I don’t get to vote on Beaverton’s urban renewal ballot measure, 34-192, which is part of the reason I think it should be defeated.

The City of Beaverton, which comprises only a small part of greater Beaverton, wants to siphon off 30 years worth of incremental tax revenue growth, to the tune of $150 million (plus interest) to pay for transportation projects and unspecified direct investment in commercial real estate development.

To understand why this is wrong, you have to understand the rather complex structure of government in Washington County. We have overlaid tax districts here, which provide many of the basic services you might normally expect from a municipal government. Since a large portion of greater Beaverton is unincorporated, most of these overlaid districts provide services to both Beaverton residents and non-residents alike.

The overlaid tax districts include the Beaverton School District (BSD), Tualatin Hills Park and Recreation District (THPRD), and Tualatin Valley Fire and Rescue (TVF&R). And of course, there’s Washington County, too, which provides human services, courts, elections, public health, etc.

Since most municipal services are provided by independent government bodies, the City of Beaverton’s services are limited to police, transportation and land use planning.

On a typical tax bill for a piece of property within the City of Beaverton, the city’s portion of the total tax only comes to about 22%. Education, including BSD and Portland Community College, is the biggest chunk, at 40%. The county takes 16%, TVF&R 10% and THPRD 9%.

So when the City of Beaverton proposes an urban renewal district — which, by the way, would encompass fully eight percent of all land within Beaverton city limits — diverting $150 million from future revenue increases, what they’re talking about is taking money from education ($60 million), from the county ($24 million), from fire and rescue ($15 million) and from parks ($13.5 million). Of that $150 million, only $33 million would otherwise go to the City of Beaverton without the urban renewal area.

Now, I realize they’ve somehow gotten buy-in from BSD, THPRD and TVF&R, and all these agencies have endorsed the ballot measure. But it still doesn’t wash for me.

Beaverton officials are more than happy to lie about urban renewal and its impact on overlaid tax districts. In the July/August 2011 Your City newsletter (PDF), City Council member Ian King does some disingenuous hand waving about the diversion of funds from schools.

Will Urban Renewal take money away from Beaverton schools?

The short answer to this is also: No. Schools are funded by income taxes from the State School Fund and not local school funds.

Anybody who can read their property tax bill knows this is pure bullshit. BSD, THPRD and TVF&R have all acknowledged this will cost them money (how they were convinced to hold their noses and support this would be a good topic for another day).

Diversion of funds from critical services aside, there are other reasons to argue against this one.

• Beaverton’s only other URA, in 1972, was used entirely for transportation improvements. In the current proposal, only 48% ($72 million) would go to transportation, and another 4% ($6 million) would go to streetscape and creek improvements. A very troubling 33% ($49.5 million) would go to “Joint Investment Programs,” which involve direct investment in commercial real estate development. If you think Beaverton has the expertise to be successful in commercial real estate development, I invite you to look up the “Beaverton Round.” I rest my case.
• It’s nice that Beaverton residents get to vote on whether to take funding away from other Washington County residents, but it seems like all affected citizens ought to be able to vote on this. Maybe those of us in unincorporated Washington County should vote on whether to raid the Beaverton Planning Commission’s budget in order to pay for our street lights (yes, I have a line item on my tax bill for street lights).
• The head of Beaverton’s Urban Redevelopment Agency, which would be in charge of spending the loot, is none other than Don Mazziotti, who had his way with the funds at Portland’s urban renewal agency, PDC. His tenure there was pock-marked with the usual give-aways to big condo developers (like Homer Williams), as well as questionable use of the company credit card (over three years, he billed PDC nearly $13,000 for meals — nice work if you can get it).

And just to keep the UR cheerleaders at bay, yes I do understand how tax increment financing works.

Here’s the nutshell, for those who aren’t as nerdy as me: Oregon law allows cities to declare an area “blighted” (which is rather loosely defined), and create an urban renewal area. The city then sells municipal bonds and uses the proceeds to make infrastructure improvements which (ideally) spur private development, which (hopefully) causes the assessed value of property to rise. For the sake of the general property tax, assessments within the blighted area are frozen at the levels they start with, and revenues from taxes on incremental increases in property value pay off the bonds issued for the infrastructure improvements. (This is why it’s called tax increment financing.)

