Another Tarrant County "Study"

Funny thing about "studies", they usually produce the outcome those hired to produce it are looking for.  It's what you call a win/win.  Unless, of course, you're the one paying for it.

This one was done by the Fort Worth Chamber of Commerce. Read about it in the Fort Worth Star-Telegram.

It claims property taxes are part of the benefit to all the abatement's Fort Worth handed out this year.  How can that be when the TIF's in the area are struggling to meet their promises due to declining property taxes?  Remember, there were studies for those TIF's too. What are they basing these numbers on?  Apparently, whatever they could.

The overall economic impact includes company investments, salaries and what workers will spend.

It also considers salaries created or supported in new or existing firms, such as maintenance companies and service firms, and spending at stores and restaurants.

 There were a couple of key sentences in the article:

In its efforts, the chamber's economic development division received and spent about $1 million from private and public sources in 2011.

The chamber's economic development division works closely with the city's economic development department.

As usual the best part were the comments from THE PEOPLE:

It's a great place to do business if you're looking for a tax handout, but Fort Sprawl is not a great place to live anymore.  

Roads are in terrible condition, crime is up and police response times are lousy.  City services are poor and getting worse.  Those that still exist, anyway.  Price lives in her shielded world and is not in touch with the average citizen.

The only ones who are happy with all this are the stinking corporations and developers and corrupt politicians (current and past mayors & council included) who are benefiting at citizens' expense. If you've got enough money to buy a politician or two, you can pretty much get whatever you want. That's exactly what happened with the Trinity Drainage Ditch Vision and many other pet projects... reward the developers/politicians... screw the citizens.

Abatements and Lawsuits

The latest Fort Worth company set to get an abatement just settled a lawsuit for $450,000.  How much was the abatement for again?

Read the latest in the Fort Worth Star-Telegram. 

A lawsuit against Fort Worth-based Frac Tech was dismissed in a Parker County district court Tuesday by the plaintiff as a result of the settlement, according to court documents.

The worker, Joyce Burton of Jackson, La., was working for L&B Transport in February 2008 when she was unloading hydrochloric acid and a hose fitting came loose, spraying the acid onto her face and body, according to a news release from her attorney.

When Burton attempted to wash away the acid using one of the two safety showers available to her at the Aledo facility, she discovered that one was not working properly and the other was locked and inaccessible, the release said.

“Ultimately she was taken to a hospital in Weatherford,” Hart said. “I think for anyone in that business, safety has to be a No. 1 priority.”

When NEWS goes bad...

What happens when the newspaper of record in your town gets its marching orders from the downtown money crowd? They forget WHY they are there in the first place.

This is an exchange between a Fort Worth Star-Telegram columnist and a local citizen. Other citizens copied in responded too. This is just one example of many, sit tight, more on the way.

What happens to YOUR city when YOUR news is run by your local "governments" and "the industry"?  What happens when people mistake columnists for reporters?  What happens when there is no difference?

Recently, someone wrote that when a news outlet gets all its "news" from politicians and industry, they make themselves irrelevant.  Poignant, isn't it?

Mitch Schnurman recently wrote a column concerning tax abatements, which prompted a letter from the citizen. Schnurman didn't respond. He then wrote one about the TCC boondoggle on the Trinity River which prompted the citizen to follow up. Below is the exchange.

Act 1 - Citizen to Newspaper
To: "mschnurman@star-telegram.com"
Sent: Tuesday, August 30, 2011 9:40 AM
Subject: Thoughts

Mitch,

I had a question concerning your recent tax abatement article - while I finally agree with something you say, I wonder why you are upset with the abatement's but not with the $95 million needed for a new fire/police training facility??  Since the council sold this land to the Tarrant Regional Water District, now the taxpayer has to foot the bill once again.  Would appreciate your thoughts.

Thanks,
X

Act 2 - Citizen to Newspaper.  Again.

On Tue, Sep 6, 2011 at 1:49 PM, X wrote:

Although I didn't expect an answer, I would have appreciated one.

Now I just have more questions...

