it all for his special friends.

These numbers probably illuminate the reason Decaturites hate TIFs.  It is a puzzlement, though, why Center Township residents haven't stormed City Hall with torches and pitchforks.

Big Changes for MDC and TIFs - Thanks to SB 118 - edited

The Legislature continues to chip away at the more flagrant abuses of TIFs.  This year SB 118 provides a lengthy list of changes in the oversight of the Metropolitan Development Commission (and similar entities throughout the state), calls for an in depth review of the work of these entities, and causes old TIF districts to get sunset dates.

Let's start with that last item, because it is immensely important.  TIF districts established before July 1, 1995, could have, but did not need to have, a sunset date - a time certain when the TIF district is dissolved.  With the passage of SB 118, we will now have a sunset date placed on all of our older TIFs - EXCEPT those that comprise the Consolidated Downtown TIF.  The biggest slush fund must be protected !  On July1, 2015, each old TIF (except downtown) will get a sunset date of either June 30, 2025, or the date of the last payment on any outstanding bond tied to that TIF district, whichever is later.  According to information provided to the TIF Study Commission, there are at least 11 TIF districts in Marion County do not currently have a sunset date.

Also of considerable importance, is the requirement that the City-County Council review many more aspects of the MDC's exercise of its powers than it does now.  These include review of its annual budget, purchase of property over a term more than 3 years or a price greater than $5 M,  and sale of property. [edited - the Indianapolis-Marion County City-County Council is the only legislative body that will not be able to review the budget of its redevelopment commission.  The City-County Council will only be able to approve or deny a property purchase of the MDC if the term of repayment is more than 5 years.]  The MDC must get Council approval to take on any obligation payable from public funds. [edited - the rest of Indiana's redevelopment commissions will be bound by this, but not the MDC] The Council must approve the term of any debt, the maximum interest rate, provisions for early payment of the debt, and any inclusion of collateralized interest. [edited - the Council already has the authority to review all bonds the MDC wants to issue.]

The Council approval will now have to be sought for the annual determination of how much of the assessed value of a TIF district increment will be treated as 'base' for the upcoming year.  If the taxes that would be generated are more than twice what is required for payment of debt in a given year, then the MDC will be required to get Council approval for how much of the excess is passed through.  The downtown TIF is so huge, the MCD regularly 'passes through' tens of millions of AV.  This provides a tiny bit of cushion to IPS.  Say next year the Mayor wants to horde every penny of the Downtown TIF and not let any of its AV pass through, well the Council can say differently and pencil in how much it thinks should be made available.

In the future, the MDC will have to submit to the Council one important piece of documentation sorely lacking right now, whenever it wants to establish a new TIF or expand an old one - it will have to document that any new taxes generated in the TIF would not have been generated if the TIF were not there.  As an example, the Broad Ripple parking garage could not have been included in the North Midtown TIF if this law had been in place for the last couple of years.  It is also likely that the Mass Ave TIF and most of the North Midtown TIF would be a no-go, since those areas were already seeing a heady rate of organic private investment.  This provision will put an end to the Mayor's practice of establishing TIFs in booming areas in order to create healthy slush funds.

The MDC will be subject to audit by the State Board of Accounts.  By August 1, 2014, the Department of Local Government Finance must submit a report on all redevelopment commissions, authorities and departments with the following items:

(1) The activities of each redevelopment commission, authority, and department throughout Indiana, including projects proposed and projects completed.

(2) The budgets for 2009 through 2013 for each redevelopment commission, authority, and department, including a summary of these budgets.

(3) The audit findings for 2009 through 2013 for each redevelopment commission, authority, and department audited by the state board of accounts, including a summary of these audits. 

(4) The actual increase in assessed values in redevelopment areas compared to the estimated increases set forth in the redevelopment plan. 

(5) The actual increase in assessed values in redevelopment areas compared to the increase in assessed values outside redevelopment areas. 

(6) Suggested changes in the law with regard to redevelopment commissions, authorities, and departments.

These are certainly improvements that can benefit the taxpayers.  It is also welcome news that there will be an actual review of the work of these redevelopment authorities; a review that includes data that can expose the usefulness of TIF districts to catalyze growth that would not have happened without the TIF.

But, mostly, I am so happy that almost all TIFs will be required to disband someday.  Next year, maybe the sunset provision will be extended to the Downtown TIF so that downtown can begin to give back to the rest of us.

TIFs - 2013 Legislative Changes Protect the Base & the Curious Case of the North Midtown TIF [corrected]

It has taken me a while, but I finally sat down with the forms filled out last August by the Marion County Auditor's Office, that evaluate the amount of base and increment in each TIF district we have.  These are the annual TIF neutralization forms that I've brought up before in this blog.

The forms for 2013 (pay 2014) are different than those used in previous years.  That is because of changes made just last year by the Legislature to reign in unsound practices that led to the base being eroded each year.  Now it is the actual aim of the form to let the base rise and fall due to changing market values, not due to the amount of tax money the increment took in the previous year.

As a reminder, each TIF district has its Assessed Value split between the base and the increment.  The base is supposed to be the value of the property before the TIF was created, and the increment is the new value supposedly created by the establishment of the TIF.  The taxes that flow from the base are always promised to continue flowing to the schools, city, etc., but we know full well that that promise was not an honest promise - until the 2013 changes were forced by the Statehouse.

