Businesses pay too much in taxes

The following fair and balanced letter from clear thinking Jet Beckum appears in the Aiken Standard today.The answer to his question" when will these politicians wake up" is clear. Not until you the voters send them a very clear message. Term limits would be good but probably not achievable. So the only thing to do is find better candidates and throw out most of the incumbents.Support the Tea Party Express. It is making a difference!

There are a few more thoughtful letters in the Aiken Standard today. One is about the current problems at SRS by Bob Garvin and the other is from Pete Seaha in answer to a Liam McGinley letter. Both are worth reading. Go here to read all the letters and comments.

In Thursday morning's Aiken Standard our local politicians seemed surprised by more budget cuts. Roland Smith, I quote, "There's not a thing we can do about it."Bill Clyburn: "I'm disappointed because I thought the budget would be on an upswing."
Shane Massey: "Five percent (cut) is more than needed."

When will these politicians wake up and get in the real world? This country has been in a serious recession since the fall of 2006 when we turned over the federal government to Harry Reid and Nancy Pelosi. I'm not excusing many of the other party who surely contributed to this downfall, but the facts are since 2006 businesses have been promised nothing but more taxes, more interference and harassment. This has not only happened at the federal level but also at the state and local levels.

Ask any building contractor, any Realtor, or any small-business owner if they think the government has aided them in the past three years and I don't mean a handout. Let's take one at a time - our Aiken County School Board, Chairman Christine Harkins was quoted as saying, it's a good time to spend $150 million for our schools."

Guess who pays the highest rate of school taxes? Not parents, but your local businesses. The City Council and mayor instead of reducing taxes on businesses, continue to spend more tax money on questionable projects and more government controlled groups such as the Aiken Corporation. Our County Council instead of making this county attractive to all businesses (existing ones) are secretly giving away tax money to The X- Project. While the same thing goes on at the state level - read Sen. Ryberg's column in Thursday's Aiken Standard.

Why anybody would be surprised to learn that businesses can not supply government's insatiable appetite for more taxpayers' money is beyond my comprehension.

If our business community does not prosper, then we had better accept the fact that we will not build more schools, and cuts in government programs are just beginning.

Jet Beckum

Aiken

City Council Update from Dick Dewar

SPCA DOG PARK DEDICATION: The SPCA will hold the dedication of their new dog park on Saturday, December 12, 2009 at 10:00 a.m. The dog park is located at 199 Willow Run Road, and behind our Willow Run Industrial Center. Parking will be along the entrance driveway and in the field off Willow Run Road. This event has been cancelled until further notice due to rain. The Dog Park will open as soon as the fence is installed. Call the SPCA at 648-6863 for status updates.

ECONOMIC RECOVERY: Forbes Magazine has listed the Aiken-Augusta region in the top 50 cities nationwide experiencing the fastest recovery from our national economic slowdown and recession. Our city ranked ahead of Charlotte-Gastonia; Greenville-Mauldin-Easley; Charleston-North; and Charleston-Summerville.

SANDLAPPER MAGAZINE ARTICLE: The Winter issue of Sandlapper magazine features Aiken’s Spring Concert series in cooperation with the Juilliard School of Music. A copy of this article is attached for you to enjoy. We have also included the announcement for Celebrate Aiken that was in the magazine as well.

CHRISTMAS LIGHTS USE LESS ENERGY THIS YEAR: On November 19, City of Aiken employees installed garland in downtown Aiken on 205 street lamp posts. For the first time, we purchased plastic LED bulbs for our garlands to replace the glass incandescent bulbs we previously used. These LED bulbs operate with only 0.45 watts. The old glass incandescent bulbs required 7 watts each to operate. With just under 7,000 bulbs on 205 posts, we are realizing energy savings of over 45 kilowatts each hour. LED bulbs use 90% less energy than incandescent bulbs. PRT employee Alan Cochran, who was on light duty, replaced all of the bulbs in these garlands. Staff time to convert these garlands was, therefore, kept to a minimum. The snowflake tree pyramid at the corner of Richland and Laurens uses an additional 2,200 bulbs which are also all LED. All of the old light bulbs have not been thrown away. They will be used on the pathways at Christmas in Hopelands as replacement bulbs. This year the pathways at Christmas in Hopelands will be roughly 25% LED bulbs. The remaining 75% will be replaced each year as budget funds allow. All of the displays for Christmas in Hopelands will utilize LED bulbs this season. We will continue to identify more sustainable and efficient practices throughout our city operations.