Once the bonds are paid off, the additional valuation of the property reverts to the general assessment, which, presumably, would then be higher than if urban renewal had never happened, and everybody’s happy.

This sounds great, but it’s based on at least one glaring, faulty assumption: that without the URA, property tax assessments would fall or stay flat. Given that assessments in Oregon typically lag significantly behind real property values (due largely to 1997′s Measure 47, which limited assessment increases to 3% per year), it is virtually inconceivable that over 30 years the net assessment within any significant part of town would stay level or drop.

Adding to this flaw is the fact that cities typically draw URAs to include properties that can’t be considered blighted by any stretch of the imagination, and that URAs have typically come to include shady development subsidies (including direct investment), and you’ve got a recipe for diverting large volumes of tax revenue from vital services and into the pockets of private real estate magnates.

Beaverton’s proposal doesn’t look anywhere close to as shady as a typical URA in Portland, where PDC acts more like an insular commercial real estate developer than a fully-accountable public agency. But this still looks like a bad deal for Beaverton and the rest of Washington County.

Please vote “No” on 34-192. If you can.

The corporate media of the world first tried to ignore the Occupy Wall Street movement. Then they tried to portray it as clueless.

Many people seem to be buying that portrayal.

Watch as former Rep. Alan Grayson smacks down Libertarian talking head P.J. O’Rourke while neatly summing up the raison d’être of the movement.

The Oregonian has been nominally anti-labor, at least since their acrimonious 1959-1961 destruction of their own union. They have become more actively anti-labor since the 2009 appointment of libertarian N. Christian Anderson as publisher.

This Labor Day the Oregonian splashed the headline “A public unions battle in Oregon?” across A-1, above a story by clueless political hack Jeff Mapes which, without a hint of irony, details the anti-labor initiatives which may or may not make it onto the Oregon ballot, as well as past measures which have lost.

And who’s been the O’s go-to guy on this shit for years? Why of course, we get a money quote from and convicted felon Bill Sizemore above the fold on this day to celebrate working people: “It would be fun to have this on the ballot again…. It would be the ghost of Bill Sizemore on the ballot again.”

You’ve got to read well past the jump, to A-7, to find to a couple quotes from labor leaders. You know, the folks who actually have credibility with working people in this state.

Also above the fold is a headline about the US Postal Service’s fiscal woes, with a deck blaming “generous labor contracts” (and “the Net”).

Of course the O can’t be expected to note that working people are the vast majority of people, or that public sector unions buoy wages, benefits and working conditions for all workers, or that a major aggravating factor in the current, persistent recession is the loss of public sector jobs. Instead, we get the persistent drum beat of anti-worker, libertarian/monetarist, anti-deficit, counter-progressive propaganda. It’s not just the O, of course. But it’s kind of sickening to wake up to this crap on Labor Day.

The Oregonian has never been much for covering labor issues, at least not since they busted their unions back in 1959-61. The O sets the pace for the rest of Portland’s media outlets, which are generally tone deaf to labor issues.

With a mayoral election looming, one of two early contenders coming from the business community, and an ugly national trend of attacks on collective bargaining rights, labor issues should be at the fore of this election. Or at least talked about.

But so far, not a single reporter has asked New Seasons founder Eileen Brady about her status as a non-union employer in a heavily unionized industry. Her campaign Web site features the subtitle “Progress the Portland way.”

Now, I realize “progress” can mean a lot of things to a lot of people. To me, as a reader of history, there would have been no social progress in the 20th century without a strong organized labor movement. A non-union employer claiming to be progressive is a slap in the face to all the workers who sacrificed to bring us weekends, the eight-hour work day, and child labor laws, among other things.

But to Portland’s pliant news media, “progressive” is just another buzzword, like “sustainable” or “green.”