Instead of getting to far into the weeds, let me just summarize by saying that the new forms ask how much new construction happened and allots that value to the increment, how much was demolished and allots that value proportionately to both the increment and the base, and, interestingly enough, how much value rolled off from abatements that year and allots it to the increment.  It takes any other increase or decrease in the AV, presumably due to actual rising or falling market values, and allots that proportionately to the base and increment.

In the big view, this change appears to be successful.  I had to make an adjustment for the new North Midtown TIF's inclusion for the first time this year - which was easy enough.  I would have done so for the new Bush Stadium Area and Mass Ave TIFs from 2012-13, but the component TIFs of the Consolidated Downtown TIF are no longer itemized.  Rather, the Downtown TIF and its 10 components are now reported as one set of numbers, as is the Consolidated Airport TIF and its 7 components. 

In the 2011 (pay 2012) TIF summary provided to the TIF Study Commission, the value of the base for all TIF Districts in Marion County was reported as $2.02 Billion.  By the next year, the base had been eroded substantially; in 2012 (pay 2013) the total base AV fell to $1.47 Billion - losing a quarter of its value as half a billion dollars was pushed into the TIF increment.  The latest figures for 2013 (pay 2014), show a stabilized base AV, coming in at $1.47 B, once again (after subtracting the new North Midtown TIF).

Half the TIFs lost value and half gained between 2012 and 2013, with a net growth of $170 M for a total TIF District (base plus increment) value of $5.83 B.  The Downtown TIF accounts for just over half the value of all TIFs in the County, but its growth accounted for the lion's share of the Countywide TIF increment value, adding $149 M.

The State Legislative Services Agency puts together annual reports on the impact of the tax caps.  In 2012, the LSA reported that Marion County TIFs collected $99 M in property taxes.  By 2013, that figure rose to $108 M.  The projected TIF revenue to be collected this year is $118 M.  The Downtown TIF is the big winner, with a projected revenue of $68 M.

The North Midtown TIF was established early last year, so this was the first time the base and increment were evaluated through the annual TIF neutralization process.  The form (p. 7 of the pdf) reports that there was no new construction, $286,300 worth of demolition, and $755,960 in previously abated property coming off the tax rolls.  You'd think that since there was no new construction, the base would continue to be 100% of the entire TIF AV. 

Nope. 

The abatements granted before the TIF was established are now generous donors to the increment.  The increment went from 0 to $469,707, in a year that saw no growth truly attributable to the creation of the TIF.  Since abatements tend to run 10 years and fall off the same fraction each year, one can guesstimate that the old abatements could award the North Midtown TIF about $4 Million over the next decade.  Not bad for just starting a TIF and having no new dollar investments to claim as having been caused by the TIF.  [These are the corrected numbers.  As Anon 10:50 pointed out, I had the incorrect order of magnitude previously.  I apologize for the added drama.]

I await brand new legislation regarding TIFs to get signed by Governor Pence.  I'll report within a couple of days some exciting new Legislative endevors to reign in rampant abuse of TIFs, especially here in Marion County.  They did a good thing last year, by solidifying the TIF base, so that at least one of the promises made when TIFs get created is a promise that stands a chance to be fulfilled.  The North Midtown TIF shows that the revamped system is not perfect, but much improved over the old way.  One step at a time.  One step at a time.

What is the True Role of the Circle Area CDC?

Regular readers of this blog know full well I am not a journalist.  Just this once, though, I will try my best not to bury the lede.

Why is the City of Indianapolis funneling millions of dollars through an obscure group housed in the Indianapolis Bond Bank on the 23rd floor of the City-County Building?   Of what benefit is keeping this middleman's actions just out of sight?

I speak of the Circle Area Community Development Corporation.  I will tell you about grants from the Metropolitan Development Commission to spend millions of dollars that the MDC can easily spend on its own.  I will tell you about land purchases on behalf of the City.  I will tell you about transfer of operations for City assets to the group.  I will tell you about one documented instance of the creation of 'nesting doll' corporations, further removing the expenditure of public funds from accountability and transparency.  All that I will tell you has documentation that I will provide, should you want to review it for yourself.

This story is still developing.  At this point I am being actively pushed back from my requests for further documentation from the Circle Area CDC and the City that harbors, supports, and guides its actions.  My hope is some investigative journalist with better talent at navigating these warrens than I, will step forward and beat me to the rest of the story.  I will keep digging in any case.

1997 - Establishment of CA CDC and Purchase of Circle Block Parking Garage

The Circle Area CDC was set up by then Mayor Stephen Goldsmith in 1997, in order to purchase a parking garage near the Circle, primarily for the use of Emmis Communications.  This property is referred to as the 'Circle Block Parking Garage'.  I believe the reason for creating the CDC was because the City is barred from taking out an ordinary bank loan, but a CDC is not so barred.  Receipts from the garage were used to pay off the loan over the years.

The CA CDC has 5 board members, all appointed by the Mayor.  It is listed among the Boards and Commissions on the City's website.  Current board members include Nick Weber, former Deputy Mayor, who serves as the Board's President.  The By-Laws for the CDC are also posted on the City's website.

A series of filings about the CA CDC with the Indiana Secretary of State, show an initial Board composition including John Klipsch of the Department of Metropolitan Development and James Snyder of the Mayor's Office.  Beginning in 2000 a lineage of all the Executive Directors for the Bond Bank through today became integral to the organization -  Robert Clifford, Barbara Lawrence, Kevin Taylor and Deron Kintner. 

The principle office address is the same as the Indianapolis Bond Bank in the Secretary of State filings, on the City's Board's and Commission webpage for the CA CDC, and in the SOS filing last year that notes Nick Weber as President of the CDC.  The City's website reports that the Bond Bank is, in fact, the 'Administering Agency', just as DMD is the Administering Agency for the Metropolitan Development Commission.

