There's bad news, and there's bad news!

From the "nothing but bad budget news " department, here's an early look at just how bad the current fiscal years budget deficit  for Massachusetts might be. It also means that, given this is an election year, the information is being low-balled and does not reflect how the actual potential deficit will turn out to be in the end.

This is NOT good news for Fall River. Have a nice day Mayor Sylvanagan! How's that casino thingy workin' out for ya?!

BUDGET GAP ESTIMATES GROW

By Jim O’Sullivan
STATE HOUSE NEWS SERVICE

STATE HOUSE, BOSTON, AUG. 31, 2010…….The Senate’s top budget author has elevated high-end projections for the state’s budget deficit this fiscal year, pointing to executive agency estimates through early August that showed surging demands on already strained finances that could result in a gross $600 million deficit in Medicaid accounts.

Rising welfare and homeless shelter caseloads are further burdening the budget, even as the state has qualified for $250 million in kindergarten-through-high school federal aid and received $450 million, less than initially expected, in federal aid, said Senate Ways and Means chair Steven Panagiotakos.
House Ways and Means chair Charles Murphy agreed, saying, “Suffice it to say, there are deficiencies out there that were unanticipated.”

Lawmakers were reluctant to estimate an overall deficit in the current spending blueprint, less than two months old.

“It’s difficult to say what the total deficiency is,” Murphy said.

With federal reimbursements, the potentially $600 million hole in the roughly $10 billion Medicaid budget could net the state a loss of about $240 million, chewing up much of the $450 million in Federal Medical Assistance Percentages (FMAP) assistance authorized in Washington earlier this month, Panagiotakos said.

Additionally, the state is looking to balance its books for the fiscal year that ended June 30. Panagiotakos said he hoped to address both fiscal 2010 and fiscal 2011 shortfalls in one spending bill by Sept. 19.

“We’re trying to do both in one vehicle,” he said. Murphy agreed and said a second round of fiscal 2011 supplemental spending would likely emerge “in several months.”

New estimates show a $20 million gap in homeless shelter “emergency assistance” accounts and a $5 million shortfall for parks and beaches under the Department of Conservation and Recreation.
Without that funding, Panagiotakos said, the state would have to close “iconic parks” and delay opening of pools and beaches next summer.
DCR officials said it was “too early to speculate” whether next summer’s services would be affected by the budget.
“Next’s year’s schedule of openings hasn’t been set yet,” DCR spokeswoman Catherine Williams emailed. “We are in the process now of finalizing our spending plans for the year. DCR is reviewing its existing and projected resources while exploring ways to continue to provide critical programs and services in this challenging fiscal environment.”
With the $250 million in Race to the Top funds the Bay State is slated to receive spread over two years for kindergarten-through-high school, Panagiotakos said the state should transfer other federal aid into higher education spending. The state had earlier allocated $76 million from the federal stimulus into K-12.
“With them getting this extra $250 million and a significant cut in higher ed, I think it’s prudent that we take a good portion of that $76 million and put it back into higher education,” Panagiotakos said.

Wary of a steep drop in recession-era federal help in fiscal 2012, when a $2 billion structural gap looms, budget writers have been publicly hopeful that the influx of aid from Washington over the last month would allow some replenishment of the Rainy Day Fund, once robustly above $2 billion but scheduled to sink to $556 million by the end of fiscal 2011.

Panagiotakos said the escalating demands on the stream of federal money made it unclear how much money could be diverted to savings. Some of the newly authorized cash will backfill spending programs that were cut earlier this year when prospects for the FMAP money appeared dim. Even then, budget writers were banking on close to $700 million, instead of the $450 million ultimately approved.

That pool of cash already faces an array of demands from other corners in state government. For instance, when the additional FMAP hung in doubt, Patrick cancelled parts of a legislative spending blueprint that conditionally used the federal aid to support $56,250 for radiological emergency response, $170,517 for a prison industries and farm program, and $64,600 for a foster care and adopted fee waiver.
“On top of that, we have these other newly projected shortfalls,” Panagiotakos said.

