The dog barks

The Charleston Daily Mail provides some answers to my South Charleston Tech Park questions.

  • Dow Chemical Co. pays $10 million annually ($7.8 million net) for upkeep, but the State’s going to manage to reduce that amount to $1.8-$1.9 million?  Who says the government isn’t more efficient than the private sector?!?  Still a deficit mind you, but a pretty amazing proposed accomplishment by the agile and efficient public sector.
  • The State is going to tear down an old building.  Who’s paying for that?
  • Dow is throwing in $10 million to get rid of the property?!?  Because they’re such strong supporters of the State of West Virginia and the Kanawha Valley?  Someone might want to check with the Valley’s many former Dow employees.
  • The State will use federal stimulus money to convert one building into a “green” building and save $1 million in heating costs?  How much will that cost?  How long will it take to accomplish?
  • “I still think it could serve as a catalyst for West Virginia University and Marshall University.”  Just like the West Virginia University Research Park and Huntington’s Kinetic Park?
  • “He said it is projected that by the end of 2012 the park will be home to 300 jobs with an average salary of $100,000 a year.”  I’d love to see the basis for those projections.
  • “The governor said he’s asked stakeholders to come back Monday with recommendations on what should be torn down, renovated or otherwise changed.  He promised that all of the figures will be made public … WHEN THE STATE HAS A FINAL PLAN.”  (Emphasis mine, of course.)

I think we have our answer.  The Governor did not need to use the word “FINAL.”  I don’t know whether to laugh or cry.  I hope everyone can come up with a plan before next Tuesday.

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The dog that isn’t barking

I am baffled by media coverage of the South Charleston Tech Center story. While I understand that a race to meet a company’s artificial deadline, one politician’s decision to snub another, and the possible destruction of formerly thriving facilities make for interesting stories, I do not understand the media’s, government’s and higher education’s utter and complete silence concerning a subject of utmost importance: Has anyone prepared a detailed business plan that analyzes what it would take to make the South Charleston Tech Center a viable property?

Dow obviously has determined that it cannot operate the South Charleston Tech Center profitably, whether as a research park or as far more mundane rental property. Potential buyers that Dow has courted over the years surely have reached much the same conclusion, or the property would have sold long ago.

So what makes the “Friends of the Tech Park” think they are going to be able to turn things around? Some really basic questions:

  • How much revenue does the site currently generate?
  • How much does the site currently cost to operate?
  • What are the ongoing maintenance costs for the facilities?  The deferred maintenance costs?
  • How much additional revenue is going to be generated next year?  Two years from now?  Five years from now?
  • Who is going to provide that revenue?  The private sector?  Government agencies?
  • What is going to change to make the property a mecca for private sector companies?  Is the “mecca”-nization of the property going to cost anything?  If so, from whence is that money coming?
  • How is the property going to be marketed?  Is a “government” park going to attract non-government tenants?
  • How is West Virginia’s higher education research establishment, which on its best day is not spoken of in the same breath as North Carolina’s Research Triangle Park research establishment, unless, that is, Charleston Newspapers are providing the coverage, going to support this effort?
  • Isn’t the movement of government offices anywhere largely a zero-sum game unless someone expects to hire a lot more government employees?  What’s going to happen to all the rental property currently housing government employees?  Why is this mass move of government agencies a net positive?
  • What makes anyone think the Higher Education Policy Commission, which owns a single piece of property that has not been well-maintained, or state government, which owns a lot of poorly maintained properties, is going to be able to turn things around?
  • How is the environmental calculus that led West Virginia University to decline a “gift” of much of this property different now?

There might be a beautifully bound plan that answers every last one of these questions in exquisite detail and contains every chart and graph I’d ever want.  But if so, why is no one quoted in the newspapers mentioning it?  And why is no reporter asking for it?

In The Hound of the Baskervilles, Sherlock Holmes solves the case based on the fact that a dog did not bark.  In this case, no one seems to be noticing the eerie silence.