The same address is also listed on GuideStar.org, which gets its documents from the IRS.  According to GuideStar, the CA CDC is registered with the IRS and that "the organization is not required to file an annual return with the IRS because it is an arm of a state or local government".

Even though it apparently claims to be an arm of government, it is not currently being audited by the State Board of Accounts.

2004 - Participation in Financing Conrad Hotel

According to an email from Deron Kintner, the CA CDC parking receipts from the Circle Block Parking Garage were pledged for the repayment of the 2004 bonds used to finance the construction of the Conrad Hotel.  That would have been during the Peterson Administration.

2009-2010 - Takes Over Operations of Market District Garage

In 2009, after a lengthy public debate on its wisdom, the MDC signed a lopsided agreement designed by the Ballard Administration, with Tadd Miller Enterprises to purchase an existing parking garage at 101 N. New Jersey for $18.5 M, which was the actual cost to Miller's organization for the parking garage plus the old Bank One Ops Center building plus the block that building sits on.  The parking garage, now know as the 'Market District' garage, was purchased by the MDC/DMD on July 19, 2010.  From one of only 4 sets of minutes of the CA CDC Board meetings that I have been able to obtain, the CDC voted on November 17, 2010, to enter into an agreement with the City to operate the Market District garage on behalf of the City.  According to the MDC/Tadd Miller Enterprises agreement, receipts from the garage were to provide part of the payment for the $1.85 M loan Miller arranged with a bank.  It is not clear at this point how the money collected by the CDC makes its way to the bank, or even if that method of payment was altered in a later agreement.

From the minutes, "Mr. Kintner also explained that the CAC [what I am calling the CA CDC] will not own this garage and will only be an intermediary".  And, "Mr. Kintner recused himself from voting on this resolution, citing that the Bond Bank has been working with the City on this deal and will be accepting a fee for consultation on this deal".

2011 - Purchase of 302 E. Washington St. Parking Lot, $600K Grant From MDC

At its July 26, 2011, meeting the CA CDC, approved the purchase of a privately owned parking lot across the street from City Hall, and directly south of the two MSA parking lots, at 302 E. Washington Street.  The purchase price was $4.34 M.  The Assessed Value of the property was half that; $2.2 M. 

The minutes report, "Mr. Bice asked how the purchase price was determined? Mr. Kintner stated that the price was based off of negotiations and the amount that the CAC organization could afford to repay."  And, "Mr. Pratt gave a brief overview of the financials for the parking lot and was confident that the parking lot would generate sufficient revenues to repay the loan for the purchase of the real estate." 

On April 5, 2011, the CA CDC approved a Resolution to

"allow the Circle Area Corporation ("CAC") to oversee the distribution of proceeds from the Metropolitan Development Commission in the amount of six-hundred thousand dollars for the PNC Bank and Indianapolis Arts Garden connector. 

"Bruce Donaldson explained that there will be a process put in place that would document the tracking of disbursements for the project.  The Bond Bank will oversee the tracking.

"Board Member Jennifer Pyrz, asked if the project would need to abide by City guidelines in terms of selecting contractors?  Mr. Kintner answered in the negative stating that since the CAC is administering this loan, the project is not required  to follow those procedures."

The MDC dispersed the $600,000 in the form of a grant to the CA CDC.  The MDC used TIF funds and passed it through to the CDC, presumably for the reason queried at the Board meeting - the CDC did not have to following rules governing competitive bidding and transparent selection of contractors; procedures that were required of the MDC.  The grant document does not require that the CDC report back, provide invoices, nothing except return any money not spent.  Here is the most 'demanding' paragraph of the grant:

"CAC hereby agrees to accept the grant of the Project Funds in the amount of $600,000 and to use such funds solely to pay or reimburse costs of the Project.  CAC agrees to enter into a project agreement with the owner or manager of the PNC Center pursuant to which CAC will disburse or provide for the disbursement of Project Funds only upon submission of proper evidence of work completed on the Project and the value of such work.  Any interest earned on the Project Funds shall be returned to the Commission.  If CAC has not spent all of the Project Funds on the Project by December 31, 2012, any remaining balance shall be returned to the Commission."

 

2012 - $9 M Grant From MDC

On April 2, 2012,  the MDC 'granted' the CDC money for the construction of two parking garages in City Way (aka North of South).  This grant was for $9 M.  This time, some review by DMD was required prior to spending the money. 

"CAC hereby agrees to accept the grant of the Project Funds in the amount of $9,000,000 and to use such funds solely to pay or reimburse costs of the Project upon receipt of DMD's approval of such payments or reimbursements.  Any interest earned on the Project Funds shall be returned to the Commission.  If CAC has not spent all of the Project Funds on the Project by December 31, 2013, any remaining balance shall be returned to the Commission."

2013 - Purchase of 131 N. Alabama Parking Lot and Creation of Nested LLC

On May 6, 2013, the CA CDC purchased two parcels with the common address of 131 N. Alabama Street.  This parking lot abuts the north side of the two MSA parking lots.  The financing for the development of the northern MSA parking lot goes to the City-County Council tomorrow night for a vote.  The purchase price for 131 N. Alabama Street was $1.08 M.  Assessor records show a combined Assessed Value of the parcels to be $1.103 M. Nick Weber signed for the CDC.

