The city council voted 4 to 3 to approve the rezoning and variances for the proposed apartments on University Ave. in Old Town. However, since more than 20 percent of the property owners within 200 feet of the proposed apartments objected in writing, a supermajority was required for approval. Since a supermajority of votes was not achieved, the motion to approve failed.
The council was asked to rezone the property from commercial to planned unit development because building height, setbacks and density exceeded limits in the city code.
The developer cannot bring the same project back to the council for a year according to the city planning director. The developer also indicated that he had a commercial project in mind that would meet the existing requirements and that he was going to proceed with the planning and analysis of that project.
One councilman expressed concern that the process was controlled by just two council persons. Since those council persons represent the districts affected, it seems right that those most affected have the greatest impact on land use in their area.
Another issue to be concerned about is the rezoning and granting of waivers by the city council. If the zoning and building codes are not appropriate for a given piece of property, then the zoning and codes should be changed for all the property in a given area. There should be extremely few accommodations granted by the city council and the variations from the building codes should be very small, like <1 foot on building heights and setbacks, and <2% on density.
It seems like the process worked as it was supposed to; those most impacted by the changes from the established zoning and codes had the largest voice in the matter.
Monday, November 30, 2015
Saturday, November 28, 2015
How Green Energy Really Works
The vaporization of $29 billion of liabilities ($230 million of which was owed to the US Taxpayer) amid Abengoa's bankruptcy (Spain's 'Solyndra'), it worth reminding the world's greater fools just how "green" energy really works.Green Energy Boondoggle
"Businesses that cannot possibly survive without subsidies are ipso facto not economically viable. In spite of all the high-minded pronouncements about the “need to save the planet” and how this valiant effort can allegedly be “combined with economic growth”, their existence serves primarily one function: to distribute money looted from taxpayers and consumers to assorted cronies of the political class, who in turn provide the latter with kickbacks.That is all there is to it."
This Spanish company has declared bankruptcy and thus reneged on all it's commitments from debt repayment to generating plant construction and operation. What happens to Sun Edison's contract with Georgetown when the subsidies stop and interest rates increase? Notice how the American banks are involved in the debt financing of Abengoa and how the U.S. Government provided loans and grants which are now noncollectable.
Remember, this is a giant wealth transfer scheme to transfer wealth from taxpayers and ratepayers to crony capitalists, including those overseas. Georgetown's wind energy provider, EDF Renewables parent company is headquartered in France.
Wednesday, November 25, 2015
Proposed Apartment Complex on University Avenue Near Southwestern University Failed
The proposed apartment complex on University Avenue near Southwestern University failed to gain city council approval for the zoning changes and code variances requested. More analysis forth-coming later.
What We Should Not Be Thankful For
We should not be thankful for the tyranny of the modern American police state this Thanksgiving. We the citizens need to "push back" every time our liberty and freedom is reduced by our government.
Our government is controlled by the rich and powerful for their benefit. The rich get richer and the poor become poorer.(Rutherford Institute)
Americans are being jailed for profit (civil asset forfeiture). Everyday behaviors become targets of regulation and prohibition, and have resulted in Americans getting arrested and fined for making and selling unpasteurized goat cheese, cultivating certain types of orchids, feeding a whale, feeding deer and holding Bible studies in their homes.
The line between public and private property has been done away with. Call it what you will—taxes, penalties, fees, fines, regulations, tariffs, tickets, permits, surcharges, tolls, asset forfeitures, foreclosures, etc.—but the only word that truly describes the constant bilking of the American taxpayer by the government and its corporate partners is theft. What Americans don’t seem to comprehend is that if the government can arbitrarily take away your property, without your having much say about it, you have no true rights and no real property. The Bureau of Land Management is trying to take 90,000 acres of land away from Texans along the Red River.(Texas Public Policy Foundation files suit)
A fourth branch of government has been created—the NSA, CIA, FBI, DHS, etc.—came into being without any electoral mandate or constitutional referendum, and yet it possesses superpowers, above and beyond those of any other government agency save the military. It is all knowing, all seeing and all powerful.
"When a majority of citizens disagrees with economic elites and/or with organised interests, they generally lose. Moreover, because of the strong status quo bias built into the US political system, even when fairly large majorities of Americans favour policy change, they generally do not get it."(Princeton Study)
Our government is controlled by the rich and powerful for their benefit. The rich get richer and the poor become poorer.(Rutherford Institute)
Americans are being jailed for profit (civil asset forfeiture). Everyday behaviors become targets of regulation and prohibition, and have resulted in Americans getting arrested and fined for making and selling unpasteurized goat cheese, cultivating certain types of orchids, feeding a whale, feeding deer and holding Bible studies in their homes.