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Of wrongs and rights

Recently I wrote about the U.S. Supreme Court’s wrong-headed decision concerning campaign finance funding.  The U.S. Supreme Court is not the only court in the land that gets it wrong from time to time.  In the news today is a story about a major problem created by a wrong-headed decision by former Kanawha County Circuit Judge and current U.S. District Court Judge Irene Berger.

The story concerns the South Charleston Technology Park, about which I have written before.  The Governor and his friends have hatched a plan to save the Tech Park, in part by moving a significant number of state government offices there.  But Judge Berger ruled several years ago when the West Virginia Lottery Commission tried to move its offices to Teays Valley that the West Virginia Constitution, which declares the seat of government to be Charleston (Article 6, Section 20), prohibited such a move.  While technically in South Charleston, the Tech Park is literally feet, not even miles, from Charleston and a mere five-minute drive from the State Capitol Complex itself.

The Governor basically dared anyone to sue, but several Charleston politicians made it clear that they were ready to take that dare.  Then some Charleston politicians hatched a plan to annex a portion of the Technology Park, but the City of South Charleston balked.  All this craziness because of Judge Berger’s flawed ruling.

Stop and think for a minute:

  • At one extreme, no one could argue with a straight face that every single state government job should be housed within the four corners of Charleston.  After all, all major government agencies have offices scattered throughout the state, and the state’s citizens are better off as a result.
  • At the other extreme, it would be hard to argue that West Virginia’s elected state officials should be headquartered outside of the State Capitol Complex, much less Charleston.
  • Should statutorily-created Cabinet-level offices be required to be housed in Charleston?  No.  If the West Virginia Constitution’s framers did not see fit to require these offices, they almost surely wouldn’t view them as important enough to justify a requirement that they be housed in Charleston.  A clear, easy-to-apply standard that can be justified with a reasonably logical argument.
  • But do realize that the Lottery Commission itself is not a Cabinet-level office.  It is one level down organizationally under the auspices of the West Virginia Department of Revenue.  Just like the Division of Rehabilitation Services, headquartered in Institute, and the Division of Tourism, headquartered in South Charleston.  If Judge Berger’s ruling applies to the Lottery Commission, it logically applies to Rehab Services and Tourism, too.
  • Having said that, if I were a legislator, I would sponsor a bill that lists government agencies that can be headquartered outside of Charleston because the relevant provision of the West Virginia Constitution contains five important words: “unless otherwise provided by law.”
  • And having said that, I seriously wonder whether Judge Berger’s wrong-headed decision may have prevented state politicians from making a wrong-headed decision of their own to take over a Tech Park that’s unlikely to flourish under the best of circumstances – an opinion that many of my friends do not share, but which seems pretty obvious to me.
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More populism

For the most part, the law has evolved to produce common sense results in the majority of cases.  But two weeks ago, the U.S. Supreme Court missed the common sense mark by about as much as it possibly could in ruling that corporations and other organizations can spend unlimited amounts of money on elections.  Forget for a second the mental stretch involved in equating a greenback with free speech.  This result is based on a second, even more absurd, thesis.

There is a standard legal fiction applied in a wide variety of situations: A corporation is the same as a person.  We, for instance, wouldn’t want to give people free license to steal from a corporation, but say it’s not a crime because the theft didn’t harm a person.  By the same token, we wouldn’t want to allow negligent acts that harm corporations to go uncompensated; otherwise, no one would bother to establish them.

Having said that, the blind application of a basic principle to a different concept is absurd.  All of us know that a corporation really isn’t a person, and saying it is doesn’t make it so.  And we don’t want to call a corporation of person if it’s going to interfere with free and fair elections.

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Populism

I am intrigued by the use of the term “populist” to describe sound and desperately needed financial services industry reform. In its pejorative (and intended) sense, a populist policy is one that is popular, but anti-establishment and anti-intellectual.

Given that our latest economic troubles were caused by a financial services industry run amok, financial services reform may be anti-establishment, but it’s certainly not anti-intellectual or unorthodox.  It’s good public policy and common sense.

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