On September 20, 2013, at a Special Meeting of the CA CDC, they voted to authorize the creation of CAC 1440, LLC, for the sole purpose of purchasing property at 1440 N. Meridian, and potentially another parcel only referred to as 'the 1520 site'.  The minutes indicated that the City was providing the funds.  The City's complicated deal to create the Mass Ave TIF and relocate the IFD station and headquarters located there, hinges on relocating the Red Cross as the last domino to fall in place to make the entire deal actually work.  The desired new location was 1440 N. Meridian, but due to delays by the national organization, it was feared that the closing could not occur by the target date of September 30.  The site was referred to as the 'Norle site'. 

From the minutes:

"Mr. Fullbeck agreed that the situation was accurately explained.  He added that he has spoken to the Director of the Indianapolis Red Cross, who apologized for the delay and the need to take this step.  The Director has indicated to him that the holdup is simply bureaucracy and has nothing to do with the actual site.  The City of Indianapolis did originally ask for an extension from Norle when they learned of the need to do additional environmental work.  Norle said they would be willing, but asked for a significant sum of money in order to do so.  City feels that involving the CAC in the purchase in this manner is the more prudent option."

So, the CDC set up a nested organization, CAC 1440, LLC, that very day.  The CDC is the lone member of the LLC, but is not mentioned at all in the filings with the Secretary of State.  Why was it so important to remove the City from the purchase to an organization nested within the CDC? 

I have not found any evidence that the parcel was actually purchased by the City, the CDC, or the LLC.

--

From simply glancing at the timeline of the history of the Circle Area CDC, one can see that its utilization by the Ballard Administration is novel and picking up speed.  Understanding why it is being used so heavily is another matter.  The CDC does nothing in concept that the City cannot do on its own and out in the open.

Perhaps the utility of the CDC lies not in what it can do, but rather in the polices and practices it can circumvent, and its ability to hide its actions from public view, that makes it so attractive to Ballard and his crew.  So, what policies does diverting City functions to the CDC avoid?  What public records laws don't apply to the CDC, but apply to the City?  What bidding processes can be avoided?  What hiring quotas required of the City, can be circumvented by the CDC?  Why go to the trouble of creating nested organizations?  (It sure looks like they were trying to cloud the trail to the real purchaser's identity.)  What accountability and transparency is sacrificed by the granting of public funds that the MDC could easily spend without employing a middleman?  Does it relieve the City of its obligations for due diligence and proper oversight of the expenditures of public funds?

I don't know.  But, something is going on that needs a whole lot of explaining. 

I'll keep trying to get documents.  All I have obtained to date are minutes from a mere 4 meetings of the Circle Area CDC Board.  Just look at the curious activity they revealed.  Imagine what might be in the rest of them.

Important TIF Changes Make It Into Law

I'm really late to this news, but thanks to Thomas Heller out of Columbus, IN, I do finally have it.

This past Legislative Session actually took a couple of significant steps to reign in how TIF (tax increment finance) districts are operated.

HB 1116 made it into law with a litany of changes to the way a wide variety of governmental units manage the revenues they garner from property taxes.  From libraries to townships to school districts to municipal governments and more - there's something for everyone in this bill.

Winnowing it down to factors relevant to TIF districts we end up with three items:

It requires the MDC to submit an annual report to the Council and for the Council to forward that information to the State.

It revamps the way the value of the base is calculated each year; limiting any decrease in the value of the base to that caused by lower property values.

It calls for the Legislative Council to set up a study committee on TIFs. 

A reminder on the jargon - the base is supposedly set on day 1 of the life of a TIF district and is the total value of all property then existing within the footprint of the TIF district.  The fairytale always told is that that value will remain in the base and the taxes derived from it will always and forever flow to the schools and libraries and cities and towns.  The increment is supposed to be all the growth in value due to new construction and redevelopment (not just inflation).

The reality is that each year, the County Auditor must submit to the State Department of Local Government Finance, a form for each and every TIF district that recalculates the base.  We have seen considerable erosion of the base of our TIF districts in Marion County over the years due to the calculations handled on these forms (TIF neutralization forms), with base value being converted forever into increment value.   Such is our problem here in Marion County, that 16 of our 40 TIFs have seen their base drop to zero, including 5 of 6 components of the much vaunted consolidated downtown TIF.

In trying to recreate how the TIF portions of this bill flowed through the session, it seems the introduced bill included only the method for the annual recalculation of the base (TIF neutralization in TIF-speak).   At some point after it got to the Senate, this part was deleted.  During the Conference Committee, it was added back and the other two items (MDC report to Council requirement and call for a study committee) were added new.

The MDC (our redevelopment commission) must submit a report to the Council by August 1 each year.  The report must include revenues received, expenses paid, fund balances, the amount and maturity dates for all bonds, and the amount paid on bonds for each TIF district.  Also, a list of all parcels included in each TIF district along with the base value and increment value for each parcel.  The Council has until October 1 to compile the information and submit it to the DLGF.

This would, of course, open all of this information up to the general public as well.

According to the Legislative Services Agency, who evaluate every bill for its fiscal impact, the current law requires the MDC to submit a more abbreviated report to the Mayor each year.  I'm sure he reads it, too.

Because of HB 1116, the law now protects the base from any erosion, except when the assessed value of the property in the TIF district decreases - as in an either local or widespread recession.  This reasserts the promise made when TIFs are created.  In non-recession times, the base would grow along with the value of the property as determined by the County Assessor.  As the LSA puts it, increased base values "would result in lower tax rates and potentially lower circuit breaker losses" to schools, libraries and city governments.  I've noted before that half of all circuit breaker losses can be directly attributed to our TIF districts.