The line between public and private property has been done away with. Call it what you will—taxes, penalties, fees, fines, regulations, tariffs, tickets, permits, surcharges, tolls, asset forfeitures, foreclosures, etc.—but the only word that truly describes the constant bilking of the American taxpayer by the government and its corporate partners is theft. What Americans don’t seem to comprehend is that if the government can arbitrarily take away your property, without your having much say about it, you have no true rights and no real property. The Bureau of Land Management is trying to take 90,000 acres of land away from Texans along the Red River.(Texas Public Policy Foundation files suit)
A fourth branch of government has been created—the NSA, CIA, FBI, DHS, etc.—came into being without any electoral mandate or constitutional referendum, and yet it possesses superpowers, above and beyond those of any other government agency save the military. It is all knowing, all seeing and all powerful.
The schools, modeled after quasi-prisons churn out compliant citizens that expect the government to protect them from all discomfort and provide for all their needs and wants. The schools have closed campuses with armed guards, metal detectors, surveillance cameras, drug-sniffing dogs, tasers, cyber-surveillance, random searches, senseless arrests, jail time, the list goes on.
Our courts are not doing their job of strictly interpreting the laws and protecting the citizens. They are writing and re-writing legislation that is favorable to the government and special interest groups. Consider the Obamacare, Gay Marriage, etc.
Even though most of the intrusions into our freedoms and liberties are at the Federal level, we see the same kinds of intrusions in Georgetown. For example, the deer feeding ordinance, enacting "international" building ordinances and the control and licensing of private ambulances services.
Constant vigilance must be maintained and our elected officials must be held accountable for representing our interests and protecting our liberties and freedom.
Monday, November 23, 2015
Do We Need Zoning Rules?
The Planning and Zoning Commission narrowly approved a zone change for a proposed apartment complex on University Avenue near Southwestern University. Conditions restricting the number of units to 25, restricting building height to 30 feet and maintaining 61 parking spaces were imposed with the approval. The issues goes to the City Council tomorrow for consideration where they can either approve the Planning and Zoning Commission recommendation; approve the original proposal of 33 apartments, 36 feet high; do nothing; or approve their own conditions on the development.
The real question is: WHY IS THIS CONTROVERSY HAPPENING AT ALL? Doesn't the city have a set of zoning and building standards that a property owner/developer is supposed to adhere to? If the city can grant waivers to the rules, why have the rules in the first place? Wasn't there a time in the past where present and prior council members campaigned on the promise that the people of Georgetown should have a "well-defined and stable" set of rules to provide certainty so that they could plan their lives and businesses without worrying about the city changing requirements on a whim. What happened to that idea?
A cynic might think that the rules are for the "little people". They keep the average property owner from using or developing his/her property in a manner that is "best" for them. It is only for the powerful and well-connected that waivers are granted. Hey, that sounds like crony capitalism!
The real question is: WHY IS THIS CONTROVERSY HAPPENING AT ALL? Doesn't the city have a set of zoning and building standards that a property owner/developer is supposed to adhere to? If the city can grant waivers to the rules, why have the rules in the first place? Wasn't there a time in the past where present and prior council members campaigned on the promise that the people of Georgetown should have a "well-defined and stable" set of rules to provide certainty so that they could plan their lives and businesses without worrying about the city changing requirements on a whim. What happened to that idea?
A cynic might think that the rules are for the "little people". They keep the average property owner from using or developing his/her property in a manner that is "best" for them. It is only for the powerful and well-connected that waivers are granted. Hey, that sounds like crony capitalism!
Sunday, November 22, 2015
Civil Asset Forfeiture
In 2014, the federal government confiscated some $4.5 billion from Americans through civil asset forfeiture, according to a recent report from the Institute for Justice.(http://ij.org/report/policing-for-profit/)
As part of its report, the Institute issued state-level grades based on a variety of criteria, like the share of forfeited funds that police get to keep and protections for innocent owners. Most states and the federal government earned a D-. Two states, Massachusetts and North Dakota, earned an F for the incredibly low standard of proof required to forfeit goods there
This activity has been growing in recent years and there is compelling evidence that cities and police departments use these laws to beef up their budgets.(Washington Post analysis) Texas is rated a D+ and confiscated $26.6 Million in 2014 from its citizens.
Williamson County confiscated $98,344 in 2014 and Georgetown took in $58,024. It is unknown if crimes were committed and people were charged and convicted before the funds were appropriated to the city's and county's use. They should be asked how many forfeitures there were, the amount of money realized from each forfeiture and whether individuals were charged and convicted for each forfeiture.
Using civil asset forfeiture laws is inherently unfair unless a criminal conviction has been obtained. We need to encourage our state legislators to modify the enabling legislation to stop civil asset forfeiture in Texas until after a criminal conviction.
