A Life For Itself

Tag: ideas

  • In Love With TIF

    In middle school, some of my classmates insisted I had a crush on a girl named Tiffany. Though this Tiffany was indeed cute, I did not have a crush on her. One could say I was in the initial throws of falling in love –as much as someone 13 years old or younger can– with someone else.

    Some twenty-five or more years later, someone has indeed fallen in love with Tiff. Or rather, TIFs. That someone is the very City of Baltimore.

    #

    Tax increment financing. What is a TIF? How do TIFs work?

    Back in the Land of Pleasant Living, the most recent TIF, as I alluded to in my last post, has gone to Michael Beatty’s Harbor Point development. In a nutshell, the City floated $107M in bonds to pay for infrastructure improvements at Harbor Point, which, among other things, is the new home for Exelon, the owner of the local electrical utility.

    Beatty himself bought a bunch of the bonds, therefore he’s benefiting from the interest paid on said bonds. So the City is, in a sense, taking out a loan to pay for infrastructure from his project, and by purchasing some of the bonds, Beatty has become one of the loaners of this money. Baltimore will be paying him back with interest for infrastructure the City has paid and will be paying for, on this project.

    Well, not all. Baltimore Sun and Baltimore Brew are reporting that there have been even more payments made from the City to this project. $29M worth of cost overruns. And the talk among those in charge is that the City will have to dip into General Funds, or in other words, straight up taxpayer dollars, to cover shortfalls in the TIF.

    I say straight up taxpayer dollars because ultimately, the property taxes generated by the Harbor Point development are supposed to cover the principal and interest payments on the bonds themselves. But until and unless enough property taxes are generated, somebody has to be on the hook to bondholders and it is the issuer of the bonds. The City of Baltimore. Or, more bluntly, the taxpayers of the City of Baltimore.

    And again, Beatty is a bondholder.

    Imagine that Baltimore is instead playing stocks or options. It’s low on cash (or so it says). So, it buys some stock or options on margin, betting that sometime in the future (in the case of this TIF, by 20 years out) the value of the stock or options will go up and they’ll make money for the whole city.

    That’s the expectation. They’re borrowing now with the belief that the future ship will come and cover the floated bonds and eventually, contribute money to the City for the usual other things that the City pays for. But if they’re wrong; if they don’t take in as much as they’re expecting, they still owe the brokers, the bondholders. And in this case, Beatty is one of the brokers.

    They also baked in some language to demand that the project pay for some general civic improvements that don’t necessarily benefit the project, but we’ll see how that goes.

    Still, the project was sold on the premise and promise that no taxpayer dollars would be used. That’s certainly true, if the future property tax projections pan out.

    That was, until the cost overruns and while it’s appalling (yet not surprising) that they’re talking about dipping into general funds, they’ve now assumed so much risk that they can’t turn back. They’re in too deep. The City needs the project to work because it has an expectation that somehow, dollars will come in to cover the initial outlay paid for by the bond generation. In a sense, the City has become a partner with no equity, just a need for everything to work out and hopefully go as smoothly as it can in the future with minimal additional cost overruns.

    We’ll see about that.

    Here’s the crazy bit. They want to do it again.

    The Port Covington TIF. Just like the Harbor Point TIF, but on the proverbial steroids, because this one weighs in at a hefty $535M. As the Sun reported, with interest, all told, it could cost over $2B. And in this case, Sagamore Development, the development arm of Under Armour founder Kevin Plank, would buy some of the bonds itself and thereby benefit from the interest on said bonds.

    The vote is up to City Council at this point. The Mayor supports it. The quasi-governmental Baltimore Development Corporation supports it. Of course BDC would certainly put its stamp of approval on the TIF. They’re not elected, so they’re not responsible to the taxpayers and voters of Baltimore. If things don’t pan out with the property taxes on Port Covington and the City is on the hook and has to cover parts of bond repayments (because who else is supposed to? The state? That’s funny), nobody at BDC has to go into districts and neighborhoods one day and explain why there’s no money for parks or rec centers.