One unfortunate aspect of this change, is that those TIF districts whose base have already dropped to zero will never see the benefit of the new law.  But, it is good that at least one of the fairy tales used to sell the public on a TIF will be made reality, finally.

 

And last but not least, the study of TIFs at the state level is long overdue.  There is so much hocus pocus and shenanigans going on with TIFs that overhaul is needed in order to protect the public.  While I'm usually more apt to back home rule, the actions of our city fathers and mothers to dismantle and ignore the recommendations of our own TIF Study Commission shows how little we can trust them to move forward in the public interest, over the interests of select individuals.

The state enabled TIFs decades ago. Slowly, as problems have come to their attention, they have enacted changes to the law to reign in bad practices. Maybe a decade ago, after seeing abuse of the bonds tied to TIFs, they said that any bond paid with property taxes could be refinanced only if the term was not lengthened nor the payment increased. Last year they limited the life of any newly created TIF district to 25 years. And this year, they stepped forward to protect the base. Now, if only they could turn their attention to limiting the fraction of property value that can be caught up in TIFs, and forcing the sunsetting of existing TIFs once their current bonds are paid off...

Reflections on Mid-North TIF Hearing Last Week - clip 2 included

continuing to post the various clips from the MDC hearing on the Mid-North TIF

Bruce Donaldson's take on what can happen to the base:

Reflections on Mid-North TIF Hearing Last Week - clip 1 included

I have a few thoughts lingering after last week's MDC hearing on the North Midtown TIF.  Of course, it went through with a 7-1 vote (Ed Mahern being the lone no vote).  But, there were some interesting points made that are worth noting.  You will see how the fairy tales about TIFs continue to be repeated - to folks charged with deciding whether or not to create them by folks considered experts.

First, let me say how outstanding it has been to work in concert with the good folks from Meridian Kessler Neighbors Helping Neighbors.  These folks (Clarke Kahlo, Paula Light, Ellen Antoniades, Terry Sanderson, and Doug Sherow) understand the connection between TIF proliferation and cutbacks in funding for basic services like police, fire, and schools.  They know the Meridian Kessler does not want for much, and presented the facts and figures that clearly demonstrated that the northern half of the North Midtown TIF should be removed from any consideration of a TIF.

Of concern is the fact that the only representatives of the City, who were in fact consultants, did not understand the wider view of TIFs beyond their particular focus of expertise.  I refer to Barnes & Thornburg attorney, Bruce Donaldson, and Crowe Horwath's Angela Steeno. 

Donaldson evidently writes up the documents that lead to the creation of  TIF districts, and likely does a masterful job with that.  Yet, when asked about erosion of the base by turning it into TIF increment, he was way off the mark.  He relayed to the Commissioners the mistaken impression that the annual filing by the County Auditor of a form known as the "TIF neutralization" form, only causes the base to float up and down with normal fluxuations of assessed values.  His lack of understanding of the actual effect of these forms is damaging.  He helps perpetuate the fairy tale that the tax dollars flowing from a TIF district the day before the TIF is created, will always flow to fund the schools and police, etc.  He had not heard anything about nearly half a billion dollars of base being converted into increment this past year.  (see "TIF Fact #2 --- $490 million of property value was transferred from the base to the increment this year" and click here to review the forms for yourself [edited to add - line 7 reports the old base assessed value and line 13a the new base AV determined through the form]).  I was given a few minutes to respond to his error.  Hopefully, the Commissioners will follow up on this matter with Deron Kintner so that they are fully informed on how this aspect of TIF districts actually functions.

One brief comment by Donaldson surely sent a chill up the spines of many of the proponents.  He told the Commission that they didn't have to do any projects in Broad Ripple (as a for instance) if they didn't want to.  They could, instead, use TIF revenue from Broad Ripple to fund projects in other parts of the district.

Steeno had a couple of interesting moments.  Her focus was on the impact of the Broad Ripple parking garage (that was paid for with $6.34 million of taxpayer dollars) on the amount of tax revenue that could be generated, the amount of bonds that revenue could secure, and the effect of its inclusion in the increment on the circuit breaker penalties tied intimately with TIFs due to the property tax caps.  She seemed unaware that the owners of the garage could appeal an assessment using the cost to build, by arguing that the cash it generates should instead for the assessment - and leading to a lower assessed value than she was predicting. 

More importantly are two numbers she reported, but failed to link together.  She stated that the garage should generate $317,000 a year in property tax revenue to the TIF.  She also stated that the garage would cause "only" about $200,000 a year in circuit breaker penalties throughout the County. 

This is important as it predicts the minimum effect of this TIF on cuts in property taxes that our various governmental units qualify for, but cannot collect due to property tax caps.

The minimum effect is that for every dollar generated in the North Midtown TIF district, circuit breaker penalties will rise by 63 cents.  That's pretty substantial.  So, if the TIF generates $10 million, expect penalties to rise by $6.3 million a year.  That's $6.3 million less in services - from schools, to the Library, to IndyGo, to police, and to fire - and more.

The failure of those in control of the money in our City to come to terms with the reality of how TIFs really operate, is likely to haunt our community for at least one more generation.  It is curious indeed, that those who promoted this TIF because of executives fleeing our more affluent Marion County neighborhoods, have likely exacerbated the underlying reason.  The reason families flee the county is not for a lack of commercial development, it is often because of the lack of good quality schools. Inappropriate TIF districts make the problem worse for schools, not better.

I am having technical problems loading more than one clip from the hearing.  I will attempt to added the other clips to subsequent posts.   You can view the entire hearing by clicking here.