CELEBRATE AIKEN! 175TH: - the kick-off event for Celebrate Aiken! is set for Saturday, January 9, 2010 from 1 to 5 p.m. in the Newberry Festival Center. Activities include a taste of 1835 at Newberry Hall; exhibits of trades and crafts from back in the day at the City Hall Conference Center; sales of the Jim Harrison poster, the Taste of Aiken Cookbook, Aiken Illustrated: The Southworth Collection book and other items; entertainment; and other activities. This event is free and open to the public.

HORSE TROUGH DEDICATION: The dedication of the old horse watering trough, small animal water, and public water fountain is set for Saturday, January 23, 2010 at 11:00 a.m. at the serpentine wall of Banksia/Aiken County Historical Museum. This event is free and open to the public.

PRESENTATION BY THE AIKEN CORPORATION - Earlier this year Aiken Corporation contracted with the University of South Carolina-Aiken to conduct a study concerning the economic impact of Aiken Corporation and Aiken Downtown Development Association (ADDA). This fall the University completed the study and Aiken Corporation would like to present this to City Council. As Council is aware Aiken Corporation was established as a non-profit development corporation and as a public-private partnership for the City of Aiken. Its mission was to build a strong, stable economic base through the attraction of jobs, investment and diverse mix of business. They similarly work with ADDA to improve the economic vitality and beautification of our downtown area. At tonight's meeting they would like to present the findings of the study that was recently completed which discusses the economic impact of the Aiken Corporation and the Aiken Downtown Development Association on Aiken's economy. This will include their work with light industrial development, the downtown, housing, and quality of life Improvements.

After the presentation of the USCA study commissioned by The Aiken Corporation, the 2009 Aiken Corporation Audit prepared by Elliott Davis will be presented.

SELECTION OF MAYOR PRO TEM - Every two years City Council selects a Mayor Pro Tem to fill in when Mayor Cavanaugh is unavailable to serve his duties. Currently City Council's policy has been to rotate this position with a Councilmember who has the longest tenure with City Council and has not previously served as the Mayor Pro Tem. Currently this position is vacant since Councilwoman Vaughters had been serving in this position. Based on seniority Councilmember Wells would be the next Councilmember to fill this position. For City Council consideration, this is approval of Councilmember Wells to serve as Mayor Pro Tem starting December 14, 2009, with the term to expire in December, 2011.

RESOLUTION OF ACCEPTANCE OF $3,340,000 GRANT THROUGH ARRA FUNDING - Last spring we were awarded a grant of $3,340,000 from ARRA funds to retain stormwater downtown before it enters Hitchcock Woods. This restoration project will use green infrastructure to capture this water through rain gardens, bio-swales, porous pavement, and other means. The funds are being authorized through the South Carolina Revolving Fund Loan Program which cannot give out grants, but can give out loan assistance which in this case is totally forgivable. As part of the award of these funds the Office of Local Government for South Carolina is requiring that we approve the attached resolution.

ACCEPTANCE OF DEED OF DEDICATION FOR GEM LAKES DETENTION POND - In 2007 the City of Aiken annexed over 300 properties in Gem Lakes as part of an agreement to purchase the sanitary sewer system. When these areas were annexed the detention pond was left out of the annexation and kept under County ownership. This pond is now receiving water from the new Kisner Gem Lakes Subdivision extension and the Pin Oak Farms development off of Silver Bluff Road. It has become a regional detention pond for all three areas currently inside the city limits. The County of Aiken in September, 2009, asked the City of Aiken to accept the Gem Lakes Phase N detention pond in exchange for the City deeding them the roads in the Ventures Industrial Park. We felt this was a more than fair exchange since the roads are over six miles outside the city, serving property which is totally in the county. At tonight's meeting we would like City Council to accept the Gem Lakes Phase N detention pond which serves the citizens in the Gem Lakes area in exchange for the County accepting the following road: Forest Holley Way and A.B. Miles Drive in Ventures Industrial Park.