As part of its report, the Institute issued state-level grades based on a variety of criteria, like the share of forfeited funds that police get to keep and protections for innocent owners. Most states and the federal government earned a D-. Two states, Massachusetts and North Dakota, earned an F for the incredibly low standard of proof required to forfeit goods there
This activity has been growing in recent years and there is compelling evidence that cities and police departments use these laws to beef up their budgets.(Washington Post analysis) Texas is rated a D+ and confiscated $26.6 Million in 2014 from its citizens.
Williamson County confiscated $98,344 in 2014 and Georgetown took in $58,024. It is unknown if crimes were committed and people were charged and convicted before the funds were appropriated to the city's and county's use. They should be asked how many forfeitures there were, the amount of money realized from each forfeiture and whether individuals were charged and convicted for each forfeiture.
Using civil asset forfeiture laws is inherently unfair unless a criminal conviction has been obtained. We need to encourage our state legislators to modify the enabling legislation to stop civil asset forfeiture in Texas until after a criminal conviction.
Friday, November 20, 2015
More on SunEdison
Barons reports the following on SunEdison: Link
"JPMorgan lowered its rating on imploding solar developer SunEdison (SUNE) to Neutral on Friday, but pointed out the double-digit yields at its two publicly-traded “yieldco” subsidiaries and said both were unlikely to default on their commitments.
Analyst Paul Coster kept TerraForm Power (TERP), at an overweight rating. He kept SUNE’s other yieldco, TerraForm Global (GLBL), at Neutral, but had some positive comments.
Coster’s diverging outlooks were reflected in share prices on Friday. SUNE fell another 4 cents to close at $2.82 while TERP climbed 81 cents, or nearly 10%, to close at $9.20 and GLBL climbed 51 cents, or 11%, to $5.27.
Coster headlined his note on SUNE, “Ending the Agony: Downgrading to Neutral; Price Target to $5.50.” He suggested the company can avoid bankruptcy, but didn’t sound too confident, writing:
We think the stock is somewhat undervalued, the firm’s development and operational assets are high quality, but the situation is complicated, fluid and risky, so we move to the sidelines, deeply disappointed that we did not do so ahead of the “death-spiral.”
But as for TERP, he sums up:
We believe TERP is largely protected from cross-default risk at SUNE, and that the recent sell-off is over-done. We reduce our DCF [distributable cash flow]-based price target to $19.00 based on a revised DPS [dividend per share] growth-outlook and balance sheet commitments, but we remain Overweight and think the current yield of 17% is attractive.
Of GLBL, he writes in a similar fashion:
We believe GLBL is largely protected from cross-default risk at SUNE, and that the recent sell-off may be over-done. We reduce our DCF-based price target to $7.50 based on a revised DPS growth-outlook and balance sheet commitments, but we remain Neutral and think the current yield of 23% looks attractive."
"JPMorgan lowered its rating on imploding solar developer SunEdison (SUNE) to Neutral on Friday, but pointed out the double-digit yields at its two publicly-traded “yieldco” subsidiaries and said both were unlikely to default on their commitments.
Analyst Paul Coster kept TerraForm Power (TERP), at an overweight rating. He kept SUNE’s other yieldco, TerraForm Global (GLBL), at Neutral, but had some positive comments.
Coster’s diverging outlooks were reflected in share prices on Friday. SUNE fell another 4 cents to close at $2.82 while TERP climbed 81 cents, or nearly 10%, to close at $9.20 and GLBL climbed 51 cents, or 11%, to $5.27.
Coster headlined his note on SUNE, “Ending the Agony: Downgrading to Neutral; Price Target to $5.50.” He suggested the company can avoid bankruptcy, but didn’t sound too confident, writing:
We think the stock is somewhat undervalued, the firm’s development and operational assets are high quality, but the situation is complicated, fluid and risky, so we move to the sidelines, deeply disappointed that we did not do so ahead of the “death-spiral.”
But as for TERP, he sums up:
We believe TERP is largely protected from cross-default risk at SUNE, and that the recent sell-off is over-done. We reduce our DCF [distributable cash flow]-based price target to $19.00 based on a revised DPS [dividend per share] growth-outlook and balance sheet commitments, but we remain Overweight and think the current yield of 17% is attractive.
Of GLBL, he writes in a similar fashion:
We believe GLBL is largely protected from cross-default risk at SUNE, and that the recent sell-off may be over-done. We reduce our DCF-based price target to $7.50 based on a revised DPS growth-outlook and balance sheet commitments, but we remain Neutral and think the current yield of 23% looks attractive."
Any company that is yielding 17% or 23% is extremely risky in today's environment when 10 year treasury yields are approximately 2.26%.
