All this from a 12th Grade student in high school . . . . that is indeed awesome. 1st-hand experience or what?
Published on May 28, 2019
Ethan Johnstone discusses gentrification and its impact. Ethan Johnstone is currently a Senior at Chaparral High School. He was born and raised in Southern California. As the ASB President, he is deeply interested in law and politics and how they in turn affect society. His future plans are to attend a 4 year university and study Economics and Political Science. After he receives his bachelor's degree, he plans on attending law school and eventually running for elected office one day. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx
On April 17, the Treasury Department released its second round of guidance on Opportunity Zone investments in the form of proposed regulations (the “New Proposed Regulations”). These newly proposed regulations supplement and in some cases revise the proposed regulations issued in October of 2018 (the “October Proposed Regulations”). [1]
The New Proposed Regulations provide further clarity, but leave many questions unanswered.
In December 2017, as part of the Tax Cuts and Jobs Act (“TCJA”), Congress established a new tax incentive program to promote investment in certain low-income communities designated by the IRS as qualified opportunity zones. The tax incentives obtained by investing in a qualified opportunity fund (“QOF”) allow taxpayers to (i) defer paying taxes on capital gain from the sale or exchange of appreciated assets; (ii) receive a permanent exclusion from taxation of up to 15 percent of the originally deferred gain, and (iii) for taxpayers that hold their investment in the QOF for at least 10 years, a permanent exclusion from taxation for any appreciation in excess of the deferred gain.
GUIDANCE ON THE REQUIREMENTS FOR QUALIFIED OPPORTUNITY ZONE BUSINESS PROPERTY
Under the New Proposed Regulations, in order to qualify as qualified opportunity zone business property (a “QOZBP”) (i) the property must be tangible property acquired by the business from an unrelated party or leased after December 31, 2017, (ii) original use or substantial improvement requirements must be met, and (iii) during at least 90 percent of the holding period for the tangible property, 70 percent or more of the use of the property must be in a qualified opportunity zone.
What are the requirements for leased property?
For leased property to count as good opportunity zone business property, the lease must have been entered into after December 31, 2017, the terms of the lease must be arms-length market terms and the rate must be a market rate. Unlike in the case of purchased property, the lessor may be a related party (additional requirements apply if the lease is from a related party). In the case of leased real property there must not have been a plan or expectation for the business to purchase the leased property for other than its fair market value.
What counts as original use of leased or acquired tangible property?
The original use of leased tangible property commences on the first day the leased property is placed in service in the qualified opportunity zone for purposes of depreciation. For leased or owned tangible property that has been unused or vacant for an uninterrupted period of at least 5 years, the original use begins on the date after that period of unuse or vacancy when the property is placed in service. In addition, used tangible property that is acquired satisfies the original use requirement if the property has not been previously used in the opportunity zone. Special rules allow leased tangible personal property that does not meet the original use test to count as original use if the lessee becomes the owner of tangible property that is qualified opportunity zone business property having a value not less than the value of that leased tangible personal property. and certain other requirements are met.
Do the New Proposed Regulations require substantial improvement of land within the qualified opportunity zone?
It depends. The New Proposed Regulations make clear that land within a qualified opportunity zone need not be substantially improved. Such land can qualify as opportunity zone business property so long as it is usual in the trade or business of the qualify opportunity fund or qualified opportunity zone business.
However, a qualified opportunity fund may not rely on this provision until the New Proposed Regulations become final in situations where the land is unimproved or minimally improved and the qualified opportunity fund or the qualified opportunity zone business purchases the land with an expectation, an intention or a view not to improve the land by more than an insubstantial amount with 30 months after the date of purchase.
How is inventory in transit treated for purposes of the 70 percent use in a qualified opportunity zone test?
The New Proposed Regulations make clear that inventory in transit from a vendor to a facility in the qualified opportunity zone, or from such a facility to a customer may be treated as property used in the qualified opportunity zone for purposes of the 70 percent test.
CONCLUSION
While it is important to remember that the New Proposed Regulations are not final, taxpayers may rely on the New Proposed Regulations prior to the date they become final (other than the section of the proposed regulations that addresses the rules for unimproved land so long as taxpayers apply the New and October Proposed Regulations consistently and in their entirety.(the “October Proposed Regulations”). [1]
The New Proposed Regulations provide further clarity, but leave many questions unanswered. This is Part II of our series of blog posts on the New Proposed Regulations. This post addresses key issues relating to the requirements for qualified opportunity zone businesses and qualified opportunity zone business property. For Part I of our explanation, which addresses qualified investments in qualified opportunity funds, please click on the link here.
