Tuesday, April 17, 2007

Lack of information about Harrison Square

There is still a lack of information available about the Harrison Square Project. A couple of people have recently told me that "all of the relevant information is available."

They are wrong and their comments are both insulting and inaccurate.

Lets start at the beginning. When this project was first announced the public was told that it would be a Public/Private "partnership" and that about 60% of the financing would be private and 40% would be public once the project was completed.

Editors Note, after I posted this Kevin and Brian correctly pointed out that the 60%/40% ratio is for the entire project phases 1, 2 and 3.

Yesterday in the JG they reported that 63 million would be public and 67 million would be private. If the numbers the JG reported yesterday are true then the financing has shifted to 48.5% public and 51.5% private. If the project is a 130 million dollar project then that means since December we have shifted 11 million dollars AWAY from private investors and the public (taxpayers) is picking up this 11 million dollars. I consider this a significant development.

Editors Note, after I posted this Kevin and Brian correctly pointed out that this ratio is just for Phase 1 AND they have said for sometime that the Public Financing is 50/50 for Phase 1.

We have to take it on faith that phases 2 and 3 will come in lower...

I still have not been able to calculate the private/public percentage myself. For example, do the above figures include the two new public subsidies that I learned about last night? I have no idea and neither does anyone reading this blog. Do they include the legal fees incurred to seize Belmont Beverages? Do they include City overhead? How many years and what percentage of the Innkeepers tax was included in the JG's percentages? Once again, no one reading this blog knows.

Editors note: I have no idea where the JG got their numbers yesterday. I STILL do not have enough financial data to calculate these percentages with any degree of accuracy myself, and this is going to be introduced to City Council in less then EIGHT hours.

So we still do not know what percentage of the funding is public and what percent is private. If you do not know something as simple as what percentage of the funding the public is providing how can you say that all of the information has been made available to the public?

Obviously you cannot...

We are being asked to take their "word" for it even though the numbers keep changing.

I have been asking for the financial projections regarding the Harrison Square Project for two months. I have yet to see them.

I have asked for copies of forms A1, A2, A3, and A4. These financing forms were provided by the hotel developer to the City a couple of months ago. They still have not been made public.

I have asked for a report that the "Crowe" report repeatedly mentions, and no one even knows what that report is... It is called "City of Fort Wayne, Indiana, Downtown Community Revitalization Enhancement District, Consultant's Report." If you know what this report is or where I can find it please tell me.

I am very angry that the Mayor's Office and their cronies are trying to "ram this project" down the taxpayers throats without providing basic financial information and without keeping one of the Mayor's personal promises.

This is disgusting and it is wrong.

Open Government does not exist in regards to The Harrison Square Project.

I still do NOT have enough information to analyze the public/private financing split; however, I think it is going to end up closer to 40% private/60% public then it is to the Mayor's initial estimate of 60% private/40% public.

I am beginning to see why The Mayor's office is deathly afraid of having an independent accountant review their financial projections.

They cannot afford it before the City Council vote!

Fort Wayne obviously will comply with my Freedom of Information Request. That will allow me to make some BASIC financial projections myself.

I will not be able to analyze the entire plan until the final agreements are in place at the end of May assuming this "farce" gets passed by our Republican City Council.

You can rest assured that I will pursue this and that I will analyze the financials when I pry them from the Mayor's Office with however Freedom of Infomration Requests it requires.

Editors note, I posted a couple of corrections that were pointed out by Kevin and Brian. Thanks for pointing them out Kevin and Brian!

I think that these correction make my point even further. We still have no idea what the public/private percentage will be for ANY of the phases. I really am looking forward to figuring these percentages myself.

Mike Sylvester

Monday, April 16, 2007

This afternoon's Fort Wayne Redevelopment Commission Meeting

I attended the meeting today since the Harrison Square project was inserted into the agenda at the last minute.

At 2 PM I checked the Cities website and downloaded the agenda for the meeting. The agenda did NOT yet include Harrison Square.

It was added at the last minute.

At the beginning of the meeting Greg Leatherman made a point of letting us know that it was a Public Meeting and that the "public" would not be allowed to comment or participate.

The recently released Memorandums of Understanding were NOT distributed to the public at the meeting during which they were discussed. I found this VERY surprising... It seems that the documents were released to the Downtown Fort Wayne Baseball Blog just before the meeting; but, no copies were provided to the public at the meeting. The lack of information is incredible...

The first thing that was discussed was the Cities option to purchase the Omnisource site. The option expires on 12/31/07 and is not renewable.

Several other things were discussed, basically the normal business of the Commission.

