Thursday, October 18, 2007
Letter to Mayor Bower and the Board of Aldermen from the Mid-Continent Public Library
The following letter was received by Mayor Bower and the Raytown Board of Aldermen prior to a public hearing to consider granting a 15 year 50% property tax abatement to HyVee on property they plan to purchase (formerly, the Schnucks grocery store) located at 350 Highway and Gregory Boulevard. HyVee has an exclusive 20 year lease on the Schnucks property.
The Board of Aldermen will consider the property tax abatement at its next meeting, Tuesday, November 6, 2007. The meeting is a public hearing and open to any Raytown resident who wishes to speak at the meeting.
October 16, 2007
Regarding Amendment No. 1 to the
Development Plan for the Schnucks
Raytown Redevelopment Area
Dear Mayor Bower,
I apologize that I am not able to attend the meeting of the Board of Aldermen to discuss my concerns about the above-mentioned project. The monthly meeting of the Library Board occurs the same night as your hearing. I want to take a moment to mention several concerns that the Library has with this plan and to state our opposition.
First, there seems to be a document irregularity in the official application and notice. I mentioned this to your counsel on Friday, October 12. I was told by the city clerk that the error was not considered significant enough to recall and correct the notices. The problem is that the notice identifies the property in question as sitting on US Hwy 50 rather than MO Hwy 350. Although the road may have been designated as US 50 at one point, it is no longer.
Simply, the Certificate of Notice and Notice to Taxing Jurisdictions is incorrect and should be reissued since it is inaccurate. More troubling is since there are simple problems like this in the official documents; it does beg the question what other errors might be in the application?
Second, Mid-Continent Public Library typically opposes all 353 abatements except in the most drastic cases. Chapter 353 abatements provide significant financial risk to the library district and to other taxing districts. The proposal before you appears to demolish several shops that reoccupied and have the potential to contribute to the tax rolls. The remaining, unoccupied building will be spared from the tax rolls for an additional ten years so that the fifteen-year-old building may be given a “facelift” and the parking lot may be repaired.
To me, the repairs that are being requested are the type of repairs that any homeowner or business owner finds himself considering after a building has aged.
In fact, the library has recently replaced the tile, the carpet, improved the drainage ditch with stone, and resurfaced our parking lot at the Joe Herndon Branch Library. This is the cost of doing business. Rather than taking money from the fire department, schoolchildren or the physically handicapped, a thoughtful business that is a community partner would fund such improvements themselves.
Finally, the project itself is not in the best interest of the library district (or any other taxing jurisdiction). There is no compelling argument in the notice to indicate why using the taxpayers’ money for the private development is in the best interest of all the people. On the surface, this project seems to benefit the developer’s interest only.
According to your analysis, there is only a $1,599 (up to $24,000) per year increase in tax and pilots revenues for all taxing jurisdictions if the project is built with the 353 abatement. On the other hand, your analysis suggests that the taxing jurisdictions will earn between $152,502 to $164,104 if the development is not upgraded.
Finally, if the property is allowed to come back on the tax rolls and the developer proceeds with the improvements (as a cost of doing business) the taxing jurisdictions would receive $327,404 to $354,393 annually. In simple dollars and cents, it does not follow that we should accept $1,599 in total tax revenue when we could receive $164,104 or $354,393.
I should be clear. The Library is not opposed to economic development or the use of incentives. However, given the risks that you are taking with our resources, it would be advisable to meet with the other taxing jurisdictions to explain your plans. I request that you table this proposal so the taxing jurisdictions can be educated on our proposal before a vote is taken.
Given the history of abating this property 15 years ago, and requesting a second 10-year abatement, we seriously must ask; will this property EVER be returned to the tax rolls? At this point, the taxing jurisdictions have had significant revenues diverted for fifteen years. It is time to allow the owners of this parcel (whether the original developer or a new one) to be responsible corporate citizens and pay their fair share for fire protection, education and library services.
Sincerely,
Steven V. Potter
Assistant Director
Mid-Continent Public Library
spotter@mcpl.lib.mo.us
Subscribe to:
Post Comments (Atom)
30 comments:
As one of the more pampered tax districts, my sympathy is seldom with the Library.
On the other hand, it's nice to see some dissent and common sense. Yes there is a "cost of doing business." Hy-Vee, to my understanding, has held the Schnucks property hostage since Schnucks left...even using the facility as a storage facility before finally being called on that.
Quit giving away the city's property tax basis! And leaving the poor homeowners to pick up the tab.
Seems like it may be a valid point but why wasn't it raised in the case of Walmart? Building a Walmart is a cost of doing business, not the taxpayers reponsibility.
On the other hand, Hy-Vee will be a NEW owner of this property and are making an application as a NEW owner to correct a blighted condition. Hy-Vee may have had a lease on the property, but they are not the owner until they purchase the property.
Does the school district really think that Schnucks will come back and do maintenance to the property?
