John Schultz's Weblog

Monday January 16, 2006

Possible eminent domain abuse coming to Columbia Recent articles in the Columbia Missourian and Columbia Tribune indicate that eminent domain may be used to acquire land in the construction of a connector between the Business Loop and Conley Road to improve access to the Broadway Marketplace. While road construction is one of the very few valid reasons for eminent domain, this case is troubling since a private developer (Stan Kroenke of Wal-Mart money) is building the road to improve access to his shopping center, instead of the state or city. The two articles are somewhat contradictory, with one stating that eminent domain of a portion of the Columbia Country Club's golf course may be needed if current negotiations fall through, while the other article mentions the land to be condemned adjoins the golf course and would be given to the Country Club to make up for their lost land. I've emailed both papers to try to get more information on just what is happening. Update: The Tribune reporter contacted one of the primary individuals involved with the proposed TDD, and they indicated that the land to possibly be condemned is adjacent to the golf course. They are hopeful that eminent domain will not be needed, but this is something to keep an eye on. ( Jan 16 2006, 07:30:02 PM CST ) Permalink

Monday January 02, 2006

Federal backing of loans could increase risky loans The Columbia Missourian recently reported on a splurge of Small Business Administration loans being made to bars and restaurants in Columbia. The federal government will cover 85% of the loan value if the business defaults, leaving banks free to issue loans they may not normally approve. In the past five years, the SBA has granted $22.3 million in loans in Columbia, of which $7.7 has gone to restaurants and bars. Of those 37 restaurants and bars, five have closed since receiving the federal money (it is unknown at this time if any establishments defaulted on their loans and invoked the SBA loan guarantee). While the goal of the SBA loans is laudable, the federal government should not be backing loans that local banks may not feel comfortable issuing without a payment guarantee. All of the risk should be placed on the bank that issues the loan rather than relying on taxpayers to bail out any bad loans. ( Jan 02 2006, 02:18:02 PM CST ) Permalink

Tuesday December 06, 2005

Letter to the editor supporting eminent domain restrictions In a recent editorial, Henry Waters opined that Missouri should not be concerned about eminent domain actions and that there are only “imaginary problems” in Missouri. Residents of Arnold, Independence, Manchester, Richmond Heights, St. Louis, and Sunset Hills might beg to differ. People in these cities have seen their homes and businesses threatened or taken by eminent domain to enrich private developers instead of for public use, as mandated by the Constitution before the unfortunate Kelo decision.

It is entirely appropriate for the state of Missouri to seek ways to limit eminent domain to purely public uses. Many people who are subject to eminent domain claim they do not receive adequate compensation or notification of condemnation in order to save their property. It is unconscionable that someone can lose their house or business just because a private developer can convince the local government that they can generate more tax revenue.

St. Louis citizens seem concerned enough about eminent domain that they recalled an alderman who supported the use of eminent domain to remove a gas station. Additionally, the towns of Ellisville, Maplewood, and O’Fallon have passed ordinances limiting the extent of eminent domain, while Creve Couer and St.Charles County are considering similar laws.

Perhaps Waters would feel differently if the Tribune building he is rightly proud of was one that had been condemned in the 1950s instead of the buildings it replaced?

For more information, concerned readers can peruse http://www.stolemyland.com/ and http://www.castlecoalition.org/current_controversies/index.asp for details on eminent domain abuses in Missouri. ( Dec 06 2005, 04:33:48 PM CST ) Permalink

When the politicians know better than you Two recent stories on the Missouri Digital News illustrate most politicans' need to interfere in the lives of citizens and businesses, rather than limiting government's influence to only the most necessary actions.

State Senator John Cauthorn of Mexico has filed a bill mandating all gasoline sold in Missouri be blended with ethanol. While this is a pretty obvious nod to the agriculture sector in Missouri, Cauthorn should not be meddling in gasoline market. As Ron Leone mentions in the linked article, this change could force higher costs onto the gasoline industry. I currently do fill up with a 10% ethanol blend as my gas station of choice offers non-ethanol and ethanol-blended at the same price, but I do wonder if they are eating some costs to do this. Additionally, no one can determine the true cost savings until ethanol welfare is turned off at the state and federal pumps. The Republican Party once stood for small government and laissez faire business practices, but that has not been the case for quite some time.

Meanwhile, state Representative Cynthia Davis is busy making sure all drivers licenses applicants take a drivers education course. Never mind that some schools, such as the one in my small hometown, stopped offering drivers ed ages ago due to budgetary or legal concerns. This law would require schools to do away with other educational activities to accomodate the massive increase in students needing this course, when the real solution is already present - let the student drive with their parents until they are convinced their child is ready for a license. My parents did have me attend a paid drivers education course as they thought it was a good idea, but not all parents will have the means to do so. Representative Davis' proposal only increases costs on schools and parents, while not offering a clear benefit to the state. ( Dec 06 2005, 09:01:08 AM CST ) Permalink Comments [1]

Thursday November 10, 2005

Columbia residents defeat two of six tax proposals On November 8, Columbia residents voted down one sales tax extension and one sales tax increase, while approving three other sales tax extensions and a development fee increase. The Boone County Libertarian Party opposed the two failed measures (Propositions 2 and 5), as well as one of the measures approved by voters (Proposition 1). Proposition 2 would have extended an eighth-cent sales tax for two years to pay for a multi-use facility for the Columbia farmers' market and an ice rink. Boone County Libertarians opposed this measure since it was not a proper task for city government to be involved in. Proposition 5 seeked to increase the sales tax rate by an eighth-cent to improve roads and sidewalks. Libertarians urged rejection of this measure since it would have been an increase of the overall sales tax rate in Columbia. The final of the three measures that was opposed by the BCLP was Proposition 1, a five-year extension of an existing eighth-cent sales tax to fund improvements in the city's park system. ( Nov 10 2005, 12:13:57 AM CST ) Permalink