How is the sunken plaza a boondoggle but the Trinity River Vision is not?  The only good thing about TCC is they should walk away with an education, then maybe the next generation will be smarter than selling/sailing our checkbooks down the river.

Also, TCC is leasing space in Haltom City, for I believe - a $1 a year.  Is there not a way they could look for the same deal for an arts center in a nearby city?  With all the vacant space in Tarrant County, there has to be a more affordable choice.

Again, would appreciate your thoughts.

Thanks,
X

Act 3 - Another citizen to newspaper.

An excellent point. Why would the city council sell the training academy without first having the funding secured for a new facility?

Will they build it with Certificate of Obligations like the Will Rogers parking garage and without public approval?

Another chapter in the TRV folly that should provoke public outrage.

Act 4 - Another citizen responds

How is the TCC a boondoggle and the TRV is not?
GOOD question. Excellent question!

Answer:  Not a dime’s worth of difference.

We made our maiden voyage to the completed TCC boondoggle yesterday.  Pity bad weather and the poor co-ed and 58 steps from Belknap down to her classroom.

Perhaps as a hotel, with a path all the way to the river, it might have been a fine tourist attraction.  But the college as I and others envisioned when we campaigned for its birth circa 1968 was to be a place where people could be trained in local class rooms to enable them to earn a living.

X can’t get over the fact that all the buildings are what on the farm we used to call lean-tos.  An architect friend called me this morning and asked me when they’re going to straighten them up.

In the words of General MacArthur:  I could not answer.

Act 5 - Finally...a response?  (We have to give him credit for the last line, but do YOU buy it?)

I don't know about the police training center, so I didn't have much to contribute to your thoughts on the subject.

I try to weigh in on issues that I have examined. I am not the beat reporter for TCC, so there is much that I do not follow. As for Haltom City having cheap rent, I don't see that as the issue in North Richland Hills.

The money has already been collected for that project; the question is whether TCC will stick to the original budget (or at least close).

I have written many times about the TRV, and I continue to support it. To rehash all that now is a waste of my time and yours.

I expect to revisit it again, in light of the cuts that are coming in federal spending. Perhaps my view will change then.

Thank you for writing,
Mitchell Schnurman
Fort Worth Star-Telegram
Business columnist

Act 6 - Citizen responds to news paper.

Mitch,

I appreciate you taking the time to respond.

My point on TCC may not have been clear, my thoughts were we could use the money and look at other options that would provide what is needed while staying within the budget.  The Haltom City campus was just an example of that.

Concerning TRV, while I realize I am just an average citizen, I am somewhat confused by your response.  If you aren't aware of the police/fire training center, which was another known ripple of the TRV, how can you be in full support of the project?

I realize your employer is a large advocate of the project, however the taxpayers and your customers need advocates too.

Thanks,
X

Hold the phone...

Did we just agree on something?

Read Mitch's column in the Fort Worth Star-Telegram concerning Fort Worth Tax abatements.

We also agree with Betsy - we'd like to know what's in the water too.  Better yet, WHAT water?

Contrast those deals with the small ball that the city was playing last week. The planning department proposed tax breaks for three projects, including one pledging to bring just 60 jobs to the area -- and to fast-growing Alliance at that.

Frac Tech Services, proposing the biggest expansion, is already in Fort Worth. Do you think a fracking company would leave the fracking capital of the world over a tax break?

Mayor Betsy Price said it was all good, too: "I've talked to friends around the state who want to know what the heck you put in the water in Fort Worth that everybody's coming to Fort Worth."

Several company executives were at the pre-council meeting, yet they weren't called upon. Is it unreasonable to ask whether the tax breaks are necessary to pull off the deal?

Council members don't have to grill anybody or cause embarrassment. But they should at least feign some due diligence.

Maybe they'll be more engaged when the abatements come up for a vote next month. Last week's session was so brief and perfunctory that I longed for the days of Clyde Picht and the late Chuck Silcox. Those former members opposed almost every tax break on the principle that everyone should pay a fair share.

