The DeKalb City Council put in motion a plan to speed up downtown TIF construction projects that will put several downtown business owners at risk of failure. At a recent Renew DeKalb Rise and Revitalize meeting downtown businesses were told that it is necessary to accelerate and combine Lincoln Highway and Locust Street construction projects for completion in late 2010 or early 2011 because the “climate may change and the finances may not be available” if the original plan is followed.
The climate has changed from back in 2005 when the community, including this member, expressed support for a grand downtown revitalization plan. We were told then that the council was not approving the details of the plan and that this plan was flexible so it could adapt to unforeseen problems.
The climate has changed. In 2005 DeKalb County had a total of 2650 homes sold at an average price around $200,000 per home. In 2008 we sold just over 1100 homes at an average price near $160,000 per home. In 2005 our unemployment was somewhere near 4%. It is closer to 10% now. Foreclosure was rare news in 2005. It’s at historic national and local all time highs now.
If the reason to hurry up and borrow money to spend it on what is described by the City Manager as aesthetic improvements — because the climate has changed – perhaps we should read the assistant City Manager (Finance) warning that our FY2010 operating budget could be facing as much as a $3 million revenue shortfall as a signal that the climate has changed.
This project is funded with TIF but that alone does not mean it is without risk. To finance the TIF projects we are selling general obligation (GO) debt bonds, which places the taxpayers at greatest risk. TIF revenue bonds should be sold to finance the debt. Yes TIF bonds earn higher interest than GO bonds but that is because the bond buyer is taking more risk. But selling TIF bonds requires a much tighter plan. The investor has to see a plan they believe works. A plan that assures them that they will see a return on their investment.
Maybe city council members should ask, on behalf of their constituents, when we will see a return on investment. Using GO bonds instead of TIF bonds is bad policy.
Retired planner Paul Rasmussen (DeKalb) told the city council that, based on his experience on similar projects in Beloit and Aurora, he would guarantee that within a few short years no one, or hardly anyone, would complain or even admit that they were ever opposed. He did not, however, offer any personal guarantee on the debt repayment. He also gets a Great Disservice Award for not mentioning that he nor anyone else in attendance has experienced the current economy.
Several members of ReNew DeKalb spoke in support of accelerating the projects. I couldn’t help but notice that many of them spoke with a sense of urgency that the council might vote to stop the downtown revitalization in midstream. Perhaps an overzealous member, director or supporter is unduly promoting fear as a tactic? I’ve yet to hear a single person, speaking to the council, say they want the project stopped. Adapt to change? Yes. Stopped? No.
Are their overzealous ReNew members? Yes. Just as there are overzealous bloggers, even on the Daily Chronicle’s comment section (oh my).
Get a load of this (from the Citizen Community Enhancement Committee Meeting):
Chairman Matya advised that at the suggestion of City Manager Biernacki, he and Mr. Barnes met with Mr. Biernacki, Mr. Espiritu and Mr. Herb Rubin regarding the City’s image on blogs, etc. It was suggested that the CCEC speak to the Daily Chronicle to see what can be done regarding untruths and personal attacks on the City and its employees. […]
[…]Mr. Barnes stated there are not enough people countering these bloggers; he added there needs to be more activity. Additionally, he suggested posting links to the City’s website which gives correct information on issues. However, Ms. Small said, responding gives them credibility and will only prolong their discussions. She added their comments indirectly affect policy.[…]
[…]Ms. Small announced there is an open house on Tuesday, September 22nd from 4-6 p.m. at the Chronicle. She added the Chronicle may be motivated to take action if they are pressured by their advertisers.[…]
ReNew DeKalb members in bold text.
Ms. Small is an assistant director of the DeKalb Park District. The park district is prepping for a multi-million dollar referendum in the Spring of 2010. Promoting such an idea as pressuring the Chronicle through their advertisers is troubling when it comes from an appointed public employee.
Here’s an idea: Follow Mr. Barnes suggestion and post comments that support and/or clarify ReNew DeKalb positions and by all means post links that give accurate information. When a post contains untruths or personal attacks then report it. Such posts are in violation of the Chronicle’s policies and I’m sure they will remove them. I hear Herb Rubin has probably had more posts removed than anyone in town.
Speaking of Herb… I recall sitting on one of the park benches at Van Buer Plaza with Gracie admiring the view. Herb and Bill Feldman approached us and wished me well on my recovery from a heart attack. Herb, kiddingly I assumed, asked me to consider donating the money needed to put a fountain in the circle. He said if I did they might name the fountain after me. The point was that if a fountain was to be placed there it was going to have to come from private funding. I couldn’t help but notice a line item for a fountain in the Van Buer Plaza’s accelerated plans. Is there no honor?
Several fine speeches were given last night. I thought John Duerk gave the best speech. Succinct and powerful. Check it out (H/T Mark Charvat).
And here’s mine (same hat tip and thanks Mark):
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29 Comments


