Blog Archives

Deaf ears.

7/24/2019

For those of you that can see what I do here, what follows should be somewhat of a surprise. In spite of what some might think, I have never made a frontal assault on our elected officials. However, I have never had any reluctance to push readers to think for themselves. In fact, my very first post five and a half years ago said I was going the do that exact thing. What may have appeared to some to be criticism of elected officials really wasn't. But, I had absolutely no problem prodding readers into what they thought about our elected officials. This might seem to some to be splitting hairs, but it really isn't

I have said many times in this blog that I thought our elected officials were smart. However, there are wide differences in the different experiences of our elected officials.   Therefore, it is reasonable to expect our elected officials to talk to us. Let us know what you think. You owe us. We voted for you. It is reasonable of we citizens to know how our elected officials think. It is reasonable that we citizens can ask questions of our elected officials and to get answers. Attending or viewing City Council meetings fall way short of communicating with elected officials.

There has been recent legislation that prevents, or severely limits, correspondence of elected officials via social media.   I can understand part of the legislation, but some is overkill. However, there appears to be no restrictions of sending and receiving private email. These emails are private correspondence and not an opinion of the entire elected body. That is not only understood, but preferred. It allows communication between citizens and elected officials without phone calls at home, at night or during dinner. Makes good sense.

The blog post immediately preceding this was an announcement about the formation of an American Legion Post in Rowlett. Acknowledging that my blog is not a big attraction to City Council and probably not often read, I sent a copy to ALL of the City Council, asking for their support in forming up a Rowlett American Legion Post. The copies went to the Mayor and the six council members comprising all seven of voting City Council voting members. These are the only people you get to vote for in elections. These are the people you absolutely need to communicate with. All else are appointed or hired.

Of the seven voting members of Council, I heard from two. One thanked me for sending the announcement, and the other said they were not a veteran, but if they were, they would join.   So, of the two respondents, one was courteous, but neutral, and the other was supportive.   That left five that did not respond.

Now, communication is important. Did the absence of a response mean the Council members did not support the American Legion? In part, my email to City Council said, "I would like the city's support, mention, and well wishes for the mobilizing the local American Legion post. It will make you feel good." Was that too daunting a request to justify a response?   Was it just too much work to send back an email saying, "Okay." Had I asked for so much?

There are many functions in Rowlett that honor veterans. That is good. However, one might now ask, was the festivities conducted for the veterans, or photo ops for the elected officials? If I use the Council's response as a vote, we have one neutral, one for, and five abstaining. Folks, anywhere else the vote would have failed.

I think there are two possibilities: one very bad and one not quite as bad.....both bad, but a matter of degree.

One is that the City Council really doesn't give a flip about veterans. They honor them because it make them look good and photos are taken that prove they care. Other than that, they consider veterans a pain in the butt. This is the really bad possibility.

The other possibility is more stupid than bad.   One way to not get in trouble by misspeaking is not speak at all. I have not been told this, but I have a sneaky suspicion that Council has received some very poor legal advise to go into a cloister. Go hide and never speak unless setting at your appointed seat on the dais and keep the commentary plain vanilla. Don't engage. Unfortunately, this maneuver flies in the face of citizens who vote and expect communication in return. This seems to be Bayside all over again. I don't care about photo ops, traffic accidents, or weather reports when talking to an elected official. That's just someone trying to become relevant. I would have far more interest in other matters like Bayside, streets, tax rate, etc. I just wish I had someone to talk to. Everyone is gone.

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A new deal in town.....a good one.

7/19/2019

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I was a medic in the Air Force during Viet Nam. I did not actually serve in Viet Nam, and I did absolutely nothing "heroic." However, during those times, wearing your uniform among civilians was somewhat "dicey." The military was not viewed in very good graces at the time.

Times have changed, as they should have. The past efforts of military veterans are now recognized for what they are......a veteran's life at risk commitment to serve the USA and it's citizens....all citizens. There's nothing fancy about it. They don't talk much about it, except for some of the good times. However, there is a quiet sense of inner satisfaction that they served and survived. Some did not survive. As a medic, I saw some of the "almost survived." Once you serve in the military, it is almost like joining a fraternity. You are always a veteran. You're never not a veteran. If given enough time, I can almost spot every veteran in a crowded room. Throw out the bragging drunk. Just look for some quiet mannerisms. There is something different about a veteran. I presume it comes from the military training. It is hard to identify and is often disguised by other "stuff," but it's there if you know what you're looking for. Veterans also have a tendency to band together. They have a shared experience that no non-veteran has.

Rowlett needs a place for their veterans.

We are soon to have one. An American Legion Post is forming up in Rowlett. We need an American Legion post. The new post is Post #347, and the name of the Post is Texas Fallen Heroes. It is named in honor of Texans who fell in Afghanistan and Iraq wars in particular, but all fallen military in general.