Last but not least were the two Memorandums involving Harrison Square...

The first Memorandum discussed the hotel. I noted several interesting things:

1. These documents are NOT contracts. They are just a beginning for formal negotiations. They are not binding.

2. This next comment from the City blew me away and I think it will you as well. The City currently expects the hotel to have ABOUT 250 rooms. It could still have more or less rooms. The exact number of rooms has not been determined yet.

3. A Cred Credit of six to nine million is anticipated. This is new news to me; I have always heard it would be six million.

4. The parking garage will have to set aside 300 parking spaces for the motel. The motel will have to pay the City a small parking fee for use of the parking spaces. The fee will have to cover operating and maintenance costs on the garage. The fee will not cover ANY of the capital costs. The hotel can charge what they want for the parking spaces, The City will only get the small fee to cover operating and maintenance costs.

5. This next item COMPLETELY blew me away. The hotel will be allowed to keep a portion of the Innkeepers tax that it collects. No other hotel in Fort Wayne that I know of is allowed this subsidy. The amount of this subsidy was not disclosed to the public.

6. The City is still pursuing more incentives that have not yet been quantified. These include the New Markets Tax Credit and further incentives.

The members of the Redevelopment Commission asked some pretty good questions. Karen Goldner specifically asked some very good questions. These questions revealed the following:

1. The number of rooms in the hotel could be fewer then 250. In fact, and this is scary, one member of the Redevelopment Commission asked if there was a guarantee that the hotel would have a nominal number of rooms, for example 150 rooms. The Cities answer was no, there was no actual guarantee for a minimum number of rooms. That is still to be negotiated.

2. It became clear that the motel can be less then a full service motel.

Believe it or not, even with the above facts revealed, the Commission approved this Memorandum unanimously.

Next came the second Memorandum which covers the rest of the Harrison Square Project. This Memorandum is even worse for the taxpayers of Fort Wayne.

The cities presentation revealed the following:

1. Once again this is not a contract, just a framework for negotiation.

2. The Baseball Stadium will be up to AA standards.

3. The stadium will be a "depressed bowl: stadium and will have only 5000 seats. There will be an area where other people can be seated on the grass, etc...

4. There will be a minimum of 12 "suites."

5. Hardball Capital will contribute 5 million dollars by the time the stadium opens.

6. There will be 60 condos and 30,000 square feet of retail.

7. This memorandum discusses phase 1. HBC will contribute about 14.5 million to build condos and retail.

8. The final agreement will have benchmarks for the 2nd and 3rd phases. No benchmarks have been agreed to yet!

9. The City will cover the costs of a capital maintenance Fund that will be around $300,000 per year. The naming rights of the stadium will be split with HBC and the City thinks this will cover most of this cost.

10. This part is AMAZING. The Wizards expect the new stadium to have attendance of 360,000 in announced ticket sales. Lets do some math here. If the Wizards play 72 home games and the stadium has 5000 seats. 72 x 5000 = 360,000.

They are projecting sellouts to every game!

11. Stadium Parking revenues have NOT been negotiated.

The Commission members asked several good questions that revealed the following tidbits:

1. HBC is expecting to get about 4 million in Cred from the construction of the retail and condos. This has NOT been included in the public investment.

2. As the agreement stands there is NOTHING in place to force HBC to build the 2nd or 3rd stages of the project. NOTHING. This means that they can decide not to build phase two or three if their condos and retail do not sell... This means that the 14.5 million for phase 2 and the 14.5 million for phase three that the City is counting as Private Investment may never happen...
Per Steve Brody market conditions will determine if phases two and three happen.

3. Check this out. The condos and retail are going to include Meeting Space. This Meeting Space revenue will go to HBC and will compete with the GWC. They now also plan on having some roof seating available aka Wrigley Field.

Even after the above facts came out the Commission approved the Memorandum unanimously.

This just gets worse and worse.

No wonder they do not want to provide any financial information to the public. They cannot afford to let the light of day shine on this project...

I am back to being VERY opposed to Harrison Square.

I am absolutely disgusted by the Mayor's lack of willingness to release information to the public and his insistence on ramming it through City Council without releasing financial information to the public.

Mike Sylvester

My day, and a bad one it was...

Luckily for us we are pretty much done with tax season...

I was very angry today when The Deputy Mayor announced the Memorandum's of Understanding regarding Harrison Square would probably be completed today and would be voted on by the Redevelopment Commission today. He added that it would be introduced to City Council tomorrow...

