Mr Uncredible, it appears, believes anyone who doesn’t agree with his fact free policy decisions simply doesn’t understand the issue. Stufflebean even accused former county assessor, Commissioner Bob Main, of not understanding enterprise zones and today at the IBO luncheon called enterprise zones a valuable tool for bringing in jobs.
As usual, he didn’t offer any supporting data or facts to backup his claims. In the case of enterprise zones there simply isn’t any proof that enterprise zones meet the goals for which they were intended. No studies support enterprise zones benefit the area or promote growth. Coos County unemployment rates have more than doubled since the Bay Area Enterprise Zone was enacted in 1986.
Some data suggests e-zones retard growth and here is an example of how that might occur. Let’s say you own a cabinet shop and have steadily grown your business and built your reputation over the last twenty five years and now employ twenty full time people who earn a better than average wage. Then a new, competing cabinet maker moves into town and bring in spiffy new tools and hire new people but because they don’t pay property taxes like you do, they have a higher profit margin and are able to undercut your prices enough to take some portion of your business.
You tighten your belt and make it through the first three years of the abatement and are still standing but didn’t retain enough money to buy new equipment, give raises or apply for tax abatement yourself. Your competitor then applies for another extension and can grab another ten percent of your business and you have to let a couple of guys go. Now your reputation has begun to suffer a little and you get even less work. Even if you survive you are not competing on a level playing field, e-zones do not fit in with true free market principles.
Taxpayers are subsidizing one company over another. How is this fair? More importantly, how do the commissioners measure whether the taxing districts wouldn’t have been better off just receiving the taxes? How do they determine that jobs with higher wages to a handful of people provides the greatest good for local taxpayers? How do they measure the overall economic benefit to the county? They don’t explain it because there are no facts to support e-zone tax abatement achieves intended goals.
Then consider Dan Smith’s statement at the October 5, BOC meeting where he proudly proclaimed they would exceed the 150% wage requirement ‘regardless of the enterprise zone’. So why give up tax revenue to an area that badly needs money?
Consider that ORC has already received three years of abatement on the site in Bunker Hill and had the further benefit of locating at a previous mine processing facility. Consider that ORC is only here because of the ore, not because of the e-zone and is backed by foreign capital and it is foreign shareholders who will benefit from the tax savings.
Then consider the so called $60,000 benefit Nikki Whitty negotiated for the county. Earmarked for public safety, reportedly a new patrol deputy, rather than $52,000 going into the general fund, the money the $60,000 will not cover the additional expenses associated with hiring a new deputy. In other words, the county will lose money on the deal.
Lack of facts won’t stop Stufflebean from trying to “…convert opponents of the tax break into supporters by simply explaining the facts.” By facts, Stufflebean probably means things like taxes wouldn’t flow directly to schools, or public safety or public infrastructure and anyway these are taxes not yet levied so we won’t notice the lack of them. (Even though O & C payments are set to expire soon and the county could use the money. Remember how the O&C expiration was one of the reasons given to reduce the road crew)
One thing Stufflebean and Whitty will not be able to provide are definitive figures now, (they even admit they have no idea what ORC property will be assessed at) or show you mathematically in five years how the decision benefited anyone but ORC and its shareholders. They are both making policy decisions without facts and the rest of us are paying the consequences.
Wonder if there is any campaign strategy behind Stufflebean waiting one day before the election to hold this information/persuasion meeting.
Personally, I don’t think publicly funded groups like SCDC should exist, period! Companies should pay for and hire their own lobbyists. Essentially, public money is choosing sides against members of the public. LNG is one example and ORC is another.
Also, I agree, I don’t blame ORC for asking for a handout. The fault lies with the local elected leadership and the legislature.
A few thoughts – in no order of importance. Excuse the grammar and spelling. Of course there is reason to wait untill most ballots have been returned. You folks fell into a trap suggesting to your following after the last county BOC meeting that the BOC had been swayed by your arguments and had not, and probably would not, support ORC. That’s what people who oppose ORC will recall when marking their ballot. Any person who doubts that there will be a majority vote by the county BOC this time is not listening. Main will vote no again. ORC is here for the minerals, not tax relief. If they did not see this as a profit bearing venture, they would be in Australia or elsewhere. We have the minerals not found elsewhere in the US. In recent days it has been reported that China will cease supplying rare earth minerals to Japan and the US. ORC and their parent are not profitable companies and wont be for years. My concern would be who ORC will sell out to once they have all permits and tax incentives in hand. Also, the professional politicians of our community, at all levels, some are clowns and gadflies as the World paper calls them, could have demanded that ORC hire local people to build their processing facilty (unless needed skills do not exist here – and that is possible as skilled labor such as ISO certified welders, certified electricians, plumbers, are busy and don’t need jobs) in return for tax abatement and other gifts. BUT, FOR REASONS UNCERTAIN, THEY DID NOT SEIZE THE OPPORTUNITY. There is absolutely noting that prevents people from outside of the area from being offered jobs here. And, dont put 100% blame on ORC. Coos Bay enterprise, West Coast Contractors, run by friend of the gov, is the facilty prime contractor. They could have hired all local people. They did not. Any jobs created will help the local economy. Two years from now we’ll be sending money for a facade program. We are too desperate for jobs and too eager to waste money here. There are more than 10 organizations locally tasked with creating jobs. None are lead by a person who has created jobs (and I dont mean hired somebody for a job). I have. And, I am not the only local person who has. Perhaps you taxpayers should be demading that a person who has been around the track a few times be heading SCDC and other organizations that are spending your tax money – big time. Enough!