Get tax credits, building burns weeks later

update 2 July 2:30 pm – edits in italics and strikethroughs.
The headline is wrong.

Mea culpa- The building that burned was 101 Bainbridge, not 15 McDonough.

The property is owned by the City of Dayton- and is adjacent to Garden Station- which was handed over to Weyland Ventures for nothing.

The building that got the tax credits, is still standing, and yes, it was given to Weyland Ventures- and they don’t seem to have to pay taxes- and still get tax dollars for historic tax credits.

June 20, 2018, the headline reads “Developer receives tax credits for $18M rehab project, Dayton tech company to expand.” Next thing you know, there’s a massive fire in part of the building.

I was heading downtown to shoot some drone footage of the fountains at sunset when I saw the smoke and shot this footage.

Of course, this “smokin hot” real estate is part next to of the insane giveaway by the City of Dayton of your tax dollars. First they bought the old Supply One HQ on Wayne Avenue for $450K, then gave it away to Weyland Ventures out of Kentucky. They threw in the community built “Garden Station” for free.  101 Bainbridge- Its parcel ID is R72 00604 0003

The city “sold” the property that burned last night on 24 March of 2016 to “OREGON INNOVATION DISTRICT LLC” which has an address in Louisville. There is  no sale price. The interesting thing about the property tax records- is that Oregon Innovation District doesn’t seem to pay property taxes. PARCEL ID: R72 00611 0061

The rest of us do have to pay taxes.

Here’s the info on the tax giveaway from the above mentioned Dayton Business Journal article:

A robotics and technology company will have new office space in downtown Dayton thanks to a historic tax credit approved Wednesday.

Gosiger Industries, currently located at 108 McDonough St., is planning to expand into the Dayton Motor Car Building after its development partner received $1.8 million from the Ohio Historic Preservation Tax Credit Program. The $18.2 million project would allow the company to occupy new office space in the six-story, 80,000 square-foot building at 15 McDonough St.

Louisville-based real estate development firm Weyland Ventures will rehabilitate and restore the iconic building from its heyday of Dayton’s auto manufacturing era. The concrete industrial building features expansive windows and open floor plates, and has long been underutilized. The building sits close to East Third Street, on the edge of the Oregon District, and is also part of the Dayton Motor Car Company Historic District.

The Dayton Business Journal previously reported Weyland also oversaw the renovation of the Wheelhouse building at 210 Wayne Ave.

According to the tax credit application filed by Weyland, Gosinger “has agreed to lease all of the space in the rehabilitated building to fulfill their space needs now and in the future.” The company intends to occupy part of the building immediately, and will sublease the remaining space. Weyland plans to begin the project by the end of the year, and is looking to complete it by December 2019.

Source: Developer receives tax credits for $18M rehab project, Dayton tech company Gosiger Industries to expand – Dayton Business Journal

While a ton of buildings burn in Dayton, it’s interesting that this is the one where before the fire is out, the Dayton Day-Old News is reporting “2 Juveniles” were caught and are being charged with arson.

There are arsons all over this city, and no one gets caught that quick.

Not only that, only if you are a friend of the Mayor, will the burned out building be torn down pronto asap. More on that story coming up soon- with video.

  • The timbers
  • The fire burned hot
  • What’s left after the fire
  • The garage on the left- the factory on the right

This low building connected to the tower was the original Dayton Motorcar Company, and had some really incredible timber construction based on the remains this morning. It also, was the historic part. I’m sure that before the tax credits were awarded, the insurance value was pennies, but, the moment the tax credits came through, the insurance value went up.

Something smells worse than the thick black smoke that could be seen for miles.

One YouTube commentor- Ronn Jane, said they worked there for 14 years in the last incarnation “The business was Called Dayton Warehouse Inc. Which closed in 1993. The Tall concrete building was full, all 5 floors full of cigarettes by the case. The old building in front on fire was office and storage of liquid 50 gallon barrels of dye and on third floor was powder dyes, Maytag washers and dryers, and BMW motor cycle’s. That place survived the great flood but is no match for fire..”

