The hottest topics are not tackled by the faint of heart. The current topic of the DECC expansion is one of those topics. It seems if you come out publicly in support of this project, you are hailed as a visionary, forward thinking, civically minded, pro-business, happy, fun-loving, intelligent shining star. If you oppose it, you are a nitwitted, negative, pessimistic, inflexible thwarter of all that is good.
As is usually the case in Duluth, the reality is lost in the shuffle of politics and nobody truly wants an objective look at the facts. I'll do my best to do just that but be fore-warned, I am on the side of the naysayers.
Duluth has a long and jaded history of broken promises, propaganda campaigns to promote less than prudent projects, tax increases with sunset provisions that never seem to arrive and fiscal mismanagement on a mind boggling scale for a city this size. The broken promises started way back in the late 60s. A one percent sales tax was proposed and implemented with a sunset of three years. That tax was eventually made permanent and is now used entirely in the general fund, not it's intended purpose. The second one percent tax was also imposed with a very short sunset provision. It has become permanent. The third half percent was imposed in the late 90s to fund the last DECC expansion.
That tax has been further pilfered to help fund the embattled Great Lakes Aquarium. This is a very brief history of local option sales taxes in Duluth. In addition to the local option sales taxes currently "collected" (more on this later) and paid by local businesses, there is between 6.5 and 9 percent State sales tax also imposed.
Proponents of the current increase needed to fund the DECC expansion, minimize it's impact, reducing the obligation to pennies on a hypothetical lunch or dinner bill. The problem with this argument is the increase is quite substantial relative to the current tax burden and will put Duluth bars and restaurants at a greater competitive disadvantage as the tax rates for them become some of the highest in the U.S.
The proponents have made a concerted attempt to separate the DECC expansion and related tax increase from the other financial woes and previous debacles hamstringing Duluth's future. Unfortunately, the money comes from the same pool. Whether it is the "tourism tax", sales tax, property tax from the City, County, State, School District and various taxing authorities or the food and beverage tax, the money comes from us, the taxpayers. Proponents are also using the argument that a large portion of the money will come from tourists, when the reality is, the majority of local receipts come from you and me.
Finally, the argument that carries the most weight among the starry-eyed is that 33+ Million will come from "The State" and that this is money we need to bring back to Duluth, lest we become the red-headed step child of the Bonding Bill. Last time I checked, this money also comes from taxpayers. Regardless of the form, we ultimately pay it back through State and local taxes...with interest.
There are a few very important points to understand before you vote this Tuesday, February 28th. First, the projections provided to Duluth from Dan Russell for the amount of money the tax increase will generate are based on growth in the food and beverage receipts. The fact is, last year, one of the most favorable for weather and events, food and beverage receipts, adjusted for inflation, were down. If this trend continues, the projected revenue will fall short.
What happens if the revenue from the food and beverage tax increase falls short of making the bond payments? We will have to take it from the general fund. Just to refresh your memory, the City Council heard recommendations from a task force formed to address the unfunded retiree health care issue. Included in those recommendations are a 9% per year increase in property taxes for at least four years in a row. Added onto your base tax rate currently, coupled with annual increases in assessments, your house payment stands a 100% chance of going much higher. Couple that with proposed utility increases and your personal bottom line just got substantially smaller.
These taxes will become prohibitive to all but the most affluent and inflation-proof house-holds. More importantly, they will hit employers especially hard. What do employers do when faced with dramatically higher costs? They cut the greatest cost of all, payroll. This translates in to job loss.
Add this all up and you end up with the non-tourist season, or 75% of most years, a very substantially decreased pool of disposable income and a corresponding reduction in food and beverage receipts. What do you cut out when you have less mulah in your wallet? You guessed it, dinner out. Now, if that dinner bill is going up right along with all your other taxes, your willingness to go out and spend your hard earned and increasingly scarce dollars on dinner in Duluth will certainly decrease.
The bottom line here is that Duluth is on a spending spree that is coming to a disastrous end and a few people are all too aware of it. The possibility that our bond ratings will drop is almost a foregone conclusion making those much sought after dollars, extremely difficult to come by. Why now? Why so rushed? Why the hurry to get this done and before the Governor so quickly? If we don't do it now, in all likelihood, it won't happen and should not happen until Duluth gets it's fiscal house in order.
With a positive vote on Tuesday the 28th, this project still has a very long and difficult road.