$100 per ID? WTF? Good grief. Maybe I should put in a quote for $10 each, for Photoshopping a picture with laminating from Office Max. Just what is so bloody special about the IDs that it will cost $100 each?

I'm hearing from a very good source that just to change over each and every employee City of DeKalb ID is going to cost taxpayers a little over $100.00 per ID.
I really wish I had the contract on that one. Does it fall below the $20,000.00 thresh hold for discretionary spending on the awarding of this contract? Or will it be considered an emergency to get the updated ID's out?

CCEC pushed for the logo. (Nuke me if I'm too off-topic.) I've had an e-mail conversation with a concerned resident who has asked why "community" wasn't incorporated into the logo. We agreed that, without it, it's just another business logo. It's also another way to push "us vs. them," IMO.
Somebody correct me if I'm wrong, but I think a trick might have been played on us last Monday. Iirc Council, during the CoW, rejected the logo's going on new signs for the entranceways. Does this not put the rest of the logo implementation project under the $20,000 threshold for an open session vote?
And can someone confirm that the new logo was being placed on city stationery before last week's CoW?

Some great ideas here! As to using TIF funds for retraining, I think its good, but even when retrained, where are the jobs? Mac is right about US needing THEM and THEM needing US. Without banks/investors, there aren't going to be any new businesses opening or established businesses expanding. Hence, no new jobs.
I'm not entirely sure I agree with MAC on the idea that its all a system problem, I see some people problems, too. But the system surely does facilitate bad decision making and pushes away new blood which could help make a difference.
It would be nice if we could apply TIF money (childcare so parents could afford to go to meetings?…I know it seems crazy…) toward facilitating a greater participation in local and state government.
But wouldn't that be opposite of what entrenched leaders want?

I either forgot, or did not know, about being able to supplement daycare costs with TIF. Wow, that would be timely.

Well, ummm, since Target is adjoined to a TIF District and they laid off too many employees for their clawback provision someone might think about the TIF portion refund being used to retrain those lost workers…
I'm with Lynn on using some TIF and CDBG on job training. It can also be used to supplement day care costs for residents in a TIF district to help with job transition.
I suggested using a portion of it (TIF) for economic stimulus but I gave the idea much more time and consideration than it received from the council. The gist of it was to allocate $5 million to a property renovation/energy efficiency program that had some financials similar to Brien's suggestions. Low interest loans/grants to commercial AND residential property owners in the TIF District through vouchers to approved contractors/suppliers to create job demand and circular cash flow within the community. They did make the proposal part of the minutes but it was never discussed.
What concerns me most right now is a growing US versus THEM polarization. Us needs them and them needs us. In order for public-private partnership investment to happen the 'money-people' have got to buy in. I'd build a ten story office building (LEEDS certified of course) on the corner of 4th and Lincoln and fill every cubicle on every floor with a local employee, except for the first floor that I would donate to the Tri-County Health Clinic, **IF** I had the money.
There's some crap going on that needs stopped. It's not limited to DeKalb but this is where I live and I want it to stop. It starts with Pay to Play. That needs to be eradicated. So I'm 180-degrees opposite on the pay method. IMO Jennifer Groce's salary should be 100% funded through the TIF District and not one penny from private sources. She would then be answerable to the TIF District. Private investment should be in bricks and mortar not quasi-government payroll or in membership dues in an organization that has great influence on how tax dollars (TIF is taxes) are spent.
Considering the challenges we face we (us AND them) better figure out that we've got to work together and use the resources we have at hand. Pareto's Principle (80-20 rule) is more relevant with each passing day in this economy.
I've always felt this was a system problem and not a people problem. I know a lot of us and a lot of them. Good people are DeKalb's greatest assets.

