Posts Tagged ‘Heath-Newark-Licking County Port Authority’

Free Market Economics

December 31, 2020

            “In our culture the concept of the market is akin to religion. In fact, for many people the fantasy that their life is shaped by a market is a substitute for thinking that it was shaped by a deity, or else the market itself is understood as a deity.” “A market is a way for people to distribute resources and goods. That’s all it is. The human race for most of its history has not used markets to do that. When I say distribute resources, I mean land. Who’s going to get what piece of land to cultivate?” (Richard Wolff from Occupy the economy: challenging capitalism by Richard Wolff; interviews with David Barsamian) 12-30-20 Henry Fountain writing for the New York Times headlines: Sale of Arctic Drilling Leases Draws an Unusual Taker. It May Be the Only One. “After a three-year push by the Trump administration to open the Arctic National Wildlife Refuge in Alaska to oil drilling — an effort that culminated in a rush to sell leases before the White House changes hands — in the end the only taker may be the state of Alaska itself. With a Thursday deadline [12-31-20] for submitting bids for 10-year leases on tracts covering more than 1 million acres of the refuge, there is little indication that oil companies are interested in buying the rights to drill under difficult conditions, to extract more costly fossil fuels for a world that increasingly is seeking to wean itself off them. Amid the uncertainty, a state-owned economic development corporation voted last week to authorize bidding up to $20 million for some of the leases.” In Ohio, JobsOhio is “a state-owned economic development corporation”. In Licking County it would be Grow Licking County. And in Licking County’s seat of government, Newark, it would be Newark Development Partners. You can throw the Port Authority in there too as it likewise is an “economic development corporation” and covers a multitude of “governments.” The gist of Fountain’s article, you ask? “But if the development authority proceeds, it sets up the possibility that when the sealed bids are opened on Jan. 6, the state may find itself the sole owner of leases.” “He [Frank Murkowski, Lisa’s dad] also pointed out that because leasing revenue is split equally between the federal and state governments, if its bids were successful the state would be getting a unique deal. “You’re going to get half your money back,” he told the authority’s board. Only the state, he added, “can buy at a 50% discount.”” “In the [2017] tax bill, the sales were presented as a way to raise $900 million over 10 years for the federal treasury to help offset more than $1 trillion in tax cuts. But that figure has long been questioned by outside experts. An analysis last year by The New York Times suggested the actual amount would be about $45 million.” “The group [Taxpayers for Common Sense] said its most recent estimate showed that the federal treasury could receive as little as $15 million from the lease sales.” Where’s the market in all this? Indeed, where’s the market in the various tax abatements, credits and infrastructure enhancements offered by JobsOhio, Grow Licking County and the Port Authority in their offerings to secure corporate “investment” in Etna, Pataskala and the Rt 79 corridor? It certainly is about “Who’s going to get what piece of land to cultivate”. And what about Newark Development Partners purchase  and projected multi-million dollar “development” of the Newark Arcade being totally contingent on receiving government funded “historic tax credits” while the low barrier shelter “projected” by these same folks goes nowhere? “A market is a way for people to distribute resources and goods. That’s all it is.” Free and equitable, it’s not.

Whatever Is Good Will Appear

February 9, 2020

In the previous post (Food For Thought, 2-6-20) Analysis wondered what the barriers of voter suppression were in Newark Ohio. Even more importantly, why was no one speaking of them? As a partial response to the novel coronavirus, a 1,000 bed hospital was just built in China in 10 days. The Empire State Building was built in one year, in the midst of the Great Depression. Last year an abandoned 9,000 square foot Family Dollar building was purchased with the announced promise of becoming a homeless shelter in the heart of Newark Ohio (Evans Foundation to buy former Family Dollar for Newark homeless shelter, Kent Mallett, Newark Advocate 7-27-2019). Also in 2019 the city’s public/private partnership, Newark Development Partners Community Improvement Corporation, “announced the purchase of the Arcade. The purchase includes all real estate located at 15 Arcade Place, including the entrances facing North Third and North Fourth streets, commercial property extending east and west between the entrances, approximately 22 commercial spaces inside the arcade and the potential for 15 to 20 residential units above the area.” (Historic downtown Newark Arcade sold, renovations planned, Benjamin Lanka and Kent Mallett, Newark Advocate, 11-23-19), also in the heart of Newark Ohio. Which development do you believe will be completed first? Indeed, to call the Family Dollar building a ‘development’ would be a gross misnomer, verging on (Gasp!) misinformation. Though the word ‘development’ appears in the name of Newark Development Partners, which was involved with both projects (along with Newark’s shadow prime minister, Dan DeLawder), the word ‘development’ doesn’t appear at all in Mallett’s Evans Foundation article. But the final lines of Lanka and Mallett’s Historic downtown piece say it all: ““Our community is excited about the progress that has been made downtown.  Sustainable success requires patience and investment into various aspects of the area, from physical improvements to business climate to residential opportunities and more,” [NDP Executive Director Fred] Ernest said in a release. [NDP Chairman Dan] DeLawder added, “This purchase was made possible through extraordinary philanthropic support from several local parties. We are grateful for the continued generosity of the Newark community in helping accomplish the goal to promote and foster economic development in our city.”” Through the legal entity (corporation) of a public/private partnership, public government becomes an enabler of private corporate development (not far removed from an addiction enabler). The Heath-Newark-Licking County Port Authority is an excellent example of this, constantly touting its money making commercial development adjacent to the Newark Heath airport. Indeed, it has been so successful in money making money that some years ago it purchased the PIME Seminary property for projected development 20 years in the future. Development is simply money making money. Only catch is that one has to have the money to make the money, which is where the government’s public financing comes in (along with tax abatements, credits, infrastructure improvements, etc.). Roughly half the residential housing in Newark is non-owner occupant (rental). It is easy to correlate 40% of Newark’s population with that of the rest of the country in terms of having less than $1,000 in liquid assets in case of emergency (one step away from being in need of a homeless person’s shelter). Add to this the average debt load (student, credit card, medical, etc.) and job precariousness… Where’s this population of citizens’ capacity to develop? Why bother? Best to leave it to the pros. This is readily evidenced by the recent replacement of banker Mark Fraizer’s Newark City Council seat by, you guessed it, NDP’s marketing salesperson Spencer Barker (touché, it is a time of no need for evidence or witnesses). Analysis concludes that pubic office seeking candidates touting the merits of development are one of the major vote suppression barriers utilized in Newark Ohio. When a candidate says “good for economic development” what she or he is really saying is “No need to come out and vote, folks. We’ve got this.” THAT’S voter suppression.

“Everything that appears is good; whatever is good will appear.” (Guy Debord)