Meridian Kessler Neighbors Helping Neighbors comments, plus my own.

 

Welcome to the Republican World

We are witnessing what happens when Republican elected officials get full reign in our Statehouse.

Don't like a Democrat running the White House ?  Call for a Constitutional Convention.

Don't like that a Democrat was elected to the State Department of Education?  Change that Department's authority.

Don't care for a Democrat majority on the Indianapolis-Marion County City-County Council and in County offices?  Change the rules to favor Republicans, in particular the sitting Mayor.

While all are important with detrimental ramifications, it is the last item that I want to address today.

Two bills were introduced, fashioned after a wish list made by Mayor Ryan Vaughn.  The totality of the bills is to increase the likelihood of a return to a Republican majority Council in the near future, and in increase in the ease with with our City coffers can be looted for those with 'special' connections with the Mayor's office.  Let's face reality - this is likely the last Republican Mayor to serve the City of Indianapolis.  They thought he would be a one-termer, and sold as many of the taxpayer's assets as they could get their hands on during his first term.  Now, they are setting about constructing new slush funds from which to reward their supporters.  Sadly, they are getting a lot of assistance from Democrats on the Council, a point to which I will return later.

The two bills are SB 621, by Senator Mike Young, whose district sits on the southwest corner of Marion County, and HB 1399, by Representative Cindy Kirchhofer, whose district runs from Beech Grove to the eastern border of Marion County.  SB 621 was approved by the Senate and has moved to the House.  HB 1399 has not had any activity.

All that is in HB 1399 was included in SB 621, which had one item amended out of it.  SB 621, however, contains a few items extra.  Both originally would grant the Mayor the authority to change, not just veto, any line item amount of the budget approved by the Council.  This was amended out of SB 621.  Both codify that IMPD would be under the direction and control of the director of public safety, which is what actually happens right now.  Both would remove the requirement that the Mayor's appointments for Director and Deputy Director positions in his/her administration be approved by the Council.  Both remove the authority of the Council to get a Payment in Lieu of Taxes (PILOT) payment from the CIB.  Both take two appointments to the Metropolitan Development Commission (MDC) from the County Commissioners and give them to the Mayor - making that body composed of 6 appointees of the Mayor and 3 of the Council.  And finally, both require all agency and department budgets be 'allotted' quarterly by the City Controller - essentially giving that person the authority to lower the budgets passed by the Council at his/her whim.

SB 621 also includes the elimination of the 4 At-Large seats on the City-County Council.  If they were eliminated today, the Council majority would shift to Republican control.  If SB 621 passes, there would not be another election for At-Large seats and 2015 would be the last year they serve.

SB 621 goes further, mysteriously dropping the residency requirement to serve as Mayor to 1 year (down from 5 years) and as Councillor to 1 year (down from 2 years).  It reduces the number of seats on the Township Boards from 7 to 5.  It tosses in a weird requirement that the method of choosing Judges to review any appeal of the Council district maps, be made a public record.  And last but not least, it throws in another opaque requirement that absentee ballots be counted in a central location instead of at the precincts, unless the Election Board unanimously agrees otherwise.

That's a lot of stuff.  Vaughn insists he didn't ask that the At-Large seats be eliminated, but that is as much effort as he put in to getting that section removed from the bill.

In my humble opinion, the most onerous aspect of SB 621, as it now stands, is the authority it would grant to the City Controller to amend the budgets after the Council appropriates the funds.  Currently, the Controller must sign off on any contract, stating that there are sufficient funds to pay the obligation.  Should tax receipts be lower than expected - a condition highly unlikely given the way the State Department of Local Government Finance (DLGF) already holds some funds back to ensure all funds promised are actually delivered - the Controller can simply decline to sign off on new contracts.  This line by line, quarter by quarter, ability to modify any department or agency's budget simply moves the actions out of the light of day.  We saw this year how vindictive Vaughn can be, when he slashed the Democrat controlled agency budgets, leaving the Republican controlled department budgets alone. To have that accomplished behind closed doors is to place a huge burden on democracy.  We elected Democrats to County offices.  They have a legal budget.  Now to let the Republicans unfettered access to vindictively slash their budgets, or threaten to do so for its extortion potential, out of the light of day, is an example of how far Republicans will go to subvert the will of the electorate in order to benefit the Republican party.

The At-Large seats are similarly being eliminated by SB 621, for the sake of the Republican party.  When UniGov was instituted, the At-Large seats were created to ensure Republican control of the Council.  Now that they work to the advantage of the Democrat party, the Republicans want to change the rules.   I would have had more sympathy on the At-Large issue, had the Democrats not pulled their own version of turning the will of the electorate on its ear with their drastic change in the composition of Council Committee membership - dropping the number of minority party members from one less than the majority party, to only 3.  These lopsided committees have caused less representation for those districts that elected Republicans.

All tit-for-tat aside, there should be a compelling reason to change the representation on the Council.  No real argument has been made to eliminate those 4 At-Large seats.  Until a compelling reason is brought forth, one would hope the seats would remain.  But, again, this is not about good government, its about the Republican party changing the rules to maximize its authority when the elections did not go their way.