Alderman Aziere stated that nearby residents are complaining of rodents coming from this property. If this is the case, there are 2 options:
1) Demolish the property to be rid of the eyesore and rodents which will lower the tax assessment to that of vacant land lowering tax collections.
OR
2) Upgrade the property to a functional status to eliminate the blighted condition and restore the ability to pay taxes.
I prefer option #2.
By the way, if there is too much argument from the Library, could the Library be excluded from this 353 abatement?
It also is my opinion when this project startes producting taxes, it may lower the taxes of homeowners.
Andy Whiteman
Andy the question is when and if, will Hy Vee start producing taxes. With the coming of the new and wonderful and all providing Wal Mart will Hy Vee be able to stay in business? I fear the other three grocery stores in town will be shut down. I say let Hy Vee pay the taxes and no more giving away tax base. If they do give Hy Vee a tax break how about adding my name to the list I am just as deserving as Hy Vee!!!!!
Why give Hy-Vee a tax break? They are already an established business in Raytown. The cities are really abuseing these 353's , tif's etc. STOP IT NOW!!!!
Everyone here is making a good point but for the same reasons, Walmart should NEVER have been given a tax break. They already have an established business in Raytown as does Hy-Vee.
As for the question of will Hy-Vee be able to stay in business? Will Walmart be able to stay in business with another store on I-70? Will any business be able to stay in business? Economics are changing. Look at Montgomery Ward, TWA, and others. There is no guarantee that any business will last but Hy-Vee is willing to invest $7 Million which means they think they expect to last.
Andy Whiteman
I am an established citizen who is going to stay in Raytown I have spent money on my property to make it look good.Which I did not only for myself but also for the community. So give me a tax break and by the way I pay taxes so how about it????
Hy Vee bought out snucks years and years ago so they already own the property and have been using it for storage for all of these years. They will nor be a new owner.
HyVee owed the City of Raytown more than $40,000.00 in taxes at one point and they had to go after them to get it. What makes you think that they will do what they should now.
Whoever said it is a cost of doing business is absolutely right. HyVee is just moving into a building that they already own and yes there probably will be some things that need to be updated but they new that when they decided to make the move. Ask yourself, why are they asking for this abatement? Could it be because we gave the city away to WalMart and they think so why wouldn't they do it again.
HyVee for years said that the Snucks store was to small for them and that they would not move in there. Now because they can force 2 small businesses out so they can have more space it's ok. Those 2 small businesses are currently taxpayers. Is this fair to those small businesses that are already in that development. We all know that if one of those other businesses ask for an abatement they would not give it to them because they do not produce enough taxes as it is. They would be told that their improvements would be a business expense.
I am the first to say we need business here in Raytown but when does this stop. We have the abatement for GE, Shamrock Cabinets, Walmart, The South side of the 350 Hyway, and the downtown all are 23 years abatements and now even though we already have a 23 abatement on this development that HYVee wants to move into they want another 10 years. I hope our council people are smart enough to say NO but I would not hold my breath if I were you.
Alderman Ertz works for HyVee in Lee's Summit I hope he is not allowed to vote on this.
We all need to go to the Mayor's Town Hall meeting on October 30, that's next Tuesday, and tell him
what you think about this.
To: Anon 5:39PM
Alderman Ertz recused himself during the Hy-Vee presentation and sat with the public. Since he has a conflict of interest, it is my understanding that he will have to recuse himself for the vote also.
FYI: Tuesday the 30th is the Tuesday after next. I knew that with out looking at the calendar because I have several conflicting appointments/events during that time frame. I mention it because I wouldn't want someone to go on the wrong day. Please mark your calendars.
Andy Whiteman
In not to far into the future Raytown will look like the Bannister Mall area. Closed down stores, vacant houses---like a ghost town if you will. I urge everyone to come to city hall and voice your disapproval at giving out more 353's.
I totally disagree with anonymous 9:48 AM.
What he has to offer buy to oppose a good plan?
What is the future of this town?
What about ole Dan Estes going to join his good buddy Curt Wenson in Liberty. Something sounds kind of fishy to me. All I ever remember is Dan saying how much he liked being the finance director for Raytown and how he hoped to retire there. Sure singing a different tune now. What gives? Will he have to move to Liberty? Maybe the talk of a state audit had something to do with it. Who would have the most to loose if the city's finances are not on the up and up? And after Sue Frank and Curt Wenson running the show for 8 years things are probably more screwed up than we will ever realize.
Anonymous 4:43 PM
I disagree about your comments. You are suspecting and challenging the integrity of a fine man who served well for this city. He has guts to admit that mistake happened. Your comments are just based on a false hypothesis with no base. Have you read the survey about the other cities who conducted state audit and found nothing. The fact is this city is doing a fine job and should not be worry about any wrong doing.
