Posts Tagged Rokakis
Plain Dealer Shameless Promoting Issue 6 as News
Posted by Roldo Bartimole in Media, Politicians on October 19, 2009
October 19, 2009… The Plain Dealer has become totally shameless in its promotion of Issue 6 and County “reform.” Totally shameless. News has become propaganda. Again.
The front-page story Monday said that voting for Issue 6 would be “costly to 4 elected Cuyahoga officials.” It’s the top story of the day.
Yeah, let’s get ‘em!
The Issue 6 campaign should have to list the Pee Dee for in-kind contributions. It’s that bad.
The Pee Dee story starts by telling us that four elected officials – Commissioners Peter Lawson Jones, Tim Hagan, Treasurer Jim Rokakis and Recorder Lillian Greene – will lose their jobs if Issue 6 passes. All four oppose Issue 6, of course.
They will lose $700,000 in pay. Jones and Hagan nearly each $185,000, says the Pee Dee, and Rokakis $190,000 (two-and-a-half years) and Greene two-years, $149,000. That’s the way the Pee Dee figures it.
What the Pee Dee doesn’t figure at all, however, is what the cost will be under the new system.
Issue 6 also calls for a County Executive who will have to be paid. Likely he or she will have to get something in the range of $200,000. Maybe more.
The measure also calls – instead of the three Commissioners – for 11 new positions as what they call council members. Ten are scheduled to get $45,000 each. That will mean a payroll addition of $450,000 a year. One – the president of the council – gets $55,000 a year. Expect those salaries to go up quickly near what Cleveland Council members get, about $70,000.
Isn’t that more than $700,000 for any single year? My adding machine says $450,000 plus $55,000, plus $200,000 equals $705,000. A year, that is. Without pay increase that surely will come.
That also doesn’t factor in any staff. My bet is that all 11 members – I’d call them all County Commissioners – will want at minimum at least one staff member and other staffing.
And don’t forget expense accounts for each of the 11 offices.
If money is the issue, we already are outspending the old line-up. Significantly.
Besides setting up a situation with 11 districts fighting each other.
I suspect the Pee Dee, however, is looking for the public to be out to “punish” someone in County government. Who hasn’t gotten sickened by the corruption there?
That’s the Pee Dee impetus – to entice voters to take out their frustrations on someone by voting “yes” on Issue 6. But do you do this to spite yourselves?
We will have – instead of three Commission honchos – 11 district County leaders plus the County executive. One can see power struggles already.
It’s a setup not unlike Cleveland City Council.
And we know how well that works. Don’t we?
Tax Reform Should Go Beyond Corruption Issue
Posted by Roldo Bartimole in Economic Development on September 23, 2009
If there’s going to be an investigation of the integrity of commercial property appraisals here, we ought to also probe tax reductions awarded to downtown property owners by official County and State of Ohio agents.
County Treasurer Jim Rokakis, concerned about the validity of commercial property appraisals because of the corruption charges involving County Auditor Frank Russo, has requested a probe by state officials. Rokakis apparently doesn’t trust the values on commercial properties. Who would?
The values given properties, of course, provide the measure of the taxes property owner’s pay. The lower the value the lesser taxes are due to be paid.
Commercial property owners are expected to seek large reductions in property values next year. They have lawyers and ability – far greater than ordinary homeowners – to pursue reductions. This could have a serious impact on Cleveland schools and the city. Cleveland schools get the majority share of property tax revenue.
It will be most important for the news media, particularly the Plain Dealer, to closely follow and report request by the big property owners for reductions. The slow economy suggests that many commercial entities will seek reductions by claiming tough economic circumstances.
A watchful eye provides needed oversight of both public agencies and private interests.
In recent writings, I’ve been pointing out that owners at the Tower City complex and the Ritz-Carlton hotel – both controlled by Forest City Enterprises businesses – have been requesting value reductions this year as they have in past years.
Other downtown property owners have also made appeals. Amtrust (Ohio Savings) has requested a $2.6 million reduction in its property tax valuation for 1801 East 9th Street. National City Bank’s new owners are seeking reductions of $2.97 million on its building at the corner of E. 9th & Euclid. Cleveland Catholic Diocese is even seeking a $557,940 reduction in the property value for a parking lot on Rockwell Avenue.
I requested information from the Board of Revision only for a portion of downtown for these reports.