We need veterans to sign up and enlist in the American Legion Post #347 and participate in the Rowlett activities. It would be great fun and another opportunity to serve. The cost is $35 per year, a very modest fee. The meeting hall is in Rowlett at the Veterans Resource and Outreach Center, at 4210 Industrial Street, unit 100. Meetings are held on the third Thursday of each month.

If you wish to join up, please contact Michael Flores, Post Commander, 972-742-7971. It will be fun, and good for the Rowlett community.

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Where's the hangup?

7/16/2019

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Been thinking about Bayside, again.   Got a little "structure" problem.

In a phone conversation a couple of months ago, I asked the Mayor what was the collateral securing the bonds that were sold to finance the infrastructure of the Bayside development. Usually, rights of way and streets securing appropriate bond issues have no real market value when standing alone. I don't recall the exact amount, but let's say for conversation, $40 million. It is presumed the bonds would be retired from tax revenue of the TIRZ zone.

Any bond purchaser would want some additional security in the event the project failed and the tax revenue didn't materialize. Of course, the city didn't want to guarantee the bonds. The Mayor told me ALL the Bayside land south of I-30 was pledged as collateral to secure the bonds. The Bayside land has real market value. I was surprised at that answer, but it did shift the risk away from the city and to the project, itself. I was pleased with that.

However, a thought occurred to me, no doubt triggered by the recent delay in closing the deal with a new Bayside developer. Let me share a little historical background about real estate lending practices.

I was a development loan officer for 25 years. During that time, a really "clean" deal would take about two months to close. It took about 30 days for any loan to be approved and another 30 days to prepare the closing documents, and finalize any malingering small details. Any "deal" that had fairly nettlesome problems that needed to be cleared up might take another 30 days if the parties were agreeable in principal.    Of course, if the deal was not "doable," the loan would have been turned down a long time before the three month period.

Bayside had four months to close (120 days), then didn't close. Another three weeks was added to "tend to some details." Now we will be at nearly five months, if it closes at all.

Let's go back to my original point. The Bayside land south of I-30 was pledged as collateral to secure the bonds. Therefore, the land is encumbered.    Essentially, a lien was placed upon the land and it would, in real estate law, be in the "first position."

Now, along comes a new developer. He wants to buy the land. He can do so, however he must pay cash (say, $37 million), or he must get a loan.    If unencumbered cash is available, fine. The free and clear land could then be used to secure other Bayside development. However, if a loan is to be used to provide funds to purchase the land, a major problem surfaces. I don't know any lender in this country that would loan $37 million, and take a "second" position behind a first lien.   There must be collateral securing the loan. That is what lending is all about. .......risk containment.

So, we have a new developer and seemingly a problem getting the deal closed after four and a half months, soon to be nearly five months.    Could it be just arguing about superfluous "stuff" or is there something more damaging?    If a developer is attempting to purchase land that is already encumbered, and he needs a loan to buy the land, he must offer collateral that is not encumbered.   If all the developer's borrowing power is used to buy the land, none remains for other development.

Bayside is a sophisticated piece of real estate. It has a lot of different development skills and disciplines needed for successful development. The Facebook "intellectuals" think they have it all figured out. They don't have a clue.

If two consenting and informed parties agree in principal to a deal, problems can be worked out.   However, if a loan is involved, the situation is quite different. The lender has the money. The lender won't contribute the money unless the collateral is sufficient and the market is present.

That can only mean the borrower doesn't have the assets to close the deal.   That further means the developer is probably "tapped out" of pledgable assets and additional development will be difficult, if not impossible. That further means the developer probably isn't a developer at all. He would be a speculator or facilitator. That means he secures the zoning and would use bond money for infrastructure, then sell smaller parcels to others that know their own development businesses, such as apartments, condos, office buildings, retail centers, etc.

If the above proves true, we wouldn't have been working with a developer at all. However, a really good blue suede shoe salesman might be our new Bayside "owner." We just don't know. It's a secret.

I will know what we have within minutes of the announcement about who the new developer is. I am a little uncomfortable. The citizens have been completely blacked out. Why?

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gotta story to tell....

7/15/2019

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A couple of weeks ago, I decided I needed some gutter repair.     My gutter, along about 10 feet of roof, was coming loose. It had pulled away from the facia and was allowing roof runoff to fall and miss the gutter. Also, the downspout was separated just below the roof line. It wasn't a difficult repair, however it was two stories high and needed a long ladder to access the work. It was certainly more risky than gutters that were only one story high.

I had recently seen fancy ads on TV advertising HomeAdvisor. They advertise for home repairs, roofing, gutters, and modest remodeling. I thought I would try them. I contacted them and soon I was in touch with one of their subcontractors. A very professional lady came to the house to view the needed repairs. She was intelligent and represented herself well. However, she could not price the work. She had to return to her office for pricing.

