Note: this post was orginally entered on the old Post-Nuke version of the site. For the purpose of linking it and tracking traffic, I have copied it verbatim to the WP side, and given it the same date/time stamp. Original entry here.
This is gonna start slow folks, but keep reading. If you’re not burning by the end, just hand in your membership card as a Free American, and move to Cuba or North Korea. Whatever communist hellhole you prefer.
Two hundred and forty years ago, we had a little revolution in this country. The issue at hand was whether or not the colonies would be able to elect representatives to the Parliament that set their taxes; or failing that, the Parliament would set the amount of revenue needed, and leave it up to the colonial legislatures to decide how to raise it.
It was a far different time. Back then, if the government showed up at your door with a company of soldiers and said “These men now live here. You’re to feed and house them. And if one pinches your daughter’s bum, don’t come whining to us” well, you had two choices: watch them move in, or get hauled off in chains.
It was only a few years since a charge of libeling a government offical had been defeated by presenting a unique and novel defense: that it couldn’t be libel if it was the truth. It was for these reasons that the Founding Fathers (a bunch of Obvioulsy Sexist and Bigoted Evil White Men) added several amendments to their shiny new constitution. Chief among these was that the government couldn’t just seize property; and if it did have to take it, it had to pay market value for it. Indeed, it was arguable that the government had no authority to take property away from private citizens at all, based on some interpretations of the Fourth Amendment.
But the 18th century gave way to the 19th, and then the 20th, and now the 21st. Government’s role in the economy and society grew, and as it did, it apportioned itself greater and greater authority. Chief among the new tools was eminent domain. The government declared that, if the public good demanded it (and of course the public good was decided by the government), it could take private property away–as long as it paid for it. Later, it even decided that certain critical businesses should be able to take what they needed. Railroads were awarded land grants that beggared the Spanish Grants of old, and given the power to seize whatever they needed to build on–or the government seized it for them. Today, the largest single private landowner in the country is the Southern Pacific railroad; although the seizure powers were revoked long ago.
Most of the time, when eminent domain is invoked today, it means that a sub-sub-portion of some elected authority (such as the state or city government) wants to build a road or a public building of some sort. Well, that can be very disruptive, but arguably, everyone benefits in some small way from enhancement of mobility or community. So imagine my surprise when I opened my paper this weak to read that an entity which is entirely unelected claims it can use eminent domain …. to acquire space for a “community center.” Not only that, but it wants to do it at the expense of both a private corporation and one of the more well-known and loved non-profit organizations in the country today, the Girl Scouts of America.
Excuse me? When the HELL did we move to the Soviet Union?
Yes, you read rightly. The “Upper Kirby Management District” wants to build a “community center” in a building on the Southwest Freeway. Oddly, so do the Girl Scouts, situated next door. With the additional space, they can set up a training center and a museum. one wonders sort of “community center” is planed by a “Management District.” For that matter, what the hell is a managment district? Let’s take a look…
Created in 1997 by an act of the 75th legislature, the UKMD (does that ever sound ominous, comrade!) is one of those shadowy Tax Increment Reinvestment Zones that is created by state law, and given the ability to levy additional taxes which are then used to supplement the local government’s money, in order to make improvements. Theoretically, these will increase the value, which raises the taxable value for all governmental entities, not just the TIRZ. Everyone wins, right? The kicker is, while you can elect a senator, governor, councilmember, or president who promises to lower taxes and rein in government spending, you can’t elect a TIRZ director. In fact, you have absolutely no say in who runs one.
So who does? Other TIRZ directors, thats who. These boards have complete and total control over their own size and membership. If anyone leaves office, they directly elect a successor. If someone’s term expires, the board tells the Mayor and Council who they want to be the new director, and the Council votes straight yes or no. If no, the TIRZ keeps coming back with new candidates until they get a yes vote.
And once they’re on the board, what can the directors do? Actually the better question is, what can’t they do?
They can expand their boundries at will:
§ 3805.105. ANNEXATION OR EXCLUSION OF TERRITORY. The district may annex or exclude land from the district in the manner provided by Subchapter C, Chapter 375, Local Government Code.