GUIDANCE ON THE REQUIREMENTS FOR QUALIFIED OPPORTUNITY ZONE BUSINESSES
In order to qualify as a qualified opportunity fund (a “QOF”), a fund must have at least 90 percent of its assets invested in qualified opportunity zone property. Qualified opportunity zone property includes stock in a corporation and an equity interest in a partnership if the corporation or partnership is, or has been organized for the purpose of being, a qualified opportunity zone business.
The TCJA set forth specific requirements to be a qualified opportunity zone business. The October proposed Regulations and the New Proposed Regulations clarify and expand on some of these requirements.
In general, for a trade or business to be a qualified opportunity zone business (i) 70 percent or more of the tangible property owned or leased by the business must be qualified opportunity zone business property, (ii) at least 50 percent of the gross income of the business must be derived from the active conduct of a trade or business in a qualified opportunity zone, (iii) a substantial portion of the intangible property of the business must be used in the active conduct of the trade or business in the qualified opportunity zone, (iv) less than five percent of the average of the aggregate unadjusted basis of the property of the business may be from financial assets, and (v) the business must not be one of the so-called “sin businesses.
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Blogger Note: The end of the National Law Review Update is inserted here:
GUIDANCE ON THE REQUIREMENTS FOR QUALIFIED OPPORTUNITY ZONE BUSINESS PROPERTY
Under the New Proposed Regulations, in order to qualify as qualified opportunity zone business property (a “QOZBP”) (i) the property must be tangible property acquired by the business from an unrelated party or leased after December 31, 2017, (ii) original use or substantial improvement requirements must be met, and (iii) during at least 90 percent of the holding period for the tangible property, 70 percent or more of the use of the property must be in a qualified opportunity zone.
What are the requirements for leased property?
For leased property to count as good opportunity zone business property, the lease must have been entered into after December 31, 2017, the terms of the lease must be arms-length market terms and the rate must be a market rate. Unlike in the case of purchased property, the lessor may be a related party (additional requirements apply if the lease is from a related party). In the case of leased real property there must not have been a plan or expectation for the business to purchase the leased property for other than its fair market value.
What counts as original use of leased or acquired tangible property?
The original use of leased tangible property commences on the first day the leased property is placed in service in the qualified opportunity zone for purposes of depreciation. For leased or owned tangible property that has been unused or vacant for an uninterrupted period of at least 5 years, the original use begins on the date after that period of unuse or vacancy when the property is placed in service. In addition, used tangible property that is acquired satisfies the original use requirement if the property has not been previously used in the opportunity zone. Special rules allow leased tangible personal property that does not meet the original use test to count as original use if the lessee becomes the owner of tangible property that is qualified opportunity zone business property having a value not less than the value of that leased tangible personal property. and certain other requirements are met.
Do the New Proposed Regulations require substantial improvement of land within the qualified opportunity zone?
It depends. The New Proposed Regulations make clear that land within a qualified opportunity zone need not be substantially improved. Such land can qualify as opportunity zone business property so long as it is usual in the trade or business of the qualify opportunity fund or qualified opportunity zone business.
However, a qualified opportunity fund may not rely on this provision until the New Proposed Regulations become final in situations where the land is unimproved or minimally improved and the qualified opportunity fund or the qualified opportunity zone business purchases the land with an expectation, an intention or a view not to improve the land by more than an insubstantial amount with 30 months after the date of purchase.
How is inventory in transit treated for purposes of the 70 percent use in a qualified opportunity zone test?
The New Proposed Regulations make clear that inventory in transit from a vendor to a facility in the qualified opportunity zone, or from such a facility to a customer may be treated as property used in the qualified opportunity zone for purposes of the 70 percent test.
CONCLUSION
While it is important to remember that the New Proposed Regulations are not final, taxpayers may rely on the New Proposed Regulations prior to the date they become final (other than the section of the proposed regulations that addresses the rules for unimproved land so long as taxpayers apply the New and October Proposed Regulations consistently and in their entirety.
To be a qualified opportunity zone business 70 percent or more of the tangible property owned or leased by the business must be qualified opportunity zone business property.