The third aspect that should cause concern is the change in appointments to the MDC.  This would give the Mayor control of the Airport, the CIB, and the MDC.  The MDC is the body that creates TIF districts and controls how the revenue is spent - and who gets those contracts.  The County Commissioners are among the few who 'get it' when it comes to the negative consequences of unfettered TIFs and who see a reason to get analytical when it comes to reviewing them.  On their behalf, their appointee Ed Mahern, has asked tough questions and made tough statements.  This impertinence has angered Vaughn considerably.  It is not enough for Vaughn that he gets his way regardless, as many of the Democrats on the Council push for one TIF after another, even though the districts pull money from basic services.  This aspect of the bill is likely as much targeted for Mahern's removal as it is to Mayoral control of the MDC.  This is not in the best interest of the taxpayers.  But, it is being pursued not for the taxpayers, rather for the Republican party.

Removing the CIB from the list of municipal corporations that can have a PILOT levied against them is simply pulling the authority from the Council after it had the audacity to think for itself and not do what Vaughn told them to do.

Much of the rest of this bill is simply weird.  Why change the residency requirements or make a bit more paperwork targeting judicial review of challenges to Council district maps?  Five instead of seven Township Board seats is almost irrelevant.  As is the approval of Department heads by the Council.  And, why does Vaughn care where the absentee votes are counted?  Certainly the Election Board could count them at a central location right now, if it so chose.  But, the Democrats have two votes on the Election Board and the Republicans only one.  So, its time to change the rules.

As I noted much earlier, this is how Republican rewrite the laws when the voters have the temerity to elect Democrats.  Its not about good government, not by a long shot.  Its about Republican party dominance - by hook or by changing the rules after the game has begun.

Mass Transit - TIF Out, Eminent Domain Out, Other Good Ideas Avoided

First off, lets take a moment to celebrate that HB 1011 was amended to omit the option to establish a TIF district along any rail lines. This amendment was offered by Representative Cherrish Pryor. Whew ! One very bad idea down !

Now on to other good amendments - some that made it and others that didn't get far.

I tripped on a link to documents provided to Legislators on the ISL website (in.gov/legislative).  These apparently are the documents that are available on the Legislators desks at various hearing dates.  I poked on the mass transit bill (HB 1011) and the House Ways and Means committee and finally found a hearing on February 13 with several amendments, some voted on and others not.

In this group were some very good ideas.  Amendment 35 (here is the link, but it requires ftp and may not work for you) banned the use of taxpayer assets or forced employee time to promote the public question unless those assets were also made available to those opposed to the public question.  It also would have banned vendors from promoting the question. 

Amendment 35 was not heard - an author was not even found at the hearing.

Amendment 38 (click here - again I hope the link works for you) was heard and passed by consent.  It wasn't clear to me if Rep. Pryor authored it, but she certainly championed it in the House Ways and Means Committee meeting. It included the elimination from HB 1011, the transit authority use of eminent domain.  Discussion mentioned that the Cities and Counties have the authority and most of the right of way already.  It also included the additional requirement that any bonds floated by the transit authority must also be approved by the fiscal bodies of the Counties involved, and set minority and women hiring goals.  And also notable, the transit authority board would have additional seats appointed by the County Councils and County Commissioners.  The Marion County appointments would be 5 - 2 by the Mayor, 2 by the Council, and 1 by the Commissioners.

Amendments 37, 40, and 41 all included a township by township referendum vote.  The final evolution of this issue was to allow the outer townships of the outer counties to have individual referenda, but not the internal townships in those counties, and no township votes in Marion County at all.  Of course, they need the donors from Decatur, Perry, and Franklin Townships, who will not see any improvement in the lacking transit we now 'enjoy,' should this mass transit plan go all the way through.

HB 1011 did pass out of the House and now goes to the Senate.  Hopefully they will include language to limit taxpayer's subsidizing only the proponents of the public question, trim the costs in half, include township by township opt-in votes, and find a way to ensure that any plan implied in the public referendum be the plan that must be implemented with the tax revenue approved.

But, today, I intend to enjoy the fact that the TIF district is out.

Councillors Mahern and Adamson Stand Up for What is Right

Yesterday was a bad day for sense and sensibility in Indy government.  The Council voted 25 to 2 to pass Prop 15, which expands the consolidated downtown TIF by more than a square mile.

The only two who had the strength of their convictions were Councillors Brian Mahern and Zach Adamson.  Angela Mansfield appeared to be absent and Vernon Brown was excused from voting due to a conflict of interest. 

By my count, at least 7 Councillors, bent their principles and voted in favor. (Others were always going to vote the party line, the public interest be damned.)  Sure, their vote would not defeat the measure, but it would have sent a message that the ongoing community discussion on TIFs is necessary.  That conversation will continue.

Councillor Vop Osili made promises to folks living in the Riverside and UNWA neighborhoods.  The language he negotiated and inserted into Prop 15 fails to target those promises to those neighborhoods. 

Councillor Joe Simpson refused to amend the Mass Ave portion of the TIF to exclude 2 of the several parcels that are already slated for private investment.  This extension of the consolidated downtown TIF is merely being created as a slush fund for the Ballard administration, and Simpson is fine with that.  He and they are stealing revenue that would have gone to help teach the children of IPS, stealing revenue that would have gone to deliver poor relief in Center Township, stealing revenue that would have gone to IMPD, IFD, IndyGo, Health & Hospitals, Parks, and the libraries - and spending it on development that could and would have happened without the TIF.

I sincerely hope that a dye was not cast last night.  I hope we merely walked down the wrong path on a course that we can change before it is too late.  TIFs have consequences.  They are not free money.  At some point, we will cross a line that harms Indy's economy and the services we pay taxes for.