Even Wendy Davis, a champion of economic development, could be counted on to ask about "the gap." She's a state senator now, but when she served on the council, she pored over spreadsheets and demanded to know why a taxpayer contribution was crucial to closing a deal.

"If Oprah Winfrey were moving to Texas, would we offer her an abatement to move to Fort Worth?" Picht said.

More Fort Worth Abatements

Fracing abatement's at that.

Back in the day, they called that "giving away the farm".

Read about it in the Fort Worth Star-Telegram.

Some of the other abatement's didn't meet their projections.  HOW are these companies going to be different?  Shouldn't the public (those paying for the abatement) make the call?

For the 10-year, 65 percent abatement, Frac Tech would invest $61.4 million and create 200 jobs by 2013 and 450 by December 2021.

The estimated total public investment would be $3.1 million.

Keep your eye on the ball

Actually LaGrave field.

We've mentioned before how certain entities are eyeing the stadium.

Now a city commission has designated LaGrave Field historic designation by a city panel.  (WHO is on the panel?)  Now LaGrave can get tax breaks.

The story in the Fort Worth Star-Telegram points out a few of the things that make you go hmmm...

A city commission granted its highest historic designation to LaGrave Field on Monday, which will allow for property tax breaks if the minor-league ballpark is ever improved.

Bell, who has struggled financially in recent years and has been seeking a buyer for the stadium, said he wanted the designation to make the tax break available, but that he also wants the field to be "preserved forever." The stadium, he said, "is a vital and integral part of the community."

Bell has wanted the city to take over ownership of LaGrave and said Monday he still hopes that can happen. He is still working on permanent financing for the stadium.

Bell bought a tract of land around LaGrave from the city of Fort Worth in 2007 and once planned a multimillion-dollar residential and retail development. But by last summer he faced foreclosure on the 38-acre property. Bell renegotiated bank notes to keep the stadium, and was released from other notes after the property was sold to the Tarrant Regional Water District.

Bell owes more than $195,000 in property taxes and penalties for 2010, according to county tax records.
 
Just another day in the Wild West.

Play ball.

New 7th Street Gang?

The Fort Worth Weekly does a good job shining the light on some of the issues 7th street and the surrounding neighborhoods face.  

We've had the same parking problems there.  If you want to visit those businesses in the area that are growing without the help of the NCTCOG or tax abatement's, you'll have to find somewhere to park.  Those garages on Morton Street aren't for the Morton Street customers...

By the way, where does the COG get all this grant money?  WHO approves what it is spent on?

Afterward, the group spent about 45 minutes at Capital Bar, listening to music and having a few drinks. When they went back to the garage, the car was gone.

“When we asked where our car was, the security guard said he saw us going into Capital Bar right after we parked,” Turner said. “But then we told him we were at Delaney’s. He said ‘You didn’t go there.’ We showed him the receipt from Delaney’s, and he still said we had violated their policy. He was extremely rude.”

Turner and her husband saw a Fort Worth Police patrol car on the street and asked for help. The officers intervened and convinced the security guard that he’d had the car towed illegally and should get it back for the Turners. The security guard agreed, and the towing charges were dropped. But the Turners had to pick up the car at a lot in east Fort Worth. The whole ordeal took about two hours, she said.

“I was seven months pregnant at the time, and here I am traipsing through a tow yard in the dark to get my car,” Sarah Turner said. “My husband and I have decided we won’t go to any restaurant or bar in the development because of what happened.”

State and federal public funding comes from “sustainability grants” through the North Central Texas Council of Governments. To qualify, projects must include higher-density housing and mixed-use retail, which in turn is expected to improve pedestrian mobility and get cars off the road.

So7 received $4.3 million from NCTCOG for construction of Museum Way for better access from West 7th, plus sidewalk improvements. Of that, $1.7 million is paying for a pedestrian bridge now being built over the Trinity River just to the east.