Thursday, November 19, 2015
SunEdison Closes Below $3 A Share
Sun Edison continues to experience financial problems. With a low stock price, Sun Edison is limited in using it's stock as collateral to borrow more money. Loans to existing lenders require putting up more collateral as the stock price continues to sink. They are also burning cash to build new generating plants that they have committed to, such as Georgetown's. When will they run out of money to complete the builds? Will they be able to operate the plants, which they will have to do as they will not be able to sell them to their subsidiaries as they don't have the money and cannot raise money by selling their stock, because their stock price is also depressed? So many questions that will be answered over time by the market.
Wednesday, November 18, 2015
Sun Edison is a Joke
Trading in Sun Edison stock was stopped today at about 2:32 p.m. for a short time, after high volatility triggered circuit breakers under Security and Exchange Commission rules. After the close of regular trading it slipped to $2.89 per share at 4:45 p.m. The stock price is now gyrating on twitter rumors. Not a sign of a healthy company!
It Will SUNE Be Over
According to an analysis published by Zerohedge, Sun Edison is in serious financial trouble. No word from the city as to whether or not they are preparing for Sun Edison's potential non-performance.
"Back in the summer, SUNE was a hedge fund darling and in the portfolio of virtually every aggressive asset manager: a true hedge fund hotel.
"Back in the summer, SUNE was a hedge fund darling and in the portfolio of virtually every aggressive asset manager: a true hedge fund hotel.
Since then it has plunged by 90% on both concerns about fundamentals and hedge fund liquidations and margin calls. Just yesterday, the stock plunged another 34% beginning the question which hedge fund is still long and is about to get another major margin call.
In any event, as @the_real_fly says, "it will SUNE be over" and perhaps catalyzing the ending is a brand new note by Axiom Capital Research titled "The Nightmare Before Christmas” – Credit Event Appears More Likely than Presaged, in which the analyst Gordon Johnson sees at least another 33% of downside before the stock finally stabilizes at something resembling a fair value of $2.00
Here are the highlights:
- Credit Risk Appears Worse-than-Forebode. After some pressure from a number of SUNE pundits following our downgrade of the shares last week (given SUNE’s shrs had already moderated -75% vs. +1% for the S&P 500 over the same timeframe), we decided to do another “scrub” of the company’s 10-Q published 11/9. Following this exercise, we are even more resolute in our subdued outlook, SELL rating, and yr-end C16 PT of $2/shr (34% downside). Why? Five reasons, namely:
- (1) when excl. cash committed for construction projects, SUNE has just ~$600mn in cash for general corporate purposes (which we now blv may not be enough to sustain SUNE through 2Q16) – Ex. 2,
- (2) SUNE’s decision to borrow $169mn in 1yr paper from Goldman Sachs (GS; NR) in 3Q15 at a 15.4% interest rate (incl. $9mn prepayment) to put up collateral, we blv, for the 8/11/15 $152mn margin call on its $410mn Deutsche Bank (DB; NC) loan (an addtl. $91mn of collateral was required from SUNE 10/15 [Ex. 3], and we surmise more since then with the fall in Terraform Power’s shrs [TERP; NC]), pointing to emergency cash needs as recently as 3Q15 – who borrows 1yr paper at 15.4%?, (Ex. 4), other than a distressed company,
- (3) Renova’s right to put 7mn of GLBL shares to SUNE at a price of $15/shr 3/31/16 (a $105mn liability) – Ex. 5,
- (4) SUNE’s potential obligation to buy ~16% of Renova for $250mn using its own shares (i.e., 83mn shrs), suggesting sig. dilution to equity holders in the offing – Ex. 6, &
- (5) TERP’s recent revelation that it put up ~27% (i.e., $388mn) of the capital necessary to fund the Invenergy Warehouse, implying SUNE’s aspirations for ~$6bn in Warehouse funds to “house” its ~3GW in projects being developed may require a ~$1.65bn cash infusion (Ex. 7). Barring unforeseen incremental cheap funding in the offing, we see a credit event as likely before 3Q16.
- Valuation. Our yr-end C16 PT remains $2/shr (34% downside). While more valuation detail is below, with acute stress on its core biz at present, & shortcomings selling huge amounts of projects into the secondary mrkt over a short period of time thus far, we blv SUNE will miss ~3.5GW developed in C16. Using ([1.42GW × $0.18 (op. prof.) - $150mn interest × 70% (tax)] ÷ 316mn shrs) = $0.23/shr in dev. co. EPS, & applying a 9x P/E multiple (assumes 15% DevCo GM into perpetuity; likely high given 9.6% 2Q DevCo GM), SUNE is worth $2."
Tuesday, November 17, 2015
University Craziness Just Down the Road
Palestinian students at UT-Austin disrupted an Israeli Studies professor by screaming and chanting anti-Israeli slogans. There is a climate of intimidation and threats against Israeli and pro-Israeli speakers on most of the University campuses around the country.