APPROVAL OF REVISED COMMUNITY REVITALIZATION DEVELOPMENT PLAN (CRDP) - Second Baptist Community Development Corporation is creating a new development behind Aiken High School. City Council has previously rezoned this property for detached single family homes. The Development Corporation is applying for a credit grant through the Federal Section 42 Tax Credit Program. One requirement of the Tax Credit Program is for the city to establish the area as a Community Renewal Development Plan (CRDP) site. In order to gain the most credit the City needs to approve the site as a CRDP prior to January 1, 2010. The goal of a CRDP is to increase affordable homeownership in the community through a planned development. This development, Dupont Landing, will have market rate homes and rental homes which can be sold at a discount rate to occupants at the end of a 15 year period. The approach is a long term strategy for the workforce family that typically would not be able to afford homeownership. Second Baptist CDC will be using a mix of private and public financing to make the mortgage payments affordable to prospective workforce families. The entire 40 acre site would have the CRDP designation and therefore would be eligible for the Tax Credit Housing Program. This plan was approved on December 11, 2006, and tonight they would like Council to reapprove it with the modification which Council approved about one year ago. This improvement included Second Baptist pursuing a senior housing development on the eastern portion of the site connected to a potential adult daycare facility. The senior and adult care portion are the only changes to what Council approved in 2006.

AIKEN CORPORATION LOAN REQUEST FOR RAILROAD DEPOT - The Aiken Corporation at their September, 2009, meeting voted to request that the City of Aiken provide a loan for $1,300,000 at 1% over the city's investment pool interest. This loan would be used to pay off the current loan for the Depot Project and provide enough funding to complete the current building and inside displays. They feel that if the City would loan them this money they could save approximately $50,000 in interest over the length of the loan. Over the past several years, the City has loaned Aiken Corporation funds on several occasions. This began in 2000 when the City gave them a construction loan of $3.5 million to build the Washington Center. The construction loan was later converted to a regular loan from the City for $3.5 million. Since that time they have reduced that loan to approximately $2,250,000 and have extended the loan through 2011. In addition the City has loaned them $60,000 from the proceeds of the sale of the blue house on Chesterfield Street, $20,000 to complete the painting of the spec building and up to $250,000 for work on housing in the Toole Hill area, Edgewood and Crosland Park. The last three loans were given to Aiken Corporation at 0% interest to be paid back when called upon by the City of Aiken. It is our understanding the Railroad Depot Committee has received pledges in excess of the $1.3 million which they are requesting. Attached is a loan agreement similar to the one which the City used for the Washington Center. The major difference is they are requesting a loan at 1% over the City/State Investment Pool. If Council wants to consider this loan, an ordinance would need to be developed identifying the funding source and conditions for the loan. This could be presented to Council at the first meeting in January.

It is our understanding the Railroad Depot Committee has received pledges in excess of the $1.3 million which they are requesting. Below are the details of the loan which is for up to $1.3 million with interest paid monthly at the rate of the City investment pool plus 1%. Principal would be reduced as pledges are received. Term request is 7 years.

Listed below are items requested to be funded:

Completion of Diorama $8,190
Administration $57,316
Architectural Fees $43,531
Completion of RR Cars (Phase 1) $65,656
Completion of Displays $65,535
Interest on Loan $159,151
Existing Loan (Security Federal) $355,044
Balance on Construction Contract $444,369
Contingency $101,208
Total $1,300,300

The Depot is being built on City property and will be owned and operated by the City. The request has two major benefits: it would allow the City to earn 1% interest above the State investment pool and would save the project approximately $50,000 in interest carry cost.

