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Tuesday, June 16, 2009
The Winston-Salem Baseball Stadium Boondoggle
Wednesday, August 06, 2008
'Solvency Be Darned'
From the Radio Girl, yesterday:
Railroaded
The Local Government Commission approved hundreds of millions of dollars in debt issues and state government loans today -- everything from a 14M parking garage in Raleigh to scads of millions for water and sewer all over the state. But as always, it's the smaller line items that make the best stories.
Today's best item had to be the Tweetsie Railroad project. It's an NC landmark that's probably been losing money since it opened back in the 1950s. Turns out Tweetsie Railroad doesn't own all the land under its tracks. A couple of lots connected to the park are leased, and the two owners apparently decided they didn't want to re-up.
After protracted negotiations, the lots' owners convinced Watauga County to seek state help to buy the lots outright -- at 130% of their appraised value, no less -- and then lease them back to the park for a pittance, turning a nice profit for the owners while keeping Tweetsie running, solvency be darned, for at least one more generation of Western NC kids.
Labels: Tweetsie Railroad, Watauga County Commission
Wednesday, May 21, 2008
Precedent
The staged circus of rah-rah in support of the Tweetsie bail-out at last night's public hearing was meant to make the County Commissioners feel elated about their "partnership" plan to save the tourist attraction. Only two people spoke against it, but one of them was Mr. Roy Gryder, whose full statement is posted at GoBlueRidge. It needs to be read and understood by everyone, particularly these couple of paragraphs:
This is a dangerous precedent that our County Commission may well come to rue. There are a few other splinters, too, that cause discomfort:
Mr. Gryder's statement mentions in passing a further irony behind this piece of corporate welfare, the cutting of county fire department subsidies while a big business gets bailed out.
If the can-can dancers and Tweetsie boosters made the commissioners feel warm and fuzzy last night, well good for them, but for some of us out here there's only foreboding. The commissioners still have to vote on the plan, but it sure enough looks like a done deal.
OOPS
The commission DID vote to accept the deal last night.
You are now proposing that our hard earned tax dollars be used to rescue a privately owned company that for years has apparently misused its profits, and mismanaged its operation. A company that for half a century failed to prepare for the time that leases on the property they use would come due and is now trying to coerce the taxpayer to pick up the bill by threatening to leave.
To expend tax funds in this manner is an affront to the taxpayers of this county, an insult to business owners that run their business well and immoral in view of the other needs in the county.
This is a dangerous precedent that our County Commission may well come to rue. There are a few other splinters, too, that cause discomfort:
The county will have to borrow money to buy the minority interests in the two parcels of land
The published plan offers no accounting of employment numbers and taxes paid past 2004, and there is no disclosure of profit/loss for any year
Mr. Gryder's statement mentions in passing a further irony behind this piece of corporate welfare, the cutting of county fire department subsidies while a big business gets bailed out.
If the can-can dancers and Tweetsie boosters made the commissioners feel warm and fuzzy last night, well good for them, but for some of us out here there's only foreboding. The commissioners still have to vote on the plan, but it sure enough looks like a done deal.
OOPS
The commission DID vote to accept the deal last night.
Labels: Tweetsie Railroad, Watauga County Commission
Friday, May 09, 2008
The Smell Test
We appreciate postings by Watauga County economic development officer Joe Furman on the thread down-column ("Raising Eyebrows"), trying to clarify the announced scheme to bail out Tweetsie Railroad with county funds ... explanations that prompt more questions.
Our skepticism about corporate welfare still stands.
Our biggest question today: since the non-profits that provide valuable services to Watauga County (child-care, stray animal rescue, family crisis assistance, etc.) are required (aren't they?) to provide financial statements to the County Commission when requesting modest grants, and these financial statements become part of the public record (do they not?), has Tweetsie Railroad been asked for financial disclosure, and if so, is that report available for public inspection?
Otherwise, the fragrance this deal gives off is something short of roses.
Our skepticism about corporate welfare still stands.
Our biggest question today: since the non-profits that provide valuable services to Watauga County (child-care, stray animal rescue, family crisis assistance, etc.) are required (aren't they?) to provide financial statements to the County Commission when requesting modest grants, and these financial statements become part of the public record (do they not?), has Tweetsie Railroad been asked for financial disclosure, and if so, is that report available for public inspection?
Otherwise, the fragrance this deal gives off is something short of roses.
Labels: Tweetsie Railroad, Watauga County Commission
Wednesday, May 07, 2008
Raising Eyebrows
We've generally viewed governmental subsidies of corporations along with governmental bail-outs and governmental inducements granted to private business interests with a skeptical eye.
So the recent headline in the Watauga Democrat, "County and Tweetsie may go into special partnership," got our undivided attention.
What we see there is that "the county would buy land to support the theme park in exchange for a long-term commitment to keep the business operating" (a projected pay-out of $3.15 million of county money) and "the county would also provide marketing money over the next six years" ($150,000).
The $3.15 million might be viewed as a legitimate investment with potential for eventual earnings (though the land deal is complicated by token rental charges of one buck a year to Tweetsie for six years, to be followed by rental "at market prices" until Tweetsie can maybe buy the property, which might amount to a few too many ifs, ands, and buts). The $150,000 for marketing would be an outright "grant" to the Tweetsie owners.
The County Commission has scheduled a public hearing on May 20 about this corporate welfare. Seems like many questions should be asked.
So the recent headline in the Watauga Democrat, "County and Tweetsie may go into special partnership," got our undivided attention.
What we see there is that "the county would buy land to support the theme park in exchange for a long-term commitment to keep the business operating" (a projected pay-out of $3.15 million of county money) and "the county would also provide marketing money over the next six years" ($150,000).
The $3.15 million might be viewed as a legitimate investment with potential for eventual earnings (though the land deal is complicated by token rental charges of one buck a year to Tweetsie for six years, to be followed by rental "at market prices" until Tweetsie can maybe buy the property, which might amount to a few too many ifs, ands, and buts). The $150,000 for marketing would be an outright "grant" to the Tweetsie owners.
The County Commission has scheduled a public hearing on May 20 about this corporate welfare. Seems like many questions should be asked.
Labels: Tweetsie Railroad, Watauga County Commission