Whoops. Link to Krugman op-ed: http://www.nytimes.com/2009/11/13/opinion/13krugm…

You guys rock. Great ideas here.
For right now, though, I'd like to see shifts toward addressing unemployment more directly if we can. Both TIF and CDBG dollars can be used for job training but — correct me if I'm wrong — I don't think one penny has been spent in that way. Is Community Development doing any projects with, say, IETC? Why isn't job development part of Community Development, especially now?
The problem with the folks on council, commissions, etc. is that they have too much job security, along with ambitions to become real estate tycoons.
I was just reading Paul Krugman in NYT. Apparently, while U.S. unemployment rates have doubled and more since the market crashes, Germany's has gone up only a fraction. I'm going to send the article to the Pres, but right after I am going to start pondering the question of which of the German strategies could be adapted for local use.

The whole revitalization project should have been a cooperative partnership, not a one-sided dictatorship run by the moneyed interests in the city.
Businesses interested in projects to beautify their own properties, or enhance their ability to better serve customers (sidewalk cafes, terraces, etc) should have been requested to apply to the city for inclusion in the program. The city would put up a block grant equal to 25% of the final cost of construction for each project, the funding withheld until the project is completed and costs can be verified. The city would also assist with an additional 25% in low-interest or no-interest development loans, payable in terms of three to five years. The property/business owner would be responsible for the remaining 50%. I could even live with a split of 33% grant, 33% loan, 34% out-of-pocket.
Contractors could also apply for "preferred vendor" status, from which interested businesses would choose to do the work. These contractors would do the work contingent upon final cost analysis so that the city could correctly calculate the 25% grant and the amount of the 25% loan.
In this way, the city takes on a third of the responsibility, the business owner takes on 67% … on a sliding scale based on the length of the loan.
Additionally, the city might also have loan incentives that would reduce either the interest rate, or forgive a portion of the principal, based on the ability of each business to increase their sales tax remittances to the city. In this way, a business that really believes a new outdoor cafe would increase their business will take the risk of building it with the potential benefit of having their costs reduced if their belief becomes reality. The city is win-win … they get the whole loan, plus potential interest, if no sales increase is seen … or, they get most of the loan back, plus potential interest, plus additional tax revenues (and potential real estate taxes based on the theoretical market value appreciation of improved property).
I question why all these so-called "bright business people", you know, the ones who "have vision", couldn't have come up with a plan identical or similar to this one. Apparently, the public *does* have vision, but because the public's last name isn't "Castle", we're dismissed as ignorant rubes who have no clue as to how you do a project like this.
I think it safe to say that the "Mr. Potters" of this world got it very, very wrong … because the "George Baileys" of this world *do* get it …
Brien

SSA's are a timely and appropriate way to address this issue, and would have been appropriate to pay for the other aspects of the infrastructure developed for downtown merchants.
In this day and age, a community is defined by so many other things than its downtown: how it treats its less fortunate (SOCIAL SERVICE AGENCIES ALLOCATIONS SLASHED), and how it comes together (more and more through virtual connections like the online forums which the Citizen's Advisory Censorship Society attempts to thwart). The downtown eyesore and trucking route has received enough special attention for a generation. I propose not a penny more is provided until other limbs of the city are also addressed through plans and allocations: South Fourth Street, etc. And not a penny of city funds should go to the ridiculous ReNew organization for salaries. Under my proposal, it would be okay to reimburse directly explainable expenses at a proportion commensurate with increases in employment, a rate of TIF payback or other factors consistent with those that other industrial interests must demonstrate (e.g. the Target deal).
No more ReNew slush fund. Enough.