Copies can be found here:
<http://downtownfortwaynebaseball.blogspot.com/>

I attended the meeting today after filing seven Freedom of Information Requests with the City this afternoon.

The Mayor's office has to date refused to provide basic financial information that they have repeatedly promised to provide to the public and I am very disappointed in The Mayor's office.

It does not seem to matter to the Mayor that he made a personal promise to get me the information that I requested two months ago. It does not seem to matter to our Deputy Mayor that he has failed to answer questions that have been posed to him over the last couple of months. At several public meetings our Deputy Mayor has promised that "all questions will be answered."

They lied.

I am extremely disappointed in the lack of transparency and the unwillingness of the Mayor's office to provide public documents to concerned citizens.

I am almost as angry that Kevin Knuth, the local Democrat Chair has decided to turn a blind eye to this blatant violation of open and transparent government. Kevin Knuth is constantly complaining about a lack of transparency when dealing with Republicans; however, it does not seem to bother him when our Democratic Mayor does the exact same thing...

Kevin Knuth, it is NOT complicated. Our Mayor PROMISED me that the City would provide me with all of the financial information associated with Harrison Square BEFORE it was introduced at City Council. He did this in a public setting with about sixty witnesses. Heck ask Karren Goldner or Jeff Pruitt (Local Democrats) if you need some verification.

I have not been given one single paragraph of information to date and not one of my financing questions (I submitted 58 questions in writing) has been answered since my meeting with Pat Roller in early March.

This is disgraceful and it is wrong.

The City forced me to file Freedom of Information Requests so that I can review basic financial information.

Before I went Downtown today I called Councilman Tom Didier. I told him that I was angry that I have not been given ANY of the information that I was promised. Councilman Didier was quite surprised. He told me he would call the Mayors office personally and that he would make sure I got the information I was promised...

I sat in a room with both The Deputy Mayor and The City attorney a couple of hours later. Neither gave me any information.

I talked to Councilman Didier tonight and he wanted to make sure I got all of the information I requested. I told him that I still have received nothing and he was very surprised. He told me that he had been told today that I would be given what I have been asking for...

To date I have received nothing...

So much for open and transparent Government in Fort Wayne...

Mike Sylvester

Mayor's office embarasses itself

Please read this article in today's JG:
<http://www.fortwayne.com/mld/fortwayne/17085797.htm>

I am so mad that I had to go and take a walk...

The City has been working on this deal since December. They THINK they will finalize their "Memorandums of Understanding" TODAY.

They want City Council to vote on this issue TOMORROW.

Early on in this project I expressed my opinion that The Mayor would be trying to "ram this down our throats" without time for a public review of the financing.

I was right, and in fact, it is worse then I thought.

Anyone who wants to review the entire package will have to peruse a couple hundred pages and several different reports... This will take a couple of weeks.

They are giving us less then 24 hours.

What a slap in the face to the citizens of Fort Wayne.

Kevin Knuth must be livid... Kevin Knuth talks about open government a lot. I am sure that Kevin remembers that the Mayor personally promised me that I could review the entire financial proposal and that I would have time to ask questions BEFORE this issue was voted on by City Council. Pat Roller, the City Controller, made a similar promise.

I have contacted both the Mayor's office and Pat Roller's office several times; yet, I hear nothing back. The silence is deafening...

It is a shameful day for Fort Wayne and the Mayor's Office has "slapped us all in the face." This is a "black eye" for the Mayors office and for open Government...

Mike Sylvester

P.S. Kevin Knuth will be proud, I am filing a bunch of Freedom of Information Requests today. I can promise you this, Fort Wayne is going to give me the information that they are required to by law!

Personal Attacks

Too many anonymous posters on this blog are making personal attacks on people on this blog.

I have deleted a couple of recent comments because they are inappropriate.

It is ok to disagree with poeple; however, there is no reason get get nasty...

Mike Sylvester

Harrison Square and the Democratic "at-large" seats on Fort Wayne City Council

Please read this article in the JG:
<http://www.fortwayne.com/mld/journalgazette/news/17082762.htm>

It discusses the seven Democratic candidates for the three "at-large" seats on the City Council.

The most interesting thing to me is their stances on Harrison Square.

John Shoaf: Against due to Baseball Stadium.
Denise Porter-Ross: Supports, however, feels stadium should be multi-use.
Eddie Arrington: Against due to Baseball Stadium.
Melvin Billingsly: Against due to Baseball Stadium.
Richard Cline: Against due to Baseball Stadium.
Michael Reef: Opposed to the entire project.
Thomas Essex: Supports.

