Right“"I don't see much sense in that," said Rabbit.
"No," said Pooh humbly, "there isn't. But there was going to be when I began it.
It's just that something happened to it along the way."” - Winnie the Pooh
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Bellingham council sees partial Chuckanut Ridge sale as last resort
JOHN STARK - THE BELLINGHAM HERALD
BELLINGHAM - The City Council is taking steps to clarify its strategy for covering the $8.2 million cost of the 82-acre Chuckanut Ridge purchase.
Right, after-the-fact from the action already taken!On Monday afternoon, Sept. 26, the council finance committee met to discuss the matter and all seven council members attended. The key issue is finding a way to repay as much as $3.3 million of the purchase price that is being covered with a loan from a city parks Greenways endowment fund that is supposed to be used for maintenance, not land purchases.
If less than $3.3 Million is repaid, how will the balance be paid?
Even more importantly, how will the maintenance be paid for! Think that doesn't count? Why was it ever designated in the first place?
Attempts at verbal jujitsu seems in evidence here.
Councilman Seth Fleetwood said it was incorrect to say the council has no plan for repayment of that loan. Ultimately, Fleetwood said, the property itself serves as collateral for the loan, and some portion of it could be sold for residential development to pay the loan back, if no other revenue sources can be found.
Huh?
Of course some portion could be sold; that should be Council's first option!
"Nobody hopes that this happens," Fleetwood said.
I do, and so do many others who take City fiscal matters seriously!
Mayor Dan Pike agreed.
"The ultimate fallback plan is we sell off as much of the land as we need to," Pike said.
Huh?, again!
Does ultimate fallback mean the same as last resort?
Didn't these guys figure all the deficit monies would have to be paid back?
Go ahead, kick that last resort into the dim future and hope no one is watching!
Good luck with that.
Council members agreed to consider adding language to that effect to the ordinance authorizing financing for the Chuckanut Ridge purchase. The seller is Washington Federal, the bank that obtained the property through foreclosure. The property had previously secured loans made by Horizon Bank, and Washington Federal took over those loans after regulators shut down Horizon in early 2010.
The ordinance was slated to come before the full council for a final vote late Monday, with an addition that reads, "Until paid in full, the 82 acres of real property shall serve as collateral for any unpaid balance" from the $3.3 million loan from the endowment fund.
Big deal, stating the obvious; although with this bunch, just getting that into the ordinance was a step they could take and maybe save more criticism.
How's that working out?
The council has six years to repay the money.
Who says so? Why they do, of course! You see, they, and only they, are the deciders!
Don't forget that, especially at election time.
BTW, how many of these guys will still be in office 6 years hence?
Also at the Monday committee meeting, council members appeared to be backing away from any insistence that loan repayment could not come from a new Greenways IV levy that would, if voters approve, replace the current Greenways III levy that expires at the end of 2016.
Is that really surprising?
After all, that was their first option in the thin air of Council's exhilaration after the 'buy it all now' decision was first made.
At a Sept. 22 finance committee meeting, committee members recommended that the city not rely on potential Greenways IV revenue for Chuckanut Ridge, since that reliance might turn some city voters against the future levy.
You think? Count on it!
Pike said the content of the next Greenways levy would be up to a future Greenway advisory committee and City Council, and said the current council has no business trying to dictate that levy's possible uses, years in advance.
Huh? The first part of that almost sounded kinda - right!
But, notice he left any mention of his -or a future Mayor's- role out of this statement?
And, oh sure, a future Greenway advisory committee could be just as ignored as the current one has been!
But this is the kicker: ...the current council has no business trying to dictate that levy's possible uses, years in advance.
What is he saying by analogy?
Is it that the previous Council had no business trying to dictate what the current Council has now undone?
Well, that certainly clarifies this Mayor's thinking about things, like binding commitments, duly passed ordinances, carefully considered procedures, and all the heavy lifting done by those who have set the table for this current bunch to mess with, any way they want to, doesn't it?
No wonder Pike is having troubles; he doesn't even know what he's saying from one mouth-opening to another!