Revisions in italics and strikethroughs- Publishing since 2005, esrati.com is a solo operation, done in addition to running a business, and caring for my mother. I do the best I can. This post had some factual errors in it- I’m sorry. I’ve done the best I can to fix this mess, and move forward. The video is still spectacular- and the reality is, the City of Dayton shouldn’t be in the real estate business.
note- the building had burned before https://www.mydaytondailynews.com/business/vacant-dayton-industrial-site-set-for-reuse-master-plan/HcGl8vq4H6p0Ukrp5SVK3K/

The city also owns 101 Bainbridge after purchasing it for less than $100,000 in November 2013. But the city has prepared legislation authorizing the building’s transfer to Gosiger at some point, said Amy Walbridge of the city’s Office of Economic Development. The transfer would be a similar transaction as 15 McDonough St.

The Good Sam Scam Solution

good sam hospital in DaytonNan Whaley plays the victim, but never had a problem accepting money for her campaign from Premier employees. She never had a problem asking them to help pay to raise the city income tax either. And now, she wonders why they are going to close Good Sam, as they build out other beds in other parts of the county.

Not that saving .25% in income tax is the driver, it’s safety. No female nurses or doctors want to drive up Salem Avenue in the middle of the night. Past the AM PM Market where gunshots are frequent.

But here’s the deal, there is nothing the city, the NAACP, the ministers or even god himself can do to keep Premier operating on that site, and frankly, people should say thanks- and good riddance.

What the city can and should do, is tell Premier that you can’t trash the facility, you can’t tear it down, until it’s been on the market for two years. Just like what happens when we close a school building. At that time, any other health care system that wants to come into the market, should have the opportunity to buy the building that Premier has never paid a dime of property tax on, and open up as competition to the duopoly of Premier and Kettering Health Network.

We should be asking The James in Columbus if they want to come to Dayton, or the Cleveland Clinic, or UC Health, or a group of private doctors who want to band together to open their own facility- one where the CEO doesn’t pay herself $4 million a year, and sit on the board of CareSource, her largest client, and set the salary of their CEO at $3 million a year.

In fact, what needs to happen is we need to stop allowing companies to claim they are non-profit or serving the public good- and being allowed to skip paying for police and fire, and roads and water, etc- while paying CEO’s astronomical salaries. If you make more than 5x your average payroll, you can’t claim to be tax exempt or non-profit. It’s time that the taxpayers stop subsidizing the CEO class.

Another test would be if you receive more than 35% of your revenue from government, pay caps are in place. No one makes more than the President (current salary is $400K a year). If you can’t live on $1000 a day in Dayton Ohio, you shouldn’t be claiming non-profit status.

Any company that hires it’s own private police force should be charged a fee, equal to the officers pay, that goes to pay an extra Dayton cop. That would be called a “licensing fee” for providing a duplicative service to a public one. The reason we don’t have independent fire departments got figured out long ago, there is no legitimate reason for private cops- just like there is none for “contractors” who are really mercenaries in war zones. Sorry, you want to be a cop- work for the government, with proper oversight.

I’m pretty sure that if Good Sam was put on the market, we’d have a third option for health care in Dayton- and that it would start a price war that would benefit us all.

What to do with the Fairgrounds?

Fairgrounds to Future meeting noticeThere will be the first of the community input meetings tomorrow night on what to do with the Fairgrounds. It’s nice that Premier (Miami Valley Hospital) and the University of Dayton have decided to involve the community. They’ve hired a planning firm out of Columbus to help with the process. Of course, the last time the County asked for plans for the Fairgrounds and two companies went all out with their ideas- they were tossed aside, and the Fairgrounds got handed to the Meds and Eds neighbors for a song.

I’ve been to many of these “community input” type events before. To me, they are kind of like asking a few hundred amateur house painters to get together to do the Mona Lisa.

That aside- suppose the Greene wasn’t already in existence, or the Fairfield Commons Mall, or the Dayton Mall area- or Austin Landing, and we were going to build another faux downtown, just South of the real Downtown, what would we have? Another bunch of buildings to compete with the buildings that are already under-utilized.