THE 50 PERCENT OF GROSS INCOME TEST
To be a qualified opportunity zone business at least 50 percent of the gross income of the business must be derived from the active conduct of a trade or business in a qualified opportunity zone.
How can a business meet the 50 percent gross income test?
The New Proposed Regulations provide three safe harbors and a facts and circumstances test that can be used to meet the 50 percent gross income test.
The three safe harbors are:
Hours-of-work safe harbor. A business can rely on this safe harbor if at least 50 percent of the total hours of services performed by employees, independent contractors, and employees of independent contractors for the trade or business during the taxable year are performed in the opportunity zone.
Cost-of-services safe harbor. A business can rely on this safe harbor if the total amount paid for services performed by employees, independent contractors, and employees of independent contractors in the opportunity zone is 50 percent or more of the total cost of services.
Business functions and tangible property safe harbor. A business can rely on this safe harbor if the management and operational functions performed in the opportunity zone and tangible property located in the opportunity zone are each necessary to generate at least 50 percent of the gross income of the trade or business.
In addition to these safe harbors a business can look at its facts and circumstances to show that at least 50 percent of its gross income is derived from the active conduct of a trade or business in the qualified opportunity zone.
Does gross income from non-opportunity zone property count toward the 50 percent gross income test?
In some cases yes. Where an opportunity zone property and a non-opportunity zone property are contiguous and the opportunity zone property is substantial (based on square footage) in relation to the non-opportunity zone property, the non-opportunity zone property will be treated as if it is qualified opportunity zone property for purposes of the 50 percent gross income location test and the substantial use of intangible property test (described below). It is unclear what ratio of opportunity zone property to non-opportunity zone property will be considered substantial.” The New Proposed Regulations do not adopt this rule for purposes of the 70 percent qualified opportunity zone business property test. . . .
THE SUBSTANTIAL USE OF INTANGIBLE PROPERTY REQUIREMENT
To be a qualified opportunity zone business a substantial portion of the intangible property of the business must be used in the active conduct of the trade or business in the qualified opportunity zone.
What is “substantial” for purposes of the substantial use of intangible property in the active conduct of a trade or business in the qualified opportunity zone requirement?
The New Proposed Regulations clarify that the substantial use requirement for intangible property is met if at least 40 percent of the intangible property of the business is used in the active conduct of a trade or business in the qualified opportunity zone. As noted above, in some cases the use of intangible property in contiguous property that is not in an opportunity zone will count towards the 40 percent test.
What is the active conduct of a trade or business for purposes of the substantial use of intangible property requirement?
The New Proposed Regulations reserve on the definition of an active conduct of a trade or business but do state that the ownership and operation (including leasing) of real property is the active conduct of a trade or business provided that the activity is not merely entering into a triple net lease with respect to the property.
THE 5 PERCENT FINANCIAL ASSETS TEST.
To be a qualified opportunity zone business less than 5 percent of the average aggregate unadjusted bases of the property of the business may be attributable to financial assets. For purposes of this test, a reasonable amount of working capital held in cash or cash equivalents with a term of less than 18 months is not treated as financial assets.
What is considered a reasonable amount of working capital for purposes of the 5 percent test?
The New Proposed Regulations expanded the working capital safe harbor established by the October Proposed Regulations working capital safe harbor. Pursuant to the safe harbor, an amount of working capital is reasonable if (i) the amounts are designated in a writing for the development of a trade or business in a qualified opportunity zone, (ii) there is a written schedule for the use of the funds within 31 months of the receipt of the working capital, and (iii) the working capital is actually used in a manner substantially consistent with the written description and schedule. Further, delays caused by slow government action (e.g. issuing of permits, zoning approvals, etc.) will not violate the requirements for the working capital safe harbor. Finally, the New Regulations make clear that a business can apply the safe harbor more than once such that subsequent funding may also rely on the safe harbor if the requirements described above are met.
GUIDANCE ON THE REQUIREMENTS FOR QUALIFIED OPPORTUNITY ZONE BUSINESS PROPERTY
Under the New Proposed Regulations, in order to qualify as qualified opportunity zone business property (a “QOZBP”) (i) the property must be tangible property acquired by the business from an unrelated party or leased after December 31, 2017, (ii) original use or substantial improvement requirements must be met, and (iii) during at least 90 percent of the holding period for the tangible property, 70 percent or more of the use of the property must be in a qualified opportunity zone.