The next day she called. She said her company had an $800 minimum. Well, that was way too much for the modest gutter repair I needed. So, I added leaf guards to the order to maybe use up some of the $800 minimum. She called back the next day and said the price was now $1,385.

What she didn't know was that I am a pretty good cost estimator.   Some of my banking clients have me recheck the cost estimates of some of their commercial construction loans.   I knew I was being overcharged. I worried that I was considered "Senior prey," a despicable marketing concept.

I kept looking and found a local man to do the gutter repair and leaf guard installation for $400. It took about two hours. Of course, he had material cost of the leaf guard material, and the height of the work added an acceptable premium. The $400 was fair.

Moral of the story: Stay local, if you can. Check prices from three contractors, if you can. Avoid clearly "low ball" estimates, and run as fast as you can away from HomeAdvisor.   You don't need to be paying for those
$1 million per minute ads.

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Bayside

7/9/2019

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Well, it's now official. City Council has now voted to keep Rowlett citizens uninformed for another 23 days. Apparently we have to wait until the deal, if any, is signed, sealed, and delivered to the court house for recordation before we are to learn what the hell's going on. By the time the deal is done, if ever, the citizens will have had no information or input. Transparency has been zero. I understand some things need to be kept under wraps, but a complete black out is draconian.

If a mistake is made, and that's a distinct possibility, it doesn't matter. You own it. You will be informed of the mistake you made, if any.

I have read some Facebook posts. Unbelievable ignorance....and arrogance. But, what do I know? I've only been in the business for 50 years.

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Let the drum roll begin

7/8/2019

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If my calculations and calendar are correct, today is the day our secretive negotiations with developers unknown should conclude and we should all find out what's happening in Bayside.   There should be trumpets blaring, drums beating, and flyovers.

Bayside is arguably the most important piece of real estate in Rowlett.   What was proposed originally for Bayside would most certainly put Rowlett "on the map." It had all the good stuff for upscale living and shopping. But, what made Bayside special was that it was nearly surrounded by a 23,000 acre lake, an Interstate highway running thru it, a toll road accessing all of the north Dallas employment centers, and a DART terminal station within a very short 5 minute drive.   NONE of the highly touted competing cities of Sachse, Murphy, Wylie, Prosper, and Frisco, had such well endowed real estate.

In my opinion, Bayside was always a better site for potential development than the area we call North Shore ever was.   Our "consultants" (persons providing expert advice) for Rowlett 2020 and our most recent "consultants" for North Shore can't seem to recognize the fact that there is a whole bunch of land between Rowlett and the employment centers around the Geo. Bush Tollway and US 75. Furthermore, North Shore is on a tollway with no major "free" access nor a service road.   That means employers have to pay more to get comparable good employees and if they have rolling stock, as in a service center, all their trucks pay a toll to get in and pay again to get out. Large companies have bean counters that watch that sort of stuff.   I have preached about all the draw backs of North Shore becoming a commercial development area for a long time. However, the title "consultants" and pretty pictures won the day.

The best example of what I was talking about has just been recently announced. Sachse has just announced a huge, multi-use development right smack in the middle of the distance between Rowlett and the major employment centers. That development will steal the thunder away from any North Shore commercial development for the next 20-30 years. Good for Sachse. Bad for Rowlett. Bayside wins by default.

So.....what are we going to get in Bayside?

Remember, a camel is a Thoroughbred designed by committee. Usually, if it's a government committee, the camel, by decree, becomes a platypus. I will know what we have a short time after the announcement of who the new developer is.......if any.   If no new developer, back to the court house for some more practice.

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Government at work

7/1/2019

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The Rowlett "officialdom" just concluded two days of budget meetings. Significant in the meetings were discussions of budgets and taxes. Larry Beckham posted a poll on three Facebook groups asking if the budget sessions should be taped for later review. The unanimous replies were "yes." There were no replies saying "no."

The official position was that the meetings were open to the public, therefore there was no need to tape the proceedings. The fact that some people worked, were ill, or traveling made no difference. The invitation was made to attend. Obligations satisfied. So, now you couldn't review the meetings if you could not attend.

There should have been a hue and cry from the Rowlett taxpayers. There wasn't. The voting on the poll was anemic; shamefully so. So, "officialdom" knows the constituency pretty well. They know the taxpayers don't give a rat's south side about budgets and taxes. It makes one wonder what Rowlett would be if anybody really cared. No doubt, some do, but the ranks are thin. With all the advantages we have, Rowlett should be the gem of the DFW area. Remaining lethargic almost assures second place when vying for first rate businesses and residences. Being ignorant (as opposed to stupid) doesn't help. Being ignorant of the facts inspires one to become stupid.

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Deaf ears.

A new deal in town.....a good one.

Where's the hangup?

gotta story to tell....

Bayside

Let the drum roll begin

Government at work

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