We know MVH needs parking. They’ve been building more and more lots, along S. Main, Warren, etc. They already have a few garages. What they really need is less people driving to work- and they’ve already tried to build housing for their employees- and it still didn’t help, much. The main reason people feel weird about having to live down here is, the only grocery store isn’t very nice. So, sure, you could put a grocery super store on 12 of the acres- but, you could also put a Trader Joe’s on Wyoming where Patterson Kennedy Elementary school sat- and people would be overjoyed.

We don’t really need a super-amazing suburban style grocery.

So, what do we need? Well, the city said no to a dog park, to a skate board park, and instead built Riverscape with a rink you can’t play hockey in. We’re building yet another concert venue- as if the Fraze and the Rose aren’t enough. We’ve got a mini-white water run, for all 1000 kayakers around.

And, UD still has huge parcels of unused land along Stewart street. Including a huge parking lot, a band practice green and some soccer fields and tennis courts. In the meantime, Brown Street has a gazillion chain food options- which get slammed at meal time- and sit idle the rest of the time- esp. in summer when the students are mostly gone.

What is needed is some synergy between Brown Street, and whatever we’re going to “plan to build” and yet- they are a big block away.

So unless you look at what’s going to happen with the Stewart street corridor- the Fairgrounds remain sort of an island.

Maybe, what needs to happen is that all of what sits off Stewart- needs to be tucked away on the Fairgrounds or by UD Arena and Welcome stadium- with a free street car to circle from the Arena to Campus and around the Hospital.

Instead of huge parking garages off smaller streets- we just should build a huge one by the highway and the stadiums- and let people take the street car to the developments? Or to work at MVH, or UD?

And, at the corner of Brown and Stewart- right next to campus- we build a 5000 seat hockey arena, with 2 sheets of ice, to accommodate all the East coast kids- and the loss of Hara. Along with a second garage there, you solve the problems of Brown Street, plus bring people in for either hockey, or smaller shows than the big arena or the Nutter Center can take.

Then at the Fairgrounds- put a dog park, a skate park, a velodrome to add on to our bike friendly city cred. Why can’t we have a big park for year round events? A huge pool, wait, didn’t we used to have one by NCR and Old River?  Maybe it’s time to bring one back?

Building more shopping, or housing, isn’t really going to add anything to our mix. Solving some of the circulation and entertainment misses in our community could make a huge impact.

I’m going to be there- only to ask that we don’t look at the Fairgrounds as an island- because, that’s what it’s been for the last 100 years. It’s time to look at the whole area and figure out what would make Dayton a better place to live.

I’d love to hear your thoughts.

 

 

Getting property taxation right

Why isn't the purchase price the permanent valuation for the length of time you own it?

Only in Dayton is the $10K house a reality

Are you your neighbors keeper?

Every week I look at the listings of homes sold in Montgomery County and marvel, because only in Dayton can you buy a home for less than the price of a nice used car.

This doesn’t happen in surrounding communities (other than the depressed ones- Jefferson, Trotwood) . Do you wonder why?

It’s all supply and demand would be the perfect capitalists answer. But, what drives demand?

In real estate 101 they say “location, location, location” – and people choose communities based on the schools. And to some extent this is also correct. Yet, my house, bought for $14,500 in 1986 is worth close to 10x that, and a slightly larger home 2 doors down, just went for the same amount 7 years ago. It shouldn’t have sold that low, but it was a foreclosure. And, my property value dropped- not just because the price was low, but because of the cancer that moved in.

Four doors down, a house sold for $95K 3 years ago. The new couple put at least $40K into it before splitting. It sold in a day- price unknown, but for well over $125K. And my property values are sure to go up.

Yet, I didn’t change locations, and my schools still suck. My investments in my house shouldn’t penalize me with higher taxes anymore than what my neighbors do. The value will come to me, and to the community, when I sell.

How and why do the actions of others affect my property values? If I own a share of stock in 3M, does my value go up just because Apple had a great year? No. Yes, if I go to sell my car, and someone else paid X for a similar car- that’s the price- but, I’m not selling my home, I just want to live here. Why should my value change until I do something?

Simple answer- it shouldn’t. And, this constant re-valuation of real estate based on the actions of others is causing gentrification, housing bubbles, foreclosures, and a mangled economy.