My understanding Mac is that the downtown merchants already have a SSA in place with regards to daily clean up, sweeping and snow removal. Is this true?
I also noticed that Alderman Gallagher actually brought up a form of SSA in suggesting that ComEd could actually bill DeKalb residents for the work which Mr. Calligan agreed could be done but didn’t look too happy about that suggestion. Selling of the bonds putting the DeKalb taxpayers on the line for paying the wire burying seems preferred by council and staff. I think if TIF doesn’t pay for the burying of the wires a SSA should be discussed. Why aren’t we burying the lines along Sycamore Road? I know several residential neighborhoods that would like to have their wires buried. How much can already cash strapped property owners do?

The SSA funds listed on the current annual budget are for Heritage Ridge, The Knolls, and Greek Row. There may be a few that exist on paper but are only triggered to collect funds under certain conditions in the development agreements.
I would assume if there's a downtown SSA it would show up in the budget with a collected balance and budgeted expenditures for things like sidewalk snow removal.

Still waiting to hear back from Herb…

It would also be very interesting to see how many of the merchants who are on board to have the wires buried would still wish to if the only way to do it was through the SSA.
I doubt it would pass and be funded. As long as we keep thinking its the states money and not ours, it's easy to see how gun ho one can be. Bottom line, it is our money here we are talking about.

Certainly an SSA would change the dynamics, Ivan. As you know, SSA's are usually done in new annexations or zoning changes when there's 1 or 2 property owners before subdivision takes place. The people who will move in ain't there yet to vote for or against an SSA. After the subdivision has taken place and new property owners have settled there is seldom enough support for an SSA because we hate taxes.
I know you support the grand vision of revitalization, as do I. We were told that the specifics of the plan were flexible. That's how it should be, anyway.

I can understand the frustration that the downtown merchants are having. For over 23 years, the program that was introduced and adopted that promised to turn downtown into a shoppers paradise just never really got going….. for downtown, instead, this adopted program called Tax Incremental Financing (TIF) was used to finance improvements in other areas of town, namely the Sycamore Road corridor all the way out to Bethany Road and would eventually lead to this corridor competing with the downtown stores and businesses. Look how many stores on Sycamore Road are now or were downtown. Ace Hardware, Montgomery Wards, Sears, JC Penny, Maurices, Davision's Bakery and I'm sure I missed one or two more. What would downtown look like today if any of these above mentioned stores still in business today would have stayed downtown? What would the downtown look like today if the majority of the TIF funds intended for downtown was actually used downtown and not elsewhere?
So I can understand the current downtown merchants being desperate in order to move things along and get whatever they can get, even if that means trying to do it all before there is another opportunity for an election in this community. Maybe now some are starting to realize that oversight, misspending and overspending is starting to upset those who would like to see more of the local tax dollars going to our police department. To see more dollars go to our fire department. To see that the our safety and the safety of our loved ones aren't put into jeopardy day to day by these understaffed and improperly tooled departments.
Why are people upset about the burying of wires? I can speak for myself and maybe one or two others on this one. Haste makes waste! Pure and simple. Why didn't the Hitchcock architectual group, who were touted as professionals in urban design suggest or just plan on burying the wires years ago when all of this was being discussed. I'm sure there was discussion not to pile on too much up front and keep the numbers as low as possible and "we'll work it in as we go". This is pure BS! and that's why people are upset. Now, this downtown project which was promised to be paid through TIF is going to have to borrow $4.5 million in bonds and guaranteed by the good hearted property owners of DeKalb, guaranteed by all the property owners, not TIF and for what? FOR LOOKS! Hey you want good looks, spend it from TIF, don't burden me anymore because of your mistake or lack of including it in the original plans. Hey, lets go one better. SPECIAL ASSESSMENT to all the downtown merchants to bury the wires underground. Simple enough and done! Downtown gets their wires buried.
If $4.5 million has to be borrowed, I WANT IT GOING TO THE POLICE DEPARTMENT, NOT TO BURY WIRES. DO YOU HEAR US!
Like I said, downtown has been screwed for 23 years plus and I'm sorry. It is also very likely that a change in the council will not stop a project that is nearly completed either. That is just plain old not giving people credit. I support the downtown renovation within common sense and practicality. The pavers pushed common sense and reason especially when no one thought about the snow and ice conditions which we have one/third of the year. Should the downtown merchants be SPECIAL ASSESSED for this snow cleaning? I would say yes because they continue to push for the pavers even though this discussion has been underway well…. since last November of 2008.
Like the mayor stated several times, the downtown merchants want it this way and that's what they are going to get. OK, so they should also be responsible for mistakes, overspending and add ons to the intially approved project especially if we are going to adopt a policy of not opening up agreements once made.
This whole thing about the downtown merchants thinking that there are organized boycotts against them, that no one wants to see the downtown work performed along with other rumors that have been stirred up is just out of hand. Many of us just want city hall to wake up and address more than one problem at a time and maybe do it in a way that all benefit in more ways than one.