This is truly amazing to me. Out of the seven Democratic candidates it appears that:
1 Supports it as is
1 Supports is as long as the baseball stadium has mutliple uses
4 are against the project due to the baseball Stadium (They well might support the project
without the Baseball Stadium)
1 is against the entire project

Wow...

Five Democratic candidates oppose the project as it stands and two are in favor of it.

The Mayor and Kevin Knuth may want to ask their candidates why they oppose a project Kevin and the Mayor stridently support...

Mike Sylvester

Sunday, April 15, 2007

Nepotism is a large problem in Fort Wayne politics...

Per Wikopedia:

Nepotism refers to the act of favoring relatives and friends because of their relationship to the person displaying the Nepotism rather than because of their abilities. The word nepotism comes from the Latin word 'nepos', meaning "nephew" or "grandchild".

Fort Wayne has a history of nepotism and it is something that angers many residents that I have spoken to.

Realize that the Allen County Republican Party has held "ethics" training in an effort to "teach" people about ethical behavior.

As most of the readers of this blog know the Tax Adjustment Board has been reformed, largely due to the efforts of Mitch Harper over at Fort Waybe Observed.

The Board has six of its seven members already appointed...

Please read about it in this JG article:
<http://www.fortwayne.com/mld/journalgazette/news/17076967.htm>

Lets see if you can determine if there was any nepotism involved in any of the appointees...

Mike Sylvester

P.S. You do not have to look very hard to find multiple cases...

P.S.S. Please let me know if you find any nepotism...

Thursday, April 12, 2007

Firehouse Theatre

The Firehouse Theatre is a neat place in Fort Wayne that may close soon and that is extremely sad. The Firehouse Theatre puts on interesting shows and has a lot to offer...

From the Firehouse Theatre:

It is one month until the lease runs out. I believe the owners have agreed to do a 2 month at a time rental, and they have already reduced the rent by $200, so, in theory, we can continue operations without a new lease signer. Still, I have vowed that, never again will I take money from my family's account to pay Firehouse bills. I've done it for a year and that's enough. If we don't have the dough when rent is due again, I will submit notice that we will vacate.

That means that "Senseless Acts" and whatever else is performed (which right now is two band performances on 2 Saturdays) must pull in enough to pay the bills. I calculate we need to sell approximately 64 seats for each of Senseless's 6 performances. We have 73 seats, so, piece of cake. Really.

Note: 6 performances in a month is very small number, yet with just 6 performances and $250 from the two band shows The Firehouse can pay its bills. If another troupe was sharing the show slots and 12 performances a month were selling 64 seats each, we'd be making twice what we need, so the troupes would get paid over $150 per show.

And..... I'd just like to remind people that we did 12 shows a month from end of June to end of November 2006, three per weekend, but without dedicated crew or help it was impossible to do them right and also get out the publicity so audiences were small.

Independent Troupes that can save the Firehouse are forming this week:
Saturday, April 14
3 pm: Mystery Troupe - experienced child and adult actors
4:30: Improv and Comedy Troupes - Enthusiasm and talent needed, experience not required.

Tuesday, April 17, 1 pm:
Days Troupe - composed of home schooled kids and people available to rehearse days - which during the summer is a lot.

Or form your own troupe. If the Firehouse can squeak through a little longer, its stage slots could become very scarce and valuable soon.

Tomorrow, I will send you a tickets and hours pledge form.



Jeannette Jaquish
Firehouse Theater
www.firehouse-fw.com
750-9013

Economic and Fiscal Impacts of the Proposed Harrison Square Project

The City has released the study that it paid a consultant to produce.

You can read the study for yourself at:
<http://downtownfortwaynebaseball.blogspot.com/>

I will not have time to look through this carefully for another couple of days; however, I did glance through it

I have several comments about this study and I would be interested in hearing your thoughts:

1. The study in no way, shape, or form discusses any of the negative financial impacts the proposed project will cause. For example, if we build a new hotel it is likely that nearby hotels will see their occupancy rates decrease, which means less tax revenue will be generated from nearby hotels. This is NOT accounted for at all and it certainly should be accounted for.

2. The report refers to another report called the "City of Fort Wayne, Indiana, Downtown Community Revitalization Enhancement District, Consultant's Report." I do not know what this report is. I have sent out an email asking Pat Roller where I can find the report. Does anyone who reads this blog know what this report is and where I can find it?

3. This report uses the report mentioned in "2" above to estimate revenues from the InnKeepers tax. Until I read the above report I will not be able to determine what hotel occupancy rate Crowe is using for their revenue projections; however, I can make a guess and here it goes.

