Perhaps I should have all of my family here more frequently. I do wish they could come often since it has been at least 8 years since all where here at one time. But maybe more on this subject another time.
Coincidentally, during my hiatus the remaining two Councilor blogers posted multi page documents. All are appreciated, and I am taking this opportunity to comment on all except Counciman Mapp's. I intend to make further commentary on the developers who have projects, both active and projective, in Plainfield as well as not only my opinion but some from those who have commented on the various blogs.
To start with Council Chairman Burney's opening statement; "I will be honest. I was surprised at the strong sentiment against the abatement for the development project. A project I believe we all want to succeed." troubles me that he would seem to be so out of touch with the community to consider that only a few maverick blogers would oppose the wisdom of the City Fathers (and Mothers?).
I was also disturbed by an apparent attempt similar to JG's to place the blame on Plainfield's fiscal and economic problems upon George Bush. Possibly he should take heed of his own statement "The colossal failure of the Bush administration was how they willingly ignored (boldface mine) any information that contradicted their pre-set beliefs that Sadaam Hussain was responsible for 9-11 and that he harbored WMDs." and apply it to his own watch.
I do believe that Councilor Burney wants to do the best for our city. However, some one will have to prove to me whether bailing an entrepreneurial developer out of a bad risk benefits the people of Plainfield or the investor. "Failure is not an option" Buney quotes as a reason we must consider protecting the developer's investment. Every time we ourselves have made a business decision or an investment we have run the risk of failure and no one has even offered to bail us out. So that part of his brief is immaterial.
There is no guarantee that the investors will not turn unsold units into rentals. That is happening daily. The proposed ordinance, which may have certain legal problems, is written to an entity referred to as P & L Management LLC. Nowheres are individual condominiums specified. I would read this as written to apply to the whole building once the delayed Certificate of Occupancy is issued. Moreover until that date the Senior Center remains a figment of imagination despite the preprimary dedication ceremony.
At least Councilor's Burney's three postings generated multiple comments. For some reason Councilor Storch's seemed to have fallen upon blind eyes. His opening statement is clear and to the point: "Generally speaking Plainfield should not be categorically for or against tax abatements. Each situation should be carefully analyzed for benefits and disadvantages to Plainfield. The best tax abatement is a wise investment of taxpayer resources for current gain and increasing future benefits. The worst is an ill conceived special interest benefit that saps resources from our city. The two tax abatement proposals on the July City Council agenda are somewhere in the middle."
He is also talking about the PILOT grant to purchasers of the 33 year old Cedarbrook Senior Apartments. This is again an investor purchasing a profitable item and asking Plainfield tax payers to help him make a bigger profit. The alternative being an implied but not stated threat to not make necessary upgrades in the present units. "The tower in question is for senior citizens and with proper maintenance such an apartment building has good prospects for staying a good neighbor." (Councilor Storch's blog)
He does a very acceptable analysis of the Monarch request, and I hope that he will share what information he receives with us prior to his final action. I do appreciate his elicited thought processes.
Finally Councilwoman McWilliams, has written two interesting posts. She too seems to b e unable to come to any decision due to a lack of sufficient data. That is as it should be.
McWilliams wrote a most important line in the opening of her second post: "Plainfield’s leadership team needs to set a clear vision for economic development. We also must set policies surrounding the use of development incentives (such as tax abatements)." Until that is done there should be no abatements or commitments to any developer. We will get back to this in another posting.
McWilliams has also posted a series of items she needs information on, I hope she too will share her information with us.
I intend to;(a) present some public facts about the developer, (b) refer to previous blogs by others on this issue subsequently.
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Personally, I find the tax abatement for this developer offensive.
ReplyDeleteThis is a profit-making company engaged in speculative development. There are no guarantees in business. If things go well, you make money. If they don't, you lose money.
I know this very personally. Essentially my project with the Coriell Mansion was a speculative development -- turning a run-down multifamily into a high end large B&B and event space. It would have benefited Plainfield, brought in business, and generated positive press for the city.
The project failed due to the unexpected demand for sprinklers (after I spent 2 years with engineers and architects researching B&B codes -- the state literally changed their requirements in a 6-month period), the huge loss of property values in Plainfield and the drying up of bank funds. It is a viable use for the property, and my hope someone else will take up the project for this wonderful building. But, with my available resources I could not continue the project.
I've been trying to sell the property for over a year. Is the city bailing me out? Offering tax abatements to potential buyers?
No. Of course not. I willingly took the risk for the very lucrative possible gains. It didn't work out. I have to live with the consequences. The city nor its citizens should have to share the financial loss. It is my issue to deal with.
A big, deep-pocket developer should do no less.
Olive Lynch
Because this post is on Doc's blog I am posting this. I would like Rashid to work with Olive to give her some relief so that perhaps she can resume restoration of the B&B. In my opinion, the B&B would be more beneficial to Plainfield -
ReplyDeleteArtist exhibits
Teas
Events
Getaways
Things that would put Plainfield in a better light. What will the Monarch do? I still do not understand why that particular project must succeed. Developers will not do business in Plainfield because it is hard to do business here. I wish we would stop begging - and get a backbone and demand the best for this city.
Does anyone know who in the administration was the first to propose the abatement? Where did the idea come from? Where did the 40% figure come from? That's an awfully specific number to be pulled from thin air.
ReplyDeleteAnd why was the abatement proposed to the council so soon after the developer rushed construction to accommodate the photo-op, pre-primary opening of the senior center?
Those senior votes were vital in Robinson-Briggs's slim victory. Perhaps it took a mano-a-mano between one real estate professional and another to get a deal done for their mutual advantage.