Herb, I just reviewed the video of your procurement suggestions (which I appreciate), and hear you saying things are done "quite legally" and at the end, you use the word "awkward".
Do you truly believe the Wogen/Masonry Works contract/procurement process was legal? Or were you referring more generally to the city's procurement process historically?

There is no question Wogen broke the law. He did not conform to wage and labor statutes and has been cited for that. An investigation will determine whether Biernacki and other city leaders also violated state law, most obviously by awarding contracts to a sitting alderman presumably owning more than 7-1/2% of the contracting company. Certainly the city attorney is at the center of this with regard to advice to city leadership on what is lawful or not.
Any investigation will be largely about the timing of who knew what when.
Depositions and Discovery (phone/email records) will produce that information. Even if its determined that Biernacki was unaware of Wogen's ownership at the time of the contract, there is still the issue of the city manager's and city attorney's due diligence. Is the law violated whether or not the contracting officer was aware of the >7-1/2% ownership? I suspect so.
All of this is a good reason for written documents in all cases. There is no reason for not using minimal boilerplate to address all common questions of disclosure when requesting or awarding bids. Without obtaining written answers to important questions (no matter the size of the job) the city (self-insured to boot!) is setting itself up for great liability and loss. As it stands now, verbal agreements can hide or overlook much that will be litigated later.
Now, did Herb really say the deal was legal? I'm going to take another look at that video. (Thanks, Mark)

Furthermore, if the current SA, John Farrell, does not pursue the Wogen deal properly by calling in the State Police to investigate, he will not have my vote. And I will not be shy about contacting everyone else I know, to make such a recommendation to them.

I fully agree with you and Lynn with regards to Wogen(Masonry Works)/Biernacki and the work issued to the tune of $54,000.00. If some citizens don't see harm in the letting of the work, they should definitely think twice about the work being let out without bonding and insurance certificates and the paying of prevailing wages. Those who hired Wogen put DeKalb taxpayers into a huge potential for be liable for wogen/Masonry Works actions or mishaps.
The other question should be. How often does Public Works and the City Managers office allow work to be performed on the city's behalf without bonding and proof of insurance/workmans comp?

Mac, we may have to pursue the class action idea. The SA — who has heard from several residents about the Wogen arrangement — told me he was checking with the AG and would call me back. That was two weeks ago. Now I hear he has the same campaign manager as the mayor did. I do not yet know if this is true but it would maybe help explain the foot-dragging.
We have to pick our battles. There are two I will not stop fighting. One is the blog war that the city started; the other is the Wogen deal.

Herb… Our recollections of the fountain conversation don't match. Yes, niceties were exchanged but when you brought up the subject of the fountain the conversation was serious. You're an antonym for honest.
Ivan… Herb is always welcome to comment here. Always has been and sparks fly often between us. It is what it is. I've stopped short of complimenting the professor on his speech because in it he said that what transpired with the Wogen/Biernacki under the radar in the 3rd Ward deal was legal. It was not. If I had final say with the growing group of pissed off citizens I'd file a class action taxpayer suit with a writ of Mandamus naming the mayor and each and every city council member individually (Gallagher excluded because he was not in office) for the damages ($54,300 plus all associated attorney fees) for their failure to act according to law.
The state ethics laws are not Home Rule exempt. Of course, their idol disagrees. In the Wogen/Masonry Works deal a class 4 felony was committed and they know it.

"yelped"? Please.