Lets assume that the hotel opens Jan 1, 2010. Lets assume that the average room rate charged is $110 per night (Realize they will use several different rates, I am just estimating an average rate). The innkeeper tax is 6% and each retailer is allowed to keep .83% of the total tax collected as a collectors fee.

The Crowe report estimates that the new 250 room hotel will generate $368,450 in revenue from the InnKeeper tax. This would equate to 56,295 rooms rented. This would result in a hotel occupancy rate of 61.7% for 2010 for the new hotel.

Realize that the current hotel occupancy rate for Allen County is between 44% and 48% per the last statistics I have seen.

Realize that there are already three new hotels that are "in the pipeline" to be built in Fort Wayne. These three hotels "in the pipeline" will be built prior to any hotel associated with Harrison Square. There is one going up next to IPFW, one up on Lima Road near the Spiece Fieldhouse, and one up near Parkview North.

Logic would dictate that when four new hotels are built in Fort Wayne the hotel occupancy rates in Fort Wayne will decrease unless four hotels of similar size are closed during the same time period unless Fort Wayne experiences a massive surge in tourism...

Maybe tens of thousands of people will descend on Fort Wayne to watch single A baseball and they will all stay and spend the night in Fort Wayne?

4. Crowe's revenue projection for the income expected to be generated from taxes levied by a brand new 900 space parking garage is very interesting. Crowe is projecting $951 in tax revenue from the new parking garage. $735 of this comes from State Income Tax (Personal) and $216 from County Income Tax.

Editor's note: These figures do not include parking fees, nor do they include parking expenses.

In other words this project would cost at least ten million dollars plus interest and the project will generate $951 in tax revenue the first full year of operation.

5. Another item in this report is the revenue that Crowe is projecting that will be generated by the baseball stadium. Crowe is estimating that the baseball stadium will generate $41,729 due to State Sales tax from its employees in 2010.

Lets get a couple of things straight. The people who currently work for the baseball stadium are already getting paid and this revenue from State income tax is already being generated. This is ex isting income. Please keep this in mind.

6. Talking about the baseball stadium they are projecting $8000 will be generated by the Allen County Food and Beverage Tax (That temporary tax we are all still paying) in 2010. This equates to $800,000 in food sales at the baseball park. I can believe that; however, we are already generating this revenue at Memorial Stadium today.

7. The Construction Impact is typical for this kind of report. It bascially says that we will be spending a ton of money on the construction and this will create temporary jobs.

8. The new hotel is estimated to employ 145 people with average earnings of $21,303 each. Note that if two parents with two children were employed at the motel in 2010 at the average wage they would be below the Federal Poverty level... Not exactly the high paying jobs we have heard about....

9. They are actually projecting that 30,000 square feet of retail will create 157 jobs. This seems extremely high to me. The average retail employee would get $6017 in earnings each. They must all be part time students earning minimum wage. This is not impressive.

10. The baseball park will employ 65 people at an average wage of $23,962 each. These jobs already exist!

11. The parking garage will employ one person at $21,632 per year. They must be projecting a lot of automation...

12. So in total this project is expected to move 368 jobs from one part of the City to another (Economic Re-arrangement at its finest). These jobs will pay an average wage of $15,252. This is below the Federal poverty level. These jobs on average pay significantly less then jobs at WalMart...

I would think that anyone who is "on the fence" would oppose the project after reading this report. It does not paint a pretty economic picture.

Mike Sylvester

Several random thoughts

1. We have 31 tax returns to go...

2. Robert Enders has decided that he will be allowing anonymous comments once he
takes over this blog.

3. I am starting a new blog. I am currently leaning towards starting it after my
family gets back from Germany this summer.

4. Has anyone seen ANYTHING concrete from Fort Wayne regarding projected hotel
occupancy rates for the new hotel they want to subsidize downtown?

Mike Sylvester

Wednesday, April 11, 2007

2007 Indiana Libertarian Convention will be held in Fort Wayne

I hope to see several of the readers of this blog at our Convention that is coming up May 18th-20th.

There are two speakers that you may know from Allen County:

Mitch Harper, Fort Wayne Observed Editor
Andy Downs, Mike Downs Center

The annual Business Meeting and Convention of the Indiana Libertarian Party is just around the corner!

We will be electing a new Chair and Treasurer at the minimum! Rumor has it that we may be electing as many as three new officers. Another rumor claims that there will be at LEAST one contested election. Please plan on attending the Convention and participating in the election of those people who will be charting the course of the Indiana LP!

