Thursday, December 2, 2010

A Victory for David !

In a classic David vs. Goliath story, a group of citizens took on the tree trimming practices of some of the State's utility companies -- and have won a major victory.

On Tuesday, the Indiana Utility Regulatory Commission (IURC) announced a decision in the year long investigation of these practices. I'll go into the particulars of the decision in just a moment.

But, first, let me give hearty congratulations to Charlie Goodman, the only Citizen Lobbyist working the halls of the State Legislature, Jerry Baker, of Trader's Point, and all the others who formed the Indiana Tree Alliance, and systematically pursued the issue with the IURC. Their objections to the practices were not to the need for tree trimming when the trees pose a risk to power lines, but rather, to the over-reach of utilities, in particular Indianapolis Power & Light (IPL), in what amounted to a taking of private property. IPL claimed that they had the right to enter onto personal property to trim any tree it deemed in need of trimming - without any easement or permission of the property owner. They also exhibited a habit of trimming trees in ways that endangered the trees and did not in all cases, clean up the mess that the trimming created. You can visit the Alliance's website, http://www.indianatreealliance.com/ , for more details.

The IURC press release summarizes the 111 page order issued on Tuesday, November 30. Briefly, they determined that "Hoosiers would benefit from having consistency with regard to the rules and regulations surrounding tree-trimming practices and procedures". The Press Release goes on to say:
In its decision, the Commission stated that the utilities are required to adhere to nationally recognized best practices, as outlined by the ANSI A300 standards as well as other vegetation management guidelines detailed in the Order. For example, the utilities are now prohibited from "topping" trees or removing more than 25 percent of a tree's canopy without the property owner's consent. This decision stems from consumer complaints broached during the course of the proceeding. If the property owner does not consent, the utility must offer alternatives.

When contacting customers, the utilities must now provide notice in person or over the phone and provide at least one form of written notice to the customer. The initial notice should be no later than two weeks before the trimming is estimated to occur. In doing so, customers and utilities will have more time to discuss and resolve concerns. Further, once normal maintenance trimming is complete, the Commission finds that it is reasonable for the utility to have the debris promptly removed within three calendar days.

With regard to accessing property, utilities should use the public rights of way or easements. If the existing access points are insufficient, utilities either need to obtain such additional easements as necessary from the property owner, or obtain the consent of the property owner prior to trimming vegetation outside of the easement or right of way.

The major point that the Indiana Tree Alliance lost on, was the IURC decision that property owners may not hire their own tree professionals to do the trimming, but must rely upon the utilities.

The IURC will hold a 'technical conference' at 2:00 pm, December 15, to begin to craft new rules that will regulate the specifics of how Indiana utilities can trim trees on private property. They meet in room 220 of the PNC Center, which is on the southeast corner of Washington Street and Capital Avenue. The Indiana Tree Alliance is urging the public to attend to speak to what rules they would like to see created.

Wednesday, December 1, 2010

MDC To Vote On No-So Deal Today

On today's Metropolitan Development Commission docket, is the North of South sweetheart deal. It is in the form of an MDC resolution that will allow the loan of up to $86 million to Buckingham Cos. to develop about 11-14 acres just north of Lilly's corporate center. The resolution is posted here. (Again, you will need to log in with a Google account. If you prefer, just email me at hadenoughindy@gmail.com and I'm happy to send you the document.) I have also uploaded the MOU (memorandum of understanding) between the City and the developer. And, the Council Proposal 292 working through the City-County Council is posted here.

This particular document was quite a slog when I read through it. It formally modifies a bond resolution from 2004 - but without fully incorporating that resolution. So, it runs from noted modification to modification, without giving an understanding of what remains in the old resolution.

What is obvious from the resolution, though, is that the MDC is tangentially approving the deal and the project, even before considering the merits of a rezoning of the property. In the resolution there is mention of a loan to the developer and the issuance of bonds. In addition, the document does note that these bonds will be secured with TIF revenues - presumably from the consolidated downtown TIF. However, there is NO mention of the developer's obligation to repay the City, NO mention of the amount of the loan, NO mention of a first mortgage on the project, NO mention of the amount of the bond issue, and NO mention of the use of property tax revenue derived from the project to buy down the repayment obligation of the developer.

