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HomeMy WebLinkAbout9/15/1999 - STAFF REPORTS (31) oward lapham BEFORE ADDRESSING THE QUESTIONABLE MERITS OF THIS CRA MERGER REDEVELOPMENT PROJECT AREA, I WOULD LIKE TO GIVE THIS COUNCIL SOME BACKGROUND ON THE CRA. BACK IN 1964, I WAS AMEMBER OF A 5-MAN COMMITTEE TO STUDY THE APPROACH TO REDEVELOPMENT OF THE DOWNTOWN AREA. AMONG THE � FINDINGS OF T#IS COMMITTEE, WAS TO RECOMMEND TO THE COUNCIL, THAT A COMMUNITY REDEVELOPMENT AGENCY BE SET UP UNDER, THE STATE STATUTES, INSTEAD OF APPLYING FOR FEDERAL RENEWAL FUNDS. WITH THE USUAL SPEED OF THE THEN COUNCILS, IT WAS NINE YEARS LATER BEFORE THE COUNCIL SET UP THE CRA UNDER THE STATE STATUTES. . . AND SINCE THEN THE CRA HAS BEEN OPERATING UNDER HURPHYS LAW.. . "ANYTHING THAT CAN GO NRONG. . .NILLI" I HAVE BEEN MONITORING THE CRA ACTIONS AND OPERATIONS SINCE ITS INCEPTION IN 1973. THE MISMANAGEMENT OF TAXPAYERS MONIES, TO FINANCE CRA PROJECTS, OVER THE PAST 25 YEARS, HAS RESULTED IN TOO MUCH UP-FRONT MONEY AND FRAGMENTED SPENDING ON PROJECTS THAT NEVER MATERIALIZED. MANY OF THE PROJECTS THAT WERE IMPLEMENTED TURNED INTO A RESEVOIR OF RED INKI THIS HAS BEEN ONE OF THE ROOT CAUSES FOR THE PAST CITY ONGOING DEFICITS. I CAN SUPPLY COMPLETE DOCUMENTATION ON THESE MANY RED INK PROJECTS. WHEN COUNCIL AND STAFF MEMBERS KEEP TELLING THE PUBLIC THAT NONE OF THE CRA PROJECTS ARE FUNDED FROM THE GENERAL FUND. . .THERE IS AN INFERENCE TO THE PUBLIC THAT TAXPAYERS MONIES ARE NOT BEING USEDI . . . NOTHING COULD BE FURTHER FROM THE TRUTHI . . .THE TAX INCREMENTS FROM ALL OF THE CRA DISTRICTS ARE PROPERTY TAXES PAID BY THE PROPERTY OWNERS IN THE TODAYS COUNCIL CONSENT AGENDA, $100,000 IS BEING TRANSFERED FROM THE GENERAL FUND (TAXPAYERS MONEY) TO THE CRA TO PAY FOR THE OFFSITE IMPROVEMENTS FOR THE SMART-ALEX, LLC PROJECT. �q��ppw As OTHER THAN THE- ANNUAL FEDERAL BLOCK GRANT, ALL OF THE geMeRS -TO FINANCE THE CRA COMES FROM THE TAXPAYERS. . .THEREFOR, SHOULD NOT REPRESENTATIVE EXPERTISE FROM THE PUBLIC HAVE A SAY IN THIS CRA PROCESS? I WOULD LIKE TO SUGGEST THAT A COMMUNITY REDEVELOPMENT ADVISORY ammo j BE SET UP SIMILIAR TO THE ACDA ADVISORY AUTHORITY TO THE TRIBAL COUNCIL. I COULD GIVE YOU AT LEAST SIX DIFFERENT OF EXAMPLES WHERE AN ADVISORY BOARD COULD HAVE SAVED THE CITY MULTI-MILLIONS OF DOLLARS. IIIE COMPARISON EXAMPLE: TM 11ONTE VISTA HOTEL FIASCO 1. I"ASKED THE THEN CRA STAFF NOT TO GO THROUGH WITH THIS LEASE/ PURCHASE OF $1,500,000 FOR THE 36 ROOM OLD HOTEL. . .THAT THEY :WOULD LOSE MONEY ON OPERATING IT. SINCE I HAD JUSTM HELPED IN DEVELOPING AND MANAGING THE NEW 52 ROOM SMOKE TREE INN. . .WE LOST MONEY 40MY, BUT WERE ABLE TO TAKE A TAX DEDUCTION OF 20 % ON THE ACCELERATIO DEPRECIATION ON THE F.F.& E. TO COME OUT AHEAD. THE CITY COULD NOT DOTHIS. . .AN EXAMPLE OF THE CRA NOT LISTENING TO THEAVICE FROM THE PUBLIC SECTOR EXPERTISE. 2. ON THE OTHER SIDE. . .THE ACDA ADVISORY BOARD TO THE TRIBAL COUNCIL. . .WITH THE ADVICE AND & EXPERTISE OF THE BOARD. . .THEY PUT TOGETHER A PACKAGE AND BOUGHT BACK THE 230 ROOM SPA HOTEL SPA AND RESTAURANT FOR $1 ►300,000. . .$200,000 LESS THAN THE CRA PAID FOR THE MONTE VISTA HOTEL. I w4LI 4 fO04441utl ZAA" A%04ri SljZ /S 404 AS I SAID BEFORE THIS ONLY ONE EXAMPLE. . .THERE ARE NMR44 MORE. I WOULD RESPECTFULLY ASK THE COUNCIL/AGENCY TO GIVE THIS REQUEST CAREFULLY CONSVDERATION. 7Ud 'S'rATe" Sr4,-nggC Ajj4tXo1 -,-►lac E►SGA �/ Cj P.5 PLoZo C bA �•� J.ti�'i4TFzR 'FT T p.5 4ot.F �T2trGSv1Rf C `,esSK �� AUTOrJLpL / - TaLlrs - c DPW ju Ll A eyas ;wvs rTYRAci -2v3�S�' ��4,eoo eot a�nsDs sus "00000t) �QC,e.0 � p�Wrab �N �s38fevo) Ce,S'ao,000faAe �� c2� (:!T woo tmo") 4000� Joklu � ts�� � I i 413,1 4 . 7-4e FRIG SQn�zE ! , h a 4vrc,;s �vo 1 I - I 111 { r,. ST y - Tax RvyF.e ;Kxpaymm 4 • `-�.� III 41 .� A.QS T4Ey? OfA& of Tat P.S.T4WP°NO ' 4 ! evo �v� ,aiZE 3 T�x �•ay�rz aPigr Q 4` �,U�i�PT CnuSES T6�-•r p�t�K � ` o TAL) �� �i r�a¢Kt.LovO FS C�uSet> Tb%j GLocrd,� ©v lLQ TAM C-,M,4 . MA� � °TFt.L&uR a Ky•slow " A14V T � T4l��Td QAkAl��y►l�Cy 11 "ll Nam:LL G e