AGENDA FOR NOVEMBER 23, 2009 CITY COUNCIL MEETING: http://www.cityofaikensc.gov/weblink7/docview.aspx?id=115832. Please cut and past this link to review the Agenda with all Back-up items.

Why Boeing Came to SC

A cautionary tale from Seattle.

BOEING IS GONE
WHERE THE MACHINISTS WENT WRONG

By John M. Payne, Esq.

Davis Grimm Payne & Marra

After more than 75 years of building airplanes in Seattle, how could we let

Boeing get away? Here is where the Machinists Union went wrong:

1. Strikes. Four strikes in 20 years. Are you kidding me? Boeing is the

highest paying manufacturer in the Pacific Northwest. The Machinists Union

let the radicals in the Union call the shots. They knew it and Boeing knew

it. It killed the golden goose.

2. 2009 Negotiations. What was the Machinists Union thinking? Six months

ago, Boeing announced it will leave if it cannot secure a 10 year no-strike

commitment from the IAM. In the meantime, Boeing's Machinists in South

Carolina voted to go non-union.

Instead of recognizing it must work with Boeing to remain in Washington, the

IAM reverted to its old ways. It played hardball. The Machinists Union

insisted on guarantees that Boeing's new work would be placed in Washington.

It insisted on a $5,000 per employee signing bonus. And, incredibly, it

insisted on a neutrality clause so that Boeing could not exercise its legal

rights to oppose union organizing at other facilities.

This was badly misplayed. With no leverage whatsoever, the Union bowed their

backs and overplayed their hand. Now the Union lost it all. Boeing's

comments were correct: The Union's last minute brinksmanship was the wrong

strategy at the wrong time.

3. How could this happen? The Union leadership lost touch with its members.

At a time when Washington's blue collar workers needed the Union the most -

to save their jobs - the IAM failed them miserably. The Machinists Union

leaders put themselves ahead of their members.

How else can you explain the insistence that Boeing agree to a neutrality

clause in Union organizing drives? Do you think the rank-and-file members

care about union organizing neutrality agreements?

Do you think the rank-and-file employees are worried about future union

membership? No, they want their jobs. The Union leadership lost touch. This

ill-played strategy cost them and the Puget Sound region dearly. The

Machinists Union could have learned a valuable lesson from their

counterparts in the United Auto Workers (UAW) or the Steel Workers. But,

they failed to do so.

4. What is next ? It happened in Detroit. It will no doubt happen here.

Good paying blue collar jobs will slowly disappear. As jobs are eliminated,

skilled craftsmen become underemployed. Tax revenues shrink. The education

system suffers. Related industries such as parts suppliers, transportation,

hotels and restaurants also suffer. It goes without saying, housing prices

flatten or are reduced.

It won't happen today or even in the next couple of years. But, by 2014 it

is inevitable that the Puget Sound area will feel the harsh effects of

Boeing's gradual departure. The high-tech industry won't save Seattle.

Successful economies are diverse economies. Manufacturing is a key

component of that success. What manufacturing do we have left?

5. One last question. One last question - Where were the politicians who in

2008 promised our citizens new hope and a great economy? Couldn't the

Governor and Legislature have matched South Carolina's $170 million pledge

to Boeing?

Instead, they arrogantly insisted that we have quality laborers that Boeing

can't live without. This argument fell on deaf ears, particularly when

Boeing's leadership now lives in Chicago. This was a misplayed hand by

political leadership who should know better.

6. Summary. This was a colossal failure by leaders in the Union and

government who could have done much better. If Detroit, Youngstown and

Cleveland are any indication of the impact of a loss of manufacturing jobs,

we are in for difficult times ahead.

[John Payne practices law exclusively in the area of labor and employment.

His firm is Davis Grimm Payne & Marra, 701 Fifth Avenue, Suite 4040,

Seattle, WA 98104.