Someone should have stopped us

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Wenatchee World Editorial Board

Saturday, December 10, 2011

If only ...

If only someone with sense and financial acuity could have dug through the wishful thinking and pipe dreams and told us it wasn’t going to work. Maybe a quick dose of sobriety might have saved us, and we would not have built Town Toyota Center. We would not be saddled with a $42 million debt and no means to pay it. We could not be blamed for financial contagion or embarrassed by our foolishness, lack of foresight, empty due diligence, poor judgment and pending insolvency. Maybe we would not be waiting for the lawyers of the world to scour us clean to satisfy part of our horrid debt. If only ...

But there wasn’t anybody to save us from ourselves, not really. There were people who could see it coming, who knew that fanciful numbers that pop out of developer’s heads are no substitute for cold truth and analysis, and that we were taking an enormous risk. Their voices were soft, drowned in civic enthusiasm for near impossibilities. There was no state agency, experienced in budgetary analysis and municipal finance, to say, hey, wait a minute, 4,200-seat arenas don’t make million-dollar profits. It is wrong, risky and dangerous to borrow money on the assumption they will. The state treasurer does not have that in his job description. The state auditor can tell you you’re wrong after you do it.

This may change with a small and little-noticed bill introduced last week by Sen. Ed Murray, chairman of the Senate Ways and Means Committee, and co-sponsored by Sen. Linda Evans Parlette and a bipartisan array of others. It would require an “independent financial feasibility review” before a public facilities district is formed, before it issues public debt, and before it buys or builds a facility. The review would be performed by Department of Commerce Municipal Research and Services Center. “The review must examine the potential costs to be incurred by the public facility district and the adequacy of revenues to meet those costs.”

This is an excellent idea. As much as it pains us to say it, we should cheer anything that makes it harder to be another Wenatchee.

This is the opinion of The Wenatchee World and its Editorial Board: Publisher Rufus Woods, Editor Cal FitzSimmons, Chief Financial Officer Janine Bakken and Editorial Page Editor Tracy Warner.

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Eye_Guy 1 year, 6 months ago

Not another "If somebody would have only warned us" editorial. The Wenatchee World and local media drank the TTC Kool-Aid being passed out by Wenatchee officials and Global representatives. Now the WW wishes someone would sounded a warning (there were plenty) and applauds another layer of government.

We need elected officials that understand the boundaries of government and are not interested in leaving a legacy for themselves. We need newspapers and local media that practice journalistic investigation and reporting rather than merely publishing what comes across the wire or through the public relations departments of government agencies. The Wenatchee World and other local media should have been all over the unrealistic expectations of the TTC. However, when you try to play nice and get cozy with the power players in Wenatchee you eventually get burned.

JimboBear 1 year, 6 months ago

Nathan, It appears that I looked at this editorial in a different light than you did. I didn't see it as another feeble excuse as you seem to have. I see it as an admission that as part of the community, the WW and it's editorial staff along with the mayor and city council allowed themselves to be hoodwinked by a developer with questionable motives, and in so doing are just as guilty of deceit as the aforementioned. The end of the article informs us of a new bill that would require a "feasibility review" which would help to protect the public and their monies. I believe the first two paragraphs are merely a lead-in to the third which is the real meat of the story. The final words are merely encouragement to accept and support this possible legislation. Do you find fault with that request?
As for the need for more investigative reporting, I believe that people get what they pay for, so be prepared to pay more for your local news if the investigative aspect is increased as you suggest.

Tim 1 year, 6 months ago

At the risk of being bashed by Jim again I would like to comment.

I think it's ridiculous that we have to construct another government agency to protect ourselves from our own stupidity and arrogance. We all make mistakes but we should learn from each other. We don't need another government agency to slow the process, increase paperwork, and raise the cost of every project.