July’s state tax revenues grew 3 percent from the year before, which Patrick administration revenue officials said reflected economic growth. Growth trends in tax receipts could dilute some of the red ink, but will likely not offset the problems incurred by a still-sluggish economy. August tax figures are due by the end of this week.
Analysts said the caseload hikes essentially handcuffed Beacon Hill into choosing whether to make targeted spending restorations or banking the remainder for future shortfalls.

“The spending’s only going to get worse, not better, in terms of the underfunding,” said Michael Widmer, president of the business-backed Massachusetts Taxpayers Foundation. “The caseloads, the pressure’s obviously only growing, not lessening.”

Patrick last week downplayed the problems posed by the mounting pressures on state coffers. He said, "Every year with the programs that depend on caseload - every year - there is uncertainty, and with the economy being what it is, there's been … even more pressure than usual on Medicaid and other services for people who are in need. But we have successfully managed those uncertainties for each of the last four years, and we will continue to do so."

Aides said the administration planned to file a supplemental budget soon
The fiscal 2011 budget is balanced $100 million in state Rainy Day Fund withdrawals, and $95 million in a suspended statutory carryover of General Fund cash. Prior to the authorization of the $450 million, the budget relied in $809 million in federal stimulus money.

--END--

08/31/2010

Serving the working press since 1910

http://www.statehousenews.com/

BREAKING NEWS - Additional Reporting

The following is the Boston Globe's more extensive coverage of the charges filed against an employee of the Winn Companies, developer of the Wampanoag Mills Low Income Apartment development, for funneling illegal campaign contributions to various elected officials.

File this under "If it happened there, it's probably happening here as well"
----------------------------------------------------

Feds charge Boston real estate executive
 with illegal campaign contributions


 August 31, 2010 05:25 PM
 By Jonathan Saltzman and Casey Ross, Globe Staff
A top executive of the developer behind the failed $800 million Columbus Center project in Boston was charged today in federal court with orchestrating a scheme to funnel $12,000 in illegal campaign contributions to Massachusetts candidates running for Congress.

Martin Raffol, 54, executive vice president of the residential arm of WinnCompanies, also allegedly funneled more than $30,000 in illegal campaign contributions to candidates running for state and local offices to advance the business interests of the company, although he was not charged with a crime with those donations, according to US Attorney Carmen M. Ortiz.

In a statement, Ortiz alleged that Winn executives sought campaign contributions from others "primarily to advance the business interests of the company, including to obtain support for public financing of a large-scale, mixed-used development project within the city of Boston.''
The allegations were contained in a charging document called an information. Prosecutors typically use that document when a plea agreement has been reached.
Raffol's attorney, Douglas S. Brooks, said in an e-mail, "As an employee, Marty was directed to raise large amounts of money for politicians. The pressure was intense and in his attempts to satisfy these directives, some of the contributions violated federal campaign laws and regulations. Marty never personally benefited from these efforts."

The charge is an outgrowth of the federal corruption case against former state Senator Dianne Wilkerson who has pleaded guilty to attempted extortion charges stemming from $23,500 in bribes that she took, according to prosecutors. She awaits sentencing.
WinnCompanies, a nationally known developer of affordable housing whose headquarters is in Faneuil Hall, issued a statement today saying it placed Raffol on administrative leave when it learned about a federal investigation late last year and fired him today.

The company did not address the government's assertion that Raffol was acting at the direction of his bosses. WinnCompanies said that ``immediately after learning of the allegations, the company took steps to ensure that our internal controls were strengthened and such behavior will not occur in the future.''

