Community and Economic Development

On October 26, 2009 the Community and Economic Development Committee considered a resolution forming Business Improvement District #44. Business Property Owners (who will be paying the tax) were given an opportunity to address the committee. Of those who attended the meeting, 5 were for the formation of the BID and 5 were against. Some of those who spoke were not owners of business property, but claimed to work at affected businesses.

In fairness to the committee, we thank them for allowing the public input at all (it was at their discretion that they allowed it), and the time allowed for the public participants to speak was more than twice the amount of time allowed for public input at the so-called public hearing on September 21, 2009. The feeling was, though, that the minds of the committee members were already made up before the meeting started.

The results of the counter-petition (that the BID not be allowed to form) were announced. Over 20% of the business owners within the proposed district (including those retracted from the original petition) were against the formation of the BID, but there were not enough committed signatures to reach the required 40%. Unofficial word is that Mr. Zielinski was quite dismayed at some of the high-profile business property owners in the district who signed the petition against the BID. That's gotta count for something.

Here's a link to the official city archive of the meeting. Eventually the minutes and a video will be posted on this link.

The committee voted to enact the Business Improvement District #44 Tax.

We thank those who tried to prevent the inevitable wheels of government from rolling over us, especially those who took time from their businesses to attend the meeting and try to make a difference.

And to those who wanted to "think about" whether or not they wanted to make a commitment - here's a new thought for you -- "get out your checkbook - the government is at your door!".

The 10-Minute Public Hearing for BID #44

This is a copy of the text of our presentation at the City Planning Commission Public Hearing, a 10-minute event held by the city, in which the 20 or so people attending were invited to speak for or against the BID which will result in a major increase in their taxes. (that's 30 seconds apiece - thanks so much!). We asked that our presentation notes be entered as a part of the meeting record. Hope it was noticed by someone.

Joyce Parker and Gary Guetzlaff - Comments for presentation to the Milwaukee Plan Commission hearing on Monday, September 21, 2009, 2:10 pm, 1st floor board room, 809 N Broadway.

Tony Zielinski keeps telling us that a Business Improvement District is such a good thing for the community. Why, then are the proceedings for establishing the BID tax being conducted so dishonestly? Could it be just a political money and power grab? The truth is, that there has been very little truthfulness to date in the process. The time of this meeting. First of all, why should something by and for the business people of the community be held at a time which precludes their input? At 2 pm on a Monday, business owners are busy with their businesses, and working people are at their jobs. Personally, I had to take unpaid time off from my job, and my wife had to reschedule appointments so that we could attend this hearing. Many property owners I know were unable to attend this hearing because of the hearing's time. Try and talk me out of this theory, but I believe that the timing of this meeting was found acceptable because it would cause the least disturbance to the planned adoption of the BID tax.

Signing the petition but unaware that it involves a tax.

Two of the people whom I wish could be here could not. One is a contractor who is starting a major job today and cannot leave it on its first day. The other runs a successful business on KK and would have been forced to close his doors to be here. What both of them have in common is that they signed the petition without knowing that it would involve a tax assessment. Both were surprised when I showed them the wording of the petition with their signature on it. I believe that the petition was presented in a deceitful manner, and under pressure to sign before thoroughly reading what it is they were signing. Since neither of them realized that there was a tax increase involved, I am led to believe that there were others who were coerced and pressured into signing before they had a chance to read the proposal over. “Hurry up, Bob, Ken's waiting use the petition to sign up”

Deceitfulness of the requested percentage.

At the September 15, 2009 meeting of the Bay View Business Association, Tony Zielinski told those in attendance that the amount of the assessment was artificially low, HE SAID IT WAS LOW, and the intention of the “low” amount is to get the BID tax enacted. Once instated the assessments are a lot easier to adjust because they are no longer accountable to the taxpayers DIRECTLY. Subsequent funding and assessment percentage increases require only the consensus of the non-elected officials and the approval of the Common Council, 80% of whom are preoccupied with the affairs of their own district. So, the percentage will almost certainly increase in subsequent years. And the Common Council, charged with responsibility for the entire city will be making decisions about money that is collected and distributed only in one district of the city. Is that even legal? The phrase “taxation without representation” comes to mind.

Another thing Tony told us at the Bay View Business Association meeting was that of all the BID taxes enacted, none of them was ever to his knowledge ever dissolved. A feeling of permanence. Can this be because the process of controlling the BID is so unaccountable to the people it afflicts? Once this is enacted, business owners are permanently and irrevocably screwed.

Exploiting the Skewed Perception

The image of our neighborhood is being manipulated by those who can't wait to get their hands on the BID tax funds. Mr. Zielinski is constantly commenting on the need to “clean up our image.”

