Who said this website does not respond to popular demand? In his retort to my recent article on our County Commissioners’ inability to formulate a Plan B to replace Plan A for solving their financial troubles (Plan A was: suck off Jordan Cove’s tit), Mark McKelvey commented: “I thought there would be a Plan B in there somewhere. Wim, what’s your Plan B?” His response was akin to that of Shannon Coastes who demanded to know, not long ago: “If not Jordan Cove…..then what?” Like Mark, Shannon didn’t seem to have read all of the article she commented on, but compared to Mark she was much more incensed, demanding an answer from “Smartypants” (meaning me) whom she accused of cruelly popping people’s “bubble” about the glorious future promised by her favorite ecodevo fantasy. After responding to Shannon Coastes I have heard from her no more, possibly because common-sense solutions do not appeal to people with excessive (hence never fulfilled) expectations. But like a pastor resigned to preaching to the same sinners every Sunday morning, I will try again. Maybe a few different verses from different Gospels will do the job (no pun intended, of course).

 

Plan B.1 and Plan B.2

First, we need to realize that the Plan B concept, first verbalized by permanently confused County Commissioner John Sweet, conflates two problems, thus adding to the confusion at the Courthouse. So in order to enable clear thinking we need to separate those two problems which are, in essence: 1. the County’s ominous financial prospects; and 2. our lack of economic development. Foghorn Leghorn - Boy all mixed upHaving made this distinction, we can now formulate two plans which, in good bureaucratic fashion, we will title Plan B.1 and Plan B.2. I can see it in the paper’s Classifieds now: Official Notice of Plan-Making . . .

Plan B.1 will be limited to addressing the County’s impending financial crisis that, like a loaded log truck coming off a mountain, appears unstoppable. Making things worse, the County’s response has been to just sit in the middle of the logging road, gazing at the headlights while tossing money to and fro for no sensible reason, but perhaps hoping that the log truck driver will stop to pick up some of it.

Plan B.2 will address the thorny problem of “economic development” in Coos County, which has been bungled by generations of pompous dunces . . . with disastrous results.

I realize, of course, that to some extent the problems to be addressed by Plan B.2 and Plan B.1. are related. But as we have been able to observe, emphasizing that connection carries great moral hazards, including the kind of inaction exemplified by the Commissioners’ deer-in-the-headlights posture.

 

Mo’ Money

Having separated the two elements of the problem, we should now know what Plan B.1 must produce: money to pay the bills, particularly the County’s bills. Of course, the reason why B.1 and B.2 are so hopelessly mixed-up in the Commissioners’ minds is that, against all experience accumulated during the last forty years, they are still hoping that some big new industry will come and play Santa Claus. And if Santa does come, they can continue to float along at the Courthouse instead of making painful decisions. But Santa Claus has never yet come, and chances diminish every day that even Jordan Cove will drop in to do its Ho-Ho-Ho thing. The County’s method reminds me of those big billboards for the Oregon Lottery, which include warnings like “Lottery games should not be played for investment purposes.” Those warnings may be ineffective, because the kind of people who think the only way to get ahead is to win the lottery are not big readers. billboard 3 santas-beardBut perhaps along the same lines, a big sign could be mounted over the entrance to the Commissioners’ chambers: “Waiting for Santa Claus to Make Up Your Deficit is Unwise.” Something like that.

Even so, there are things that can be done besides hanging up signs; I listed several in my article’s final paragraph: quit spending money on useless frou-frou like “economic development”, lobbyists, pay raises for “equity”, goal-setting seminars and other such trifles, and sue to obtain the revenues from the Coos Bay Wagon lands that, as Don Gurney can document, are rightfully ours. Most important, if our politicians are so desperate for property tax revenues from new businesses, then they are idiots if they exempt them from those taxes by means of Enterprise Zones, or if they let other public bodies siphon them off by means of Urban Renewal Districts. The County Commissioners have the power to abolish whatever EZs and UR Districts their predecessors approved many years ago, and they need to get on with it; time is of the essence because thanks to past dawdling at the Courthouse the benefits won’t arrive instantly. Perhaps the Commissioners could develop some backbone by contemplating California Governor Jerry Brown’s observation a few years ago, when he advocated abolishing all of California’s 425 URDs (called “redevelopment agencies” down there) because they were “futile” and diverted too much tax revenue. In the end, Brown got his way. See http://www.sfgate.com/bayarea/article/Jerry-Brown-calls-redevelopment-agencies-futile-2531263.php

 

“Vital development tools”

The North Spit EZ was formed in 1985, and the North Spit UR District in 1986. Since then both these civic infections have spread, for instance by the Bandon EZ taking in (with the full support of previous County Commissioners) the Bandon Dunes development – after it was already built, which meant that the Commissioners, not Bandon Dunes, played Santa Claus.