Municipalities should look around and go "Let's not pull a Wenatchee" before committing to projects of any magnitude, especially those that involve borrowing and anticipating a return on the money for repayment. That is for private enterprise, where gambling with investments breaks as many or more than it benefits.

In city government, growth should pay for growth or you aren't ready for it. Don't look to another government agency to tell you your decision is wise or foolish. That's the blind leading the blind.

Just what is a "Department of Commerce Municipal Research and Services Center" anyway?

JimboBear 1 year, 6 months ago

I don't "bash" you Tim. If I did, you'd know it. Just because someone disagrees with your opinion does not mean that they are "bashing you".
As a matter of fact, I had exactly the same thought when I first read this, and then I read it again while composing my response to Eye Guy and thought differently. I think that what this "Agency" would do is play the outfield for the citizens aand prevent municipalities from ramming bad decisions down our throats when it comes to issues like the TTC. I must have read the posts of hundreds of people here decrying the fact that the citizens were never given the chance to vote on the TTC funding and therefore felt no responsibility. This bill and the resulting legislation would solve that by creating a "voters advocate" group (if I may use that term). It should greatly hinder the councils, mayors and county managers from deciding that they know better than the common citizen, and I think that's a good thing. Sure beats the way things are now, and would silence those "johnny come lately's" that like to pipe up after the fact and claim that they "knew it all along".
BTW, I believe that there has been a Municipal Research and Services Center within the State Dept. of Commerce along. Nothing new exactly, other than the requirement for their approval before creating PFD's, I think you'll find. If you care to research that and can show me wrong, I'll admit it because I really did just pull that out of my hat.

Tim 1 year, 6 months ago

Jim, I did research and found you to be correct, it is nothing new. But as you can see from my findings it is still one office telling the other how to spend money. It does not act as an advocate for the populace. It's just more bureaucracy. It MIGHT prevent another TTC disaster but it will also create more paper work and makes the government responsible where we should be.

They should just pass a law preventing any government agency from going into "for profit" business.

Tim 1 year, 6 months ago

removed by me

JimboBear 1 year, 6 months ago

". . .makes the government responsible where we should be."
There you have it Tim. We should be, and yet we are not and haven't been been for decades. It gets worse with each passing year, and the people have come to expect perfection but are unwilling to put any of their own effort into it. "Big Brother" would love to control every aspect of our lives, and if we continue on our apathetic downward spiral, they will one day. All we need do is give them the years and continue being "too busy" to be our own watchdog.

Tim 1 year, 6 months ago

I did some checking and it appears the "Department of Commerce Municipal Research and Services Center" is connected to the University of Washington and is funded in part by the university and partially by the municipal research and services fund which consists of a portion of the cities' share from the motor vehicle excise tax.Strangely this was a very old document explaining the funding sources so things could have changed. But regardless, this "independent" review is still tax payer supported.

What is funny is this agency is under contract with the Department of Commerce because the Department is required to contract the services out. So, their independent council is a government funded agency contracted by a government agency to tell governments how to spend money.

RKiser 1 year, 6 months ago

I'm so tired of hearing "Us" and "We" used in these discussions of bad decisions and responsibility. A few people made decisions, not the community, a few people placed the entire City and each of it's taxpayers and citizens at risk for financial burden and a cut in services. Thanks for annexing me against my will into this mess. I had no say in that either.

JimboBear 1 year, 6 months ago

Oh, you are quite right about the number of people who actually did the deed, Mr. Kiser but don't forget that those people are the ones whom "YOU/WE/US" elected to represent us. So you chose your favorite name of the three, but the same WE (my favorite)who elected them to represent US are now responsible for the mess YOU are in. Sorry, but if you are a Wenatchee resident your choices led to this point. That's the sad truth of it.

DharmaBummed 1 year, 6 months ago

Unless those who were responsible won election with 100% of the vote then not everybody in the valley voted for them or for them to make this decision. Pretty sure they didn't get 100% of the vote.