What are the requirements for leased property?
For leased property to count as good opportunity zone business property, the lease must have been entered into after December 31, 2017, the terms of the lease must be arms-length market terms and the rate must be a market rate. Unlike in the case of purchased property, the lessor may be a related party (additional requirements apply if the lease is from a related party). In the case of leased real property there must not have been a plan or expectation for the business to purchase the leased property for other than its fair market value.
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NAR Planning for Opportunity Zone Investments, 2019 Legislative Meetings & Trade Expo
Published on May 23, 2019
Several recommendations are offered such as understanding the gap of making a real estate deal happen, and how successful markets for Opportunity Zones will be made by norms and models put together at the local level. Planning for Opportunity Zone Investments at the 2019 Legislative Meetings & Trade Expo, Christopher Coes, Bruce Katz
A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.
Q. Have Opportunity Zones been around a long time?
A. No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.
Q. I am interested in knowing where the Opportunity Zones are located. Is there a list of Opportunity Zones available?
A. Yes. The list of designated Qualified Opportunity Zones can be found at Opportunity Zones Resources and in the Federal Register at IRB Notice 2018-48. Further a visual map of the census tracts designated as Qualified Opportunity Zones may also be found at Opportunity Zones Resources.
Q. I am interested in forming a Qualified Opportunity Fund. Is there a list of Opportunity Zones available in which the Fund can invest?
A. Yes. The list of designated Qualified Opportunity Zones in which a Fund may invest to meet its investment requirements can be found at Notice 2018-48.
Q. How does a corporation or partnership become certified as a Qualified Opportunity Fund?
A. To become a Qualified Opportunity Fund, an eligible corporation or partnership self-certifies by filing Form 8996, Qualified Opportunity Fund, with its federal income tax return. Early-release drafts of the form and instructions are posted, with final versions expected in December. The return with Form 8996 must be filed timely, taking extensions into account.
Karyn Turk, host of Red America Radio, joined David Grasso and MArc Morial on Bold TV for our Engineered Tax Services segment. They discussed tax breaks to lift impoverished neighborhoods being used to build luxury apartments.
New East Valley Tribune Staff Writer Jordan Houston is doing her job to pay for her keeping the public fed with what Mesa City officials want you to read: The favorite word used by administrators: WIN. And then, of course there's always that so-tired, over-used and well worn-out phrase "We are excited." Mayor John Giles doubled-it to "It's a Win-Win" for everyone, over the controversial land auction deal that was reserved and promised 21 years ago as a public park turned-luxury-gated enclave. Falcon Field Director Corinne Nystrom, said"It's a BIG WIN for Mesa" . . . We are really excited about it, . . this is exactly what we’ve been looking for."
Major hangar project coming to Falcon Field
By Jordan Houston, Tribune Staff Writer |
"Mesa’s Falcon Field Airport, known for its rich history and as a major economic engine for the city, is adding at least 20 hangars to accommodate its growing clientele.
The municipal airport, which serves private and military aircraft, announced last week that it’s preparing for a 23-acre development – complete with ancillary offices and manufacturing spaces.
Davcon Aviation, LLC, and Mesa Hangar, LLC, will construct the phased project on more than 1 million square feet of vacant city land on the northwest side of the airport.
“One of the things that is so exciting about getting the new hangars is that a lot of the inventory will allow us to have a new stock of facilities that can attract a different variety of businesses and size aircrafts,” she said.
With more than 750 aircraft based at the relief airport, it also houses 100 on-airport businesses that provide aviation services, such as fueling, inspections and avionics.
750 aircraft! Hell that's a lot of noise . . .
You can see how close residential development is by looking at the opening image.
By the way, the Falcon Field Airport area in northeast Mesa is far from being "economically distressed" or "low-income".
It only qualifies as an OZone due to "a loop-hole' in the TCAJA 2017. So does another Ozone around Phoenix-Mesa Gateway Airport.
"Opportunity Zones are designed to spur economic development and job creation, according to the federal Internal Revenue Service website.
Because of this, the construction for the project needs to be completed within 31 months after the signing of the lease, said Davcon Aviation Managing Partner David Wakefield.
Last year the city rebranded a 35-square-mile radius around the airport the Falcon District.
