The Wichita City Council wisely deferred a Tuesday vote on the Renaissance Square redevelopment project proposed for the Midtown neighborhood, in response to an Eagle report on the financial and legal problems of the businessman who negotiated the deal, our editorial today argued. Because the deal involves an $11 million investment of public funds, the 11th-hour caution was advised.
But so was due diligence by city staff, which missed the mark in vetting negotiator Grant Gaudreau. So it was up to The Eagle to report Tuesday that Gaudreau has been sued at least 35 times in seven years, mostly for bounced checks and unpaid bills, and has an outstanding warrant in Butler County for $12,000 in unpaid income tax. According to court records, he also previously headed a hotel venture that went bankrupt owing more than $450,000 in back taxes to the city, county and state.
Council members were left looking clueless at Tuesday’s meeting, with little choice but to delay the vote in the hope that the cloud can be cleared by next week.
Meanwhile, citizens were left to wonder where the scrutiny and accountability come into such City Hall dealmaking.
Given his fierce opposition to the financial services bailout, it was no surprise that Rep. Todd Tiahrt, R-Goddard, also voted against the Detroit bailout, which nevertheless passed the House on a vote of 237-170. In a statement, Tiahrt criticized the Big Three bailout as “more government involvement instead of incentives for private-sector solutions.” He also strongly opposed “the job-killing provision contained in this bill that would ban these automakers from leasing or owning business jets. . . . Banning our automakers from leasing or owning jets makes as much sense as asking them to stop using BlackBerries and laptops – tools that have made us the most efficient and productive work force in the world. This provision is a symbolic slap in the face to more than 1,200,000 workers spread across every state whose jobs depend on general aviation.”
An effective stimulus package must not only provide heavy assistance to state and local governments; it must also be sufficiently conditional to ensure that the Mark Sanfords of the world don’t use the money to cut taxes as well as services. As someone who worked for three governors, I can confidently point to another temptation facing state and local leaders that needs to be taken into account: the natural but completely absurd pretense that they can somehow turn their own economies around in the current global crisis. Sure, states and localities can critically influence their long-range economic prospects through a variety of policies such as educational and infrastructure investments. But federal policymakers need to ensure that their friends and enemies in state capitals and city halls are pulling in the same direction. – Ed Kilgore, thedemocraticstrategist.org
While many states and local governments are lining up for a bailout from Congress, I went to Washington recently to oppose such bailouts. Community bankers tell me that they are now at a competitive disadvantage for being careful about whom to lend to, because others that were less disciplined will get a federal bailout. This is also true for states. Over the past year the federal government has committed itself to $2.3 trillion (including the tax rebate “stimulus” checks of last February) to “improve” the economy. I don’t see how another $150 billion now will make a difference. We’ve already unloaded truckloads of sugar in a vain attempt to sweeten a lake. Tossing in a Twinkie will not make the difference. – South Carolina Gov. Mark Sanford, in the Wall Street Journal
“Don’t you love watching congressmen lecture auto executives on how to run their business? I mean, you got people that put us a trillion dollars in debt lecturing people who put us a billion dollars in debt.” – Jay Leno
“A plan to bail out the Big Three automakers stalled in Congress today. Yeah. As a result, Congress plans to buy a better-built Japanese bailout plan.” – Conan O’Brien
“This economy . . . is so bad that” Illinois Governor Rod Blagojevich (in photo) “had to mark down the price of a Senate seat 40 percent.” – David Letterman
“I personally am surprised Obama even needed a seat. I thought he just levitated.” – Stephen Colbert
The Wichita City Council wisely deferred a Tuesday vote on the Renaissance Square redevelopment project proposed for the Midtown neighborhood, in response to an Eagle report on the financial and legal problems of the businessman who negotiated the deal, our editorial today argued. Because the deal involves an $11 million investment of public funds, the 11th-hour caution was advised.