Former WinnCompanies chief executive Arthur Winn previously acknowledged to the Globe that he gave Wilkerson $10,000 in 2004 when he was trying to advance the Columbus Center development. He said the contribution was not meant to influence Wilkerson's public support of the project but was a gift to help a ``close friend'' with outstanding tax debts.
Jonathan Saltzman can be reached at jsaltzman@globe.com

Here is the text of the statement from the U.S. Department of Justice:

A Boston based real estate executive was charged today in federal court with engaging in a scheme to conceal illegal campaign contributions made to federal campaign committees. He is also charged with witness tampering.

Assistant Attorney General Lanny A. Breuer of the Criminal Division, United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office, announced today that MARTIN RAFFOL, 54, of Natick, was charged with one count of engaging in a scheme to conceal material information from the Federal Election Commission.

RAFFOL served as Executive Vice-President for a Boston company that provided management services to a portfolio of real estate holdings, including several publically subsidized housing communities in Dorchester and Roxbury. The Information alleges that as part of its business, executives from the company actively solicited campaign contributions from individuals for elected candidates for federal, state and local office throughout the years. These executives did so primarily to advance the business interests of the company, including to obtain support for public financing of a large-scale, mixed-use development project within the City of Boston. The Federal Election Campaign Act limits the amounts individuals can contribute to election campaigns and political campaign committees, prohibits corporations from making direct contributions to federal candidates, and requires the true identity of each contributor to be disclosed.
It is alleged that, as part of an effort to increase the amount of campaign contributions to candidates who supported the company’s projects or who might support these projects in the future, executives and senior management directed RAFFOL to solicit campaign contributions from vendors who regularly did work for the company.

RAFFOL in turn allegedly engaged in an ongoing scheme whereby he reimbursed the vendors for thousands of dollars of campaign contributions he solicited from them. This included vendors who provided general contracting services, energy services, and security services. According to the Information, as a result of RAFFOL’s scheme, the true source of these vendor’s campaign contributions were disguised from the FEC, similar state authorities, campaign committees and ultimately, the public.

U.S. Attorney Ortiz said, “Transparency is the cornerstone of federal campaign financing.

The public has a right to know the true source of financial support for its elected officials.”

In total, RAFFOL allegedly caused over $12,000 in illegal campaign contributions to candidates running for federal office, specifically candidates for the U.S. House of Representatives. It is further alleged that he also caused over $30,000 in illegal contributions to candidates running for state and local office, including candidates for Governor, Lieutenant Governor, Secretary of State, State Senate, House of Representatives, District Attorney, Mayor of the City of Boston and Boston City Council. This scheme caused numerous reports, which falsely indicated the source of these contributions to be unwittingly filed by the relevant political committees with the FEC and similar authorities. There is no evidence that the federal campaign committees listed in the Information had knowledge of RAFFOL’s reimbursement scheme.

The Information further alleges that RAFFOL engaged in witness tampering to conceal the illegal campaign contribution scheme and to prevent law enforcement from learning of the scheme. In particular, RAFFOL instructed a cooperating witness to lie to authorities if authorities questioned him about the campaign contribution scheme.

If convicted on these charges, RAFFOL faces up to five years imprisonment, to be followed by three years of supervised release and a $250,000 fine for the false statement charge, and 20 years imprisonment, to be followed by three years of supervised release and a $250,000 fine for the witness tampering charge.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney James Dowden of Ortiz’s Economic Crimes Unit and Senior Litigation Counsel William M. Welch II of the Criminal Division.

The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


And here is the statement from WinnCompanies:
Late last year, WinnCompanies was informed that Martin Raffol, Executive Vice President of WinnResidential, was the subject of an investigation by the U.S. Attorney’s Office in Boston. Immediately upon learning this, Mr. Raffol was placed on administrative leave pending the outcome of the investigation. Based on today’s court filing, which charges Mr. Raffol with violations of federal law, we have terminated his employment. We appreciate Mr. Raffol’s many years of service to our clients and the residents of our properties. In addition, immediately after learning of the allegations, the company took steps to ensure that our internal controls were strengthened and such behavior will not occur in the future.