    Again, they plan to bake language into the TIF so that there will be public benefit. And yes, the renderings look amazing, but looking at recent history with Harbor Point, it looks like the City is going in way over its head. It looks like the City is about to partner again with no equity. And if cost overruns occur this time, will the City have to dip back into general funds to cover?

    Plank has sold this project on, among other things, the number of jobs it’ll bring to Baltimore (and specifically to Baltimore residents) as well as on improving Baltimore’s image. The price tag on Baltimore’s image is listed above.

    To put it into perspective, in 2014 dollars, the City and Baltimore County pledged $280M ($230 and $50 respectively) towards the building of the since-cancelled Red Line light rail project (with Maryland and the Feds picking up the rest of the nearly $3B project). So the City is willing is thus-far willing to float bonds in excess of double that amount for a project in one section of the city.

    Sure, Sagamore is floating jobs projections now, but other cities like Denver are realizing actual development gains from the increased mobility. I’m not saying the Red Line was cancelled because of Port Covington (or Harbor Point) because it wasn’t, but if the City is interested in borrowing money they think they’ll be able to pay off with future property taxes, wouldn’t projects like light rail that have had the effect of creating new development and raising the value of pre-existing property, especially in places like Minneapolis, be more preferable to ones like the ones they’re financing?

    (It’s also not Beatty or Plank’s fault that such an idea would never get off the ground because of the classism and racism through which public transit is viewed in the Baltimore area, making new projects hard to support. Look at the amount the County was willing to contribute to the Red Line. Shows exactly the degree to which their citizens value mass transit. Also Google “baltimore loot rail” if you really don’t believe me.)

    People around the City government like to throw around the name Freddie Gray, but when will the economic conditions that created the overall situation he lived and died in, be reasonably addressed? When will the people of Freddie Gray’s neighborhood see the benefits from Harbor Point or Port Covington? 20, 40 years from now? Ever?

    #

    It’s not all doom and gloom, though.

    I enjoyed the article in City Paper concerning the idea of developing a City-owned retirement fund for people, using interest paid on some of the Port Covington bonds. Start a special benefits corporation, buy the bonds, collect the interest.

    I like the idea.

    I like the idea of regular Baltimoreans who can afford to do so, buying the bonds. If the City is going to float them regardless of the will of the citizens, the only thing left is to buy them and receive whatever benefits you can. Which, even though they’re running ads everywhere, seems like it’s going to be the case.

    Relatively not that many would be able to take part, but what else is there, if you’re not an “insider”?

    #

    I was 14 when I really first fell in love. I didn’t get the girl, but I got the lessons. Those were free. I loved again, several times over.

    I hope Baltimore gets their proverbial girl in the form of property taxes sometime 20-40 years from now. I’ll be nearly 80 towards the end of the Port Covington TIF, so hopefully they’ll put some old folks stuff up with the money.

    If the City doesn’t, the lessons will be infinitely more painful. A much lowered bond rating. The City on the hook for whatever amounts of money. And the things that were supposed to be paid for, not there. Maybe they’re thinking they’ll do some development in Sandtown with the money one day. Will they be able to? (And we won’t even talk about the supposed “game-changer,” the Horseshoe Casino and the money that was supposed to contribute to Baltimore. I’ll admit to not doing my part, since I haven’t gone there and played video poker, yet. They have that in there, right?)

    If it doesn’t work out, what will the City do to recover? What lessons will it learn? What do they say when the next developer wanting a TIF shows up to 100 North Holliday? Will it fall in love with someone other than TIF if TIF doesn’t work out?

    Well, someone other than PILOT . Been there, done that.

  • Vote Deray?

    Perhaps the biggest news story coming out of Baltimore in the last 24 hours is the last-minute entry of human rights activist Deray Mckesson into the race for Mayor of Baltimore. Deray joins an already crowded race of nearly 30 candidates (it’s a high number, but most of them never had any shot anyway) seeking to succeed Stephanie Rawlings-Blake, who is not running for re-election. The Baltimore Sun quickly reported his filing and reaction came in just as quickly.