"Yesterday morning we posted about an incident at UT-Austin, in which protesters from the Palestine Solidarity Committee (PSC), led by law student Mohammed Nabulsi, disrupted an event hosted by Professor Ami Pedahzur of UT’s Institute for Israeli Studies. The invited guest speaker was Dr. Gil-Li Vardi from Stanford University."Link
Better wake up people, the evil is right here in our back yard.
"Yesterday morning we posted about an incident at UT-Austin, in which protesters from the Palestine Solidarity Committee (PSC), led by law student Mohammed Nabulsi, disrupted an event hosted by Professor Ami Pedahzur of UT’s Institute for Israeli Studies. The invited guest speaker was Dr. Gil-Li Vardi from Stanford University."Link
Better wake up people, the evil is right here in our back yard.
Problems at Texas Ethics Commission Affect All of US
Members of the Texas Ethics Commission have been outed as colluding with Democratic officials in blue states to find out the names of donors to conservative organizations.
"State regulators at the Texas Ethics Commission have been pursuing the names of donors to conservative groups, including a group called Empower Texans. State regulators in Texas claimed that Empower Texans had engaged in too much political speech in 2010 and 2011 by issuing vote alerts related to pending legislation."
"Texas participants on the nationwide list serve include John Moore, the director of the Texas Ethics Commission, and Ian Steusloff, the general counsel to the Texas Ethics Commission."
An in-depth disclosure of the collaboration of Texas Ethics Commission Director, John Moore, is available here: TEC after conservatives
It's time to contact your Governor, Lt Governor, and Texas Legislators to stop this attack on our rights and freedoms.
"State regulators at the Texas Ethics Commission have been pursuing the names of donors to conservative groups, including a group called Empower Texans. State regulators in Texas claimed that Empower Texans had engaged in too much political speech in 2010 and 2011 by issuing vote alerts related to pending legislation."
"Texas participants on the nationwide list serve include John Moore, the director of the Texas Ethics Commission, and Ian Steusloff, the general counsel to the Texas Ethics Commission."
An in-depth disclosure of the collaboration of Texas Ethics Commission Director, John Moore, is available here: TEC after conservatives
It's time to contact your Governor, Lt Governor, and Texas Legislators to stop this attack on our rights and freedoms.
Sun Edison Stock at $3.40 per Share Today
How much lower can SUNE stock go before the company implodes? How can a company that depends on borrowed money continue to operate when it's stock is valueless? Can this company meet its contractual obligation to build a solar electric plant and deliver electricity to Georgetown? How long before the company is delisted from the stock exchanges? So many questions!
Why is the City Fighting Reinstatement of Officer Hoskins-Brown?
The Williamson County Sun and the Austin American-Statesman newspapers (29 Oct. 2015) have covered this saga and reported that the evidence supporting the firing (twice) was not credible. A hearing examiner found that Officer Hoskins-Brown had indeed taken her boyfriend's prescription drug, for which she also had a valid prescription, but that the charges of ingesting mescaline and lying were not provable under the law. The police chief had placed Officer Hoskins-Brown on indefinite suspension, effectively fired, on June 13, 2013. The hearing examiner ordered Officer Hoskins-Brown reinstated after serving a 15 day suspension on November 1, 2013 with back pay and benefits.
The following day, the chief fired Hoskins-Brown for a second time on the grounds that she could no longer perform her duties because the county and district attorneys found her to be untruthful and refused to accept any cases she filed. Since the second firing was not for disciplinary reasons, the city said her firing was not subject to appeal. A trial court agreed with the city, but the Court of Appeals has ruled that the trial court does have jurisdiction and referred the case to the trial court for further proceedings. The Appeals Court ordered the city to pay the legal fees for the appeal.
Since the Appeals Court ruling, both the District and County Attorneys have publicly recanted their prior statements about Officer Hoskins-Browns credibility as a witness.
The city has now appealed the Court of Appeals ruling to the Texas Supreme Court. Why is the city doing this?
Are they trying to "save face" over a really bad decision?
How much money is this costing the city? Do they really have a Dallas based high-dollar law firm pursuing this effort? How much does the law firm charge? $500+ per hour?
Hoskins-Brown has offered publicly to settle with the city, but, the city has rejected those offers. WHY?
If the city loses, they have to pay all the litigation costs and pay Officer Hoskins-Brown damages, back pay and benefits.
If the city wins, what have they won? They have established no great legal principle. They are responsible for all the city's legal costs and they saved a few bucks for Officers Hoskins-Brown's back pay and benefits.
The city has already damaged its reputation as being fair and equitable to it's employees and has established itself as a litigious city, which is not good.
Taking employees to court is not a good example for Georgetown to set.
