Friday, December 23, 2005

Pittsburgh Laurels & Lances has two corporate welfare examples worth watching

When public money goes out to big corporations -- it is called corporate welfare. The Penguins' deal could be worse, but it isn't finalized. And, just because the deal is not as bad as it could be does NOT mean that I'll embrace it. To soar again as a region, we can't make goofy deals.

Why, for instance, should the new arena be given over to the sports and exibition authority? If the Pens get a new arena built for them -- then the Penguins should own it, operate it, pay taxes on it, and then decide its long-term fate.

In my neighborhood, I'd much rather have an owner-occupied building on my block -- rather than renters. Renters are fine, but owner-occupied is even better as the investment is there. And, this is a generalization. One of our blocks, if not the world's best neat freaks in terms of sidewalk trash is a long-term renter. Bless her heart. I love her devotion and how she picks up around these parts. But generally -- we've got to think about the best solutions.

If the Penguins get the handout from the developer, perhaps the Penguins should build a building to their own specs and keep it. The SEA shouldn't take ownership of it.

Furthermore, the public owns a Civic Arena. We'll just take that one back, without a main renter (The Pens). We'll program the Civic Arena, as a true civic arena. I don't want to see the Civic Arena get knocked down with the building of the new home for the Penguins.
Pittsburgh Laurels & Lances - PittsburghLIVE.com On the 'Watch List' I: The Penguins' development plans. The NHL franchise, partnering with a major gambling company and an Ohio developer, has put a bold proposal on the table to privately finance a new hockey arena and redevelop the lower Hill District. On first blush, it appears to be a great plan. There are, however, plenty of details we'd like to see. And it all is contingent on the developers getting one of those stand-alone slot parlor licenses. Stay tuned.

Meanwhile, those involved in the Penguins' plan might want to walk down Fifth Avenue to show PNC's Jim Rohr how not to shaft the public.

On the 'Watch List' II: Jim Rohr. The CEO of PNC Financial Services Group next month becomes chairman of the Allegheny Conference on Community Development. Given PNC's deal this week that dives into the public pockets for Mr. Rohr's Three PNC Plaza skyscraper, we are not encouraged that he'll offer anything in the way of meaningful reform at the long-in-the-tooth conference.
The remainder of the L&L is worthy reading too. See the comments or the link above.

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Friday, December 23, 2005

On the "Watch List" I: The Penguins' development plans. The NHL franchise, partnering with a major gambling company and an Ohio developer, has put a bold proposal on the table to privately finance a new hockey arena and redevelop the lower Hill District. On first blush, it appears to be a great plan. There are, however, plenty of details we'd like to see. And it all is contingent on the developers getting one of those stand-alone slot parlor licenses. Stay tuned.

Meanwhile, those involved in the Penguins' plan might want to walk down Fifth Avenue to show PNC's Jim Rohr how not to shaft the public.

On the "Watch List" II: Jim Rohr. The CEO of PNC Financial Services Group next month becomes chairman of the Allegheny Conference on Community Development. Given PNC's deal this week that dives into the public pockets for Mr. Rohr's Three PNC Plaza skyscraper, we are not encouraged that he'll offer anything in the way of meaningful reform at the long-in-the-tooth conference.

Lance: To Tom Murphy. Pittsburgh's departing mayor blinked in the dispute with city paramedics, offering them a six-month contract extension that does everything but serve the public interest. Paramedics (unionized, of course) oppose a privatization plan that will improve service and cut costs. They had threatened to strike on New Year's Day. The capitulation is another parting gift from the mayor who ran the city into the ground.


Lance: To Pittsburgh City Council. It has passed what it calls a temporary 2006 budget that's full of holes and ambiguities that don't meet the demands of the state board overseeing the listing city. The council has decided to let the new council and mayor deal with the blueprint. How typical of a body whose many members aided and abetted departing Mayor Tom Murphy's "decline-management."

A challenge: To the oversight boards. While Pittsburgh City Council keeps thumbing its nose at its overseers -- no budget, no health-care reform, no joint purchasing agreement with the county -- the oversight boards have refused to get tough and withhold money as a cudgel. The council is playing its overseers for fools; it's time for more drastic action.

Lance: To Ed Rendell. The governor yet again is proving he has no concept of fundamental economics. Among his grand ideas for helping to fund a new hockey arena for the Pittsburgh Penguins (should the team get no slots revenues) is a parking tax. In a city with one of the highest parking taxes in the nation. Ed, you're simply brilliant!

Lance: To Rendell. Prior to the Penguins' development announcement, another grand arena-funding idea from Fast Eddie was to use tax-increment financing to pay off any borrowed money. This, by the way, would require Mellon Arena to be designated a "blighted" area. Simply put, it's a rank abuse of a tool abused so much that it has become nothing more than a free kitty for private enterprises to cover their capital costs with public money.