MORE TOWER CITY TAX REDUCTIONS SOUGHT
Here’s another batch to add to the previous listing of requests by Tower City for reductions that I previously posted. They were all made to the Board of Revision in March. None have been acted upon to this date. The property numbers and request for reduction follow:
- 101-23-085C: $9,832.
- 101-23-108F: $71,952.
- 101-23-103F: $63,752.
- 101-23-101F: $105,736.
- 101-23-085D: $20,151.
- 101-23-085B: $365,889.
- 101-23-085A: $1,297,634.
- 101-23-072F: $19,925.
- 101-23-072B: $160,296.
The reductions total to $2,115,117 for Tower City properties. I previously reported $850,529 in tax reduction on other Tower City properties, not including one devaluation request of only $17 on a piece of Tower City property.
You can add reductions in value asked by Forest City interests at the luxury Ritz-Carlton hotel – recently coming off 20 years of 100 percent tax abatement – of $241,440. Yes, back on the tax rolls finally. But seeking new reductions in taxes already.
The grand total comes to more than $3 million in reductions requested at Tower City.
Yes, the beat goes on.
We really need – as a community and as a state – to look not only to rigged tax valuations because of outright corruption reported in recent days but to the practice of giving wealthy interests lower and lower valuations on the properties. They have access to lawyers who can pursue these deductions.
CLEVELAND SCHOOLS HURT MOST BY DOWNTOWN CUTS
These efforts result in lower taxes for big property owners and thus less revenue for our schools, counties, cities and libraries. This also means others – homeowners – have to pick up the tax burden by paying higher property taxes. Because of the concentration of properties in downtown Cleveland the reductions hurt Cleveland schools the most. Some 55 percent of property tax revenue goes to the Cleveland schools.
The public also should DEMAND an end to tax abatements and tax shifting of the TIF program. TIF (tax incremental financing) is a form of abatement by which the taxes are paid normally but are diverted to be used for development, usually of the taxpayer’s project. That means tax revenue goes for private uses instead of public.
At minimum there should be a state law that makes it illegal for one community to give a tax abatement to a business to attract that business from another community in Ohio.
I’ve been examining the desire of leading downtown interests for tax breaks, either through tax abatement or lowering the value of their properties for taxation.
The above requests for valuation reductions are nothing new for Forest City at Tower City.
TOWER CITY WON REDUCTIONS AS ITS OWNERS CLAIMED GAINS
In 1994 in negotiations over the taxes due from Tower City officials agreed to hefty market value reductions for the years 1990, 1991, 1992 and consequently 1993, by the following percentages:
In the year 1990: 21 percent; in 1991: 20 percent; in 1992: 17.3 percent and in 1993: 12.4 percent.
Tower City opened The Avenue shopping complex in 1990 and had two new buildings – the Skylight Tower and the Chase Financial Tower (which includes the Ritz hotel) opened in 1991. These improvements resulted in higher property values.
The same week in 1994 that I reported the 1990-1993 reductions in my newsletter, Point of View, a Pee Dee story was headlined: “Tower City could add 2 anchors to complex.” The Pee Dee reported that Forest City Enterprises chairman Albert Ratner “said he hopes to add two new department stores to the Tower City complex soon.” (Such is the nonsense of our leaders and the vigor with which the Pee Dee takes is responsibility to report honestly. Of course, Dillard’s vanished and the building remains essentially unused.)
Then at the same time, it quoted Sam Miller, advisor to mayors, that the commercial real estate industry here “is well on its way back to once again become the darling of the investment community.” (You may have noticed all the skyscrapers going up in Cleveland since 1994, haven’t you?)
“The better news is that it is going to stay back for a long time,” said Sam. (He can get the Pee Dee to report just about whatever he wants.)
Despite the then rosy economic outlook expressed of the corporate executives, the same executives were seeking reductions in property values at Tower City going back to 1990, claiming economic problems.
For the year 1990, the total market value of Tower City was $152 million (rounded off) and the reduction was $32 million, a reduction of 21 percent.
For 1991, the total market value of Tower City was $241 million and the reduction was $49 million for a reduction of 20 percent.
For the year 1992, the market value of Tower City was $262 million and the reduction was $45 million for a reduction of 17.3 percent.
For the year 1993, the market value was $274 million and the value was adjusted by $34 million for a reduction of 17.3 percent.
It’s time the big boys paid their taxes just like everyone else.