It continues to stun me how incomplete a picture this administration is willing to pass on to the decision-making entities.

Beyond what the MDC is voting on, the City is pledging to repay a $14 million loan to Lilly, who will turn that over to the developer, put in $9 million of infrastructure, and rig what amounts to a 10 year, 100% abatement on the property. It is the latter point that I actually find most bothersome of all of the bothersome aspects of this deal.

When an abatement within a TIF district is granted, there are goals and clawback details agreed to, there is a vote by the MDC, but also a vote on that abatement by the City-County Council. By doing an end run around the abatement rules, the Ballard Administration can parse out pieces of the entire deal to separate entities, with a connection between the decisions, but no real overlap on the actual pieces being decided. The MDC votes on the use of TIF revenues to secure bonds, the project, and the loan, while the Council votes to float the actual bonds.

By calling the property tax revenue generated by the project a 'credit' to be applied to the developer's repayment of the bond, the Administration is seeking to avoid the checks and balances written into the laws regarding abatements. In fact, I can find no place where ANY body, not the MDC and not the Council, actually will vote for this use of the property tax revenues.

This deal is just the latest in a long string of bad deals for the taxpayers of Marion County. In addition, the City puts itself out as a financial institution, putting the taxpayers on the hook for a project that no bank will touch, and simultaneously absorbs all of the financial resources of the consolidated downtown TIF. At no point has the Ballard Administration mentioned an analysis of the benefits and risks of this project compared with paying off the existing TIF bonds as soon as possible, nor compared with applying the same deal to the development of the old MSA site, which is owned by the taxpayers and would spur more private investment and City renewal than the No-So deal can spur.

You have to wonder why Ballard would put the taxpayers on the hook for nearly $100 million, while the developer of No-So only has to come up with $6 million. There is something not right about this deal.

Tuesday, November 30, 2010

I Am Going To Run for Council

I have been reluctant to post much in the last few days, as I have decided to make a run for City-County Council. Last night I announced my decision at the Decatur Township Civic Council meeting and resigned as Chair of the Land Use Committee. I am likewise resigning from McANA - as neither of those fine organizations need to have their independence tainted with 'politics'.

I have not yet decided whether I will run for the District 22 seat, currently occupied by Councillor Bob Cockrum, or for an at-Large position.

I am tending toward keeping this blog up for the duration, but I did want to be sure I extended full disclosure to my visitors so that they could read into it what they will.

It is obvious to me that the Council has been on a fast paced spending spree, looting every dime from TIF districts instead of paying off debts, selling assets that will cause long term cost of living increases and which amount to picking the pockets of future generations just so we have more money to spend today. The focus is on making a few well connected people and companies financial winners, while shorting the governmental functions that would make Indianapolis an even better place to live.

Friday, November 26, 2010

Cybershame Post to Be Temporarily Removed

Two days ago I posted about the Indiana Department of Revenue's Cybershame list, where they post online, the names of businesses that have not paid their sales taxes. That list is required by law, by the way.

In that post, I gathered 10 names that caught my eye from over 400 Marion County businesses listed as delinquent. In just two days, two of those have added comments that they are incorrectly on the DOR list.

I am pulling that post so that I can contact DOR about the accuracy of their list and expressly ask about the ten businesses.

I should think that the state law intended that the list be accurate. I'll be back with more information as soon as I can get it.

Thursday, November 25, 2010

Happy Thanksgiving, Everyone

Another Thanksgiving Day is upon us. This one just might be my favorite. Thanksgiving has somehow eluded the commercialization that other holidays have encountered. It remains about family, family traditions, and being thankful for all that life has provided to us.

On this day, I hope your family is near, happy, and healthy.

Monday, November 22, 2010

Schedule of Hearings for City's $98 Million Loan (Plus $45 Million Incidentals) for No-So Project

The sweetheart deal proposed for the developer of the North of South project, is working its way simultaneously through the Metropolitan Development Commission and the City-County Council.