JimboBear 1 year, 6 months ago

Doesn't matter Cheryl. Remember, the majority (be it simple or set percentage) rules, and the majority of voters voted for those who made the decision and and the majority of those voting on the making of the decision set the stage for what happened to the citizens, both minority and majority, and hence the community as a whole. It's often a bitter pill to swallow but it's the "American way".

davebugg 1 year, 6 months ago

Yup....that's what pretty much happened.

davebugg 1 year, 6 months ago

Oh, the delicious irony. Senator Parlette sponsored the bill (ESSB 6230) which brought us the current Public Facilities/White Elephant Arena fiscal fiasco. Now she is a primary co-sponsor of a bill to correct the problems that her initial bill created. (Rolling eyes)

douglas 1 year, 6 months ago

I realise that "those who don't learn from history are doomed to repeat it", but I'm getting a little tired of hearing what went wrong, and vast discussions of "why". It's a little like arguing why we went into Iraq. That's history. The question I would like to see resonable opinions on is what do "we" do now?

JimboBear 1 year, 6 months ago

Right on Doug! That question has to be answered.

pa61va 1 year, 6 months ago

"If only someone with sense and financial acuity could have dug through the wishful thinking and pipe dreams....... There was "somebody" that did that, Frank Kuntz, when he voted "no" on the TTC, and said it wouldn't work. But hiis advice fell on closed ears.

leeba2 1 year, 6 months ago

Does anyone remember how this started? Was this on of those situations whhere an official goes to a convention, is befriended by a hustler, oops strike that, promoter and all of a sudden we have "investment opportunities" for the county funds, etc.? Should we severely curtail travel by local officials?

AverageJoe 1 year, 6 months ago

The way some people talk about Wenatchee, you would think they are nothing but a bunch of lying snakes. Wenatchee is not the enemy; they are our neighbors…our friends. And when friends need help, you don’t give them the finger and said its time for you to learn a 20-cent lesson (a .2 percent sales tax increase will cost 20 cents for every $100). Wenatchee didn’t just decide one day to build a “white elephant” sport arena. A proposal came to them from a management company called Global Entertainment who said that if Wenatchee built a multi-purpose arena, Global would be able to bring sport teams, athletic tournaments, concerts, and other entertainment events to the area, just as they had done in other markets similar to Wenatchee. Global presented success stories of other regions in the country and said these facilities are giant economic drivers for their communities. And after a number of conditions fell into place, including the forming of a regional PFD, Wenatchee decided to take the leap-of-faith. This entrepreneur mentality, which we all admire, had pioneered a number of valuable community assets such as Mission Ridge, Central Washington Hospital, Wenatchee Valley College, 2 hydroelectric dams, a convention center, a performing arts center, etc.…to say nothing of an entire apply industry. And like every decision involving risk, sometimes things don’t work out. Well, there are a lot of things about Wenatchee that have worked out, and I’m prepared to give them a break.

What would happen to Wenatchee if they declared bankruptcy? Certainly, there would be layoffs, neglected capital projects, reduced services, an exodus of citizens and a decline in community pride. And are we in North Central Washington going smugly look-on and say, “Wenatchee got themselves into this mess and they need to get themselves out of it!” How applicable are the sacred words—“Blessed are the merciful, for they shall obtain mercy.” Come-on fellow North Central Washington citizens, ante-up 20 cents to help our neighbor—it’s the right thing to do.

davebugg 1 year, 6 months ago

Sorry, Joe, I ain't buying it one bit. Wenatchee failed to do its due diligence, and if they had it would have found enough red flags about Global to put a halt to the entire process. There was such a raging redevelopment 'fever' going on for a 'Riverfront Drive', with the White Elephant Arena as the anchor, that it was easy for Johnson and half the city council to don blinders and stick their fingers in their ears to avoid paying attention to those of us who presented the cold hard facts. And with the land speculations which the Parlette's were engaged in at that specific area, our Senator seemed exceedingly eager to sponsor the bill which allowed formation of this PFD.