But, maybe my interpretation has more to do with semantics?
Like, the reporter didn't get it just right?
I don't think so!
The reporter got it right, but Pike often seems to need the last word, just to clarify what he means to those who weren't there to hear it for themselves!.
Bye, bye Pike!
Both also said they thought it was up to the mayor to develop a financing plan for the land purchase and to bring the plan to the council for review and approval.
Shouldn't this have happened before the Council voted to buy CR?
Where's the Council's due diligence in this?
And, why are they pointing fingers in any direction except the mirror?
Pike agreed, suggesting that the matter was becoming a political issue. [Yeah! It's always been a political issue!] He faces a re-election challenge from former state legislator Kelli Linville.
"I think what I would like to do is come back (with financing ideas) some time after the election is over," Pike said. "Everything will be calmer."
Think so? Why? Because we'll have a new Mayor, with better 'skill sets'?
That's one way things will be calmer for you!
Your unwise grandstanding about buying CR wasn't about trying to gain a political advantage?
Can't have it both ways, Pike!
He also took the opportunity to defend both the land purchase and the price. Many city residents had been urging public purchase of the wooded site for years, and the bank's asking price was a fraction of what previous owners had been quoting, Pike said.
True, but that fractional price was still much more [$3.5 Million] than the City could afford to keep, without spinning back a chunk of it!
Previous owners were concocting a virtual pyramid scheme that had to fail, unless the full 739 dwelling units were actually built and sold.
[Maybe the Twilight Zoning that a previous Council and Administration allowed, largely contributed to the current situation? You bet it did! Maybe THAT Council should not have had a binding impact on the current Council & Administration, either! So why didn't Pike and THIS Council simply ignore the grossly excessive zoning? You know, what goes around, comes around -at least according to Pike's reasoning!]
Also, a little bird told me that it was the City's Finance Director who took it upon himself to ask the Bank to consider reducing the price by 5 to 7%, which was the approximate property devaluation that occurred over the past year, since the first appraisal was done.
The Bank immediately responded to this request and lowered its asking price by 7.5%, or about $700 Thousand.
Now, that ain't exactly chump change, but even that reduction left a price of $8.23 Million that the Council chomped on like a hungry trout to a fly!
Not much time to have a repayment plan developed, was it?
If the city failed to move quickly, Washington Federal could have chosen to auction off the property, leaving the city to try to negotiate a deal with a less motivated seller, he said.
There may still need to be an auction!
How else will the $3.5 Million be ultimately repaid?
"This is just an example of 'No good deed goes unpunished,'" Pike said.
Exactly what good deed was that?
You were just doing your job, right?
Instead of moving toward some kind of firm commitment to a specific strategy for loan repayment, council members agreed to collect public input on the issue, using the city's website.
That's the ultimate takeaway here; no firm commitment to a specific strategy for loan repayment! The Council ate the dessert, but left their veggies untouched and the dishes for a future Council to wash!
And what good is asking for public input, after the fact!
Heck, they even ignored public input given before-the-fact!
Council didn't even have the common decency to hold a public meeting, instead ducking into their safe little internet!
Guess maybe it's not as hot that way?
Whimps, and irresponsible ones at that!
My 2 cents.....after the fact
Reach JOHN STARK at john.stark@bellinghamherald.com or call 715-2274.
SIMILAR STORIES:
- Panel: Don't dip into next Greenways levy to repay Chuckanut Ridge loan
- Bellingham council approves money sources for $8.2 million Chuckanut Ridge
- City to consider how to repay $3.4 million loan for Chuckanut Ridge purchase
- Bellingham approves plan to purchase Chuckanut Ridge
- City Council to consider Chuckanut Ridge funding Sept. 26
“Piglet sidled up to Pooh from behind. "Pooh?" he whispered.
"Yes, Piglet?"
"Nothing," said Piglet, taking Pooh's hand. "I just wanted to be sure of you.”
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“I'm not lost for I know where I am. But however, where I am may be lost.”
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