They can tax:
§ 3805.152. MAINTENANCE TAX. (a) If authorized at an election held in accordance with Section 3805.103, the district may impose an annual ad valorem tax on taxable property in the district to maintain, restore, replace, or operate the district and improvements that the district constructs or acquires or the district’s facilities, works, or services.(b) The board shall determine the tax rate.
They can do anything they bloody well please:
§ 3805.101. DISTRICT POWERS. The district has: (1) all powers necessary to accomplish the purposes for which the district was created.
And buddy, when we say anything, we really mean anything!
§ 3805.009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.
And now a few provisions from the general law authorizing TIRZ:
§ 375.092. SPECIFIC POWERS.(a) A district has the powers necessary or convenient to carry out and effect the purposes and provisions of this chapter, including the powers granted in this section.(e) A district may acquire by grant, purchase, gift, devise, lease, or otherwise, and may hold, use, sell, lease, or dispose of real and personal property, and licenses, patents, rights, and interests necessary, convenient, or useful for the full exercise of any of its powers under this chapter.(j) A district may acquire property under conditional sales contracts, leases, equipment trust certificates, or any other form of contract or trust agreement.(o) A district may do anything necessary, convenient, or desirable to carry out the powers expressly granted or implied by this chapter.
Holy power of God, Batman, screw the Marines, lets turn a TIRZ loose on those fuckers in Fallujah!
So what does all this have to do with the Girl Scouts of America? Simple. The UKMD (hail, comrade!) wants to create something they call a “community center” and offered to buy a two-story building for $1.9 million. It’s owned by the American Automobile Association, and located on the Southwest Freeway near the Greenway Plaza; prime commercial real estate. Then the Girl Scouts, headquartered in the building next door — even sharing the same parking lot — found out it was for sale. It doesn’t get any better than that. Either pay a lot of money to rebuild theur current structure, or they buy out their longtime neighbor. So they outbid the UKMD (hail, comrade!) , offering $2.2 million. (The property is assessed by the HCAD at $1.8m). The District decided that fine, they could meet that offer. This is great–capitalism at work! Someone’s got a commodity, folks who are bidding have got the money. Lets do this!
Only one side didn’t want to play fair in a bidding war. Suddenly, the AAA broke off the negotiations with the GSA. Why? They got a letter from the UKMD (hail, comrade!) stating that if it had to do so, it would use eminent domain to take the building. The AAA, cowed into avoiding what would be a costly legal battle if they tried to defy the District, folded.
Two parties are directly harmed by this. First, the GSA, which had the opportunity to get a near-perfect solution to their space problem, but can’t bid against a District that won’t play fair. Second the AAA, which can no longer let the two parties (or anyone else interested) get the price it wants on the open market, but must meekly surrender it to an unelected, but powerful governmental entity!
(Update 3/2006: It also harms the city itself. If the property had sold at the higher price, it would justify raising the assessment of not only the property in question, but all nearby properties, thereby generating more tax revenue. There’s no 10% cap, since this isn’t a homestead.)
As if that isn’t bad enough, the District does not have the explicit power to condem property–it’s claiming it does based on the sweeping grant of powers by the Legislature. That’s not chutzpah speaking there, is it? Well state Senator Rodney Ellis stepped in and asked the Texas AG, “hey, can they do this?” (The AG has six months to answer that question, by which time it will undoubtedly be moot because the property will be sold to the district.) Well, the City of Houston Planning and Development Director stepped in and said “yes, they can condemn property–but only if the City Council approves.” Lawyers for the district disagree, and say that no, they can take whatever they want, whenever they want, without approval from any elected official anywhere at all. The Executive Director of the UKMD (hail, comrade!) even went so far as to say that the district isn’t condeming the property, so it’s all much ado about nothing! Now that’s chutzpah.
The GSA for the moment, is swallowing this load of crap and smiling, instead of telling the commie bastards to ***** off and filing suit. They hope to lease at least some of their space in the new “community center” from their District overlords, and it wouldn’t be a good idea to upset their unelected masters, oh no….”Scrabble in the dust for a few measly crumbs, you scout bitches!”
Edit: 6/23/05: The Supreme Court joins the chorus. Kelo v. New London.
Edit: 6/24/05: Mayor White announces “that he is pleased the court upheld the use of eminent domain to reduce blight.”