How the county made growth profits disappear

Bo the Builder and I met in a Minden coffee emporium to continue our conversation about where the largesse from 10 years of rapid growth have disappeared to.

"Bo," I greeted him, "last time we met ended with the observation that growth seems to benefit everyone except taxpayers."

"Well," Bo said, "in defense of builders I'd point out there are two kinds of developers operating wherever a chance to make a buck from construction presents itself."

"Oh," I guessed, "you're going to say there are good guys and bad guys?"

"You guessed right," he laughed. "You may not believe it but some of us contractors like the Valley as it was just as much as the buyers of our new houses. We were honest when we convinced buyers the Valley would retain its rural feel, meaning low density, open spaces, 1 or 2 or 5 acres per house, minimal light pollution, some trendy boutiques in the towns in the county core appealing to middle-to-upscale buyers. Let Target and Wal-Mart have the low end. Kohls, though, could discourage anyone considering investing in Minden or Gardnerville. There's only so much shopping money to go around."

"OK," I said, "you're with the good guys. And the bad guys?" Bo went on, "The easy mortgage business, the housing bubble, caused everybody and his brother to want to build, not to mention the corporate builders. Landowners squeezed by taxes and lousy government policies saw their chance to unload some property and make a million or two. Too many lowered their standards to the 'best and highest use of land,' meaning making a fast buck, maximum density, streets that are really alleys, no place for kids to play, squeezing maximum living units into every acre, get county taxpayers to throw in a few million, and hang the consequences, that became county management policy. And the rural feel I and others honestly promised now makes us look like liars. Some weren't so honest when they promised it."

"Yeah," I mused, "but you forgot the curious role of county government."

"That's your fixation," Bo replied. "Why do commissioners base their election campaigns on protecting voters' best interests, then turn on them with new taxes on business and fees added to everyone's utility bills, rich and poor alike?"

"The answer is in the county manager's recent state of the county report to the county commission," I answered. "Everyone should get a copy of that document and read it thoroughly. It reads like a communist manifesto."

Bo interrupted, "You didn't say communist, did you? Isn't that a little nutty?"

"Some folks surely think I am," I laughed. "The Holler report assumes county government is responsible for attracting workers to the county, then assuring they have housing they can afford, investing tax dollars into infrastructure to attract business where they can work, and affordable housing for them to live in. Central planning at its finest, I say. I certainly don't call it capitalist. By my count county managers invested over $15 million so far and $2 million or more in 2008. And the $24 million pledged to Jay Timon is on top of that. That's over $40 million of taxpayer funds."

"County management clearly assumes a responsibility to obtain for developers a maximum return for their investments, even salting that return with taxpayer money. They say not to worry, we'll get it all back in additional sales tax. By the way, I learned the casino and Big George developments will be on county land, not redevelopment property, so county at least gets the property taxes from that. The retail mall will be on redevelopment land."

"Does that mean the tax revenue will eliminate the need for business tax and utility fees?" Bo asked.

"Ha!" I exclaimed, "Not enough commissioners are seeking reelection."

"But," Bo interjected, "isn't every residential and business customer of other water and sewer utilities then paying twice? Once for his own bills and once to subsidize north county home owners and businesses? Same with road maintenance?"

"My, you do have a way of clarifying things." I admired. "You could add that all the business tax paid by small businesses in the county core and everyone paying a county fee on their utilities are effectively sending it via a curvy route to the north county developments too."

"There goes your twisted mind again," Bo interjected.

"True," I grinned. "The Holler report also aims to have one of the best paid county staffs in the region. Their compensation rises several times faster than retail prices and taxes."

"That's not sustainable." Bo said.

"Sure it is," I grinned, "They only have to increase business taxes and utility fees every couple years until they max out."

"And then?" Bo asked. "Then we have a fight to find out who works for who, just like Lenin and Mao did."

"Seriously though," Bo said, "Is there a better way?"

"Of course," I answered, "When taxpayers tire of being taken to the cleaners. That's the subject of another day but before next year's elections."

-- Jack Van Dien is a Gardnerville resident. Bo the Builder is a fictional artifice and a heck of a nice guy.