    The tone of response online was generally positive, especially from people outside of Baltimore. Among locals, sentiments ranged from surprise and increased interest in what’s now a much more fascinating campaign, to some less positive feelings, particularly as I understand it, among those who have been active locally as Deray has been active more on the national stage.

    Also, quite a few folks were questioning whether Deray actually had fulfilled the residency requirement for running. The news generally shows him working and demonstrating in one place or another at any given time. The Baltimore Sun reported today, though, that he’s been living in North Baltimore for the last several months.

    Regardless of any criticism, the race now will find itself under a larger national lens with Deray’s entry.

    ***

    Hit The Ground Running

    Anybody living in or from Baltimore knows that with so many voters registered Democrat in the City, that party’s primary usually determines the winner of the November general election. Deray is running as a Democrat, which puts him against the other dozen or so hopefuls, including former Mayor Sheila Dixon. That election is April 26, 81 days from now.

    Eighty one days to overcome Sheila Dixon’s comfortable lead in the polls.

    To put it in perspective, local businessman David Warnock is trailing badly, even as he’s loaned his campaign close to a million dollars. Whatever money Deray may be able to bring in to compliment his sizable online following, his chances will rest on convincing the probable 21% of current undecideds as well as a probably unknown number of unregistered voters to sign up, the latter before the April 5 deadline. As it stands right now, Ms. Dixon is leading in the key demo of older black women voters, people who are probably much more familiar with her than Mr. Mckesson, regardless of his larger national following.

    ***

    Who’s on the Team?

    Another interesting issue I saw being discussed is who’s on his team. The Sun and Guardian have both reported that fellow activist Johnetta Elzie (a powerhouse herself) is moving to Baltimore to work on his campaign. I can’t help but think the local activists I hear already weren’t happy, weren’t thrilled with another high profile activist —one who is definitely not from Baltimore— coming into their turf.

    Don’t count out our provincial attitudes. Deray, who even mentioned growing up listening to Miss Tony on 92Q in his statement, has been a powerhouse nationally. But I’m sure he’ll still be painted as a carpetbagger, especially by people who have been working on issues locally, if his campaign starts with much more out-of-town support than local support.

    For the record, I grew up listening to V-103 and then 92Q. Frank Ski.

    ***


    Where is the Downtown money going?

    People who know Baltimore solely from watching on TV or reading poverty porn might not get that Baltimore isn’t entirely poor. The segregated parts of Baltimore certainly are, but that doesn’t go for the City as a whole. The City is base to quite a few rich people. Outside folks have probably watched Peter Angelos’ Baltimore Orioles or worn clothing made by Kevin Plank’s Under Armour. But it’s the people most outsiders have never heard of who have the deep pockets that make things move in the Harbor City.

    Or in other words: real estate developers exert a lot of influence in Baltimore.

    Last election cycle, a bunch of those sweet developer campaign dollars went to Stephanie Rawlings-Blake.

    Regardless of how much he brings to the table (and so far, it’s a bunch), Deray’s running where there’s a huge machine in place. He’s not going to get far without fealty to, detente with, or a fight from Downtown developers (then again, neither would any of the other candidates). If they feel they’ll lose money or power from his being elected, expect a mess, regardless of how the elections turn out.

    ***

    It’s going to be an interesting 81 days until the primary.

    Can the local guy who made good outside really come back and be given a chance to lead? Or will his candidacy ultimately be about raising issues and pushing the next person in the job to make the changes the real Baltimore (outside of the Harbor) needs?

    Has Baltimore really forgiven the former Mayor?

    Will we see the real emergence of a new political family dynasty?

    Will this family’s legacy of public service continue at 100 North Holliday?

    Where will Downtown’s elite continue to throw their support?

  • Innocence

    A writer can’t be too negative. You have to have a little bit of innocence to be a good writer. Whatever you have to do to preserve that innocence-the “is that so?” element—you should do it. You can’t be someone who knows everything-“been there, done that.” If you know every­ thing you shouldn’t be a writer. You should be God.