“The Falcon District is anchored by Falcon Field Airport and encompasses more than 35 square miles of retail, commercial and industrial parks, as well as quality residential neighborhoods,” the city noted.
Bill Jabjiniak, the city’s economic development director, said the purpose of the rebranding was “to define the Falcon District as a vibrant, advanced manufacturing hub, ideal for medical technology companies, advanced business services and next generation aerospace and defense.”
Hard-to-believe what used to be "a grass-roots home-grown" culture practiced by some freaks here in America during 1950's and 1960's, can turn into a money-machine for corporations. That is once it's legal tender and traded like any other commodity. "This company’s future doesn’t hinge on marijuana. If all forms of THC are banned forever in the United States, we think this company still has an incredible field of opportunity. (Heck, that’s why we recommended it in the first place!) But now that there’s an estimated $80 billion industry emerging from the woodwork, their prospects are positively mouth-watering – and we think you’ll regret not getting invested now. . . NOW Why is that according to The Motley Fool Because after the November 6th vote, there’s the potential for even more capitalization for this small company. And if you’re not invested before then, you may come to regret it.
Election Alert: 1 Stock for the Marijuana Boom
By: Grace Phillips
On Tuesday, Nov. 6, Michigan became the 10th state in America to legalize recreational marijuana... and the very first Midwestern state.
Additionally, Missouri and Utah both legalized medical marijuana use. If you’re keeping track, that’s now 33 of 50 states with some form of decriminalized marijuana.
Now, why am I taking time out of your day to tell you about this? Because I believe these three states are ushering us one step closer to an unprecedented boom in the cannabis market.
Frankly, I don’t care about cannabis itself… but I sure do care about massive opportunities for forward-thinking investors… which is EXACTLY what I see here.
Here’s what I’m talking about. Financial experts from all over the world agree: a marijuana boom is coming. To the tune of an estimated $80 billion.
And here at The Motley Fool, we’ve identified a little-known Canadian company that might have just unlocked the key to profiting off marijuana. The state of cannabis
Cannabis legalization is sweeping over North America:
9 U.S. states plus Washington, D.C. legalized recreational marijuana in recent years
Full legalization in Canada as of Oct. 17
Michigan, Missouri, and Utah all pass marijuana referendums in 2018 midterms
Legal cannabis worth $50 billion for the U.S. today
And since some experts have projected the American industry to skyrocket to as much as $80 billion by 2030, I think it’s time for investors to start paying attention. . . We here at The Motley Fool are convinced we’re only in the VERY early days of this company’s trajectory. Because we’ve actually recommended this company before… for completely different reasons! And take a look at how it’s done since we recommended it to our members in July 2016:
472% returns since
52% sales growth in last year alone
Estimated 98% of addressable market left to conquer
Now this old tradition might set the world economic clock back before hard currency starting changing hands, but it sure sounds wonderful for makers and growers!.
“You can showcase what you are really good at and trade for items you may not create as well. It’s also a cool way to connect in a society where we are so hyper-connected but starved for actual in-person relationships.”
You don’t need to be a master chef to participate in a food swap. You can bring any handmade edibles – from baked goods to sauces and jams or even herbs and veggies from your garden.
Visit the Food Swap Network website to find a swap near you, to get tips on how to host a swap ...