The purchase price of an owner occupied home shouldn’t change until the house is sold. The same should be said of rental property. When the government steps in and raises your property value for taxation purposes, they become an uncontrollable variable in a business equation. They distort markets. They screw existing businesses and property owners when they offer tax abatement to the new guy, while the long term investor gets shafted.

And, it’s almost counterproductive to do improvements to your property, if the tax man is just going to charge you more. But, what could be worse? Your neighbor doing improvements.

Case study: Dr. Michael Ervin, shadow mayor of Dayton before he left town for Scottsdale AZ, bought a dump of a bar in the Oregon District and poured $1.6M into it. This skewed the valuation tables for his neighbors, who were thankful the bar left, but were asked to pay more for Dr. Mike’s excess. Some, couldn’t pay the additional taxes and were forced to sell or move. Others might have spent more on a crappy house, because Dr. Mike did what he did. The market skewed. But, 10 years later, when it came time to sell, Dr. Mike got less than half his money back on his taj mahal. Yes, it’s still double the value of any of the other single family homes- and still skews things, but, the only person paying the tax on the new market rate evaluation- $725K , should be the new owner. Just as the neighbors who never left, shouldn’t have been forced to pay more when the $1.6 boondoggle went in.

The reason we pay property taxes is supposedly to support public infrastructure and government to keep our investments safe. Income taxes are supposedly a more progressive tax that are supposed to be based on ability to pay. When property taxes unfairly start to penalize people for making a long-term investment that they hoped to keep- it’s wildly unfair, un-American.

The fact that almost every office building downtown has been foreclosed on, while tenants have moved to fairer pastures funded in part by tax dollars- with more advantageous tax structures (both income and property tax) like Austin Landing is proof positive that our property taxation and income taxation hodge podge is causing more problems than it’s helping.

The value of the Kettering Tower, once the premier office space in Dayton, was decimated by Dayton’s high income tax (now 2.5%) and property taxes based on market forces beyond the owners control. Would Austin Landing have looked so good, without the huge investment in infrastructure by the county, or the income tax free zone for white collar workers (while the retail underclass pays 2%)? Probably not.

It’s time to realize that tax policy and abatement has serious consequences to the entire region, and we need to find a way to level the playing field and stop letting the choices others make, affect our tax rates.

Regional tax policy, from property to income tax, needs to be set and managed at the county level, and by fair market forces, for all of us to live within our means, and to stop changing the playing field in the middle of the game.

 

Why politicians make lousy real estate developers and vice versa

Other peoples money. That’s the key to real estate, and especially real estate deals managed by those we elect who are supposed to be working in our best interest.

We’ve see stupid deals in Dayton for a long time, and they seem to slide along into oblivion in the mind of the public. No one got hoisted by their petards on the Arcade deal, or the Arcade tower, or the Wayne Avenue Kroger, or…. the list gets really long.

Let’s just say this: politicians raise bad real estate deals to a new art form. And locally, there are plenty of failures. However, it would appear that the deals by the Dayton Public School Board of Education may take the cake. This is a long video. But, it should make it pretty clear that there are serious questions about the deals they’ve done, the ones they’ve refused to do- and who’s been driving the deals- and questions about his entanglements.

We look closely at the site downtown on E. First Street where Patterson Co-op once stood, a greenfield, ready for development, and the site on Wyoming at Alberta where Patterson Kennedy Elementary once stood- near Miami Valley Hospital and the University of Dayton.

We’ve spent the last two months pursuing this story- and trying to figure out why Dr. Adil Baguirov seems to be the only member of the Board of Ed- including the school superintendent, that knows what’s been going on when it comes to these deals- and we’re wondering if this is by design.

If the schools wanted to optimize the value of these vacant properties, the key factor would be what property taxes will the development generate to the district in addition to the sale price- nothing else.

Watch the video. We’ll post supporting documents later.

Here is “Dirty Deals Done Dirt Cheap” featuring the Dayton Public Schools Board of Education, the Dayton and Montgomery County Port Authority, the former DPS operations Chief John Carr, the DPS board attorney, Jyllian Bradshaw and CareSource.

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