Councillors will feel the urge to get in line to get a TIF for their area, too.  By my count, the two that passed last night are just the first of 8.  I don't know where the line of economic harm is.  Perhaps it isn't even a bright line, but rather a gradual loss of services and quality of life for most of Indy's residents until drastic cuts in public safety and education become routine, and we do the best we can to wait out the 25 year lifespan of the TIFs.

The issue of TIFs is a hard one.  I have been happy to see the community trying to get on top of it, digest it, and decide upon it.  The conversation began in earnest about a year ago as key people in key groups began to understand there is no free ride with TIFs.  And the conversation will continue. 

Today I want to thank Councillors Mahern and Adamson for standing up for Indy, even when the powers that be tried to make them bow.  We need elected officials with spines and principles and who will fight for what is right and best for Indianapolis and its people.

The public good suffered a blow last night, but the fight continues.

Prop 15 - A Nightmarish Mess

The tortuous life of Prop 15 through the Indianapolis-Marion County City-County Council is not the Council's finest hour by any stretch of the imagination.

The ridiculoucity continued this past week with two evenings of meetings of the Metropolitan & Economic Development committee.

Even before Monday night's meeting began, the committee knew it would be recessing that night without passing Prop 15 due to a disagreement with the Ballard administration over a proposed amendment that sought to add language guaranteeing two microloan programs and one job training program.  Councillor Vop Osili had a memo from Deron Kintner to the effect that the City agreed to those programs, but wanted it written into the proposal.  I uploaded to Google Docs the disputed, and never introduced, amendment.  What you'll notice is it's clarity of language.  The header suggests this amendment was intended to be voted on at the full Council meeting where, instead, the Council decided to send Prop 15 back to committee.

What was introduced Friday night, after they had four full days and nights to come to an agreement, was a mess - tortuous language construction, dubious protections for the intended beneficiaries of the programs, and massive loopholes.  Not to mention the misspelling of the word "Councillor" - which is defined in Council rules, by the way.  Plus you'd think commas were an endangered species that had to be included sparingly.  This amendment passed by a vote of 6 to 1, with Councillor Zach Adamson providing the sole no vote.  I have uploaded my copy of this amendment, as the Council website has not yet updated their version of Prop 15.  Sorry for the scribbling, I wasn't thinking I'd be sharing it with everyone.

From the header one might think this amendment would be introduced at the full Council.  The meeting Friday night did start 5 minutes late and the amendment was not available until seconds beforehand.  So, it may be the negotiations were deemed done enough and this messy amendment was introduced at the committee instead.

Here are some attributes of the amendment that catch my eye:

The $10 million microloan program will require "the leveraging of current resources" which usually means floating bonds to be repaid with some revenue stream.  There aren't many details provided on this proposed program.  One thing that is stated is that it would be a county wide program.  It would be a violation of state law for the funds to come from the downtown TIF.

I looked through google street maps and the Marion County Assessor's interactive map to try to locate the "Bryant Heating & Cooling Facility located at 21st and Montcalm".  All parcels at that intersection are owned by private entities, none of which are Bryant.  To the west, however, at 1100 W. 21st Street, there is a large parcel with large buildings that appear abandoned, which is owned by DMD.  Why the lack of specificity when an address or parcel number is three mouse clicks away?  This is important because there is an attempt to require the demolition of this facility.

In multiple places the phrase "the area" is used.  From context it seems like it refers to possibly different boundaries at times - but the phrase is never clearly defined, which results in little to no protection of the residents of the Bush Stadium area that any of the promises made to them will actually be fulfilled - or even be required to be fulfilled.

The $2 million microloan program can be awarded to any business within a two mile radius of the enlarged downtown consolidated TIF.  The language is poor, again a comma or two might clarify, but it is either attempting to say the business must be located in a lower income area (median household income 75% or less of the median income in the County) or that the 2 mile perimeter must be centered on a low income area.  Just by the way, the median household income in the County is $40,421.  But a two mile radius?  How does that adequately target the Riverside or UNWA residents who came out to say they needed help?  Looking at maps, this perimeter could reach the Speedway to the west, Garfield Park to the south, Butler University to the north, and nearly Emerson Avenue to the east.  The intent is to take the funds from the TIF.  But TIF revenues must be spent within the TIF.  These requirements are a clear attempt to circumvent the state laws regarding the expenditure of TIF revenues, and it does not target the folks who live in the Bush Stadium area.

The exact same thing can be said of the $1.5 million job training program as was just stated for the $2 million microloan program.

And the last I'll mention is the really botched attempt to get work for the TIF district residents.  The language seems to say that any business receiving TIF money, should they require new hiring, would have to ensure that 40% of those hired lived in the TIF district.  The business could get out of this by filling out a form that indicated why it tried but failed to get to the 40% figure.  Or, they could bring in all their additional help from out of state, since those folks will not be counted.

Osili has been all over town touting the targeted benefits he personally negotiated for the residents and businesses of the Bush Stadium expansion area.  But, he is not delivering on that promise with this language.  Someone is being scammed - its either Osili or the residents.

Prop 15, that twice beaten dead horse now burdened with the worst amendment in the history of amendments, was voted on twice by the committee Friday night.  The first time the phrasing of the motion left off the key part where it would be sent back to the full Council with a do-pass recommendation.  On the advice of Council counsel, they did a do-over with the correct motion.

Both times the vote was 6 yeas and 1 nay.  Councillor Zach Adamson was the lone no vote both times.  The yeas were Councillors Robinson, Talley, Adams, Osili, Miller and Cardwell.  The last two are Republicans and the rest are Democrats. 

Prop 15, that raggedy, tattered zombie that it is, returns to the full Council Monday night.