The following day, the chief fired Hoskins-Brown for a second time on the grounds that she could no longer perform her duties because the county and district attorneys found her to be untruthful and refused to accept any cases she filed. Since the second firing was not for disciplinary reasons, the city said her firing was not subject to appeal. A trial court agreed with the city, but the Court of Appeals has ruled that the trial court does have jurisdiction and referred the case to the trial court for further proceedings. The Appeals Court ordered the city to pay the legal fees for the appeal.
Since the Appeals Court ruling, both the District and County Attorneys have publicly recanted their prior statements about Officer Hoskins-Browns credibility as a witness.
The city has now appealed the Court of Appeals ruling to the Texas Supreme Court. Why is the city doing this?
Are they trying to "save face" over a really bad decision?
How much money is this costing the city? Do they really have a Dallas based high-dollar law firm pursuing this effort? How much does the law firm charge? $500+ per hour?
Hoskins-Brown has offered publicly to settle with the city, but, the city has rejected those offers. WHY?
If the city loses, they have to pay all the litigation costs and pay Officer Hoskins-Brown damages, back pay and benefits.
If the city wins, what have they won? They have established no great legal principle. They are responsible for all the city's legal costs and they saved a few bucks for Officers Hoskins-Brown's back pay and benefits.
The city has already damaged its reputation as being fair and equitable to it's employees and has established itself as a litigious city, which is not good.
Taking employees to court is not a good example for Georgetown to set.
Thursday, November 12, 2015
Is Sun Edison Imploding?
"Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, announces the commencement of an investigation into SunEdison, Inc. (SUNE) (“SunEdison”) related to potential violations of federal securities laws." Link
Sun Edison stock closed at $4.54/share today, down from $33.45 last summer. The market capitalization is only $1.4B and the debt is $11.7B. These are not numbers that inspire confidence.
So in addition to financial stress, Sun Edison is under investigation for potential violation of federal security laws. What are the implications for Georgetown's contract for delivery of solar generated electricity? Is the city watching this event and do they have contingency plans in the event Sun Edison cannot deliver the promised electricity? Inquiring minds want to know!
Sun Edison stock closed at $4.54/share today, down from $33.45 last summer. The market capitalization is only $1.4B and the debt is $11.7B. These are not numbers that inspire confidence.
So in addition to financial stress, Sun Edison is under investigation for potential violation of federal security laws. What are the implications for Georgetown's contract for delivery of solar generated electricity? Is the city watching this event and do they have contingency plans in the event Sun Edison cannot deliver the promised electricity? Inquiring minds want to know!
Tuesday, November 10, 2015
Sun Edison Showing Signs of Stress
Sun Edison, the company that the city has under contract to provide solar generated electricity over the next 25 years is experiencing financial stress. The stock price plunged 24% as investors found out that the company is bleeding cash at a higher rate than expected.
"Shares of SunEdison Inc slid 24 percent to a nearly two-and-a-half-year low on Tuesday after the U.S. solar company posted a wider-than-expected loss, raising fresh concerns about its ability to fund its operations, projects and acquisitions." Reuters
"Shares of SunEdison Inc slid 24 percent to a nearly two-and-a-half-year low on Tuesday after the U.S. solar company posted a wider-than-expected loss, raising fresh concerns about its ability to fund its operations, projects and acquisitions." Reuters
The company is terminating 15% of their workforce to try and stem the hemorrhaging of cash. They are pulling back from building additional generating plants in some countries and they are no longer selling assets to their captive "yieldcos", which have been a source of cash for the company.
The deteriorating financial condition brings into question the company's ability to fulfill its contract obligations to Georgetown. If the company is forced to declare itself bankrupt, then existing contracts are no longer enforceable.
Read the article at the link for more information about SunEdisons financial condition.
Thursday, November 5, 2015
Georgetown's Future Growth
The City Council is beginning to have discussions about the future growth of Georgetown and how and where they can impact that growth.
A quick look at census data shows that the growth in Georgetown has been taking place west of IH 35. For the years 2010 to 2013, the population west of IH 35 in zip codes 78628 and 78633 increased by about 6,000. In zip code 78626, east of IH 35, the population decreased about 550 over the same time period. As later population data becomes available, the relative growth between east and west of IH 35 are likely to continue.
Another analysis, presented at the last council meeting, shows that over the last 20 years, 17,545 housing starts have been recorded in the city. With the city divided into four quadrants, it was shown that 74% of those housing starts occurred in the northwest quadrant, with 4% in the northeast, 2% in the southwest and 20% in the southeast quadrant.
Looking at the city's 2030 growth map, it is clear that the growth is likely to continue to the northwest.
It can be observed on the map that the city cannot expand south into Round Rock. It cannot expand east because of Weir. It cannot expand north along IH 35 because of Jarrell and it cannot expand west because of Leander and Liberty Hill. Georgetown's Extra Territorial Jurisdiction also meets those other city's boundaries. The only option remaining is to continue expanding to the northwest along Williams Drive and Hwy 195.