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The food swap movement that began sprouting a decade ago from Portland to Philadelphia, is once again popping up in new incarnations around the country. Kate Payne, author of “The Hip Girl’s Guide to Homemaking” and “The Hip Girl’s Guide to the Kitchen,” thinks the popularity of food swaps is based in the opportunity to connect with the community over something people are really passionate about. Usually a recurring event, food swaps allow direct trades to take place between attendees — for instance, a loaf of bread for a jar of preserves or a half-dozen backyard eggs. Your special kitchen concoctions become your own personal currency, allowing you to diversify your pantry while getting to know members of your local food community. The Food Swap Networkwebsite, which offers resources for people to start their own groups around the world, now gets several new account requests each month. Image provided by Emily Han via Food Swap NetworkPayne, who launched a food swap in Brooklyn almost a decade ago and Emily Han, founder of the Los Angeles group, created the Food Swap Network in 2011. The duo discovered they were both passionate about making it easier for people to host in their own cities and towns. In the early days of Payne’s Brooklyn food swap, the sharing economy and DIY food projects were both on the rise. But Payne, who now lives in Austin and participates in the Austin Food Swap noticed a bit of a decline in action after the trend really blew up a few years ago. However, more recently, there seems to have been a passing of the torch to new people who are ready to reinvigorate these swaps with new energy. One recently rejuvenated swap is the Philly Food Swappers, which in June will be hosting its first event in two years. With new community energy and a free space to meet, the group is on track to quickly fill the 20 open trading slots. The Philadelphia swap began in 2011 when Marisa McClellan, author of the “Food in Jars Kitchen,” got together with fellow local foodies to start a series of free food swap events where like-minded DIY canners, bakers, and picklers could get together to swap their wares. McClellan and her friends started the Philly Food Swappers just as the food swap movement was picking up pace around the country. They started with 30 people in a church basement and did seasonal swaps until 2017 when loss of a good free space and other organizer commitments put the swaps on hiatus. Back in the summer of 2012, I attended a Philly Food Swappers event in a greenhouse in Philadelphia’s Fishtown neighborhood. I came armed with an amateur stockpile of homemade challahs and zucchini breads and left with the wares of two dozen other swappers including caramel apple bread, olive oil granola, cranberry chutney, fresh-picked tomatoes, pear vanilla jam, dill pickles, and pumpkin gnocchi. McClellen says the best part about the events is the sense of community created when you get to taste each other’s food, like homemade beet kvass, a fermented drink similar to kombucha she scored at a recent swap.
It is "The Enterprise Investment Fund". We know about it
Little-known fund fuels Mesa Council clash
By Jim Walsh, Tribune Staff Writer 2019-05-27T01:00:00-07:00
"Mesa City Council member Jeremy Whittaker wants a City Charter amendment to improve financial sustainability, but Mayor John Giles said Whittaker’s initiative would “burn the place down’’ instead. . . "
Hey! Nice to start off a report like that by East Valley Tribune Staff Writer Jim Walsh
"Burn the place down . . "
Please note a couple of things: 1. That "little-known fund" was known to Jim Walsh for what seems a long time ago - back in 2010. Scroll down farther and you can read how that "fund" was intended to work to finance a facility for Minor League Baseball Spring that really turned into Major League Debt. 2. No wonder that at least one Councilmember, who knows how to analyze questionable financial statements and bogus presentations, is asking for some transparency. _________________________________________________________________________
Please take the time - for yourself - to see, watch-and-listen to what Jim Walsh has termed "a clash". (Item 1-c) The study session did encourage robust discussions and lasted 113 minutes. You can see from the clip provided by Mesa Channel 11 uploaded to YouTube, that newly-elected District 4 Councilmember Jennifer Duff is discussing another item on the agenda. (Item 1-a) _________________________________________________________________________
Let's get back to the topic at hand:
"Whittaker’s has filed his intention to try and get an initiative on the November 2020 ballot that would cap transfers from the city’s lucrative Enterprise Fund to the General Fund at 20 percent — which he says would force Mesa to invest more money in infrastructure and cut down on other spending. . . " There's a good reason for a people's initiative that needs 8,000 signatures to get on the ballot for November: To improve financial stability.
"His proposal — which sparked a tense discussion at a study session last Thursday — has put him at odds with the majority of his council colleagues and the city administration. . . "
YES it might have been a somewhat "tense" DISCUSSION during the Mesa City Council Study Session on Thu 23 2019 and on Mon 20 May 2019, but hearing and listening to differences of opinions are welcomed and encouraged.
"Whittaker claims the city isn’t spending enough money on replacing aging water pipes and misspends money from theEnterprise Fund — which is fueled mainly by profits from the city’s electric utility. . . "
He is particularly critical of using $8.4 million from the Enterprise Fund to underwrite downtown redevelopment projects — especially those related to the downtown ASU campus, which he opposes.But Giles, a staunch supporter of the ASU’s downtown campus and its ambitious plans for an Innovation District, said Whittaker’s initiative would have a devastating impact similar to the steep cutbacks during the Great Recession — forcing a reduction in city services and a series of layoffs. . . O YEAH! "The Devil's in the details" . . .
Whittaker needs to collect nearly 8,000 signatures to get his initiative on the ballot.
That effort was the focus of the tense Council study session, where city officials unveiled an analysis predicting a dire impact if voters approved the initiative.
He said he only turned to his initiative after his colleagues ignored his proposals to cap Enterprise Fund transfers last year.