    – James McBride.

    http://electricliterature.com/james-mcbride-explains-why-he-writes-memoir/

    #

    My day job is in IT. When I’m there, I have to have the opposite mindset. The job is generally about fixing. Like a plumber has to know how all the pipes work and how the toilet works and how his tools work, I have to know how the servers work and how the thin clients work and any number of other systems that people in the organization I work for may use during the course of a day. Or I have to know how to find out how things work. My coworkers come to my desk or call me needing help and I have to know how to.

    It’s an ironic position to be in, in a world where most information is a few clicks or taps away. But still, it’s not a place for the sort of exploration I do in my non-work hours.

    That’s been my writing life — being often in two mindsets.

    I love exploring, discovering. As much as I’ve often enjoyed knowing, being right or accurate about things, arguing points, etc., discovering and learning are much more satisfying. It’s why I love the classic essay so much — meandering, running, ambling, getting to understanding (the lyric essay even more). Not just having the quick-witted comeback for the moment.

    That latter sense manifests itself in my writing as a desire to write exactly what I think people would want to read. In being frustrated when I don’t know exactly what I want to say, or perhaps, what I should say. But when I ask myself what I truly think about a thing or an event or what does a thing or an event remind me of and still give myself the space to say at first that I don’t know and go from there (and be okay with not immediately finding a destination), things usually flow better.

    When I get home from work, the issue is turning off the mind that has to know in favor of the mind that wants to find out. Sometimes … perhaps often, it’s a struggle, but I’m learning and keeping my hands moving as much as I can.

  • Not Money(foot)ball

    This was quite the surprise. Given the general dysfunction of the (reconstituted) Browns, I wasn’t expecting their owner to go out and get Paul DePodesta, one of the top minds of Sabermetrics and hand him what seems like most of the keys to the franchise. My gut instinct said Haslam would again do what most football organizations do: go hire the Director of Pro Something Or Other from another NFL team, give him a glowing introduction to the media, and start the countdown until he had to fire him.

    But Jimmy Haslam did something way different this time, so different that as ridiculous as it may have sounded on its face, there are lots of people saying it’s going to work out and work out well. SI’s Tom Verducci wrote a glowing piece about the move. Yahoo! Sports’ Tim Brown says it’s definitely the right move.

    #

    Bringing in DePodesta is fitting.

    The main reason Billy Beane and the A’s resorted to the “Moneyball,” or applied Sabermetrics, is that they couldn’t compete financially with baseball’s big money powers. If they have this massive advantage, how do you counter? What do you do when you can’t continue doing business as it’s always been done?

    DePodesta, Billy Beane’s former right-hand man is one of the first to go hard after the answer in baseball.

    While the NFL’s hard salary cap likely makes money a moot point, the (reconstituted) Browns haven’t been able to compete because of a different reason.

    Look at the rest of the division: the Steelers have had the same GM since 2000 and have changed coaches only once, upon the retirement of Bill Cowher. Ozzie Newsome has been running the Ravens since the same time and the Ravens have changed coaches only once, to John Harbaugh. Even the Bengals, whose owner/GM has shouldered his on share of criticism over the years for one thing or another, has had only one head coach since 2003, Marvin Lewis.

    Then there’s Bill Belichick and his continuing tenure in New England. Four titles, 6 Super Bowl appearances in 15+ seasons.

    Bill Polian’s 13-year tenure in Indianapolis. A bunch of playoff appearances and a championship in 2 Super Bowl appearances.

    Tom Coughlin just ended a 12-year run as Giants head coach. Two championships in four years, both over favored Patriots teams.

    The Browns have trended in the exact opposite direction during the same time.

    One playoff appearance since 2000. Yet, they’ve had 3 head coaches just this decade alone and just as many general managers.

    You can’t win in the NFL like that and Haslam, at least now, understands.