City's books are open and you can review it, if you can understand. But try not to blame the city official if you know nothing about accounting. Explain how educated are you? Explain how many talented people left the city because of this kind of personal attack on a daily basis. What you have to offer? You are pointing fingure on others but you forgot that when you do that there are three fingures pointing at you. Stop this nonsense and think about us loosing a fine finance director. It is great loss because of comments like you made. Look yourself into the mirror and think what you are doing.
Please stop this nonsense of attacking city official, you will gain nothing out of it. Get involve and offer some suggestion and try to be part of TEAM.
I disagree with Anonymous 9:48 AM:
Raytown is in a lot better shape than Bannister Mall. The closed stores I notice are mostly at Raytown Plaza and that is being remodeled and will be leased out. The other vacant stores are where Hy-Vee wants a new store. Yes, there are some vacant homes in Raytown but there is a mortgage problem and real estate sales are generally slow. My Realtor told me 4 years ago that the average selling time in Raytown is 6 months. I don't know what it is now. If the homes are not selling it is because they are overpriced! One thing I really notice is that Raytown does NOT have the crime rate that Bannister Mall did. Whenever we went to Bannister Mall, we parked as close to the Sears door as possible.
I agree with anonymous 7:02 PM. We are losing a fine finance director. I wish he had stayed. Dan was a part of the community and everything he did in his job had a direct effect on his family as residents. I certainally hope the board requires his replacement to be a Raytown resident and does not hire an alien who commutes from another city.
I can see legitimate reasons for remaining anonymous such as being a city employee. But definately when someone wants to personally attack city officials and demand the firing of some, there is good resaon to remain anonymous. Just send that type of letter to the Post or Tribune and they won't publish an anonymous letter! If you state truthful reasons (facts) and sign the letter, they may publish such a letter and/or do an investigation of their own.
I suggest that Anonymous 4:43PM write a letter stating the facts (if any) and send it to an appropriate State official.
I support the 353 plan for Hy-Vee, but anyone whether for or against needs to be at the public hearing at the Board of Aldermen (I believe it is Tuesday 11/6) to voice their feelings or forever hold your peace. If you can't be there send a notarized letter for the public record.
Andy Whiteman
Andy Whiteman has great suggeston. Good Job Andy.
To anonymos 7:02 Guess we will never really know the truth about the city's finances until we have a truely INDEPENDENT AUDIT.
Not everyone is a CPA and would understand the city budget, but the people that work in the state auditors office are CPA's and would let the chips fall where the may.
I used to do the budget for a Fire District but Raytown's budget is so complex and detailed that I wouldn't want to compile it. I think Mr. Estes did a great job on the budget.
Andy Whiteman
I do believe that Mr. Estes did wonderful job for the city.
Anonymous 9:58 PM
As a tax payer, I do not believe in State Audit. But if you insist then it is OK. If they found nothing then it is a wastage of tax payers money. Are you willing to pay? If not then we can't and should not pay for something which is baseless.
To anonymous 9:26 a.m. If you were to believe that our city finances are perfect why spend the money on an annual audit that the city has done for years? Why didn't they turn up the mistake that Mr. Estes admitted to? It is apparent that you know NOTHING about what a state audit could do for the city.
I am not going to get in to stupid discussion with you as it appears that you have no clue about audit requirements. You are naive and believe in controversies. No truth yet.
There would be no controversary if an audit proved everything to be on the up and up. We would all be HAPPY.
The cost of a state audit is a mere drop in the bucket compared to the money that is wasted daily by local, state, and federal governments on unnecessary things. Personally I believe that it would be a good thing for an audit by the state, and our city officials should welcome it especially if there is nothing to hide, then it will be out in the open for all to see. There should always be an annual audit done by an outside accounting firm, and an audit when there is a change of whoever may be in charge of Finance, and a periodic audit by the state. It will cover everyones tail and everyone will be happy.
Andy I once counted eighty (80) empty office buildings. I don't think there are 80 buildings in Paytown Plaza. You need to get with program.
Anonymous 7:08PM,
Since I am disabled, I get around very little. When I do get out, I see only the areas where I go and are obvious. I am amazed that someone would drive around counting empty offices! This is really a safety hazard since your attention in not on driving. Do you stop at each one to make sure it is really vacant?
I have no idea how many offices a building contains. Is it 1 or 20 offices (or more) in each? If we are speaking only of 80 offices, that doesn't seem like a large number for a city the size of Raytown. What really sticks out is places like Raytown Plaze and the old Schnucks area. Did you count the Olde Baptist Church which is blighted and the city does nothing about its own code violation.
Andy Whiteman
"I have no idea" said Andy "Twitman" Whiteman.
Yes, Andy, you don't!
Anonymous 11PM
Why don't you (and others) come to the Town Hall meeting Tuesday 10/30 and voice your opinions to Mayor Bower?
There was an article in the Local paper so it isn't one of those secret meetings I have been complaining about.
Andy Whiteman
Because I'm not stupid enough to believe that it would do any good.
Because I'm not stupid enough to believe that it would do any good.
Post a Comment