As to the efficacy of EZs in general, there is no national evidence that they work, and plenty of local evidence that they don’t recruit any substantial new businesses. Jordan Cove and Oregon Resources and Bandon Dunes have all admitted that EZ tax breaks played no part in their decision to come here. B-17 flight 165Since John Sweet keeps claiming the opposite, he came to office terribly misinformed; these things have all been reported in the paper. Even worse, he seems unwilling or unable to learn the truth. But we have to remember that every government program, no matter how useless, will have its supporters besides those who work for it; in fact, it can be observed that much of what such agencies do is designed to generate such unthinking support.

Nationwide the history of UR Districts goes back further than the EZs, but despite all the drivel spouted by conniving officials about self-financing and revitalization and “vital development tools”, they have been wasteful and no more successful than EZs. Ever since the 1960s, the City of Coos Bay has had one UR district after another, usually to rebuild the mistakes made by the previous one, but always at ludicrous cost.   One look at what’s been perpetrated under the UR label brings out the main reason why a certain class of people aspire to public office: it is their chance to look important by throwing other people’s money at things for which they would never have spent their own dime – or else to quietly benefit themselves. The UR Districts in the city of Coos Bay have been prime examples. Coos Bay UR’s main beneficiaries have been architects and contractors, along with the downtown businessmen who populate the City Council. And this brings up the knotty, never investigated problem of UR officials (who are the same as the City Council and Mayor) making financial moves that are so stupid, they must have been either drunk or retarded or on the take.

Since its formation in 1986 the North Spit UR District has been controlled by the Port of Coos Bay, but it was originally approved by the County, since it’s not within any of the cities. Ever since then the Port has been spending multiple millions in property taxes diverted by that UR District, and what do we have to show for it? But the County Commissioners have the power to abolish the North Spit EZ as well as the Spit’s UR District, and given the warning signs of the County’s dire financial future they should have done so years ago, without regard for the customary wailing by the Port and its covetous co-conspirators.

I mentioned earlier that the effects of abolishing these money-wasting tax gimmicks may not be immediate, which makes this an indictment not only of the present set of County Commissioners but of their equally short-sighted predecessors, who have known for many years that the County was headed for a financial train wreck. Friedman on public spendingIf they had taken that bull by the horns the County could be drawing revenues from those sources now. One key reason for the delay is that UR Districts don’t die as long as they remain in debt, which is why those running them make sure their bonds are never completely paid off, so terminating an URD has to make allowances for that. And while abolishing EZs for businesses not yet built should not be a problem, taking away the EZ’s benefits from existing businesses may run into contract law problems. On the other hand, EZs always exempt new businesses during the construction period, which in the case of JC could be three years. At a minimum that needs to be done away with; but of course that will only pay off if JC actually builds, which looks less likely by the day.

 

Central Planning – it’s still here!

The second part of our Plan, designated as B.2, seeks to foster economic growth in this stagnant backwater of ours. Again, the careless way in which John Sweet and Mark and Shannon verbalized their questions makes answering them difficult. It’s analogous to Marshall McLuhan’s rule that the Medium is the Message. Questions demanding PLANS imply that PLANS are the only way to solve the problem at hand, regardless of the mountain of evidence proving that it’s been PLANS that caused our problems in the first place. Gary North, Business only cares about profitsTo people enamored of PLANS, if yesterday’s PLANS didn’t do the trick, then today’s or tomorrow’s PLANS will bring us that economic Nirvana. But in Coos county we’ve swallowed so many PLANS, they are coming out of our ears. PLANS and Planning (the latter of which is a mere euphemism for being lorded over by arrogant dweebs) have ruined us, as should have been expected by anybody familiar with the history of totalitarian economies – those run by know-it-all central planners, like Russia, China, East Germany, and more. An excellent appraisal of Planning could be Will Rogers’ assessment of both Prohibition and Communism: “It’s a good idea, but it won’t work.”

The supreme irony is that many of those who today are running Coos county’s central economic planning agencies – FONSI, SCDC, CCD-BDC, Regional Strategies, the Chamber, B.S. Oregon, etcetera – were not even born when all this planning foolishness started, back in the seventies. No matter; while promoting Coos Bay’s latest industrial plan they act as if they just invented the wheel. Chesterton - Every elite behaves like a mobPeople like, say, Eric Farm from Menasha who imagine themselves representatives of free enterprise and the market economy, so they can devote their business expertise to the common good. In reality many large corporations have bureaucratic souls: just like government agencies they attract and nurture drones infused with groupthink. And every time the groupthinkers, acting as board members of some ecodevo outfit like the Port or B.S. Oregon, open their mouths, they show they are the exact opposite of free market practitioners. At their very core they are conceited central planners who are busy repeating the mistakes made by a couple of earlier generations. And they never stop to consider the wise words from the Good Book: “By their fruits ye shall know them”, but oh my, their fruits do stink.