For the record, I'll be voting no.
Saturday, February 25, 2006
Saturday, February 11, 2006
Civility vs. Integrity
I've been feeling uninspired lately. There has been so little news locally lately, I have pondered taking on less than local topics. I am sure with more digging, I could do more justice to local issues. Anyway, bear with me and I'll begin more frequent updates. Thanks for reading and here are my latest ramblings...
Civility vs. Integrity
Individuals within many communities and forums are promoting "civility". Civility projects are all the rage among various groups, parties, politicos and intellectuals. It seems dissention is being viewed more and more as uncivil. The interesting thing to explore is whether the dissention is, in-fact, uncivil or is the dissention, within a given forum merely percieved as uncivil. We see civility "projects" popping up around the country and of course we have our own right here in Duluth. Drawing upon my experiences in Duluth, but perhaps more importantly, decades away from Duluth and then returning, it appears obvious to all but the most disconnected that dissention is the only pre-requisite to being labelled as uncivil.
Dissention is generally based in a differing interpretation of fact, emotion, pre-disposition and social disposition. The current dominating party in Northeastern Minnesota has sensibilities so easily upset, you'd think the apple cart had one very wobbly wheel. Expressing the most insignificant dissention, coupled with a little spirit is viewed as disrespectful and uncivil. Criticizing the promoters of inane, impractical or downright foolish policies is met with vehement indignation by those promoters. One need only call a fool a fool to be attacked for being an uncivil extremist.
What the promoters of this phony civility are asking us to do is part with our convictions and diminish our own integrity. If you or I are angered by the actions of a public official, do we owe it to them to simply stuff it? The reason many people don't attend City Council meetings is because they see it as futile. If you are a dissenter and speak your mind, you are labelled uncivil. If you are frustrated and correspond with the Council to express your frustration, you are dismissed as uncivil. The bottom line is, the way to diminish and marginalize you and dismiss your message these days is to label you uncivil. Labelling somebody uncivil is such a clever way to destroy your message. If they are successful painting you as uncivil, the public sees you as a mindless savage not worthy of consideration.
What people have forgotten with all this phony civility is the integrity of human emotion and conviction is being crushed out. The passion of the messenger is destroyed and lost in the intellectual soup of labels. Civility "projects" are nothing more than organized attempts to quell dissent. Did our forefathers stuff their emotion and convictions? Our leaders take us into war to defend or establish freedom. Those who prefer isolationism and pacifism demand those of us who support the effort to remain silent. How dare we support such a draconian solution as war? In some minds, as long as we are free all others be damned. There is no justification for war in their minds short of defending against homeland attack. Why do we go to war? We go to war to defend and protect our right and the rights of others to express dissent. Those going into battle on America's behalf, engage in the ultimate form of dissent, against those who chose to crush or stifle dissent.
How do we get from here to there? How do we get from being the defender of freedom to becoming the ones who must fight for our own? The answer is, the Civility Project. The Civility Project as we so fondly refer to it, is nothing more than another weapon in the arsenal against free speech. If we as citizens, through threat of intimidation, public humiliation or simply being labelled as ne'r do well, uncivil savages, are not allowed to express spirited dissent, we have taken the first step toward tyranny, if only on a local level.
Don't be fooled by "civility projects", they are nothing more than the first step down the road to quelling freedom of speech. Civility "projects" must be attacked for what they are, nothing more than certain groups whittling away at your freedom. Any attempt to silence the human voice must be attacked for what it is, the first eroding of your freedom. All attempts at stealing freedom, crushing the human spirit or silencing the individual, have ultimately lead to tyranny. Tyranny leads to war. The human spirit is a power far too great to be silenced, stuffed or even rebuffed. If you believe it, speak it. Never allow your elected leaders to silence you. Never allow your elected leaders to marginalize you with speech policing. The inevitable end of this stifling of the human spirit is tyranny. The most uncivil act of the human race is war and the slippery slope of speech police leads to tyranny which has always been resolved through war. The unquenchable human desire to be free simply cannot be suppressed. The freedom to speak one's mind is the most fundamental freedom. When times require it, uncivil discourse is the best way to avoid tyranny.