It has been suggested that given the impediments of Georgetown Lake, the San Gabriel rivers and IH 35, for people to drive to shopping, medical, etc., it makes sense to encourage more commercial development in the northwest part of town as that is where the population growth is likely to occur. Currently most of the commercial property is located along IH 35 and Williams Drive. If more businesses and services are not located in the northwest quadrant, traffic congestion will increase and become intolerable. This will lead to more expensive road and bridge projects to allow people to drive to the business and shopping areas.
Thus, it seems that more business and shopping services should be encouraged to locate near the population growth areas.
Contact your city council person with your thoughts and concerns about future growth in Georgetown.
A quick look at census data shows that the growth in Georgetown has been taking place west of IH 35. For the years 2010 to 2013, the population west of IH 35 in zip codes 78628 and 78633 increased by about 6,000. In zip code 78626, east of IH 35, the population decreased about 550 over the same time period. As later population data becomes available, the relative growth between east and west of IH 35 are likely to continue.
Another analysis, presented at the last council meeting, shows that over the last 20 years, 17,545 housing starts have been recorded in the city. With the city divided into four quadrants, it was shown that 74% of those housing starts occurred in the northwest quadrant, with 4% in the northeast, 2% in the southwest and 20% in the southeast quadrant.
Looking at the city's 2030 growth map, it is clear that the growth is likely to continue to the northwest.
It has been suggested that given the impediments of Georgetown Lake, the San Gabriel rivers and IH 35, for people to drive to shopping, medical, etc., it makes sense to encourage more commercial development in the northwest part of town as that is where the population growth is likely to occur. Currently most of the commercial property is located along IH 35 and Williams Drive. If more businesses and services are not located in the northwest quadrant, traffic congestion will increase and become intolerable. This will lead to more expensive road and bridge projects to allow people to drive to the business and shopping areas.
Thus, it seems that more business and shopping services should be encouraged to locate near the population growth areas.
Contact your city council person with your thoughts and concerns about future growth in Georgetown.
Tuesday, November 3, 2015
Tax Increment Zones, Pro & Con
Lone Star Rail will be returning to Georgetown in the future requesting that the city create a Transportation Infrastructure Zone to dedicate tax revenues to Lone Star Rail. What are Tax Increment Zones?
Tax Increment Zones, Tax Increment Reinvestment Zones, Transportation Infrastruction Zones are all essentially the same. They are property zones created by local government to dedicate growth in tax revenue after a certain date to a specific economic development activity. The political leaders tell their citizens about all the wonderful characteristics of such a zone, but, they never mention the negative characteristics of such zone. We will try to identify all the relevant characteristics of these government created entities.
The politicians tell us, the taxpaying citizens, the following:
1. A TIZ stimulates economic development.
2. A TIZ is a partnership between the government and developers.
3. There is a separate Board to manage the TIZ.
4. The TIZ has an expiration date.
5. TIZ revenue does not come from existing tax base and thus does not cause the tax RATE to increase.
6. TIZ revenue is restricted to how and on what it is spent.
7. TIZ revenue can be capped, with excess going to general funds.
What the politicians do not tell us is the following:
1. Tax Increment Reinvestment Zones are an admission of failure. Every time Government creates a TIZ, it is a vote of no confidence in its own ability to properly collect and spend taxpayer dollars.
2. It is a confession that our city should be managed by unelected boards at secretive meetings who can issue debt without voter approval.
3. History has shown that TIZ funds are spent on activities and projects not specifically approved in the governing documents.
4. A TIZ provides our elected officials the opportunity to engage in crony capitalism by providing tax subsidies to favored developers.
5. A TIZ is a mechanism for the city to take a larger share of limited tax revenues from rival entities like school districts and the county.
6. A TIZ provides urban planners the opportunity to practice social engineering by promoting high-density, mixed-use developments that are anathema to most citizens. This is exactly what would happen along a Lone Star Rail line if a TIZ is created as requested.
7. A TIZ rarely, if ever, expires. They are routinely renewed, expanded and extended.
8. Each TIRZ represents a moment when our elected officials decided to hand over the purse strings to someone else, diverting dollars that could have been spent shoring up pension obligations, paying down debt, or enhancing public safety.
9. Economic development may be slowed if new businesses are not provided the same incentives as those provided in an existing TIZ.
A description of the three existing Tax Increment Reinvestment Zones in Georgetown may be found here. The existing TIRZs are Rivery Park, Downtown and Williams Drive. The governing Boards and members are identified in the afore-mentioned link.
When considering all the attributes of a TIZ, it seems extreme caution should be exercised before creating such an entity. Very strict controls and time limits should be imposed. It is believed that the city should have a bias against using such constructs and only use them in very limited cases.
