St Louis Rolls Out Mow to Own Program

St. Louis Mayor Francis Slay recently announced a “Mow to Own” program to help the city rid itself of vacant land held by the Land Reutilization Authority's (LRA). The program, similar to programs in Baton Rouge, Memphis and Columbus,

allows City residents to take immediate ownership of LRA-owned parcels adjacent to their property for just $125 if the resident agrees to continually maintain the lot. The City will give away the land itself for free. The $125 covers the title transfer and lien, should the new owner fail to maintain his/her new property. After 24 months of regular maintenance, the lien will be lifted and the property granted free and clear to the new owner.

The city has no interest in paying to maintain these lots. Why not do whatever it takes to get them off the books and into private hands? This effort is similar to the Kansas City’s Land Bank Side Lot Program, where resident landowners may purchase adjacent vacant lots from the city for prices ranging from as little as $1 for lots under 2,500 square feet, to $.08 per square foot for lots between 6,000 and 6,500 square feet. The program has had some success. The city sold 50 side lots in 2014, 63 in 2015, and 9 so far in 2016.

The comparative strengths of the KC program, according to the Land Bank’s executive director, Ted Anderson, are that it does not require the program management of Mow to Own, and that liability insurance is less of an issue for the city because the buyers own the land outright. Furthermore, selling the land outright means there is less need to oversee the diligence of dozens of different people mowing city land.

The incentive to buy city land will still be affected by the distortionary effect taxes have on behavior. I know of one landowner in Kansas City whose office building, due to street layout, abuts a sizeable greenspace that is otherwise inaccessible. He maintains the space by cutting the grass. He’s aware of the Side Lot program, but he has no interest in assuming the additional property tax, especially when he currently has the option of enjoying the green space without being taxed on it. Saint Louis should expect to see cases like this on occasion, but to the extent that the Mow to Own program can relieve the city of unproductive property, it will be a step in the right direction. 

Did the Missouri Senate Sacrifice the Rights of Minorities for Union Executives?

The legislature failed to override the Governor’s veto of paycheck protection. The bill will not become law. The override came down to just one vote. As the Kansas City Star reported, this senator:

kicked off debate Thursday with a speech listing off a “litany of issues with unions,” including several run-ins that … involved racist comments by union members.

The senator promised to continue supporting “rank and file” union members, but added that “labor unions can’t expect carte blanche support anymore.”

The senator has a point here. The interests of the African American community and union leaders are not always aligned, and the rights of minorities are sometimes sacrificed for the good of the politically stronger labor movement.

Ironically, labor reforms such as paycheck protection are about protecting the rights of a minority from the will of a majority. Paycheck protection allows a worker to opt out of the campaign contributions and expenditures of a government labor union. Paycheck protection recognizes the fact that not everyone has the same political views as their union and that this difference of opinion should be respected.

The other labor reforms we’ve discussed, transparency and union elections, are also aimed at protecting a minority from the majority. Financial transparency would allow workers and taxpayers to see how government unions spend taxpayer-funded union dues. Union elections would give workers the chance to de-unionize their workplace every few years. All of these reforms make unions more responsive to all of their constituents, not just the majority. And all of these reforms lead to greater worker freedom.

The next time our elected officials want to take a stand on protecting minority rights, they might consider endorsing public policies that actually protect minority rights.

A Second Chance after Successful Criminal Rehabilitation

On Wednesday, the Missouri House approved SB 588 (a proposal to reform criminal expungement policy in Missouri), and the Senate subsequently sent the bill to Governor Jay Nixon.

As I have written before (here), Missouri’s criminal expungement laws are due for an upgrade.

SB 588 would increase the availability and affordability of criminal expungement applications for certain low-level and nonviolent felony and misdemeanor offenses. Allowing criminal expungement in specific cases will help those who have paid their debt to society and demonstrated successful rehabilitation to move past their mistakes and become productive citizens.

The “ban the box” movement is a related effort, in this case intended to increase economic opportunity for past offenders by eliminating questions concerning criminal records on applications for employment. Following the lead of 21 other states, last month Missouri Governor Nixon “banned the box” on state employment applications with Executive Order 16-04, by requiring that state employment applications not ask about criminal records until the later stages of the hiring process.

The criminal expungement reforms within SB 588 would allow many more low-level offenders to re-assimilate themselves into society by opening up job opportunities beyond government employment. Instead of waiting the two decades required for qualified (nonviolent) felony offenses and the one decade for qualified misdemeanor offenses, rehabilitated nonviolent felony offenders could apply for expungement after five years from the completed sentence; for misdemeanor offenses, the waiting period would only be three years.

SB 588 would contribute to the restorative and rehabilitative functions of Missouri’s justice system. Increasing access to higher-quality jobs should greatly improve the economic prospects of nonviolent past offenders, thereby reducing the chance of recidivism as well.