Civility vs. Integrity
Individuals within many communities and forums are promoting "civility". Civility projects are all the rage among various groups, parties, politicos and intellectuals. It seems dissention is being viewed more and more as uncivil. The interesting thing to explore is whether the dissention is, in-fact, uncivil or is the dissention, within a given forum merely percieved as uncivil. We see civility "projects" popping up around the country and of course we have our own right here in Duluth. Drawing upon my experiences in Duluth, but perhaps more importantly, decades away from Duluth and then returning, it appears obvious to all but the most disconnected that dissention is the only pre-requisite to being labelled as uncivil.
Dissention is generally based in a differing interpretation of fact, emotion, pre-disposition and social disposition. The current dominating party in Northeastern Minnesota has sensibilities so easily upset, you'd think the apple cart had one very wobbly wheel. Expressing the most insignificant dissention, coupled with a little spirit is viewed as disrespectful and uncivil. Criticizing the promoters of inane, impractical or downright foolish policies is met with vehement indignation by those promoters. One need only call a fool a fool to be attacked for being an uncivil extremist.
What the promoters of this phony civility are asking us to do is part with our convictions and diminish our own integrity. If you or I are angered by the actions of a public official, do we owe it to them to simply stuff it? The reason many people don't attend City Council meetings is because they see it as futile. If you are a dissenter and speak your mind, you are labelled uncivil. If you are frustrated and correspond with the Council to express your frustration, you are dismissed as uncivil. The bottom line is, the way to diminish and marginalize you and dismiss your message these days is to label you uncivil. Labelling somebody uncivil is such a clever way to destroy your message. If they are successful painting you as uncivil, the public sees you as a mindless savage not worthy of consideration.
What people have forgotten with all this phony civility is the integrity of human emotion and conviction is being crushed out. The passion of the messenger is destroyed and lost in the intellectual soup of labels. Civility "projects" are nothing more than organized attempts to quell dissent. Did our forefathers stuff their emotion and convictions? Our leaders take us into war to defend or establish freedom. Those who prefer isolationism and pacifism demand those of us who support the effort to remain silent. How dare we support such a draconian solution as war? In some minds, as long as we are free all others be damned. There is no justification for war in their minds short of defending against homeland attack. Why do we go to war? We go to war to defend and protect our right and the rights of others to express dissent. Those going into battle on America's behalf, engage in the ultimate form of dissent, against those who chose to crush or stifle dissent.
How do we get from here to there? How do we get from being the defender of freedom to becoming the ones who must fight for our own? The answer is, the Civility Project. The Civility Project as we so fondly refer to it, is nothing more than another weapon in the arsenal against free speech. If we as citizens, through threat of intimidation, public humiliation or simply being labelled as ne'r do well, uncivil savages, are not allowed to express spirited dissent, we have taken the first step toward tyranny, if only on a local level.
Don't be fooled by "civility projects", they are nothing more than the first step down the road to quelling freedom of speech. Civility "projects" must be attacked for what they are, nothing more than certain groups whittling away at your freedom. Any attempt to silence the human voice must be attacked for what it is, the first eroding of your freedom. All attempts at stealing freedom, crushing the human spirit or silencing the individual, have ultimately lead to tyranny. Tyranny leads to war. The human spirit is a power far too great to be silenced, stuffed or even rebuffed. If you believe it, speak it. Never allow your elected leaders to silence you. Never allow your elected leaders to marginalize you with speech policing. The inevitable end of this stifling of the human spirit is tyranny. The most uncivil act of the human race is war and the slippery slope of speech police leads to tyranny which has always been resolved through war. The unquenchable human desire to be free simply cannot be suppressed. The freedom to speak one's mind is the most fundamental freedom. When times require it, uncivil discourse is the best way to avoid tyranny.
Thursday, February 02, 2006
Capitalizing on Duluth
Duluth was once a burgeoning, empire building, economic center. Growth industries of the day, such as steel production, the railroad and shipping industry, among others provided jobs, unprecedented economic opportunity and growth in practically every measure of economic health.
Things have changed dramatically. We now have a tourism based economy with new focus and growth in the medical industry, higher education and general aviation. The most notable thing about the past heydays of Duluth's economy, was the diversity within that economy. Growth industries provided widespread wealth and generated almost limitless opportunities for the neighborhood entrepreneur. Small businesses such as corner restaurants, neighborhood grocery stores and even small banks were able to open and thrive. Vitality is a function of diversity. Both are inextricably entwined, the yin and yang of economic growth. Also a very important factor and another player in the yin and yang is Government. There has to be a balance of taxation to fund infrastructure and public safety, as well as sound long-term economic policy.