 

People and economic growth

There is general agreement that one good indicator of economic health is a growing population, which we haven’t had in decades. As I documented in The JOB Messiahs’ final chapter, between 1980 and 2009 Coos county’s population (not counting Bandon, which grew by 1,000 people) diminished by 2000, or about 3% of our 63,000 residents. That Bandon’s 1,000 increase made up for half the county’s 2,000 decrease should have been no consolation but a lesson, because unlike the rest of the county Bandon has benefited greatly from NOT engaging in industrial central planning. Bandon simply capitalized on its natural attractions, thereby drawing a lot of new, wealthy residents, all of whom spent money and some of whom started new businesses: Hardin Optical, Bandon Dunes, the Continuum Center, a specialty lumber business, and others. Even more important than what happened in Bandon is that our net countywide population decline of 1.5%, even if it doesn’t sound like much, looks shockingly bad when you consider that every other coastal county – in fact, all other counties in western Oregon – saw substantial growth during that time, ranging from 12% in Douglas county to 114% in Portland’s Washington county. And Portland was even outdone by the Bend area east of the mountains, with Deschutes county growing by 175%. See the nearby chart.

Chap 19 - State population growthI lay responsibility for this demographic-economic disaster squarely at the feet of
Coos county’s ecodevangelists whose countless irresponsible industrial schemes continued to discourage in-migration during those three decades. I’m not saying they did it on purpose; their very nature is to combine arrogance – as in feeling entitled to lord it over us – with ignorance – as in being too stupid to see that bad plans, even if they never come to fruition, do have consequences.

So let me put it simply. Why would a retiring couple looking for a nice spot to spend their declining years come to Coos Bay when the place seems constantly in danger of becoming an industrial hellhole? Better to be safe and buy a home in Bandon or Brookings or Florence or most any other coastal town that has given up its industrial illusions. And this is what happened. During my many years in the restaurant business I talked to tons of people who came to Coos Bay for one reason or another – medical or legal services, shopping, eating German food – but they lived in one of the places I just mentioned. When I asked why, for convenience, they didn’t settle in Coos Bay, with its fine natural and commercial amenities and cheaper real estate to boot, the subject of Coos Bay’s tired industrial look came up, along with concerns about the latest industrialization scheme. One lady used words that hurt a bit. Coos Bay, she told me, had “no soul”. Call that airy-fairy all you want, but perceptions do shape reality. And we got into this fix because an inbred clique of impatient, ignorant, loudmouthed people pushed us into it, and they are still running in that squirrel cage.

With regard to the chance of our local population growing, Mark McKelvey has stated on this website:

 

“I wouldn’t expect a great influx of people and investment to Coos County the day after the JCEP is denied. That didn’t happen in the 80s or the 90s or the 2000s or the 2010s. It’s not gonna happen now. The opposite is actually the case. We’ll see more people and investment come to Coos County if the JCEP is approved. . . .
Why didn’t that happen from 1979 to 2005? Our “permanent slump” precedes any talk of JC.”

 

To fully grasp what he was saying I had to read this several times. But what he appeared to say – and correct me if I’m wrong — was that if JC is denied its licenses and doesn’t build here, we will not see an influx of new people because we didn’t get such an influx during past decades, well before JC came on the scene. On the other hand, he predicts a human influx if JC does build. (I assume he’s not talking about the workmen during the temporary construction boom.) And he said all this to counter those who have predicted that JC’s presence, after the construction period, will further shrink our population by discouraging people from settling here, for multiple reasons including navigation restrictions, increased air pollution, and above all the fear of being burned alive due to some major mishap including, but not limited to, the overdue 9.0 earthquake and tsunami.

But when Mark claims that our lack of in-migration before JC proves that our population will grow once JC is here and operating, he is blithely ignoring our history. He should have explained why during all our decades of decline, vigorous growth was occurring in practically every other town on this coast, not to mention throughout western Oregon. In short, he’s created a straw man, or he waved a red herring. Or he mixed up apples and oranges; take your pick.

To reiterate, why have all those other places in our state grown while we declined? Because they were not acting on the illusion that their harbor or their county had some vast, unrealized industrial potential. Instead they concentrated on making their towns attractive and welcoming, so people came, bought homes, spent money, started small businesses that grew; and in the end their economies were in better shape than in the old days, when the luChesterton - Men afraid to look backmber mills constantly suspended production or got hit by strikes or closed overnight, in every case leaving the townspeople holding the bag.

