I
know some of you think my ideas on public policy may be on the extreme left even though you creep to
the edge agreeing with some of them.
(LOL) What I appreciate about you is that we never fall out of love over
an issue.
I am
not opposed to the use of PILOTS. I know some don’t think I understand what a
PILOT is but I know that it is “an agreement, generally, an agreement that is
used to transfer a public or local government’s tax exempt status to a private
entity. The property is not on the local government’s tax rolls because it
belongs to a tax exempt entity, even though the property is being leased to and
used by a private entity, and the private entity receives the benefit of this
tax abatement. These agreements are typically used by local governments as an
incentive to induce the relocation of a new business or the expansion of an
existing business in the community.” (Tennessee Real Estate Law- Legal
Commentary by David Wicker) I was an appointed member of the Tennessee Board of
Equalization. Don’t play me “small”, I understand what’s going on.
In
2004 the State General Assembly commissioned a study from Tennessee Advisory
Commission on Intergovernmental Relations to determine the impact of loss
revenue for public education as a result of PILOTs and found that abatements
resulted in a loss of at least $33 million in Tennessee’s county school systems
revenue. Since that time, the use of
PILOTs’ in Shelby has almost doubled, not declined. (The report is interesting
and I will attach.)
I am
opposed to taking funds needed to educate a workforce and then use the phrase,
“We need to lure low waged jobs because our people are under skilled and unemployable”.
I am
opposed to:
·
PILOTS without job/employment
residency requirements (Why would you use my taxes to subsidize the services of a
corporation who does not hire 75% of their employees from Memphis?)
·
PILOTS without independent
audits and reviews (Why
can corporations give employees performance appraisals but taxpayers can’t have
contract appraisals?)
·
PILOTS and Incentives without
penalties for violating or failing to meet contract expectations? (Why should Pinnacle Airlines
get incentives and then belly up, close shop and somebody walks away with a
building renovated and a $3 million dollar government grant for a downtown
garage paid for with taxpayer money? Remember, we did not take them to court or
even pick a fight in the court of public
opinion. Instead, we rewarded them by making the former CEO of Pinnacle our
Chamber of Commerce President. Ouch, that hurts, I know. Do I need to list the others companies that left without fulfilling their PILOT commitments. who have done the same?
Sidebar: The funds to pay for
the $3 million garage came from money the City received for the sale of the
Depot and was to be used for Small and Minority Businesses. Instead, they got hijacked for Pinnacle. And
there was nothing small or minority about that company. And this media said nothing...
But, I
know that it does not make EDGE and
PILOTS bad words. What I don’t understand is why we have had PILOTS since
2005 and ten years later our unemployment rate is 7.9%.
The
national unemployment rate as of November 2014 was 5.8%, Tennessee’s rate was
6.8% and Memphis’ rate was 7.9%. (http://www.deptofnumbers.com/unemployment/tennessee/memphis/)
For
once, I wish we would examine the existing small businesses and
be the kind of City that cares enough to help them grow by improving
infrastructure and public safety. Sweetie Pies Restaurant on Beale
Street may have be a marketing tool for Beale Street, but after listening to
the show on YouTube and the way some family members trashed Memphis, forget them. Truth is, I would put up Southern Hands, Kountry Kitchen,The Four-Way Grill, Peggy’s and Stein’s to them any day. St. Louis found their jewel and
helped them grow. Let’s find ours.
Why
can’t we see a great new opportunity in Whitehaven, O’Taste and See at 2045
East Brooks Road and get Housing and Community Development to help make them
the Café Palladio in this area?
Why
can’t we get excited about a 25 year old young man who has opened The
Dizzy Bird Jazz Lounge in the Edge District? This business will attract
older locals to the area and support live music in our city. If we want to revitalize the music industry
we need to work those investing in the music.
Why
can’t we find a way to lend support to Hubbard’s Hardware on Millbranch who
did not cut and run when economic climate and clientele changed? Who helps them grow?
Who
rolls out the red carpet for Bogen Communications, a corporate entity that
chose Memphis and did not ask for a tax break and will hire 25 people in their
distribution center? Why have we not heard from the Chamber and Memphis about
this company who chose us because we are the Distribution Hub of America? Bogen Communications provide audio-Visual
Equipment and Accessories. I am loving those who love me and saying to other who snubbed me, " The doors of the Church is still open for new members".
"I love you, Bogen Communication for choosing MEMPHIS!" I'll tell your story about how you provide microphones, microphone mixers, amplifiers, loudspeakers, receivers/tuners
and other audio-visual accessories for the world. They
chose us, and will pay a living wage. I really love you for caring that your employees will be able to provide for their families.
Now, we have retailers asking for PILOTS and if we
are not careful, only homeowners will be left to pay the bills for providing
government services. That’s scary
because our tax base is declining, not growing and in the ten year history of
PILOTs’, they haven’t helped either.
There must be a Happy Middle for PILOTS and I hope government will address it soon. And, please, stop giving away all your power that we voted for you to have. We did not vote for EDGE to make those decisions? What's wrong with a two step process like the Land Use Control Board?
I know I reside on the left of most issues, but I will be happy with a middle approach. Are we there, yet? Can we at least talk about it? Can the voices include more than EDGE's?