To effectively capitalize on Duluth, we need to fully inventory the assets, both fiscal and physical. Duluth has an International Airport with the longest runway in the State of Minnesota. The Duluth-Superior harbor boasts the world's largest inland port. We have rail infrastructure that has deteriorated but where the most expensive and critical piece of the pie is still in place, the right of ways to construct new rail. We are the terminus of Interstate 35 which goes all the way to the Mexican Border and continues via highway 61 all the way to the Canadian border. Within the City itself we have vast natural resources, albeit most are off limits to all but hikers and naturalists. A high proportion of our population is highly educated and the Minnesota work ethic is well-known. We have a huge amount of land available for development, including areas that have previously been developed, are set aside for development but currently sit vacant.
On the other hand, we must be cognizant of our liabilities. The most significant liability is largely political. The Democratic-Farmer-Labor Party is extremely dominant in Duluth. Their most important and significant constituent groups are public employees and Unions. State imposed legislation gives Unions and Public Employees an extraordinary amount of power. This has created a disproportionately pro-employee, anti-employer environment. Due to the dominance of the DFL Party, policies typically associated with the Democratic Party have been taken to the extreme, such as very burdensome and sometimes outlandish policies related to environmental protection, preventing or inhibiting most developments. The Duluth City Council has adopted even more extreme policies and has been a difficult hurdle for all but the best connected and completely benign developers.
Taking all these factors into account, how do we capitalize and grow our local economy? Most importantly, how do we grow our City, and successfully navigate the political mine-field? First, with regard to our assets, the large amount of land and previously developed but vacant property needs to be evaluated, quantified and marketed. We need to determine and detail the infrastructure available to those properties and develop contingency plans for how to get infrastructure in place should a developer decide on a given location.
We need to quantify and market those properties that will need little ramp-up such as the Northwest maintenance facility and find other operations that will be a good fit. Most importantly, we need to recognize, quantify and market the unique combination of transportation facilities available. Some possible fits would seem to be no-brainers. With the growth in internet marketing and sales, resulting in a huge increase in drop-shipping, a shipping hub for a UPS or Fed-Ex type of operation seems a natural fit. Duluth is centrally located on the North American Continent, again, with an International Airport and a huge facility, essentially sitting empty.
While the auto-making industry has taken huge hits lately, the best defense is a good offense. A great offense for them would be to take a hint from the Japanese and focus on innovation. Duluth would be a great location with it's proximity to vast natural resources, extremely flexible shipping where cars could literally go from ramp to container, to ship, to anywhere in the world. With our high level of education and innovation, we could build a super high-tech auto factory with the sole aim to produce better, more reliable vehicles than our Japanese competitors.
General Aviation is also a natural fit for Duluth. Again, with a facility at the existing airport sitting essentially empty, there is a huge opportunity knocking. Any of these would create spinoff industries and immediate growth.
Duluth needs to better capitalize on it's location on the largest body of fresh water on the planet. We need to be more welcoming to boaters. With a relatively tiny investment in our existing waterfront, we could be hosting cruise ships, yachts from all over the great lakes, charter boat operations, sailboat races, kayaking, canoeing and myriad other water-related activities.
Finally, with all the great minds currently working on solving this crisis or that issue, or marketing small-town pork projects, we need to get a group together that does nothing but market Duluth. That group would not market Duluth as a tourist destination but as a place to do business and raise a family. We currently have a Mayor who's sole focus seems to be taking care of all those who are disadvantaged, out of work, homeless or drug and alcohol dependent. We need a Mayor who, instead of taxing the producers to pay for the non-productive, will market Duluth to Producers and try to find a way to make the non-productive, productive. Instead of rewarding them for bad behavior, let's encourage them to stop it by putting them to work. We need to make Duluth a place that is unattractive to the unproductive and make it attractive to producers. Bottom line, we need leadership and vision.
Things have changed dramatically. We now have a tourism based economy with new focus and growth in the medical industry, higher education and general aviation. The most notable thing about the past heydays of Duluth's economy, was the diversity within that economy. Growth industries provided widespread wealth and generated almost limitless opportunities for the neighborhood entrepreneur. Small businesses such as corner restaurants, neighborhood grocery stores and even small banks were able to open and thrive. Vitality is a function of diversity. Both are inextricably entwined, the yin and yang of economic growth. Also a very important factor and another player in the yin and yang is Government. There has to be a balance of taxation to fund infrastructure and public safety, as well as sound long-term economic policy.