    The Browns have the financial resources, but have never had another currency as important in the NFL: long-term stability in the front office and on field.

    #

    I doubt DePodesta was hired to bring the same sort of statistical analysis you see in baseball the on-field football product. As former Ravens head coach, Brian Billick, said earlier:

    “You can’t quantify the game of football the way you do baseball. It’s not a statistical game. The parameters of the game, the number of bodies and what they’re doing in conjunction with one another.”

    Or in other words, a thousand yards for a receiver isn’t always just a thousand yards. There’s always a deeper story and context to those yards that involve other players. Unlike your shortstop’s fielding percentage or your number two batter’s on base percentage.

    Instead, I think SI’s Verducci is right in believing cleaning up the Browns’ organization, not necessarily implementing advanced statistics, will be DePodesta’s immediate job in Berea:

    Immediately, though, DePodesta’s challenge is not how the Browns play football as much as it is how the organization is structured and how it evaluates, acquires and develops talent in a holistic manner. With his year scouring for information, Haslam understood that his Browns, long a disorganized mess, were in serious need of organizational repair.

    If you’ve seen the Cleveland ‘95 episode of NFL Network’s “A Football Life,” then you’ve seen a glimpse into how Bill Belichick and Ozzie Newsome systematically go about choosing players. Since then, I’m sure both have refined and even further systematized their practices even further. The success of both the Ravens and Patriots are a testament to their practices. Quite a bit has been written about Ozzie and the Ravens and how the front office runs.

    I think this is what Paul DePodesta will be aiming for in Cleveland now. With the right mix of philosophy and process, a pledge to the long term, as well as his commitment to data for sound decision making, we may one day look back and see Cleveland ‘16 as the first steps towards a turnaround for the (reconstituted) Browns.

  • No Resolutions

    I’m not resolving anything. Chances are, if you made resolutions, you may have already broken one or two. Or several. Or all of them.

    You come up with a list of things you think you want to do and if you really want to do them and they’re really something you believe you can do (and perhaps consistently), you’ll do those things. Otherwise, you won’t. Since resolutions are generally related to things we want to change, if you’re not ready for those changes (or change in general), you can forget it.

    No judgment. We’re all like this.

    Given that, I decided not to make any resolutions. I forgave myself from looking at a list of shiny new things that might look good or make me feel good if I accomplished them.

    I might not believe I’m capable of those specific things.

    For instance, I might not believe I’m capable of really completing another book.

    I bet if I resolved to write another one, I might not make it. By the end of next week, it might be all over. Not wanting to set myself up to fail at things, I instead, I made decisions on who I wanted to be.

    Deciding the kind of person you want to be takes the edge off. For me, it feels easier to grow into a role or idea of who I want to be or lifestyle, rather than committing to a list of specific things.

    Take losing weight as the resolution. Instead of that, the decision is to be the kind of person who eats healthy and exercises. When I make that commitment and take the actions and create a habit, my mind can wrap itself around doing the things that support losing weight. Not changing my mind and simply giving myself a bunch of things to do without making a habit or making the whole enterprise believable, is a recipe for failure.

    Consider something like becoming Vegan. Within that lifestyle, there are certain practices, which are all easier to adopt once you’ve made the decision not to do those things, but to be the kind of person who does those things.

    Plus, deciding who you want to be is much more fluid. You may think who you want to be is one way and does a specific set of things. You may get down the road some and make new insights. With a list of resolutions, you’re either expanding your list or editing your list. When you’re practicing a lifestyle, it’s easier to make adjustments. That’s also a much more fulfilling and fun way to live, adding and refining for yourself, the new way you’ve decided to live.

    I’m not sharing all my decisions, but with respect to this site, I’m deciding to be a more professional writer. With that comes with continuing to develop my writing habit, including blogging more. Becoming better at generating ideas and submitting more are part of the territory too. All of those things as disparate things would overwhelm me. Instead, adopting the lifestyle, growing my mind more into it and going from there feels more more freeing. It’s not simply a challenge to overcome, but a higher ideal to live into.