I know that I have had the Chronicle take several posts off the blogs that were directed at Herb. The tone of those comments went far and beyond a sensible discussion and were to the point of suggesting physical harm to Herb. There is no excuse for that type of rhetoric in this community.
Now, I write this not viewing a blog in the DC that I actually complimented Herb on comments he made about the City of DeKalb's policy for issuing contracts for work. Let me see how that's going before I say too much more here.
I actually miss seeing Herb comment on certain topics that he might have at a earlier time. Although we may not always agree, there is nothing wrong at having several view points to a discussion so that other readers can hopefully weigh in with their own personal thoughts.

Mac,
I might have misunderstood you I thought you were saying my posts were frequently removed and that is certainly not the case.
Over the years I think I've complained about 3 or 4 times on issues in which I was involved. I had a post removed that accused ivan of conflict of interest in the school referendum (it might have been the same post that accused ivan, you and me of conflict) I had another removed that accused me of being a secret owner of parts of downtown (I own no real estate property other than my home) and this is the most serious one, one that I (and the police) construed as an incitement to physically harm me. There might have been a repetition of the latter, I can't remember.
I do know that others request nasty blogs be removed and perhaps some that attacked me were removed but other than those three (and my memory might be off by 1 or 2) I haven't requested removal. I have been told but never saw explicit death threats against those active in the downtown renewal effort have been removed, but other than the physical threat against me, haven't been been involved with the others.
In chit chat with a person just out of surgery I try not to be too serious or stress the person, remembering how you had yelped at me when i talked to you about smoking in the past. On the sculpture, I mentioned that I had seen plans that were quickly rejected that some artist had submitted for some type of water sculpture that was far more expensive than DeKalb could possibly afford. I then suggested that you might want to donate to purchase the water fixture, something that few of us (me included) could possibly afford.
I'm now nervous. I told someone, maybe you that I so loved the statue of David in Florence that I want to appropriate it and bring it home. Please, don't turn me in for that one.
Most of the conversation was chit chat about a pleasant day, your interest in music and your history with the same etc. I mean it is a bit discouraging when attempts to be polite are treated as political discourse.
It's interesting what one takes out of a conversation. You seem to want to store up political daggers. I went home and told Irene that Mac sounded a bit tired but looked exceedingly good, in fact, looked better than he had for a while. I also asked her (another cardiac patient) when it would be okay for me to resume political discourse with you without overly stressing you.
Also, in the rest of your post, you ought to check out the attributions of membership in renew. At least two are incorrect and a little fact checking on the renew web page would have been sufficient to verify the membership or non membership.

Herb… I didn't say any of your posts were removed. Has the Chronicle ever refused to remove a post you reported as offensive?
Are you saying that in ordinary conversations you are less than honest? Or are you saying that you did not tell Gracie, Bill and me that a Van Buer Plaza fountain (if one were built) would be paid for with private donations?

What are you talking about with regard to my posts being removed. Recently I've been doing very little blogging (doctor's orders quite literally) and when I was an active blogger don't remember almost any being removed.
Do you have evidence or do you like to create stories.
I'm really puzzled.
Also why are you repeating light conversation made to you as you were recovering from your heart attack as if had great political meaning.
There were probably half a dozen political issues that I wanted to discuss with you and instead asked after your well-being, talked about the weather etc. in order not to raise a stressful topic with you.
I guess the attack mode of the tea-party world extends to ordinary conversations, a shame.

Paul Rasmussen was once quoted in the newspaper as saying opposition to turning then-Parking Lot 4 into a park was "miniscule," which so inflamed downtown business owners that they organized into Celebrate DeKalb and got a lot of petitions signed.
Yes, John did a great job on the speech. He also had the best sign for the march and I'm glad we put him up front because it looks really good in the Northern Star photo.
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Whoa! Hold the phone.
The I.D.s come to $4 each, according to the breakdown provided with the agenda. The $100 is per city vehicle, "as replaced or repaired," and is the second highest of the unnecessary expenses (behind the apparently rejected entrance signs) at $10,300.
http://www.cityofdekalb.com/CityCouncil/Agendas/2… (PDF p. 7)