See my October blog entry for more details of the project ("North of South - Details of the Proposed Deal"). Briefly, the deal is this: the City will float a bond up to $98 million, loan the No-So developer up to $86 million, pay the first three years of interest only payments from the proceeds of the bond, put in $9 million of infrastructure, pay Eli Lilly $14 million from an old loan on the Harding Street TIF (which Lilly will give to the developer), turn over its $5 million in proceeds from the area being designated a 'Certified Technology Park' to the developer, and help the developer pay the loan back by applying 100% of all property taxes collected in the area for 10 years. This is the project that was rejected by all financial institution(s) approached by the developer. The City would get a first mortgage on the development, but Eli Lilly would retain ownership of the land - so if there is a default by the developer, the City would become owner of partially completed buildings and have to pay the bonds off from property taxes collected elsewhere in the consolidated downtown TIF.

The MDC will take up the issue at its Economic Development Committee meeting at 8:30 am, Wednesday, December 1, 2010 (room 2001 of the CCB). They are expected to consider and vote on the deal that afternoon at 1:00 pm at their regularly scheduled MDC meeting (public assembly room of the CCB). The rezoning of this property will not be heard until December 15. The reason the zoning is claimed not to be required prior to voting on the deal, is that there is no abatement involved. Because Mayor Ballard's crew simply decided not to call the 10 year, 100% return of property taxes, an 'abatement', allows them to slide on the laws regulating such things, and to avoid protections built in for the taxpaying public.

The Memorandum of Understanding underlying this deal is posted here (you will have to put in a google account to access - so if you prefer, just email me at hadenoughindy@gmail.com and I'll send you a copy directly).

The Council has already introduced Prop 292, and assigned it to their Economic Development Committee, which next meets on December 15, 2010 (5:30 in room 260 of the CCB). The full Council would presumably take it up at its December 20 meeting - just in time for opening presents by Lilly and the No-So developer, but not the taxpayers of Indianapolis.

Thursday, November 18, 2010

Elected Officials Who Didn't Pay Their Taxes

While they are usually happy to raise YOUR taxes, some elected officials around Central Indiana aren't paying what they owe.

WRTV reporter, Kara Kenney, ran a story on Monday night, listing 8 Central Indiana officials who had not paid their own property taxes and fees and were in arrears by $1000 or more. (click here for transcript and video) Kenney has previously reported on the $21,000 owed by Wayne Township Trustee, David Baird, who has since paid up. Of the 8 Kenney followed on Monday night's report, 2 hold office in Marion County - both school board members - Cathy Wiseman of Decatur Township and Scott Veerkamp of Franklin Township. Roughly half of all property taxes paid in Marion County typically go to the schools -- and the School Boards are the ones that vote to raise those taxes.

Kenney reports:

Decatur Township School Board member Cathy Jo Wiseman’s home was sold in a tax sale when she didn’t pay $3,427.24. Her home phone was disconnected, and she did not respond to e-mails. Her husband told 6News he hadn’t worked in two years.
and
Scott Veerkamp, a realtor and Franklin Township School Board member, owed more than any other official we found. As of the end of October, he owed $7,825.82 on his Beech Grove business and $922.23 in sewer bills on three other properties. His house was all paid up.

"He's taking care of his own property, making sure it's current, but he's not taking care of the other things," said Creasser [Marion County Deputy Treasurer].

Veerkamp refused an on-camera interview but wrote in an e-mail, “As I am sure you are aware, school board members are paid a meager amount of money to serve public $3,000-$4,000 per year. In the full time job that I hold, real estate sales, it has been a pretty tough road the last few years, as you know. That being said, we are doing our very best as we navigate these challenging economic times.“

All but Wiseman and Schmidt paid their property tax bills as soon as 6News started asking questions.

Veerkamp paid some, but not all of his property tax bills.
and
Veerkamp told 6News via e-mail, “Our company has remitted payment for the property taxes on our building located at 626 Main Street,” but Creasser said Monday that Veerkamp still owes $7,632.24 in taxes and penalties on his Beech Grove business, which includes the 626 Main St. address.
In Wiseman's case, she has voted to raise taxes by some astonishingly high percentages in the last few years. In 2007, she voted to raise the property tax rate for the Decatur School District by 46% for the following year. (see Department of Local Government Finance tax rates for Marion County 2007-2010) At that point, the State of Indiana took responsibility for paying the operating expenses for all Indiana School Districts. Of what remained, Wiseman voted in 2009 to raise the property tax rate by 14% for taxes collected this year. If she could not afford to pay the huge tax bills, why did she foist them on others in our Township?