2 former Chairs of CRA tell me off
Back in the days when we had money (before property values tanked), every Tom, Dick and Harry applied to the CRA for all that do re me they could get. You could look at the applications and then view the properties, and would quickly become outraged at the system. We exposed many of them. This was the era when the CRA did a whole lot of favors for its friends (remember the Pugh property?) and had to grant money based on terrible give-away policies. The mind-set was "we just have to get rid of the money."
The CRA believes that these give-aways encourage more private investment within the CRA's commercial corridor and it also encourages new business to move here. None of this is based on any proven statistics of which I am familiar. And it certainly did not happen in Lake Worth. The CRA, because of hard financial times, was forced to re-examine its policies on these commercial and residential grants, some sort of blessing in disguise.
I am not sure if much has changed with the CRA as I haven’t had time to get to their meetings this year. They have a $23 mil grant that they must spend within 3 years so you can bet that they will. One thing we do know is, the CRA no longer has that Cookie Jar from TIF, a funding for local governments that has always been highly debatable as to whether it really serves the resident populations well. Money is tight and the CRA will be lucky to even meet Budget. I shutter to think about that principal and interest payment for the Gateways that is close to $1 mil a year that Jeff Clemens got us into.
Two years ago, The Soma Center, a yoga establishment with a cafe, applied to the CRA for a Tenant Improvement Grant. They asked for $15,335 to help cover the cost of painting, stucco, a new door, a yoga floor and money to demolish some walls. The owner wanted to move the Yoga Center to the back of the space and move the retail and café to the front of the building. That made sense.
At the time, the owner promised the creation of four more jobs and the CRA said that it "expected that the business would become profitable." There was no foundation for this assumption. The CRA, led by Chair Wes Blackman, voted to give the tenant $7,667.50 in matching funds. Correction: Wes Blackman was not Chair but a member at the time.
I was in the Soma Center one time in my life. Every time I walked by I would say, "I can't figure out what in heck this place is all about," and I would always think of the money that the CRA gave to them--always. I don't even understand yoga although those who practice it swear by it as the cure all to just about everything including "better sex," "better health," "gets us in touch with our true selves, etc." I often wondered if someone was trying to con me on the benefits of yoga.
Now, two years later, we learn that The Soma Center is being evicted for non-payment of rent and taxes. Herman Robinson, the owner of the building and his wife Laurel, both past members of Lake Worth City Boards, padlocked the store. He says he has other interest in the space.
Mr. Robinson's building has been improved upon thanks to free money. Those improvements may not necessarily be what a new tenant needs. Money was readily given by the CRA with the hope that this yoga business would be successful. It was a decision made by the CRA Board based on its belief that this business had merit but most of all because of its relationship with Mr. Robinson.
14 comments:
I was never Chair of the CRA.
Actually, it's quite a shame. The Soma Center brought a sense of good health and good vibes (in the from of positive mental health) into the neighborhood. Energy medicine, homeopathy & self authenticity information distribution was given & encouraged through the Soma Center. Bummer. But
I hope a new business comes and prospers... building and funding the community.
The original grant was also approved on the consent agenda.
There are plenty of yoga centers that do thrive, so I think the CRA's investment was as warranted as it would be for any other type of business. It was nice to have something in downtown that was a practical biz and not just a shop or a restaurant.
Just for further clarification it was under my watch as Chair of the CRA that the Gateway project was conceived designed, contractor and design team awarded and financing arranged. Jeff came on to the board towards the end of that process and then oversaw as Chair, the implementation and construction of the project(s). Mainly 6th Ave beofre he moved as Mayor.
I still feel it has been the best infrastructure project to date undertaken in this City.
Also my firm handles the leasing for the former SOMA center and we feel that the space will be filled shortly with a viable tenant. This was just another vitim of our down economy and a business not remaining lean and mean to ride out the slower times.
Thank you,
Chris Fleming
Perhaps what you say about the Soma Center is true, Chris, but I have to wonder if there is much of a market for yoga.
Taking responsibility for the Gateways is noble. It was the entire mindset then to spend, spend, and spend and of course, it was always someone's else's money. The Gateways Project was all about rewarding friends to the biggest debt LW has had in years. The CRA was known to give cushy deals to "friends." Anyone who speaks to me about it can NOT believe the amount of money poured into those streets that no one can even walk across without being killed.
Lynn, I believe we will end up with a viable tenant for SOMA, but then again we have had many seemingly viable tenants some long term family businesses get crushed in this economy.
My experience with the Gateways is once some understands what really went into the projects including such forward thinking investments as replacement of all underground utilities like storm water, sewer, water in addition to burying above ground power lines, the people get why a few pretty trees cost so much.
Long term thinking infrastructure projects are not initially cheap to undertake. In the past we would actually pave a street throw in a few trees (with no irragation) and call it a Capital improvement project, then dig it all up again after some forgot to check that all of the sewer lines need to be replaced. Talk about a waste of our money! The money wasted in this City on poorly planned projects is insane in my opinion. But that does not play as well at election time when one points at the trees and says that they wasted millions on those trees.
By the way I agree with you on the safety issues as far as pedestrian traffic crossing on 6th. There needs to be at least one cross walk put in possibly with a signal between A Street and the rail road crossing.
This one made me laugh Lynn. I was the chair during the Soma grant 'era' and I hope that people who read your blog actually think about what you are saying.
To be clear, you feel like providing matching funds to a new business in downtown lake worth, with the belief that it would be a viable tenant is a bad idea because it was yoga? or a bad idea because the building was owned by a past member of the CRA (this is a pretty small town by the way)? or because it ultimately failed during a fairly long recession? Not sure i get it. I don't want to write a book here, but any of the above is BS. I wish the SOMA center had made it, the CRA, at least when I was on the board, didn't have a crystal ball, but I'm sure you realize that the improvements and renovation that the CRA met the tenant half way on - those are still there, and I imagine that helps the current leasing effort.
You should take a yoga class, its relaxing!
Mark--I don't need a yoga class to know that in principle, I am AGAINST government entitlements especially to those who are in business. U am against the stimulus. It didn't work. I am against government bailouts. They just plain do NOT work. I am against giving people something for NOTHING. I have always been against the CRA. I have been against them for years when the CORRUPTION was so flagrant and obvious...since the Pugh fiasco it brought it all over the top for me and for many others.
Yes, Herman Robinson is the only one who makes out in this deal...maybe. If a business can't pay for its own interior improvements, and market its own success, it should not be the job of government.
You guys gave so much money away for people who wanted sprinkler systems, new a/c's. It was revolting.
So, you Mark, go take that yoga class as it seems that it is only you guys who love to give away the cash who seem to have any peace about it. And giving away a lot of this cash was to your political "friends."
The City Commission should have taken you over when it had the opportunity.
Not sure of that implication Lynn as I did not have a single friend, acquaintance or business associate gain a single dollar from the Gateway projects. If you know of anyone whatsoever please provide it as I all I got out of it is countless hours of my time spent volunteering and the satisfaction that there has not been a more comprehensive infrastructure project completed in this City by the City or its agencies.
Ahahaha I didn't consider these posts a "telling off" oh well so much for civil discourse. Back to sensationalism and fact bending ;)
Just poetic license, Chris!!
OK Lynn!
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