Example #1 – Our business holds weekly public music concerts in a small private meeting hall. People attending the concerts for the first time usually comment “I never realized what a charming neighborhood this is.” Newcomers frequently stop to discover some of the other shops and restaurants in the neighborhood.

We own a number commercial rental units, and now that the economy is attempting to recover, we have rented everything available to hopeful and ambitious business people. We wish them every measure of success. They would not have chosen our neighborhood if this neighborhood had an “image problem”. We believe that the perception of the neighborhood's “image” is being manipulated to the advantage of those exploiting the BID TAX.The Budget

$15,000 for Grafitti Removal

Section III B and C call for Expenditures for Graffiti Removal. The Graffiti problem in the neighborhood is exaggerated by politicians in order to create the perceived need for expenditures on graffiti removal services. As an Example - On 9/14/9 I removed a 2' x 3' Graffiti decoration from one of our rental properties in 9 minutes, at a negligible material cost. Municipal and public graffiti services are overpriced, and the selection of these services is prone to cronyism.

And besides, if the district is so “improved” where does the graffiti come from in the first place?

$30,000 for Security Services

Section III B & C call for Expenditures for Private Security Services. We already have security services – the Police, and they do an exemplary job of keeping the neighborhood safe. Twice in the last month newly assigned foot and cruiser patrols have stopped to introduce themselves to me personally. JOYCE notes that School patrols of students conducted by the schools have greatly reduced loitering and truancy in the area. Local solutions to local problems are what work the best.

Police response time has always been acceptable. If there were an alternative service patrolling the area, I believe there is a real danger of the police relying on it, and applying their coverage elsewhere. At the BVBA meeting on September 15, Mr. Zielinski pointed out that the advantage of a private service was that they could be at a certain location at a pre-arranged time dictated by the BID board. I don't know about Mr. Zielinski, but I'd prefer to have the police going where the crime is instead of keeping appointments. Why doesn't Mr. Zielinski trust his own city's police department?

The Planning Commission would be voting in the interest of the citizens of Bay View by voting "NO" on Bid #44.

They Are Not Above Deceitful Tactics

At last Wednesday's (9/16/9) Bay View Business Association meeting, Tony Zielinski stated that the assessed percentage of property taxes for the BID tax was "artificially low". After the BID has been in place for a year, the plan is to escalate to a higher percentage of assessed value.

The present proposed rate is only to get the BID tax enacted. The hidden rationale is, that once the BID tax is in place, the rate can be raised much more easily. The percentage will then be determined by the ten non-elected officials who preside over the BID, with a nod from the Common Council - 80% of whom have never even set foot in the Bay View district.

Increases don't have to be approved by the taxpayers - the BID board of unelected officials is independent of the taxpayers, and can act as it wishes under the auspices of the Common council. Since the money is not from the general treasury, the Common Council is expected to merely wave the request through. Isn't this a perfect example of taxation without representation?

Monday, at a public hearing at City Hall, the City Plan Commission will discuss the proposed BID Tax. The meeting is conveniently at 2 pm - a time when business owners are at their businesses, and people who work are at their jobs.

One hopes that this example of dirty political thuggery will be seen for the money grab it is.

It's Gone!

note added in September - It Didn't Go Away, it WAS hiding under the table.


Today was the July meeting of the Bay View Business Association. There was no mention of the Business Improvement District. Apparently it has fallen under its own weight and slunk quietly out of the room. Or, it could be hiding under the table - we'll see.

A new president, Jason, presented a very positive picture of the Business Association as a forum for the business owners to meet with one another and discuss things that they held in common interest.

Tony Zielinski, the alderman, of course, saw the association as a conduit to the city government for businessmen. He presented the association as a polling voice for area concerns currently being considered by the government, such as zoning and licensing issues. In Tony's world, government holds all the answers, and all the power.

The owner of the highly successful Cousin's Submarine Sandwich shop, which has been operating successfully at the same location for at least 25 years voiced concern that the association could potentially subsidize unfair competition. Although seen as a legitimate concern, the idea was ridiculed by inexperienced businessmen with other agendas. At the end of the meeting, a comment was raised -- those who came to the meeting to voice opposition to anything perhaps did not belong there. Anyone who voices disagreement is not welcome at the meeting? OOOOkeydokey! Future meetings should proceed a lot more smoothly without discussion getting in the way.

In the "read between the lines" department, the new owner of the Hub Supermarket asked that if anyone had any concerns or suggestions regarding his business, that they come to him and talk about it with him directly, that he was willing to listen. Although this meeting didn't appear to be a haven for kindness, one hopes that his comments will produce some cooperation where it is needed. We wish him goodwill and prosperity in his new business.