Tax Increment Zones, Tax Increment Reinvestment Zones, Transportation Infrastruction Zones are all essentially the same. They are property zones created by local government to dedicate growth in tax revenue after a certain date to a specific economic development activity. The political leaders tell their citizens about all the wonderful characteristics of such a zone, but, they never mention the negative characteristics of such zone. We will try to identify all the relevant characteristics of these government created entities.
The politicians tell us, the taxpaying citizens, the following:
1. A TIZ stimulates economic development.
2. A TIZ is a partnership between the government and developers.
3. There is a separate Board to manage the TIZ.
4. The TIZ has an expiration date.
5. TIZ revenue does not come from existing tax base and thus does not cause the tax RATE to increase.
6. TIZ revenue is restricted to how and on what it is spent.
7. TIZ revenue can be capped, with excess going to general funds.
What the politicians do not tell us is the following:
1. Tax Increment Reinvestment Zones are an admission of failure. Every time Government creates a TIZ, it is a vote of no confidence in its own ability to properly collect and spend taxpayer dollars.
2. It is a confession that our city should be managed by unelected boards at secretive meetings who can issue debt without voter approval.
3. History has shown that TIZ funds are spent on activities and projects not specifically approved in the governing documents.
4. A TIZ provides our elected officials the opportunity to engage in crony capitalism by providing tax subsidies to favored developers.
5. A TIZ is a mechanism for the city to take a larger share of limited tax revenues from rival entities like school districts and the county.
6. A TIZ provides urban planners the opportunity to practice social engineering by promoting high-density, mixed-use developments that are anathema to most citizens. This is exactly what would happen along a Lone Star Rail line if a TIZ is created as requested.
7. A TIZ rarely, if ever, expires. They are routinely renewed, expanded and extended.
8. Each TIRZ represents a moment when our elected officials decided to hand over the purse strings to someone else, diverting dollars that could have been spent shoring up pension obligations, paying down debt, or enhancing public safety.
9. Economic development may be slowed if new businesses are not provided the same incentives as those provided in an existing TIZ.
A description of the three existing Tax Increment Reinvestment Zones in Georgetown may be found here. The existing TIRZs are Rivery Park, Downtown and Williams Drive. The governing Boards and members are identified in the afore-mentioned link.
When considering all the attributes of a TIZ, it seems extreme caution should be exercised before creating such an entity. Very strict controls and time limits should be imposed. It is believed that the city should have a bias against using such constructs and only use them in very limited cases.
Monday, November 2, 2015
What is Lone Star Rail Up To?
Lone Star Rail(LSRD) has been very quiet of late. No progress reports, press releases or public announcements. Their web site http://www.lonestarrail.com/ has very little current information or description of activities. Their Environmental Impact Study(EIS) is not slated for completion until September, 2017. In the meantime, no progress reports have been made public.
The Wilco Sun(Link) reported last week that the Federal Highway Administration and TxDOT has accepted Lone Star Rail"s "purpose and need" report, but there are no other reports of this acceptance, nor are there any links to the "purpose and need" report.
Evidently Lone Star Rail has been concentrating their effort to extract funds from local governments at the southern end of the proposed rail line. Bexar County approved $500,000 for Lone Star Rail in the budget they passed last week. "Lone Star Rail District Director Joe Black said he's also asked the City of San Antonio and VIA Metropolitan Transit for start-up funding. The rail agency will also ask for funding from Alamo Colleges, Black said."
The LSRD is asking that Schertz and New Braunfels enter into tax increment zone agreements by the end of September, in order to lock in a local funding commitment for future operating and maintenance costs. These tax increment zone(TIZ) agreements are mechanisms for transferring power away from the local communities and local elected officials. Once a TIZ is created, the additional taxes generated in the future by property within the TIZ goes to LSRD without limit. Not good for the local citizens to give up the power to control the taxes in their city.
The Wilco Sun(Link) reported last week that the Federal Highway Administration and TxDOT has accepted Lone Star Rail"s "purpose and need" report, but there are no other reports of this acceptance, nor are there any links to the "purpose and need" report.
Evidently Lone Star Rail has been concentrating their effort to extract funds from local governments at the southern end of the proposed rail line. Bexar County approved $500,000 for Lone Star Rail in the budget they passed last week. "Lone Star Rail District Director Joe Black said he's also asked the City of San Antonio and VIA Metropolitan Transit for start-up funding. The rail agency will also ask for funding from Alamo Colleges, Black said."
The LSRD is asking that Schertz and New Braunfels enter into tax increment zone agreements by the end of September, in order to lock in a local funding commitment for future operating and maintenance costs. These tax increment zone(TIZ) agreements are mechanisms for transferring power away from the local communities and local elected officials. Once a TIZ is created, the additional taxes generated in the future by property within the TIZ goes to LSRD without limit. Not good for the local citizens to give up the power to control the taxes in their city.
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