The Event will be held in Fort Wayne this year. Friday night there will be a reception to honor Mark Rutherford and his service to the Indiana LP. This event will give us a great opportunity to thank Mark Rutherford for his service and for his outstanding leadership, please plan on attending!

The Convention itself will be held at the Grand Wayne Center in downtown Fort Wayne on May 19th. We have a full slate of speakers in the morning and the Business Meeting will be held in the afternoon. Members of the 1994 Society will be honored at a reception at the Park Place Grill. A buffet dinner will be provided at the Park Place Grill Saturday evening for all attendees and we will retire to a nearby bar owned by a Fort Wayne Libertarian running for City Council.

Breakfast will be provided Sunday morning at The Hilton and there will be a couple of presentations Sunday morning.

The easiest way to register is online at:
http://www.lpin.org/index.php?q=node/93

Please feel free to contact The LPIN Executive Director to learn more about this exciting event at 317-920-1994. You can also contact Mike Sylvester at 260-338-0833 to learn more about the event.

Please sign up early so that we can properly plan the meals and determine attendance numbers.

Mike Sylvester
Convention Chair

Monday, April 09, 2007

Fort Wayne college graduates

I went back to college a couple of years ago. I graduated from IPFW with a bachelors in business and a specialty in accounting in May of 2006.

I have heard a lot of Harrison Square supporters talk about how the best college students leave Fort Wayne. I know that many do leave Fort Wayne; however, I thought I would list people that I am friends with at IPFW and whether they are staying in this area or if they are leaving. I am just listing those people that I know fairly well that had a very high GPA.

Myself, I am staying in Fort Wayne
Brent, he is staying in Fort Wayne
Doug, he is currently working in Fort Wayne, however, he has accepted a position that will cause him to move before the end of the year. Lets count him as leaving.
Austin, he is staying in Fort Wayne.
Sarah, she is staying in Fort Wayne.
Anthony, he is staying in Fort Wayne.
Brett, he is currently working in Fort Wayne; however, he has accepted a position and is moving to North Carolina this Fall. Lets count him as leaving.

So out of seven students that I know fairly well, five are employed in Fort Wayne and chose to stay in Fort Wayne. Two are currently in Fort Wayne but accepted positions that will take them from Fort Wayne.

Six of the above seven people were Accounting majors and one a Finance major. The average GPA of the above people is 3.8 or higher. 5 of the 7 have chosen to stay in Fort Wayne.

The demand for accounting graduates is very large right now. I would say that everyone could have moved to about any City and got a job in Accounting...

The majority of these students are not leaving Fort Wayne...

Mike Sylvester

Has Mike Sylvester been "brain-washed?"

Robert Enders has a great sense of humor. In a comment yesterday Robert opines that I am being "brain-washed" in regards to Harrison Square...

I am still against the Harrison Square Project as proposed; however, my opinion about the need to attract and retain young qualified workers has changed over the last few days.

I always thought that people would move based on employment. I have done this throughout my life. I feel that people my age (39) and older have tended to move to a new geographic location due to employment.

After talking to several people and looking at various statistics it seems to me like this trend has possibly changed over the last ten - fifteen years. It seems that many young people actually move to a location without having a job and then look for a job. This is a complete change from my generation and from generations before mine. To be honest with you this change makes no sense to me at all. Throughout my life I have always looked for a job and then moved to the job. I have done it over and over. It seems logical to me. I have never really cared where I lived in the past.

If the above assumption is true, and I think that it is, then I now think it is more important to make Fort Wayne attractive to young individuals. I think we need to look at other cities of a similar size in the Midwest and we need to ensure that we are competitive with them as far as being able to attract young talent.

That does not mean I am in favor of Harrison Square. I do not think that moving a Single A Baseball Stadium downtown will attract young talent. I do not think building another hotel downtown will attract young talent. I do not think building a new Parking Garage will attract young talent.

I am now willing to consider other projects that would be attractive to the "younger" crowd.

Mike Sylvester

Saturday, April 07, 2007

Interesting post over at "Change Fort Wayne"

Based on a thread that started on this blog "Change Fort Wayne" has posted a thread on his blog that shows some statistics that are put out by a group called "CEO's for Cities." You can see their data at:
<http://www.ceosforcities.org/rethink/research/files/CEOsforCitiesAttractingYoungEducatedPres2006.pdf>

I think that this presentation is very interesting and it actually would tend to disprove or at least disagree with one of my opinions I posted about earlier.

I have always felt that people move to a location due to employment. Looking at my own life I have moved for employment three times and my fourth move was due to family. That is just me and it proves little. I feel that people my age and people who are older then me (I am 39) tend to move based on employment. I have always felt (and been taught) that the most important thing in my life is my family; however, employment is a close second.