Over its forty year history, WinnCompanies and its 2,500 employees have provided affordable, safe and quality housing in over 300 communities across the country. At Winn we understand that the relationships we have with our clients and residents are the core of our business, and that it is our obligation to maintain the highest standards so that we can continue to make positive contributions to the communities we serve.

BREAKING NEWS!!!!! Winn Official in Federal Indictment!

Feds charge real estate exec with paying off pols



Boston Herald
By Jerry Kronenberg
Tuesday, August 31, 2010 - Updated 5 minutes ago

A federal investigation originally targeting former state Sen. Dianne Wilkerson expanded today, with authorities charging businessman Martin Raffol with illegally steering campaign contributions to a who’s who of Massachusetts politicians.
The U.S. Justice Department charged Raffol, an executive with the Winn Companies, with leaning on business associates to donate to candidates - and then secretly and illegally reimbursing the donors.


Authorities claim the scheme aimed to get around campaign-finance laws that limit how much an individual can give a particular candidate.


Politicians who received money from the alleged scheme include U.S. Reps. Stephen Lynch, Barney Frank, Michael Capuano and others, as well as candidates for Massachusetts governor and Boston mayor.

Why might this be critical to Fall River? Because the Winn Companies are the primary developers of the low income housing project being built at the old Wamponoag Mills complex.  The involvement of the Winn Companies in this project has been pointed out for over a year on this very blog to have the potential to implicate various elected officials and decision makers giving support to this low income housing project in just such a scheme. One has to wonder just how deep any such connection might be!

This is not the first time that Winn has been suspected of payoffs to local officials where the firm wanted to do business. In fact, the entire Winn empire has been built (no pun intended) on a well oiled machine that encompasses heavy lobbying and a pipeline of federal housing subsidy monies, property construction and renovation and property management departments in an powerful example of business vertical and horizontal integration. It's a veritable "one stop shop" for low and mixed income property development, and takes maximum advantage of leveraging federal funds for private profit.

Also interesting is  Mayor Sylvanagan's stance against the "Y" project, with it's paltry few proposed low income apartments , while strongly backing the Wampanoag Mills low income apartment development! I guess the "Y" doesn't make as many campaign contributions as the friends and family of the Winn Companies.

Things that make you go " MMMMMMMMMMMMM?"

We'll be watching future developments on this story VERY carefully to see if illegalities reach the virgin souls of Fall River politicians.

ANNOUNCEMENT

Sorry this is a bit late folks!

Citizens for the Common Good meeting to be held in Fall River


FALL RIVER — The next Citizens for the Common Good meeting will be held at 7 p.m. on Monday, Aug. 30, at Calvary Temple, 4321 N. Main St.
The meeting will be a forum to discuss the impacts of casinos on the local business community.

THANK YOU!

Time to Surf the Beach

Mayor urges Interior Dept. to take proposed casino
land into Indian trust

By Michael Holtzman
Herald News Staff Reporter
Posted Aug 29, 2010 @ 09:40 PM
Last update Aug 30, 2010 @ 12:24 AM


FALL RIVER — Mayor Will Flanagan is stepping up efforts to support the Mashpee Wampanoag tribe’s application for federal land sovereignty for the 300-acre tract the city agreed to sell the tribe if the state legalized gambling this year.
He’s calling the Mashpee’s proposed destination casino the city’s “No. 1 development priority” and one that warrants taking bold steps.


“This is not a bridge to nowhere or a folly. This is a $500 million project,” Flanagan said.


Flanagan is taking this tact while the City Council has called for reviewing the use of the undeveloped 300 acres in the northern sector off a new Route 24 interchange after the Legislature and Gov. Deval Patrick failed to agree upon legalized gambling during its 2010 session that ended a month ago.

With legalization not appearing imminent, Flanagan formalized the alternative route he’s backing for what he says is the best chance to add thousands of jobs and boost the local economy.

“I ask that you expeditiously and favorably review the tribe’s land in trust application,” Flanagan wrote U.S. