Showing posts with label Wendorf. Show all posts
Showing posts with label Wendorf. Show all posts

Friday, June 16, 2017

"THE 'IN-ART' OF THE DEAL" AT PLAY IN NORTH CANTON, OHIO?

UPDATED AT 11:00 AM

INSTALLMENT #3





VIDEOS

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NCCS SUPT WENDORF SPEAKING TO THE ISSUE OF "ABATEMENT"

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NCCS SUPT WENDORF ENGAGES COUNCILMAN GRIFFITH

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NCCS SUPT WENDORF ENGAGES COUNCILWOMAN KIESLING

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NCCS SUPT WENDORF ENGAGES COUNCILWOMAN WERREN

"You know, I know, everybody knows" that President Donald J. Trump is the greatest deal maker in all of human history.  If you don't believe me, just ask him.  He will confirm what is already obvious to all of us Americans.

Unfortunately, he is so preoccupied these days politically surviving as president of our great nation that he is not available to North Canton government to assist the administration and council in working his wiles as explained in his book The Art of the Deal to get every stakeholder on board as North Canton government endeavors to strike a deal between itself, the North Canton City Schools and North Ridge Place, LLC and four North Canton citizen activists (i.e. the stakeholders) to solve a tax abatement controversy that has flowered out of a Community Reinvestment Area decision by the city in 2012.

A controversy because a core group of  North Canton civic activist are challenging a grant in the year 2012 100% real property tax abatement over 12 years to North Ridge Place, LLC for an apartment complex the limited liability company has constructed on the locale of a former mobile home park.

The contestants allege that the abatement was illegal because:
  • it is framed as a "new" residential abatement for a property that is in a zoned "commercial" part of North Canton, and that
  • the North Canton City Schools (NCCS), when an commercial property abatement exceeds 50%, must be part of the abatement process, which it was not
Yesterday's blog in the words of schools treasurer Todd Tolson set forth the actual/potential detriment the 2012 abatement action has for NCCS, to wit:


Today's blog focuses various parts of video taped presentation by NCCS superintendent Jeff Wendorf on the abatement to North Canton City Council on September 26, 2016.

First, Wendorf's prepared remarks.



Next, Wendorf's  exchange with Councilman Dan Griffith (at large).



Next, Wendorf's dialogue with Councilwoman Marcia Kiesling (at large).



And last, Wendorf's interaction with Councilwoman Stephanie Werren (Ward 3).



It is clear to The Stark County Political Report that Wendorf unequivocally states and restates that North Canton City Schools want and need every available tax dollars that North Cantonians have voted for over the years with "buts, ifs, ands about it."

Seventy percent of all property tax dollars go to the NCCS whereas 12% goes to North Canton government.

Of course, the schools want economic development going forward for North Canton even though there is no direct financial connection on the city doing well with enhanced income tax collections and the schools which rely exclusively on real property taxes for revenues.

Amen!!! Economic development for North Canton, indeed!  But on the city's tax revenue dime; not the schools'.

In the estimate of the SCPR it was comical if not farcical for Councilman Griffith to be asking Wendorf how city was going to do economic development if not at the expense of the schools through tax abatements.

Wendorf was exceedingly respectful in outlining ancillary ways that the schools raise outside-of-tax-dollars revenues.

While "holding bake sales" was not one of Wendorf's examples; some of the items on the list were not that far off "a bake sale" standard for generating additional revenues for the schools.

I can see it now:  Buy Your Pastry Holiday Needs at North Canton City Hall in the weeks leading up to Christmas next December.

The tag-team of Councilpersons Marcia Kiesling and Stephanie Werren showed they really do not understand the difference of the dynamics of how schools are financed as contrasted with city government.

The "short-term" versus the "long-term" strategic economic planning motif that Kiesling and Werren went on and on about, sound a bit like national economist Arthur Laffer's "trickle down-supply side" theory of economic development.

Oh yes! Kiesling and Werren (the rock-ribbed Republicans I think they are), the NCCS are excited about giving up "real" tax dollar revenues for some speculative philosophical "pie-in-the-sky" that might or might not add to the North Canton city treasury via income tax, which, of course, will not benefit the North Canton schools even if abatements generate companies locating in/expanding in North Canton which eventually translates into increase income tax revenues.

Some people naively think that national political party philosophy does not filter down to local levels of government.

The national Republican Party political agenda item is to cut taxation to the bare bones (see recent Kansas debacle on an extremist application of "trickle down" public policy) and thereby "grow" your way to increased revenues on the theory that benefitting companies/entrepreneurs will take the tax savings and generate new lines of business or expanded existing lines of business which will replace rollbacks in taxation.

While the North Canton tax abatement is not a "tax-cut" in the strict sense of the expression, it is a 50% tax-cut for the benefit of a single LLC over 12 years for North Canton schools and should be seen as such.

The state of Ohio Republican Party controls a supermajority of the Ohio General Assembly and, of course, the governorship and has for quite a few years and hence we get laws like those directly relevant to the North Canton situation in which local tax dollars intended by voters to be primarily for financing local education being re-directed to economic development.

This is an example of a state political party overall point of view becoming the law of Ohio.

A politics driven economics philosophy has been encoded in the law of Ohio even to the point of overriding the intention of the votes of rank-and-file citizens who had in voting for school initiated levy issues a "direct" intention to support schools.

Names to put with this subversion of the democratic will of local citizens:  Schuring (R, the 48th House District), Oelslager (R, the 29th Senate District) and Hagan (R, the 50th House District).

Are these folks small letter "d" democrats?

One has to wonder, no?

To balance things out (the SCPR being "an equal opportunity critic;" a national Democratic Party political agenda is the drive for an increase in the national minimum wage to $15 per hour.

North Canton government (the mayor and council) number six Republicans and only one Democrat.

Canton government (council) numbers 13 (including Allen Schulman as president of council) are ALL Democrats.

So with North Canton, one gets "trickle down economics" whereas with Canton you get sentiment for legislating at the local level for an increased minimum wage if rock-ribbed left-wing Democrat John Mariol has his way.

There are similar political party aligned philosophical analogies to be made on other practice/policy matters that course through government vertically from national down through the state to local government.

Make no mistake about it.

Accordingly, it is naive to accept the mostly mythology that partisan political points of view do not find their way into local government policy and practice.

I understand the need to have political parties to make the American system of government work.

But when partisan political party doctrines short-circuit the thinking process so that it becomes obvious that "the public good" takes a backseat to a perceived "political party good," a line is crossed which make partisan political party devotion highly damaging to the continued viability of the American system of government.

And there is more ridiculousness from Kiesling and Werren (and even Councilman Foltz (Ward 1) jumped in on this one):  (paraphrase)  "but we got rid of that mobile home park."

It is highly debatable whether or not the income tax based revenues for the  North Canton city treasury outweighs the costs of city services to concentrated apartment residents who in significant numbers do not work in North Canton and therefore contribute little to nothing to city finances.

It seems to the SCPR that most of North Canton council members do not understand Taxation 101 and consequently are well on their way to long-term (to use the Kiesling/Werren expression) drive North Canton into fiscal emergency.

In one exchange between the council members and Superintendent Wendorf, he opined that perhaps he needed to education them on "inside millage" as being the only way schools could increase their revenues without a vote by the people.

I think Wendorf should save himself the effort, nobody on North Canton council seems to me to have the mental sophistication to understand the Byzantine inside millage formula.

The days of The Hoover Company providing North Canton with more money than the city needed to finance city government are long over.  Nearly ten years now.  Kiesling has been on council for double that period of time and apparently has not learned the fundamentals of proven ways to sure up North Canton finances.

If she thinks the North Ridge Place, LLC abatement is a model for North Canton getting a handle on financial viability and if she is representative of the rest of the members of council, I'd say that North Canton as a matter of "long-term" financial planning is in "deep, deep doo-doo."

And, oh yes! while we (i.e. council) is at it; the effect of the 100% alleged to be illegal abatement is tantamount to "let's put the excellent North Canton City Schools in financial jeopardy."

That folks, is an expression of partisan political philosophy being implemented at the local level which damages our most important knowledge/thinking power resource infrastructure; namely, our public school system.

A healthy political party import is one where there is a competition of ideas debated in public forums and the results of which express a well-rounded buy-in to policy/practice legislation; not a doctrinaire political party point-of-view rammed down the throats of us all by supermajority political party zealots.

If and when we lose our democracy it is not likely to be at the hand of a military coup-d'etat but by a steady erosion of public confidence in our ability to be informed, respected, heard and included in the decision making at local levels of government.

As I see it, North Canton government is a contemporary kaleidoscope of the undermining of our democratic-republican system of government happening right before our Stark County eyes.

The real heros of this flap in North Canton are the likes of Daryl Revoldt (former mayor, councilman and president of council), Miriam Baughman, Melanie Roll and Chuck Osborne.


But for above-pictured locking on to the tax abatement debacle of 2012, North Canton schools would have, under the original abatement, lost tens of thousands of sorely needed tax dollar revenues.

These folks are not beholden to a political party point of view, but to what is for the public good.

I am told that Baughman, Roll and Osborne are in this fight for the "long-term."  Revoldt may or may not be.

These folks apparently are not into "let's make a deal" put together by "in-artful" council/mayor deal makers in that they failed to provide "checks and balances" on a bad deal for the NCCS.

Why?

Because they believe the original deal was illegal and that therefore North Canton schools should have all the dollars less those already abated to North Ridge Place, LLC.

The unremunerated consistent, persistent, skillful work ethic of the civic minded Baughman, Roll and Osborne far surpases the current crop of taxpayer paid councilpersons serving on North Canton council.

What a sad state of affairs, no?

Thursday, June 15, 2017

...NORTH CANTON SCHOOL OFFICIALS RESPOND TO QUESTIONS FROM SCPR...

UPDATED:  11:50 AM & 2:10 PM

INSTALLMENT #2

(LINK TO INSTALLMENT #1)

                 WHY CAN'T NORTH CANTON CITY OFFICIALS DO THE SAME?


I could not believe what I was hearing.

A source was telling me that on the presumption that North Canton City Council approves two proposed agreements (one with the North Canton Board of Education [NCCS-BOE]; the other with North Ridge Place, LLC [a company owned by North Canton-based developers William Lemmon and Robert DeHoff) that NCCS superintendent Jeff Wendorf would be signing the agreement with North Canton's city government without obtaining school board approval.

As one who writes blogs like I do, I always endeavor to talk with folks who definitely know the answer to a given question.

In this case, the question is will North Canton superintendent of schools sign a North Canton government (i.e. city council) approved agreement without first having obtained NCCS BOE approval.

As seen in the lead graphic in this blog, the answer is an emphatic "no!"

There can be a problem between media and political and governmental figures getting straight answers like that provided by Superintendent Wendorf

Some political figures and public officials (elected and appointed) think they are unaccountable to the public/media and refuse to respond.

And here is the kicker.

They frequently have no basis in law for not answering the questions.

On Wednesday of this week, the American public saw/read an example of the "refuse to respond" modality at the hand of United States Attorney General Jeff Sessions (the nation's premier "rule of law" enforcer) as he testified before the U.S. Senate Intelligence Committee without any legal basis for refusing.  No asserting of executive privilege, just "stonewalling."

And before that intelligence officials Coats and Rogers did the same thing.  Coates even admitted that he was without any legal basis for refusing to answer

Such clearly sounds like these officials think that the USA and by implication the states and their political subdivisions are governments conducted according to the standards of men (i.e. which public officials themselves concoct) rather than standards that are in accordance with the rule of law.

At least, Rogers did testify on the matters in a closed session.  But, bottom line on the "closed" session testimony, only a select few know the answers to questions that ought to be in the public domain.

I think North Canton law director Tim Fox operates under the Sessions/Coats/Rogers standard.

In the latest chapter (within the last few days) of giving citizens a hard time getting public records, Fox gave a North Canton citizen a hard time getting a copy of the proposed agreement referred to above as same has to do with North Ridge Place, LLC.  Eventually that citizen had to secure the record from another source.



North Canton City Council bears full responsibility for Fox and his five years, by and large, of antagonistic attitude towards any North Canton citizen who questions his action and/or that of North Canton City Council and the Mayor David Held administration.

Every once in awhile Held will override Fox, but very rarely.

From the get-go of his being appointed law director in September, 2012, Tim Fox has been hostile to The Stark County Political Report.

In my very first exchange with him, he let be known how "tough" he is.

Undoubtedly, the reason for his defensiveness and belligerence in relation to me is my law background as a 41 year professional and his feeling highly insecure having to answer the questions from somebody who is not in awe of "the big bad city attorney."

He is not the only Stark County official/public figure who is wary of this blog and my no-nonsense pursuit of public official accountability.

Former Canton mayor William J. Healy, II once demanded that I turn the SCPR camera off as I questioned him about the-then Stark County commissioners Thomas Bernabei (who went on to unseat Healy in the November, 2015 general election) having filed with the Stark County Board of Elections as an independent candidate for mayor.

 Of course, Hell will freeze over first before anything like that would happen with the SCPR.



The Stark County Board of Elections once refused to allow me to videotape that body's meetings.

Kudos to Stephanie Ujhelyi of the Alliance Review for supporting my right to videotape those meetings.

It was very telling that The Repository reporter covering the board at the time uttered nary a word in protest nor did The Repository editorial board offer any support of my right or any citizen's right to videotape a public meeting and to fully engage public officials.

Consequently, I take The Repository's rhetoric on Sunshine Week, which is celebrated in March of each year, as being just that:  mere "rhetoric" and therefore to be taken as a obligatory "a grain of salt" in terms of "where the rubber meets the road" in supporting citizen/journalist and government official interaction except, of course, when the journalist is a Rep employee.


That is the price Stark Countians pay for living in a community like so many which dot the American landscape as a "one newspaper town."

All I can say on the matter of folks like North Canton law director Fox being unresponsive to inquiry is:  "what does he and his fellow cowardly public officials have to hide?

Apparently, quite a bit.

But in the experience of the SCPR, not the North Canton City Schools.

The SCPR compliments North Canton City Schools Todd Tolson for his quick and thorough response to my inquiry as to the financial impact of the proposed agreements (implemented or ultimately failed) on the NCCS.

Here is of my questions and Tolson's answers:

SCPR questions:
On Tue, Jun 13, 2017 at 11:18 AM, Martin Olson <tramols@att.net> wrote 
Treasurer Tolson, 
Please provide me with data on the effect (or an approximation thereof) of North Canton city government's granting of a real property tax abatement on North Ridge Place in the following contexts: 
If there ends up no agreement between the city, schools and North Ridge Place LLC,
If the current proposed agreement on a 50% clawback is agreed to and fully implemented. 
Note:  I understand that there is likely to be appraisal re-evaluation going forward (3/5 year intervals) so I am asking for an approximation. 
Also, I am hearing that there is talk within the North Canton administration/Board of Education of either a tax or bond issue in November, 2017. 
Are these reports accurate? 
If so, what are the alternatives being discussed? 
Thank you, 
Martin Olson
Stark County Political Report
Treasurer Tolson's answers:

Tolson, Todd <tolsont@northcantonschools.org>  Jun 14 at 8:15 AM... 
Mr. Olson, 
In the North Ridge Place CRA's current status, the North Canton City School District has foregone $126,296.68 for tax years 2014-2016. If there were to be no change in the CRA, and we use the last year of calculations with no increase over the duration, the total loss would equate to approximately $507,000. If the 50% goes into effect, we would recoup and generate new revenue of approximately $253,500. In the event the CRA is deemed to be illegal, the district would recoup the entire $507,000. 
As you mentioned, these numbers will definitely fluctuate over the years based on county auditor triennial updates and sexennial revaluations. We believe we have positioned ourselves to be in a no lose situation should the CRA stay in place. 
In regards to an upcoming tax issue this November, it is my understanding that a Resolution of Necessity will be on this month's Board of Education agenda. The need would be for a bond/facility and operating issue. 
Todd Tolson  
Treasurer
We all know that the NCCS are first rate as are the schools in my home area of Lake Township.  Lake school officials were not happy campers when they learned Jeff Wendorf was moving on from Lake to North Canton in March, 2016.

From the schools' standpoint, undoubtedly one would think, officials would like to have every dollar voted for in the past by North Cantonians specifically for schools.

For there is talk as the next Ohio biennium budget is nearing finalization that Ohio officials (i.e. the Legislature) are considering removing another $20 million from public education.

But "that horse is out of the barn."

Cities like North Canton have been empowered by that same Legislature who might take $20 million from Ohio public schools in the 2018-19 budget biennium to redirect 50% of previously voted property taxes for schools to abatement of those taxes for commercial enterprises who engage in economic development projects.

That's what North Canton government did to the NCCS  vis-a-vis North Ridge Place, LLC, apparently, with anybody knowing about it in 2012, if one believes past/present council members and the mayor that lack of knowledge was the order of the day.

You have seen what Treasurer Tolson says about the financial impact on the schools.

The SCPR is told that the four North Canton citizens who have filed appeals to the North Canton are not going to be intimidated by North Canton City Council and plan on continuing on their legal remedies in hopes that the abatement will be invalidated by Ohio courts.

As the SCPR sees it, if the four them, or any one of them, succeed, the NCCS will not recover the dollars already lost (nor will North Canton city government) but of course the NCCS will be restored to the full stream of revenue from the effective date of any invalidation order.

However, litigation is always chancy in outcome and sometimes requires multiple appeals which bring sizable legal fees with them.

If the appeals fail, then the agreements will be in full effect and the schools will realize 50% of the abated revenues.

The NCCS have to be thinking that "a bird in hand" is better than hoping for "two in the bushes."

Some have been highly critical of the schools for not carrying the fight to the bitter end.

The quarrel in the opinion of the SCPR should not be with school officials but rather with the lack of effective "check and balance" procedures on the abatement granting processes of North Canton government to ensure that abatements have community support (consent of the governed) and therefore legitimate (in terms of public support) for North Canton's council to enact.

It is quite possible that given the opportunity, the North Canton general public would have clearly signaled council whether or not the North Ridge Place abatements had the support the city's citizenry.

That there was no such opportunity for  accountability/"check and balance" mechanism in place in North Canton in the 2012 grant of a 100% real property tax (70% of which goes to the schools; 12% of which goes to the city).

Now the city is scrambling to cobble together agreements in a salvage operation to undo the harm that is said to have been done to North Canton City Schools finances on account of an alleged illegal 100%  "'new' residential construction" abatement (50% is the maximum by Ohio/North Canton law unless the schools agree to more when the to be abated realty is commercially zoned property, (as I understand same) regarding the North Ridge Place, LLC abatement.

Law Director Fox is reported to have told North Canton City Council members that the abatement as originally formulated by the city is legal.

In September, 2016, Superintendent Wendorf attended a city council meeting and engaged North Canton City Council and specifically members Griffith, Kiesling and Werren on abatements granted by the city under the auspicious of Ohio Community Reinvestment Area (CRA) law.

The SCPR has video of the dialogue.

In tomorrow's installment, I will include video footage of the exchange.