To effectively capitalize on Duluth, we need to fully inventory the assets, both fiscal and physical. Duluth has an International Airport with the longest runway in the State of Minnesota. The Duluth-Superior harbor boasts the world's largest inland port. We have rail infrastructure that has deteriorated but where the most expensive and critical piece of the pie is still in place, the right of ways to construct new rail. We are the terminus of Interstate 35 which goes all the way to the Mexican Border and continues via highway 61 all the way to the Canadian border. Within the City itself we have vast natural resources, albeit most are off limits to all but hikers and naturalists. A high proportion of our population is highly educated and the Minnesota work ethic is well-known. We have a huge amount of land available for development, including areas that have previously been developed, are set aside for development but currently sit vacant.
On the other hand, we must be cognizant of our liabilities. The most significant liability is largely political. The Democratic-Farmer-Labor Party is extremely dominant in Duluth. Their most important and significant constituent groups are public employees and Unions. State imposed legislation gives Unions and Public Employees an extraordinary amount of power. This has created a disproportionately pro-employee, anti-employer environment. Due to the dominance of the DFL Party, policies typically associated with the Democratic Party have been taken to the extreme, such as very burdensome and sometimes outlandish policies related to environmental protection, preventing or inhibiting most developments. The Duluth City Council has adopted even more extreme policies and has been a difficult hurdle for all but the best connected and completely benign developers.
Taking all these factors into account, how do we capitalize and grow our local economy? Most importantly, how do we grow our City, and successfully navigate the political mine-field? First, with regard to our assets, the large amount of land and previously developed but vacant property needs to be evaluated, quantified and marketed. We need to determine and detail the infrastructure available to those properties and develop contingency plans for how to get infrastructure in place should a developer decide on a given location.
We need to quantify and market those properties that will need little ramp-up such as the Northwest maintenance facility and find other operations that will be a good fit. Most importantly, we need to recognize, quantify and market the unique combination of transportation facilities available. Some possible fits would seem to be no-brainers. With the growth in internet marketing and sales, resulting in a huge increase in drop-shipping, a shipping hub for a UPS or Fed-Ex type of operation seems a natural fit. Duluth is centrally located on the North American Continent, again, with an International Airport and a huge facility, essentially sitting empty.
While the auto-making industry has taken huge hits lately, the best defense is a good offense. A great offense for them would be to take a hint from the Japanese and focus on innovation. Duluth would be a great location with it's proximity to vast natural resources, extremely flexible shipping where cars could literally go from ramp to container, to ship, to anywhere in the world. With our high level of education and innovation, we could build a super high-tech auto factory with the sole aim to produce better, more reliable vehicles than our Japanese competitors.
General Aviation is also a natural fit for Duluth. Again, with a facility at the existing airport sitting essentially empty, there is a huge opportunity knocking. Any of these would create spinoff industries and immediate growth.
Duluth needs to better capitalize on it's location on the largest body of fresh water on the planet. We need to be more welcoming to boaters. With a relatively tiny investment in our existing waterfront, we could be hosting cruise ships, yachts from all over the great lakes, charter boat operations, sailboat races, kayaking, canoeing and myriad other water-related activities.
Finally, with all the great minds currently working on solving this crisis or that issue, or marketing small-town pork projects, we need to get a group together that does nothing but market Duluth. That group would not market Duluth as a tourist destination but as a place to do business and raise a family. We currently have a Mayor who's sole focus seems to be taking care of all those who are disadvantaged, out of work, homeless or drug and alcohol dependent. We need a Mayor who, instead of taxing the producers to pay for the non-productive, will market Duluth to Producers and try to find a way to make the non-productive, productive. Instead of rewarding them for bad behavior, let's encourage them to stop it by putting them to work. We need to make Duluth a place that is unattractive to the unproductive and make it attractive to producers. Bottom line, we need leadership and vision.
Backwards
I began work on a post a while back and never finished it. It sat in my drafts for so long that when I finally finished it, i posted lower on the page. The article is titled old news and is regarding the Downtown Waterfront Improvement District. So, for my latest post scroll down past the end of my article about the planned Swamp at Slip #2.
Thanks for reading.
Thanks for reading.
Subscribe to:
Posts (Atom)