Museum Place received $2.4 million from NCTCOG for the reconstruction of West 7th Street in front of its property, along with streetscape improvements. The development also earned $192,000 in city tax abatements for 2011 on its completed first phase, the eight-story office/condo tower and the new 7-Eleven store with five housing units above it. The next phase, involving the apartment complex, must be finished by the end of 2012 to meet the abatement agreement terms, and Pettigrew said he expects to make that deadline. However, phases three and four — which will include another apartment mixed-use development and a hotel — must be completed by the end of 2013, and that is unlikely.

“We will probably ask the city for an extension for those phases,” he said.

Fort Worth is providing help through two other programs, one involving grants to bridge funding gaps and ensure that projects get completed and the other involving enhanced infrastructure. In both, developers negotiate terms with the city, involving the number of jobs to be created, the percentage of work that will go to local firms, the amount of private money to be raised, and completion dates on various parts of the project.

Montgomery Plaza has a 21-year tax-abatement agreement covering all property and sales taxes. This year, those benefits will total $835,000. In addition, the development got $172,000 for the infrastructure improvements.

Cypress Equities negotiated a 15-year tax abatement on 75 percent of its property taxes but won’t realize any of those savings until the whole project is finished, by the end of the year.

Condos in Limbo

The Montgomery Wards condos are still in legal limbo, more importantly they are still sitting empty.

They say "Build it and they will come".  WHO says?  WHO is coming?  WHERE are they?

The Trinity River Vision should take a lesson from the Montgomery Wards condo fiasco.  Not more of the how do you switch money around and take people's stuff for less lesson, a don't put your cart before the horse lesson.

Read about it in the Fort Worth Business Press.  Notice the Fort Worth Way at play.  Also, notice the word Vision and tax abatement...and there's that name again, the North Central Texas Council of Governments.  Yeah, they are everywhere.  WHO are they again?  WHAT is their purpose?

Be sure and read the article, YOU can't afford not to.

That group is owed millions by some of the project’s developers.
In all, the contractors were left holding the bag for about $6.5 million, he said.

A grand vision

Despite protests from historic preservationists, and with the help of a city tax abatement, the eight-story behemoth was gutted and a six-story hole carved out of the facade’s center, opening up a brick-paved plaza with space for outdoor dining, parking and shoppers. Stores and restaurants opened at street level and pricy condos were laid out on the upper floors.

“An example of preservation in the context of urban redevelopment,” the North Central Texas Council of Governments gushed when it awarded developers of the 46.19-acre Montgomery Plaza, Weber & Co., one of its 2007 Celebrating Leadership in Development Excellence Awards.
   
“The bottom line is the majority of the money owed is from a insurance incident: Pipe busts, floods multiple floors, insurance company pays, owner takes the money, doesn’t pay the bills, allows bank to foreclose on property voiding all liens, then buys the property back under a different name, lien free,” owner Kip Wadleigh wrote in a message posted on the website of Hardwood Floors Magazine.
 
“That company declared bankruptcy and bought it back,” “Bought a $50 million property for $18 million and did away with all the liens all the subcontractors had taken out. Hard to believe that’s legal in the state of Texas, but I’m told it is.”

Up on the Hill

For days now Durango has been scoping out the pre-drilling activities taking place near what's known as Broadcast Hill on the Tandy Hills of Fort Worth.

Now the council has voted unanimously to give an existing Fort Worth business a tax abatement to move to another location in Fort Worth.  Read about it in the Fort Worth Star-Telegram.  You have to read it to believe it.

So Channel 5 moves their station, Fort Worth keeps the land and mineral rights, and gives NBC 5 a tax abatement.  Yet we can't find the money to help companies who have spent decades creating business, jobs and revenue in Fort Worth?  Or to keep Arlington Heights from flooding?  Or to fix any roads?  Or to have adequate emergency services north of the loop?

Scarth and other council members pledged that the neighborhood will fully vet the land use.

Didn't they pledge Riverside Park wouldn't be flooded if the neighbors didn't want to as well?  What happened to that pledge?  Wasn't Scarth the councilman with some conflict of interest issues?  See why YOU should vote?

Something smells fishy.  It ain't just the Trinity River.