FLASH--Les Schwab Pays City

In response to my direct question about this issue, I was told by City Finance Director Sonia Andrews that Les Schwab had indeed paid the City of Bend for their Juniper Ridge land. My other questions quickly grew tiresome to the Council and I was told to contact Ms. Andrews directly for answers. I did learn that the City has received an A rating for the upcoming bond issuance.

One thing that puzzles me is a seeming discrepancy between the Budget Summary and the Detailed Budget. The Summary shows $3,846,000 in property sales, while the Detail shows $0. Both are dated 12/31/07. Some of the other figures don't match up, either, so I'll have to do a little comparision and see what's up. If it doesn't come out all hunky-dory, I'll ask Ms. Andrews about it.

On the conflict of interest issue, it was a bit of a joke. It only covered one issue, that of the rezoning of land near 15th and Bear Creek for a bus barn. All the councilor's stated they hadn't really talked about it with anyone or owned any land near there, kind of laughingly. I don't really know what the purpose was with that particular issue, as the rules apply on every issue.

I did get up and ask about this as well, as the staff member that presented it stated they had contacted everyone within a 100 feet, which seemed ridiculous. This is right across from Bear Creek Elementary, so it affects many more people that that. It is also a popular cycling route heading east towards Dodd's Road. And sure enough three neighborhood people were also there and expressed their opposition to putting the industrial traffic out onto Bear Creek Road. It seems to this thick-skulled soul that if they simply found a way to make the main access point exit onto 15th, north of the Bear Creek/15th roundabout, everybody would be much happier. As it is, it seems the city is intent on shoving it down the throats of the local populace, although the repeated opposition to this gave them pause and it is going to be studied some more.

Tonights CC Meeting--Some Questions In Advance

I plan on attending for several reasons, not the least of which is to hear this:

11. Statement of Procedural Rules by City Attorney and declaration of ex parte contacts and conflicts of interest.

I hope to hear something about Capell and Knife River, and if I do I may shelve the ethics complaint I have prepared. At least for now.

I will also present the following questionns about Les Schwab and Juniper Ridge, and about the impending $5 million bond issue:

1. Has the City received payment for the Les Schwab land?

2. If it hasn't, and considering the Sales And Purchase Agreement automatically terminated on Dec. 31, what is the current status of the sale?
and
3. What is the precedent for allowing such large-scale private construction upon un-purchased city land?

4. Considering the cities current financial woes, what rating is the city expecting for the upcoming offering? Will it be insured, at what additional cost?

5. Considering the currently high yields on municipal bonds, what is the interest rate range expected?

6. How will the debt service affect the city cash flow, and will this debt service come from the general fund?

I am very interested in hearing the answers to these questions.

City Charging Ahead, Another $37-40M for Cooley/97 Interchange For JR Access

Picture this--your company sales are down 30%, you are going to lose $10M this year, your reserves are starting to look a bit low, and your major market has seen its sales drop by 2/3's, and all signs point to sales getting far worse before they get better. And your second major line is starting to see inventory pile up rather heavily as well.

You've been planning a great new addition to your product lines, but have run into problems here and there and now it's late. Plus the regulators told you just recently that you have to fix some "issues" they are concerned about before you can take your new product to market. And it's going to be a very expensive fix, like a $37 to $40 million dollar fix if all goes as planned.

And throw into the mix that your first big sale in this new product line, to a high-profile buyer who managed to force through a sweetheart deal on faith, still hasn't followed through and that buyers' promise expires in less than two weeks.

What would you do?

Personally, I would batten down the hatches, keep the product development percolating at a low-level, cut back expenses as far as I possible could, especially any expenses directly related to the promise my "buyer" made and plan to cut them even more if the sale falls through, and live to win another day. Wait it out. Let the cycle come back around, in my favor. Realize that I had a hell of a run and I better tighten everything up fast before I let it all get away on me and end up worse off than ever.

Taking my time and making sure I'm ready when the cycle inevitably goes up again. It could be two or seven years, who knows. But I would run lean at all costs, ferociously preserving my reserves, and eking out value from every penny going out while maximizing every dwindling penny coming it. Making my existing customers damned happy. I would want to make sure I'm still here, I survived, and I'm ready for the next big ride.

But is that what our fine City Council and it's ever-the-optimist Special Projects Manager R. Garzini are planning to do?

Hell, no. They are forging ahead as if it's 2004, and the bubble called Bend Real Estate is just hitting the booster rockets.

Build it and they will come. It works great, in a movie. In the real world, if the time is right, the price is right, and the place looks nice, they might come with a little persuasion.

One out of three ain't bad, if you're an optimist.

I just wish the Council saw the realism that close to two hundred of our local residents are seeing as their homes are getting foreclosed on in this beautiful Christmas season.