Saturday, February 10, 2007

Pay me now AND pay me later

Our animated little thinker The cheekiness of old party politicians just never stops. They play the same dirty tricks over and over, and, unfortunately, they get away with them almost every time. Far worse, they use the fact that they tricked us before as justification for doing it again.

The scenario is repetitive ad nauseum... build a magnificent, expensive facility, facilitated by one or more levels of government, with funding and taxation that seems bearable at the time. Then, later, often many times, they return with proposals for more money to keep the facility open, or to prevent customers from abandoning it.

The latest Twin Cities version is a bailout for St. Paul's Xcel Energy Center and RiverCentre convention center. From a StarTribune article:
In part to prepare for the 2008 Republican National Convention at the Xcel Energy Center, St. Paul officials and legislators -- mostly DFLers -- want the state to pay off nearly $100 million in city debt on that arena and the RiverCentre convention center.
For you out-of-towners, DFL, is the name of the state Democratic party. Telling, isn't it, that Democrats want state money to upgrade a facility that has already been chosen to host a national Republican convention? Not surprising that they want to spend our money... they want to spend it on everything possible... but they figure that they can get Republican support for this proposal.

We did it for so-and-so, so we should do it again... to be fair

Bostrom [St. Paul City Council Member Dan Bostrom, a member of the RiverCentre Convention & Visitors Authority] said:
"St. Paul has a case because the Legislature paid off $87 million on bonds as a way of financing the expansion of the Minneapolis Convention Center in 1998.

"If you look at the amount the state has put into the Minneapolis Convention Center and the Twins stadium, doing this for Xcel and the RiverCentre makes it more equitable,"
We can't compete if we have to break even

St. Paul City Council Member Lee Helgen said that the RiverCentre debt load puts the city at a competitive disadvantage, because organizations have to pay to host a convention there while other cities can subsidize their conventions

"By the time we're done paying the debt service, it's tough to even break even on events, let alone subsidize them," Huepenbecker said [Bill Huepenbecker, senior aide to the man many consider most responsible for building Xcel when he was St. Paul mayor -- U.S. Sen. Norm Coleman] .

Paying back the loans is too hard

State senator (from St. Paul) and Finance Committee Chairman Richard Cohen added:
"Repaying state loans has become "very onerous" and St. Paul deserves a break to remain on an even footing".
What he wants is $42.7 million to pay off an interest-free state loan. Give them the money at no interest, then pay off the the loan later. Don't we all wish we could get a slice of that pie?

I wonder which of these definitions of "onerous" Cohen is claiming?

1. Troublesome or oppressive; burdensome.
2. Law. Entailing obligations that exceed advantages.

Should we be surprised at who is pushing this state bailout?

City Council Member Dan Bostrom, is a member of the RiverCentre Convention & Visitors Authority.

Huepenbecker,senior aide to the mayor when the facility was built, is also a former RiverCentre director.

Pamela Wheelock, who was the architect of the Xcel financing when she was the city's financial director, is now chief financial officer for the Minnesota Wild hockey team, that plays in the arena. Wheelock said about attracting customers to the center:
"If you can't give them the space as an enticement because of debt service, you're at a disadvantage that jeopardizes your ability to achieve economic impact."
We heard the same front-end nonsense when the new Twins stadium was pushed through illegally without a required referendum... it'll pay for itself. Bull crap! If that were true, private investors would be clamoring to build these boondoggles as profit-making enterprises.

Instead, taxpayers get bamboozled into getting them off the ground, then get hit again and again for more money to support something that was pie-in-the-sky to begin with. Construction companies, construction unions, and politicians benefit... the rest of us take it in the shorts. Businesses change their plans for the supposed additional customers that will be attracted, and become dependent on the facility's continuation. All the people who work in the monster facilities become reliant on it. Once in place, the number of people who stand to lose big by it's demise becomes a large and vocal voting bloc, so the rest of us are stuck with keeping the boondoggle alive, because it can't support itself.

There is only one solution to this never-ending story

Just say NO and keep on saying it. We have to stop these liars when the facility is first proposed... when their grandiose plans are being pushed. A lot of us tried to stop the Twins stadium, and were just walked around by the legislature. I gave up watching Twins baseball, a serious loss to me personally, as my own small protest.

A few days ago, the StarTribune ran an online poll , asking the question: Do you support debt relief for Xcel Center? Before the poll was changed, the resounding answer was that 75% of those voting said NO!

Will the legislature, which is supposed to represent us, defy another huge opposition majority and do it anyway?