The data from the report I linked to above tends to disagree with my belief.

"According to their data 64% of college-educated 25 to 34 year olds report that they will make the decision of where they live first, then look for a job within that area."

When I got out of the navy I had several good friends that got out about the same time I did (1995). We were from all over the US and were stationed in Hawaii. Here is what we did:

1. Myself, I moved to Nebraska due to employment.
2. Dave Montero, he moved to Oregon based on employment.
3. Jan Nimick, he moved to California for emplyment.
4. Devin Demot, he moved to Oregon for employment.
5. "Hooch," he moved to a remote Pacific Island for employment at a weapons disposal facility.

We all moved based on employment. Most of us sent out 500 to 1000 resumes all over the country. Most of us had an associates degree and a skill as a mechanic, electrician, or electronics technician. We would most likely have been considered maintenance or operations people and none of us had a Bachelors Degree.

Maybe the world has changed more then I think. Maybe it is true that college graduates now move based on location more often then employment. If true, this would really "blow my mind."

That would actually change some of my thoughts on economic development.

I am very curious as to what you think about this issue.

Please list your personal experiences with moving in the comment section and please let us know why you moved each time you did move.

Mike Sylvester

How to improve Fort Wayne

I think there are a lot of things we can do to improve Fort Wayne.

Dave Corcoran mentioned one in a comment he left yesterday that I would like to discuss.

Dave thinks that our local universities need to offer more advanced degrees.

I certainly agree with Dave on this issue. I would like to see more collaboration between local universities and I would like to see a wider variety of advanced degrees offered.

Mike Sylvester

Anonymous posting

I have decided not to allow anonymous posting on my new blog. I tend to think that you should be willing to be associated with anything that you write.

There are a few people who just go from blog to blog and insult people and do not have the courtesy of identifying themselves.

I plan on allowing people to post under fictional handles. That way I can associate a name or handle with posters and block any that post inappropriate items...

Mike Sylvester

Friday, April 06, 2007

Andrew Kaduk deserves a response!

Andrew Kaduk made the following comment to my post "Fort Wayne Problems." Andrew Kaduks comment is posted in its entirety and is in italics!

My reply to Andrew is in red. I am afraid I am going to go on a rant...

Let's build a quick hypothetical here:
I love hypotheticals...

I want to open a light manufacturing firm building circuit boards for communications electronics. I will employ 4 SMT techs, 10 electronic engineers, an 8-man sales staff, a 4-man shipping department, and a hybrid admin/customer service department.
I would love to see a company like this come to Fort Wayne! Maybe a bunch of the "young professionals" who will flock to Fort Wayne if we build a new single A baseball stadium will start this hypothetical company (A little sarcasm for you Andrew).

That's 30 jobs ranging from $25k to $125k per year.
OK, I will assume your salaries are correct.

I will need bright, young, creative engineers and salespeople, not some hayseed hicks that got suckered into giving Employment One $175 dollars...
Are you saying that people from rural backgrounds are not bright, young, and creative? Do you think that the only people who are bright, young, and creative come from urban areas?

This is quite possibly one of the dumbest comments I have heard during the entire Harrison Square discussion and it is deserving of the rant that follows!

I spent my first nine years on a farm a few miles outside of Albany, Indiana. Then we moved to Fort Wayne and I lived here until I was 22 years old. I guess I must be a "hayseed" according to Andrew Kaduk!

Heck, I will use myself as an example and I would be happy to compare my background with yours or with that of some of the other people who think that a single A baseball stadium being built downtown will draw a lot of high paying jobs to Fort Wayne.

Lets see I have spent:
4 years in sales (Some of this time I also pumped gas at a station on the south side of
Fort Wayne and worked as a uniformed security guard for minimum wage)
6 years as an Electronics Technician in a naval nuclear power plant on a nuclear powered
submarine. Heck, I was the only enlisted man in Hawaii who was qualified Engineering
Watch Supervisor as an E-5 in Hawaii during 1994 and 1995. Oh yes, naval nuclear A
school and naval nuclear power school were ranked as the 2nd and 3rd most difficult
college level programs in America (Behind MIT) when I attended them.
3 years as an electrician in a steel mill. I am a card carrying Journeyman electrician.
1 year as an automation technician in a food processing plant.
4 years as the Maintenance Manager in a local factory.
3 years in a public accounting firm.