Government has no business investing my tax money, along with everyone else's hard earned money, acting as an entrepreneur; as exampled with the White Elephant Arena, it frequently screws the pooch. This whole fiscal fiasco now takes away from the city the ability to effectively do what it is chartered to do: provide for public safety and for a healthy infrastructure.

The things that have worked out for Wenatchee are the things that it is supposed to do, not the things which real entrepreneurs do with their own money.

Yes, Wenatchee got themselves into this mess, and they need to get themselves out. It's funny, Joe.... you are soooo understanding of Wenatchee acting like an entrepreneur, and yet you don't want it to deal with the failure like a real entrepreneur would have to do.

And if you want to throw religion into the mix, then keep in mind that, according to Jesus' Parable of the Talents, those who waste resources foolishly will pay a steep price.

Tim 1 year, 6 months ago

Your right about not bringing religion into this Dave. Christianity is all about relationships, not government. But if we are going to quote the Bible I think this verse applies best "The borrower is a slave to the lender".

Tim 1 year, 6 months ago

You know what, if they had said five years ago that for a .02 percent sales tax increase we could have this nice facility I would have gone for it. Entiat will be playing a ball game there next week, as will most area schools, and it's fun to watch the kids in that place.

My only problem with your above statement A-Joe, is that municipalities are not suppose to be entrepreneurs; that is not their role. And I don't think we need more government control, as the above article seems to support, because Wenatchee got stung

That said I agree we need to get the thing paid for one way or another and keep it open and available for the community. But I would still support the sale of it to private business. It will still be a revenue maker but not a burden.

LokelYokel 1 year, 6 months ago

If a 0.2 percent sales tax increase can fund this center then all these hand-wringing editorials and comments about rampant mismanagement are laughable. The only problem seems to be that the mechanism to enact the increase is broken, and that's just poor politics. So Wenatchee's biggest mistake is getting into a position where it has to rely on a modicum of good will and a spirit of community to make a slight change in the system. As we can see from many of these gloating comments there seems to to be a dearth of goodwill and community spirit, and the editorial board's biweekly lamentations are only fuel to the fires of discontent.

As for the slippery slope of religious doctrine, I try to stick close to the golden rule...do unto others as you would have them do unto you. Seen under that light, any doctrinal evasion of the moral mandate implied in remedying the TTC's situation would surely be built upon a weak foundation.

davebugg 1 year, 6 months ago

Anonymous comments are not allowed per the Wenatchee World Terms of Service.

JimboBear 1 year, 6 months ago

Yep! It just amazes me that so many people continue to post anonymously with their only excuse being that they were not aware of the rules. It makes me think of a toddler whining "I don't know!" when they are asked why they misbehaved.
Please edit your profile to include your first and last names, LocelYokel.

d19jordan57 1 year, 6 months ago

"hoodwinked by a developer with questionable motives"

I wonder if the motives of this or many other developers are quite so questionable. Aren't the motives, in fact, quite well understood, and for this reason decision makers and influential observers should have been a bit more inclined to "drive defensively" (assume the other driver is out to wreck you)? It seems an excellent illustration of the regrettable but necessary mandate to "Let the buyer beware..."

JimboBear 1 year, 6 months ago

Basically we are saying the same thing, just with different words Dan Jordan, but my reference to questionable motives was not meant to imply that all or even most developers are not out to make a buck, but rather the fact that Global appears to have been in trouble already, and entered into this deal with rather soiled hands in an attempt to bail themselves out of the hot water. Hizzoner and the Council were easily swayed to be sure and seem to have jumped at the deal before it could escape them. That said, they were "hoodwinked by a developer with questionable motives". That seems to happen often when you get people involved in dealings they don't understand and really shouldn't be involved in to begin with.
"Buyer beware"? Always, and I don't mean in just this instance.