Among the people from Florence I met at my restaurant was a man, originally from Hungary, who had a manufacturing business, making precision parts for military helicopters. Now who would have thought such a thing could happen in a town the size of Florence? In fact, it’s exactly what the leading dim bulbs of Coos Bay have always claimed to want. But for Florence it was not the result of some heroic ecodevo program but of a natural process of in-migration.

 

On to Plan B.2

Mark M demanded a Plan B. I promised a Plan B.1 and B.2. But the only Plan B.2 I’m ready to offer is a sketchy one, consisting of goals, possibilities and ideas. If we formulate a Plan B.2 that is too specific, we are walking in the footsteps of the ecodevo crowd with their rigid, groupthink-formed habits, and we will surely fail.

The first and most essential part of Plan B.2 is: whatever is done with public funds in Coos Bay should make this a more attractive place to visit and live in. Economic development is bound to occur when people with money and/or ambition move into an area, but this doesn’t take armies of ecodevo bureaucrats. Almost always, new residents have seen the place before, as tourists or travelers, and found it attractive. And we seem to forget that we have it all – gorgeous scenery, a mild climate, fresh air, recreation, the most extensive shopping and medical services on the coast, inexpensive real estate – but we’ve done a bang-up job of hiding it. Did you know that homes in Florence and Bandon sell for 25% more than in Coos Bay? Does that tell you anything? These are simple business questions. To turn all this around as Mark and his allies do, and claim this will happen as a result of the latest industrial scheme, is denying all the evidence of history – solid local history.

At the very core of the attractiveness factor is the waterfront. Boswell - Overturn governmentPeople love seeing waterfronts, living near waterfronts, using waterfronts for recreation and sightseeing. And the grossest, most destructive violation of our already-derelict waterfront is the Port’s rusty railroad that was needed only for the survival of its own expensive bureaucracy, not for any valid business reasons. One of the best things that could happen to Coos Bay is for the Port to tear up the railroad to sell the track materials – there is value there – and then sell the entire line’s real estate to a Rails to Trails organization that will convert it to an uniquely scenic bike path, from Eugene to Coos Bay and possibly on to Coquille. Excluded from the sale could be certain parcels such as the downtown Coos Bay switching yard, which holds tremendous development potential as a waterfront “Old Town”.   Now THAT would put Coos Bay on the map.

The second part of Plan B.2 is: Trust the people, change some laws. We can no longer afford to be dominated by a know-it-all clique that is unresponsive to reality, ignores the will of the people, and impedes sound, sustainable development.

One initiative proposal that we are already likely to vote on this spring is an anti-LNG measure asserting local rights. Once it passes – or even before that election – the usual suspects are likely to contest it in court, but regardless of the outcome the publicity is likely to do Coos county a great deal of good among the kind of people we would like to come here.

It is also vital to get rid of the mass of ecodevo agencies that have hurt rather than help us. But instead of doing so directly, they will probably melt away if we do a wide-ranging restructuring of the Port of Coos Bay, from top to bottom. This is because for many years the Port has been the lead agency for economic development, setting the pace for all the others, and a more dismal achievement record would be hard to find. Essential parts of such a restructuring effort should be the return of the people’s voting rights that were stolen from them in 1986, and to change the Port’s mission from the mindless, endless promotion of industrial nuisances to things that enhance local livability. I have thought a great deal about how this could be done, because the political swindlers who persuaded the voters to give away their civil rights back in 1986 promised that a simple local initiative ballot measure could do that trick. Since then the discovery of legal precedents to the contrary has revealed that as just another of the many lies told during that electoral atrocity. According to these precedents it would take a statewide ballot measure, which is impossible to achieve. As an initiative measure it would require more signatures than there are people living in Coos county; and even if that was achieved you could hardly expect the rest of the state’s voters to take an interest in what happens in Coos Bay.

This is a knotty problem, but there are ways to handle it. One would be to ignore the legally chancy problem of whether the restoration of the Port voters’ rights would be a state or a local issue and take our chances in court, arguing that the people themselves should be able to change their government, as the Oregon constitution says. But a better way, in my opinion, would be to sidestep it entirely by creating a local initiative (in the CB Port District) which would combine two parts, or else two initiatives that would be interdependent, together containing those two parts. One part would simply abolish the Port as it exists today, reduce its $1.5 million tax base to zero, and transfer its assets and obligations into a trust. The other would create a new Port with an elected Board of Commissioners (or a temporary appointed one of short duration), a new, lower tax base and a re-written charter, which would absorb the former Port’s assets and financial obligations. Obviously this would have to include a provision for electing all future Port Commissioners; an essential part of our problems has been the Port’s Governor-appointed Board that has shown such outrageous disdain for the Port District’s voters.