BVBA Meeting - July 15, 2009 - Wednesday

A meeting of the Bay View Business Association has been scheduled for Wednesday, July 15, 2009 at 6:00 p.m. at 2246 South Kinnickinnic Avenue.

This is your opportunity to voice your opinion on the proposed Business Improvement District.

Special interest groups can railroad this into law if those who are opposed do not voice their opposition.

Please, let them know LOUD AND CLEAR how you stand on controlling your own business WITHOUT government regulation and interference.

What do you get for your BID dollar?

So, what do you get for your BID dollar?

Police protection? If you would like police protection, why not call the police? The number is 9-1-1. And, although overworked at times, they do an excellent job of tracking crime patterns, and adjust their patrol areas accordingly. The police fight crime directly, not through a bureaucracy. They don't have the time or resources to play political favorites. It is dangerous to promote the idea that you can buy your way into better police protection with a BID.

Business Promotion? A smart business knows where to market and advertise, and doesn't need government help. Businesses can cooperate on joint ventures without the help of a salaried overseer. Collaborative business associations are organized all the time in the private sector. Why the need for a heavy-handed government program?

Graffiti removal? Can't we do that ourselves? It's paint – you get the solvent and wipe it off. If it sticks you get a wire brush. You can remove a lot of graffiti for $200. The cost the City quotes in their budget to do it is ridiculously prohibitive, and billed to the taxpayers at a rate the highest-paid remodeling contractor would envy. And if you feel the urge to control your neighbor's graffiti, there's more than enough bureaucratic machinery in place now in our city government, without the added bloat of the BID bureaucracy.

Banners? Buy your own! Almost every BID organizer tries to sell the idea of “unifying us all under one banner”. This is a deliberate manipulation of the truth. What's really going on in a banner project is nothing more than a series of (primarily) no-bid contracts given to political pals in exchange for political favors. It's expensive – the concept, demographic studies, design consultation, logo development, production operations, and presentation strategies – and it's all funded by your BID money at TOP DOLLAR – nobody is giving a price break for the good of the community. And EVERYBODY INVOLVED GETS PAID. The resulting banner product usually evokes snorts of disbelief - “you paid HOW MUCH for these?” Banners give a message to the passers-by – and that message is: “This area controlled by committee.”

Think of how much better you could allocate your own money in your own neighborhood, if only given the chance. Allow the businessmen to run their own businesses. It's free enterprise – give it a chance.

An example of how the government helps businesses

Here's an example of how the government can help your business. (as presented by Lori Lutzka at the May 14, 2009 meeting of the Bay View Business Association.)

The Tax Incentive District – Too much government? If you own a business on Kinnickinnic Avenue, BUT ONLY North of Russell Avenue AND South of Becher Street, AND ONLY on the west side of Kinnickinnic Avenue, IF you meet the residency requirements, AND IF you have employees, THEN you can receive a Wage Credit of 15% on the FIRST $10,000 in wages, on your FEDERAL TAX.So, let's get this straight, after filling out the Municipal Mandatory Sick Leave Compliance, Federal, FUTA, State taxes for your employees, then bowing down to the municipal government, you're allowed by the city to deduct $1500 from the income on which you pay taxes to the Federal Government. Figuring out hundreds of these little government hurdles can be a full-time occupation, leaving little or no time for running your actual business.

And Lori told us that there was another program of tax incentives for building rehabilitation, but unlike the Tax Incentive District program, the rehab program was complicated. Thanks a lot.

BIDS are as Permanent as Taxes

BIDS ARE PERMANENT Any business owner knows how hard the business has to work for the money a business builds up over the years. Having this money confiscated and re-distributed to other businesses is not to be taken lightly. And NOW is the time to voice your opposition. Because, once enacted, BIDs DO NOT GO AWAY. Why is this? Won't the city simply find out that the BID doesn't work, and stop the annual confiscation? Have you ever known a tax to be withdrawn or reduced?

“Won't the Business Improvement District idea be scrapped, if it doesn't take hold?” No, it won't disappear. When a business improvement district is proposed, the shoestring startup businesses are, of course delighted. “Progressive” established businesses in the district are mildly interested. “Aw, let's try it. We'll give the other businesses a chance, let's see what happens.” they say. Successful independent businesses, although in a minority, fall for the sales pitch of “progress”, and to placate other businesses and to give the appearance of being progressive, they acquiesce.

Once the BID is established, once the Government Office is open for business, the only way for any business to succeed within the BID is by “working the system”. And now the independent business has yet another “boss” to answer to.