Let’s name names:

• The O’s Steve Duin waxes at length about Brady, giving her hubby a pass when he says “What we do is basic: Take care of your staff….”
• The O’s Brad Schmidt quotes a Brady supporter calling her “progressive,” and even interviews AFSCME rep Rob Wheaton about the race… but somehow doesn’t manage to ask Wheaton or Brady about labor practices at her business.
• The O’s chief political hack Jeff Mapes blathers a bit on OBP radio about Brady entering the race, but somehow avoids broaching a single issue, much less labor. He also notices that she’s a woman, and declares this to be an issue in the race. Way to get to the crux of the matter, Mapes.
• The O’s Anna Griffin is fascinated with Brady, and wants her and the other candidates to “start the civic conversation about what Portland will be now that it’s grown up.” (Wait… when did that happen?) That conversation would include “economic problems” but apparently, somehow, not labor policy.
• The Tribune‘s Jim Redden extensively quotes Brady’s campaign literature. He doesn’t appear to question any of this, including the parts about creating jobs.
• The Mercury‘s Jeopardy Champ Denis C. Theriault lets Brady utter the word “progressive” without asking her what that means with regard to labor issues.
• OPB lets Brady prattle about “the greenest city in the world with strong and safe neighborhoods, and…a vibrant economy” and leaves it at that.
• KATU recorded a campaign video for Brady. She’s “laser focused,” yo! She’s not a career politician! (Funny, but it doesn’t show up as an in-kind donation on Brady’s rapidly bloating balance sheet.) Oh, and the raw interview clip is preceded by an ad for “pro-business, low-tax Idaho.” What the….
• Not to be outdone, KGW’s Randy Neves gave Brady a few seconds of air time to spew some happy talk. They evidently didn’t have time to do a full campaign video for her like KATU, so they embedded her official campaign video on their site, where she talks about Values! How she “created a progressive workplace with a true sense of community!” How she’s focused, yo!
• No surprise that the dick-wagglin’ hacks (wait, is “dick-wagglin’” hyphenated?) at Wankers’ Corner, er, I mean, Blue Oregon ask lots of meta questions but jump down the throats of anybody who brings up labor issues. (And I thought Blue Oregon was a Democratic Party blog, and the Democratic Party was pro-labor, and… Oh, never mind.)

Portland’s credulous scrivener corps doesn’t understand that grocery industry spending and employment are relatively flat. This gets into some rudimentary economics, so let me spell it out. When New Seasons opens a store and hires staff, they’re not creating a net increase in jobs (assuming overall grocery spending remains flat). Instead, they take business from union grocery stores, effectively converting union jobs to non-union jobs.

Is that “Progress the Portland Way?” It’s a fair question, but not a single one of these hacks is asking it.

• Friday, Feb. 25, 4pm.
• Director Park

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Fear mongering about socialism in America would be comical if it weren’t so damned frightening. What can the rest of the world think of us?

We spend twice as much per capita on health care, and still have tens of millions without access to basic, preventive care. Why do we pay so much and get so little? We’re the only industrialized nation on the planet without government-run universal health care.

The free market has failed miserably to provide this basic service of modern life anywhere nearly as efficiently and completely as the governments of every other industrialized democracy on Earth.

Those who bleat about “socialism” should pause and consider that insurance, after all, shares some very basic tenets with socialism, like shared responsibility for the greater common good. Moreover, the so-called free market would collapse without the socialized infrastructure that supports it. Take, for instance:

• Our virtually 100% publicly-owned and maintained road system, from city streets to interstate highways
• The air traffic control system
• The self-funded, surprisingly efficient US Postal Service
• Our public schools (lord knows I’ve had some criticisms of our local system, but it beats the alternative)
• Public colleges and universities
• A multitude of public water and sewerage systems
• Many local public power systems and the federally-regulated national power grid
• Federal unemployment insurance
• Federal subsidy of an inadequately low minimum wage (the earned income tax credit)
• And, of course, on-demand bailouts of the private financial system, whenever it gets itself into a pickle

Then of course there are all those horrible socialist “extras” like:

• Libraries
• Parks
• Rec centers
• Concert halls
• Theatres
• Art galleries
• Mass transit

That’s right, folks, if you use any of those things (and you’d have to live off-grid in the wilderness to avoid them), you benefit from “socialism.” Has it taken away your freedom? Isn’t all government bad? Perhaps you should try living in Somalia for a while to experience the true libertarian paradise of no government. Don’t forget to pack your AK.