The analysis — immediately criticized as inaccurate by Whittaker — predicted transfers from the Enterprise Fund to the General Fund would drop from $110 million to $72 million.
That would have a domino effect on city services, the analysis said, to the point where voter-approved improvements would be postponed. . .
Weeks before Thursday’s meeting, Whittaker predicted his initiative would cut city revenues by 8 to 10 percent – which he dismissed as relatively minor.
“It’s not a dramatic cut. It forces the reinvestment with the enterprise fund,’’ Whittaker said. “I am trying to achieve sustainability. My goal is always to achieve financial sustainability.’’
“I am forcing them to look down the road and make needed investments. If it passes, there will be cuts,’’ Whittaker said. “I am proposing a cut of 10 percent. I am not proposing a new source of revenue.’’
Whittaker also accused City Manager Chris Brady of making a misleading statement when he said a series of land sales will raise enough funds to cover the first two or three years of payments on excise bonds financing the $63.5-million ASU Mesa City Center. . ." _________________________________________ TRANSLATION: REAL ESTATE SPECULATION _________________________________________
Brady said no Enterprise Fund money is earmarked for that project in fiscal year 2019-20.
http://www.eastvalleytribune.com/.html
__________________________________________________________________________________ HERE'S WHAT TRIBUNE STAFF WRITER JIM WALSH DID KNOW ABOUT THE CITY'S ENTERPRISE FUND NINE YEARS AGO
Mesa may sell 'water farm' to finance Cubs deal
by Jim Walsh - Jun. 3, 2010 10:30 AM The Arizona Republic
"Mesa will cover the entire $84 million cost of a new spring training complex for the Chicago Cubs if necessary by selling 11,000 acres of Pinal County farmland that was originally purchased 25 years ago for its water rights. . . Smith also said Mesa will not ask voters in November to approve bonds to pay for the city's share of the project, relying on the land sales instead. He said Mesa no longer needs the Pinal County land to assure its water supply.
Voters will, however, be asked to approve an increase in the bed tax to 5 percent from 3 percent, bringing it in line with recent hikes in Scottsdale and Tempe. The $1 million increase in revenues from the bed tax would be applied to the $5-6 million estimated debt service on the new stadium. ..
Smith said Pinal County farmland would be sold off gradually as needed during a 5 to 15 year period to maximum market conditions. He said Mesa doesn't need to sell any land yet because construction on the new stadium wouldn't start until 2012, with the first pitch thrown in 2013.
All funds used on the Cubs training facilities would come out of the city's enterprise fund, which includes revenues from utilities, the convention center and golf courses, and not the general fund, which finances basic government services.
Brady said Mesa never mentioned the farmland proposal in February for fear it would torpedo efforts to pass a regional funding solution. Smith said two or three previous land sales have netted the city $5 to $10 million in recent years. . ."
Reference: CITY OF MESA
PINAL COUNTY FARMS
±11,446 ACRES, PINAL COUNTY
PRESENTED BY: NATHAN & ASSOCIATES, INC.
LOCATION: Pinal County Farms is comprised of 32 parcels in Pinal County, Arizona that lie approximately from Curry Road to the West, Bartlett Road to the north, Wheeler Road to the east and Houser Road to the south. These parcels lie within the planning areas of Pinal County, Eloy and Coolidge _________________________________________________________________________ RESOURCES Mesa City Attorney https://www.mesaaz.gov/city-hall/city-attorney The City Attorney is appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the entire City Attorney’s office, which includes
the City Prosecutor
three Deputy City Attorneys
and approximately 58 staff attorneys and staff members.
The City Attorney acts as chief legal counsel to the City Council, City Manager, and various City departments and staff. In addition, the City Attorney
reviews and approves proposed City ordinances, resolutions, contracts, and other legal documents.
oversees property acquisition needed for public improvements
prepares legal opinions for City Council and other City staff
and oversees the litigation involving the City.
Meet the City Attorney
Jim Smith is the Mesa City Attorney. Prior to becoming the City Attorney, Jim was a Deputy City Attorney and has been with the City of Mesa since October 2003.
Prior to joining the City, Jim was
an Assistant Attorney General with the Arizona Office of Attorney General
Deputy County Attorney with the Office of the Maricopa County Attorney
practiced law with two private firms in Phoenix.
Jim has a law degree from the University of Arizona and a Bachelor of Science from Arizona State University.