Lets see I currently have a fair amount of education for a "hayseed" to go along with my work experience:
I currently have 239 college credits from various institutions of higher learning.
I have a Bachelors degree and multiple Associates degrees.
I am a member of a couple of national honors societies.
I am waiting on my paperwork to be filed and I will be a Certified Public Accountant.

Lets see:
As an adult I have worked as:
A salesman, pumped gas at a Fort Wayne gas station, worked as a uniformed security
guard in Fort Wayne, an Electronics Technician, an operator in a civilian nuclear
power plant, an electrician in a steel mill, an electrician in a foundry, an automation
technician, a maintenance manager, and as an accountant.

Lets see:
I have lived and worked in eight states as an adult and I have travelled to about 20
different countries and a couple of US Territories. I have been to the actual North Pole
and I have been in six of the worlds major oceans.

Lets see:
My wife and I are currently shopping for a commercial building which we will be
purchasing; not leasing I think that we will hire half a dozen employees in this area in
the next few years... We will run a business and Fort Wayne and I have confidence that
we will be a successful small company.

Now do not get me wrong; I am not the smartest guy in the world, I am not particularly creative; however, I am not a "hayseed" and you are displaying extreme and unmitigated ignorance if you think that there are not a lot of bright and educated individuals in Fort Wayne.

You should spend some time at ITT, IPFW, Ivy Tech, and the like. You may find some bright young professionals if you look for them...

How am I going to find those 20 employees here? There is absolutely nothing to draw people like that to Fort Wayne unless they like one-story strip malls and Wal Mart.That being said, how in the hell is Fort Wayne supposed to attract businesses like this? These are the types of businesses that make our economy strong...without providing some legitimate features and benefits that would interest young, smart, marketable people, there can't be a talent pool here deep enough to even get employers to look our way. Employees like these are in demand all over the country...
There are a lot of people in Fort Wayne who can fill these jobs. Fort Wayne has a large number of engineers and the various other skills that this small company would require. We have had a lot of companies like you described here for many years and we have a large number of people who could fill these jobs. A lot of companies similar to the one you described have went out of business in this area, there are literally hundreds of people in this area who could work for the company you described. Heck, with my background I would have the qualification necessary to fill many of the above jobs myself.

Also there is a large number of facilities this company could rent and rent or lease for a very low price! There is a lot of commercial space available and it is very inexpensive.

I'd like for Mike or AWB to explain to me in writing how you suggest we make our bait look better than that being offered in other places. THAT is what this discussion is about...a viable, fun, vibrant city that can be attractive to the kind of talent that makes businesses successful, innovative etc.
I do not think that we have to have a vibrant City. I think we have to have a City with lower taxes and fewer regulations. This will cause companies to move to Fort Wayne and expand in Fort Wayne. To be honest with you Andrew Fort Wayne has about everything that my wife and I want in a City. We occasionally travel to Indianapolis, Chicago, etc if there is something we want to do that is not available in Fort Wayne. Heck we are going to Germany this summer. Fort Wayne does not need to have every possible amenity; I am more then capable of driving or flying to other locations...

Building a new Single A Baseball Stadium Downtown does NOTHING to draw jobs to Fort Wayne Andrew.

Mike Sylvester, rant over...

Fort Wayne problems

The largest problem in Fort Wayne today is the fact that our wages are 83% of the national average. We need to attract more and higher paying jobs to Fort Wayne and we need to retain those that we have. If we can improve wages and employment in Fort Wayne then we can deal with some of our other problems.

The low wages in Fort Wayne hurt us in several ways:

1. Residents of Fort Wayne pay a greater percentage of their income in taxes then most other states. I have posted about this before. Fort Wayne residents pay a higher percentage of their income in taxes then the average California resident. This leaves us with less disposable income.

2. Many younger people are leaving Fort Wayne due to a lack of opportunities. This will cause us large problems down the road.

3. Residents do not have a lot of disposable income to spend.

4. Property taxes are rising rapidly and it is really hurting our ability to attract new businesses. This has to be resolved.

In my opinion we need our elected officials to focus on local jobs and wages. There is nothing else that is as important as this issue.

I think that we can attract and retain jobs by doing the following:

1. Lower taxes on businesses. I want to do this across the board. I am tired of granting tax abatements to a few businesses and ignoring small businesses. We need to lower taxes. The best first step would be to abolish personal property taxes in Allen County.

2. We need to streamline our permits and our regulations we put on business owners. Several businesses have left Fort Wayne because they did not want to deal with the "red tape."

3. We need to stop spending money and increasing the debt our local government has incurred. We should only incur debt if it will draw new jobs and money to this area. Extraneous projects need to be put on hold.

Mike Sylvester

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