The unelected officials at the BID office direct the business affairs of the district. Everything from police protection to tax incentives – it's all distributed at the Government Store Down the Street. More police patrols? Security? Street conditions? The city will tell you “go talk to your BID office”. Once a city bureaucrat finds out that someone is within a BID, the tendency is to refer business owners to the BID office. The BID office acts as the advocate in all departments of municipal government, moving the businesses one more bureaucratic layer from the people who are supposed to be serving them.

This is enough to drive successful businesses out of business. Those who once made a living find their resources drained by endless extra paperwork and relentless tax increases, now made worse by the additional BID tax. The smart businesses find that it is necessary to do business elsewhere as a matter of survival. The ones who lack this foresight are doomed to fail.

And once the profitable and once-successful businesses have left the District, what's left? The shoestring startups, clinging by their startup loans and grants. The startups, now in a majority, manipulate the BID. They see it as all “take” and no “give”. The vote for continuation of the BID is a vote for the end of business for the area. Anybody want to take a walk down Mitchell Street? Didn't think so.

The Reality of Business Improvement Districts – It Costs You

The Reality of Business Improvement Districts – Are you a Businessman? It Costs You

A Business Improvement District, once enacted, is mandatory for ALL the businesses in the district. Once it's established, a Business Improvement District cannot be ignored by those not interested. It's no longer a matter of “letting those do-gooders fall on their face” - it's now YOU paying the bills – a Business Improvement District takes YOUR MONEY. Each business Tax Key will be required to pay (estimated) $100 per $100,000 assessment. If you have more than one tax key, you have more than one mandatory entry in this sweepstakes of deterioration.

One entry for EACH tax key. Your Money – confiscated by the City Government, with the same authority as property taxes. Not an optional thing. This means if your building is for example assessed at $200,000, you'll have to pay (est @ $100/100k) $200 every year, as an enforceable, MANDATORY part of your property taxes. Of course, the building owners with business tenants will be forced to add this to the rent collected, making it more expensive for businesses to operate, and less attractive for new businesses to move into the area. Less attractive - more expensive - for new businesses to move into the area.

Example of a Business Improvement District - Mitchell Street – How Much More “Improvement” Can Mitchell Street Tolerate?

An example of a “successful” Business Improvement Distric was presented at a recent meeting of the Bay View Business Association - the Mitchell Street district. For twenty years, the Mitchell Street Business Improvement District has been working its magic, according to the Mitchell Street Business Improvement District representative at the BVBA meeting on May 14, 2009. The picture presented at the meeting is at odds with what can be see by simply driving through the district with one's eyes open.After 20 years of “Business Improvement” the area has gone from marginal to nearly uninhabitable. Twenty years ago, although not exactly thriving, the businesses on Mitchell were surviving. Then came the “improvements”. Traffic on the street was “improved” Oppressive traffic and parking restrictions were enacted, making travel through the area slow and inefficient. The major established businesses have since long folded or fled.

Mitchell Street -- no longer Milwaukee's center for bridal wear. Erv-The Workingman's Friend – no more! Goldman's – reorganized, but finally had to give up and fold. Kunzelmann-Esser – it's gone. Nothing significant in place of these established icons of Milwaukee business. Mitchell Street is now a street where only the government offices are thriving. Walk down Mitchell Street today, maybe the street crime will leave you alone, and you can take your choice of shoestring startup businesses enabled by desperate landlords. Building owners are given the choice between empty buildings, or giving cheap rent to novice startup businesses, none of them notable for their prosperity. This is what Business Improvement has brought to Mitchell Street.

Introducing a Business Improvement District to Bay View

In the past two meetings of the newly reorganized Bay View Business Association, there has been discussion of the creation of a Business Improvement District. A Business Improvement District (BID) is a group of businesses determined by location, not voluntary. Once the district is in place, by a majority vote of the tax-key holders in the district, a pre-determined amount is added to the property tax of commercial building owners within the district. Once the District is enacted, the additional tax levy is MANDATORY. All of the businesses must abide by the new ordinance enacted by the majority of the businesses.

The stated use for the money collected is the improvement of the district as a whole. One example are public relations items, (lamp-post banners, brochures, advertisements, etc.). Other proposed uses are for security -- graffiti removal and security cameras for example. Lots of the money is used for bureaucracy. An office is opened to help the businesses take advantage of various government programs and services, and to oversee the affairs of the District.

However, some are of the belief that this extra collection is excessive and unnecessary – just another layer of bureaucracy for the businessmen to answer to. The businesses do not receive equal benefits – some are more experienced and adept at extracting benefits from the system. Laborious studies conducted by cronies of the directors spend tens of thousands of dollars to point out the obvious. The purchases made by the BID are prone to no-bid contracts. Examination will reveal that the so-called benefits and results of BID activities are items that the businesses could have furnished by themselves at a far lesser cost