TIF Reform Legislation Races Into the Homestretch, But the Clock Is Ticking

Thanks to robust bipartisan support and assisted by a strangely-timed development proposal, the Missouri legislature is on the verge of passing a package of long-overdue tax increment financing (TIF) reforms. With only hours left in the legislative session, however, it remains an open question whether the House will send the bill to the governor in time.

Let me tell you why this reform is so needed.

The main thrust of House Bill 1434 is to curb the rampant TIF abuse that residents in the Saint Louis area have seen recently, including the plan to subsidize a Stan Kroenke development only weeks after Kroenke moved the Saint Louis Rams out of town. With that incident in mind, most of the bill's language deals with three counties in particular—Saint Charles, Jefferson, and Saint Louis counties—and the manner in which TIFs can be enacted and administered. For those reasons alone, the bill has merit.

But there's another element that also deserves to be highlighted. Tucked a little deeper into the legislation is language that would make TIF committee activities more transparent to the public. More specifically:

It shall be the policy of the state [emphasis mine] that each redevelopment plan or project of a municipality be carried out with full transparency to the public. The records of the tax increment financing commission including, but not limited to, commission votes and actions, meeting minutes, summaries of witness testimony, data, and reports submitted to the commission, shall be retained by the governing body of the municipality that created the commission and shall be made available to the public in accordance with chapter 610.

For those wondering, Chapter 610 of the Missouri revised statutes contains the state's "Sunshine Law," and you'll find a parallel "policy of the state" language there as well.

It is the public policy of this state that meetings, records, votes, actions, and deliberations of public governmental bodies be open to the public unless otherwise provided by law. Sections 610.010 to 610.200 shall be liberally construed and their exceptions strictly construed to promote this public policy.

Transparency is an effective disinfectant, and for that reason alone this TIF bill is important. TIF reform been a long-standing priority here at the Show-Me Institute; that the legislature may finally take a substantive step in the right direction is both exciting and gratifying. I'm keeping my fingers crossed.

 

Kansas City Streetcar Ridership Numbers

After years of losses at the polls, City leaders finally got the vote they needed in 2012 to approve the $102-million-plus streetcar project. After at least one delay of several months, the streetcar officially opened on Friday, May 6, 2016.

How successful was its launch?

That’s tough to say. On its opening weekend there was at least one train (and communication) breakdown, which caused the police to empty not only that train but the one behind it.

As for ridership, each streetcar is equipped with an automatic passenger counter (APC), which is industry standard. Ridership numbers are knowable daily and by hour. Here is the daily ridership so far, as provided by Kansas City Area Transportation Authority and the Streetcar Authority:

·         Friday: 12,230

·         Saturday: 14,648

·         Sunday: 5,448

·         Monday: 3,945

How many riders should we expect? Well, that itself appears to be a moving target. The Streetcar Authority CEO recently said that the expected ridership is 2,700 per day. But back in late 2014, we were told ridership would be 3,500 per day. That’s a decrease of 25% before it even started running!

These numbers matter, because ridership will be an important consideration if voters are asked to expand the system.

As opening weekend recedes into the past, it is important to make information about the streetcar easily accessible to the public. We at the Show-Me Institute are thrilled that there is a standard method for counting ridership, and we look forward to collecting and reporting those ridership numbers often.

An Informed Public: Poor Policy’s Worst Enemy

For the time being, it seems that plans to tear down Kansas City International Airport (MCI) and build a $1.2 billion new terminal have been shelved. Public polling indicated that about 60% of city voters, whose approval was required for a bond issuance, remained opposed.

Supporters of a new terminal lamented this pause and argued that voters were not sufficiently informed of what was before them. Some even propose a more aggressive public education campaign. Sadly, this is what serious policy discussions often come down to—not thoughtful exchanges of ideas, but rather an uncompromising proposal stubbornly marketed and shouted in various ways at a busy public. And if they still don’t agree . . . shout louder!

In fact, after years of public debate, voters in Kansas City (and everyone who uses the airport) knew exactly what was being asked of them. Few issues have been discussed in more or at greater length than the airport. There have been numerous public meetings, TV and radio segments, and print news articles on the matter. A group of citizens even collected signatures to make sure the public had a vote. The public knew exactly what was being proposed.

Because MCI is a cheap airport for airlines to serve, we get more service. We have more direct flights than other markets our size. American Airlines and Southwest continue to expand service and in recent years we’ve attracted additional smaller discount airlines such as Allegiant and Spirit. These are not warning signs of a failing airport.

There are risks to taking on big builds. In Sacramento, San Jose, and Cincinnati, localities invested heavily in new airports. They increased airline fees to pay down the debt and saw airline service decline. This is a simple enough economic reality: when you charge more for something, you sell less of it. It really is that simple. Any effort to improve MCI must make sure that we retain our competitive advantage: a cheap and convenient airport.

Those in St. Joseph and across the region have a stake in the matter, but they won’t have a vote. Frequent travelers would be well served to make sure their friends in Kansas City are educated on the benefits and risks of a new terminal.

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