Two of the most popular government programs in the history of our nation are Social Security and Medicare. The only complaints are that they may become underfunded, and Medicare doesn’t cover enough. But nobody complains about inefficiency.

The single easiest thing we could do to solve our health care crisis (not just kick it down the road a few years) is to go to a single payer system like the rest of the industrialized world. Expand Medicare to cover all citizens, paid for with a payroll tax as it is today. Yes, your medicare tax would go up, but you would no longer have an insurance premium. Worst case, it would be a wash, but more likely, your out of pocket expenses would go down as we eliminate a significant amount of overhead currently going to duplication of administrative services, profit, and executive compensation.

The fact that this simple, efficient and cost-effective solution isn’t on the table is indicative of the power the insurance industry has over President Obama and Congress. The fact that so many Americans fear even a modest expansion of public health insurance is indicative of not only American provincialism, but also of the dearth of real news reporting that goes beyond repeating the industry message.

• Wednesday, June 24th, 11:45 am
• Federal Building, 1220 SW 3rd Ave., Portland

Come help tell Senator Wyden we want everybody in and nobody out!

Gather at the Federal Building (1220 SW 3rd Ave) at 11:45 to hear doctors, nurses and patients speak about our broken health care system and how we can fix it!

We will be highlighting the huge campaign contributions from the medical industrial complex to Senator Wyden, and demanding that he represent his constituents. The majority of the American people believe that the best solution to our health care crisis is to get the insurance companies out of the way by creating a single payer system. We will then march to the Regence Blue Cross/Blue Shield office at SW 2nd and Market to highlight Regence’s campaign contributions to Senator Wyden and their outrageous rate increases over the last two years.

For more information contact Margaret Butler at Jobs with Justice:

margaret@jwjpdx.org

The World, a cruise ship that has been converted to a cross between a Pearl district condo tower and the world’s largest SUV, has been moored downtown all week. With 165 multi-million dollar condo units, 270 crew members, five restaurants, a pool and a theatre on board, The World has the equivalent of a small municipal power plant on board spewing carbon and particulates into our fair city for the benefit of its ultra-rich owners. Continuous circumnavigation is a hell of a lifestyle, but not exactly what you’d call “green” or “sustainable.”

The Oregonian ran a cute little puff piece today, giving credence to cruise ship industry flacks (“Travel experts”) claiming these people are spending $125 a day per couple in Portland during their stay. The travel agency that arranged their shore leave claims it could closer to $400.

Whoopee!!

Meanwhile, as the idle, profligate rich enjoy breakfast on their balcony, and as we bask in the glory (envy?) of their extravagant lifestyle, the City of Portland announced the elimination of 90 jobs previously thought safe, with another 45 jobs in jeopardy and furloughs for those lucky enough to keep their jobs.

The new Gilded Age is upon us.

I’ve been pretty hands-off on the new prez, at least publicly. But I keep asking myself a couple things. First, why they hell haven’t we nationalized the banking system yet? Second, why the hell isn’t Obama talking about single payer health care?

(Of course we knew ahead of time that Obama is something of a market fundamentalist, so we already know the answer to those questions.)

“Medicare for all” is the smartest thing we could do for the economy. It would eliminate the wasteful, burdensome, redundant and immoral private health insurance racket in one fell swoop, and eliminate the leading cause of personal bankruptcy in the US.

Even if Obama isn’t willing to consider it, circumstances may eventually force the issue. Meanwhile, a grassroots groundswell is building, with Laborer’s Local 483 among Portland unions to endorse passage of HR 676, the United States National Health Insurance Act.

I urge you to join with the laborer’s in calling your US Rep and encouraging them to support HR 676.

