Showing posts with label Oak Creek. Show all posts
Showing posts with label Oak Creek. Show all posts

Saturday, May 18, 2013

Subsidized Hotels

Construction is set to begin this coming spring on a hotel near Milwaukee's Mitchell International Airport after government officials in the area spent five years struggling to get a private developer interested in the project. 
What tipped the balance? Officials in the small Milwaukee suburb of Oak Creek, Wis., came up with a $2.75 million tax break for the developer, Salita Development LLC... 
Still, these hotels don't always perform well and they often generate criticism. For example, Greg Marcus, chief executive of Milwaukee-based Marcus Corp., is concerned that the new airport hotel and other such subsidized projects around the country will drain business from his 20 hotels, including his three in Milwaukee. The city's hotel market faces a 24% increase in its room count due to projects expected to complete construction over the next three years, according to Robert W. Baird & Co. 
Mr. Marcus also points out that subsidized hotels carry less debt and thus can undercut their competitors' nightly rates. "When you build something for reasons other than supply and demand, you create imbalances in the system," he said. "That's why our government needs to be so careful with what they do" in subsidizing hotel development.

Sunday, July 29, 2012

The Water Is Right Here

The Milwaukee Journal Sentinel has been critical of the City's dealings with Waukesha over diverting Lake Michigan water for Waukesha's "needs". This is another example of the Journal's approach to economic development - Just Do It! (Nevermind The Consequences).

Oak Creek, Racine and Milwaukee - a coalition of the coastal - should join forces and lure businesses from Waukesha. If you need water that bad, it's more environmental to go where the water is than to divert the water to you. So how about forgetting about dealing with Waukesha under their demands.

Why should these naturally-advantaged locations [water] continue to subsidize and enable sprawling development, and their own decline, because of these suburban sprawlers' "needs"?

Isn't this exactly how those free-market Waukesha conservatives live their lives? Water is expensive because it's, more so, becoming a finite and localized resource. Supply and demand. What is the reasoning behind providing such water welfare to Waukesha?

Funny how such strongly held principles and world-views are so pliable when the advantage is in someone else's hands.

Just as those in Waukesha have been so helpful in promoting rail in the area. Or as they have been so helpful in employing inner-city residents with their suburban employment expansion over the past few decades.

Suddenly, sharing (socialist!) policies make good economic sense.

Sunday, April 22, 2012

Expand The Parkway?

I see the idea of expanding the Lake Parkway south to Oak Creek is percolating again. With that in mind, here's an old response to that proposal (at the time, July 2009, being pushed by Pat McIlheran, Journal Sentinel writer, and Pat Jursik, Milwaukee County board member):

Pat [McIlheran] follwed up his last bit of nonsense with more of the same, Radical old idea: Let us move around.

In the latest expounding of obliviousness, Pat pushes for extending the Lake Parkway all the way to southern Oak Creek. Is there any problem more highways will not solve for these guys?

McIlheran then runs through the typical gamut of right-wing, development, talking-points: the automobile represents freedom, no one wants to ride the train/light-rail, and building on green space is cheap and therefore preferable.

His description of Pat Jursik's, Milwaukee County Board member, idea for this highway expansion is "revolutionary". In today's environment - sprawl, pollution, water shortages, crumbling roads and infrastructure, stressed budgets - to suggest we build more is absurd. To suggest we build mass transit options that alleviate our dependence on automobiles and highways is, as Pat would say, "Right on!"

McIlheran thinks that if we don't expand highways and if we do expand rail options, we are "cutting off people's options." Someone check into Pat's relationship with the highway lobby. Is there a status quo entity for which he is not a shill? Again, Pat goes back to the oldie but goodie, implying that because we are Americans we can do whatever we want...the planet be damned! Not building highways, continuing to allow us to spew pollutants, nor paving over green space somehow equates to American freedom and would be "cutting off our options".

He then goes on to show more ignornace regarding the latest research, and a complete blindness to a Milwaukee case study. He, agreeing with Jursik, pontificates that tearing down the highway and replacing it with a surface street or lift bridge would be foolish. Maybe they both should read, 4 Cases of How Tearing Down a Highway Can Relieve Traffic Jams.

They mention how surface streets isolate one area of the region from the other. But on the contrary, what they actually do is encourage high-density development and community along those surface streets. Just the opposite of what McIlheran and Jursik are proposing. They want to relieve surface streets of traffic - which would relieve the businesses along these streets of customers. This of course would lead to more exit-ramp, big-box retailers sprouting up along the highways so drivers can jump on and off to get items they might need on any given day. We'd hate to see people shopping in their own neighborhoods supporting local retailers and entrepreneurs. It's much better that we spend money at absentee-owned stores that pay a lower wage and subsequently siphon much of that spending outside our border. Basically, McIlheran and Jursik just want more of the same. More highways for more driving, just not on surface streets, so all of our driving can be at higher speeds, alongside more of the same, haphazard development we've seen over the last 50 years.

The boogeyman here is congestion. We need more highways to relieve all our congestion? What congestion? Milwaukee has one of the shorter commute times of any larger city. Milwaukee was recently ranked the third best city in the country for commuters by Forbes magazine.

We need an investment in rail. Being one of only two or three areas in the country without, or not planning, light-rail is bad for business, the environment, and our quality of life. And, this would only make our commute time even better.

Glaringly absent from the article is a discussion of induced demand. The phenomenon whereby building highways, adding lanes, actually increases congestion on those highways. But economic development, urban planning, and quality of life are obviously not Pat's forte. He's only worried about convenience.

Is McIlheran unaware of the environmental issues breathing down our necks? Or just unwilling to make lifestyle changes to avoid catastrophe? He even makes a crack about, "the silliness of opposing all new pavement." Seemingly, somehow, glorifying and proclaiming the righteousness of paving over open space. Again, showing his complete ignornace regarding the environmental issues with sprawling development.

For Further Reading:

Monday, September 14, 2009

Development Gone Astray

Oak Creek may form two tax incremental finance (TIF) districts to spur development.

TIFs were initially created with the intent of rescuing blighted areas.

The areas being considered in Oak Creek for the TIF districts are - 13th & College and Howell & Oakwood – hardly blighted areas.

As I wrote in a previous post, “Another much touted, yet becoming ever more so destructive, policy tool is tax incremental financing (TIF). These were initially established to bring investment to blighted, low-income areas. But nowadays, more states are loosening their eligibility requirements and allowing affluent areas to reap the benefits. TIFs allow a municipality to issue a bond to pay for part of the costs of the new development. The property tax revenue generated by the development is then used to pay off the bonds. Some municipalities also allow sales tax increments, where the sales tax generated by the new development can be diverted to redevelopment costs.”

In essence, using taxpayer money (cheap credit from a municipality) to finance speculative development where the rewards benefit the usual cast of characters at the expense of the community at large.

For Further Reading:
TIFs, Greenfields, and Sprawl
Subsidizing Sprawl, Subsidizing Walmart
Straying From Good Intentions
Shifting The Burden
Recession Shriveling TIF Revenue Returns
Property Tax Abatements and Your School
Legislation Introduced to Help Troubled TIFs