This week’s celebrity slap-down between city commissioner Randy Leonard and county chair Ted Wheeler may signal the beginning of the end of an era in Portland development. (Warning: wonkishness ahead.)

First, let’s talk about how urban renewal, a.k.a. Tax Increment Financing (TIF), is supposed to work (and has, in fact, worked in some cases in Portland).

• City leaders identify a part of the city that is “blighted” and draw a line around it. This is an Urban Renewal District (URD). Ideally (though state law is vague on this), “blighted” would mean that the property values within this area are stagnant of falling.
• The city identifies infrastructure projects that would spur private investment to improve the property values in the URD, and borrows money (through the issuance of municipal bonds) to pay for these projects. For the life of the URD, property tax on incremental increases in the value of properties is diverted from the usual recipients (city, county and school district general funds) to pay off the bonds. So, for example, if a property within the URD increases in value from $100,000 to $125,000 in the first year, all of the property tax on the additional $25K in value goes to pay off the bonds.
• When the bonds are retired, the URD can also retired, and the city, county and school district all receive higher revenue because of the increased value of the properties.

Now, that’s how things are supposed to work, but even in this best case there are plenty of critics. Minority communities have frequently been displaced, so urban renewal is broadly viewed as a tool of gentrification by those being “renewed” further to the fringes of society. But it gets even worse when the process is inverted as it was with the Major League Soccer deal.

Instead of identifying a blighted area, then determining infrastructure needs, city leaders identified a suposed need (renovation of a municipal stadium — whose recent renovation is still being paid off — to accommodate a private sports team investor), and then tried to create an urban renewal area to help fund it. Among other problems, the area around the stadium is distinctly not in danger of stagnant or falling property values. It is prime urban real estate, with a great deal of recent high-end commercial development.

This new urban renewal district (taken out of the deal by amendment before the deal was approved) would have directly deprived struggling county, school district and city general funds of millions of dollars over its life time.

It’s entirely disingenuous to claim the properties around PGE Park will not increase in value without another renovation to the stadium, and that we thusly wouldn’t be taking money from the county or schools.

Even Randy Leondard, while protesting that the debate has been uninformed, ultimately seemed to concede the point. Yes, we take the money, he seemed to say, but we’ve always been there for the county in times of need (“Good as we’ve been to you!”). And look at all we’ve build with it! It’s a very paternalistic attitude, and that was not lost on Ted Wheeler.

The reality, beneath the veneer of a bunch of euro-trash wannabe soccer fans rallying for a “major” league team, and urban renewal boosters’ insistence that building new stadiums for millionaires is the best kind of economic stimulus we can do, is that Merritt Paulson is in over his head with his baseball lease at PGE Park. His triple A Portland Beavers draw just over 25% of capacity. Paulson is paying not just current rent, but also back rent for the previous millionaire failure of a minor league sports team owner. That’s a gift to Portland’s civic leaders, who have egg on their face for that previous failure (not to mention the bonds they have yet to retire from the previous renovation).

Paulson’s lease is up in 2010, and if he takes his team to Tuscon, we’re stuck holding the bag on PGE Park’s last renovation with no tenant to pay for it.

Most of Portland’s glitzy development, including its tightly stretched bubble of a condo market, has been subsidized with urban renewal dollars. City leaders have taken advantage of vagaries in state law to use urban renewal as a piggy bank to subsidize Portland’s wealthiest land owners and create “iconic” projects for their own portfolios.

In the end, it’s about civic priorities. If we draw URDs around areas where property values are not stagnant, we directly impact city, county and school district general funds that pay for basic social services, schools, and infrastructure for the rest of the city. Maybe that’s what we truly want as a city. But let’s be clear about it when we do so.

A lot of this TIF mania can be traced to members of the old Neil Goldschmidt gang and the local commercial real estate mafia that has been their patrons. With our first publicly financed city commissioner (Amanda Fritz) leading the loyal opposition to this latest boondoggle, and with emboldened county chair Wheeler and school board co-chair Trudy Sargent at her back, maybe we’re seeing the beginning of the end of this kind of irresponsible finance scheme.

Well, a guy can dream, can’t he?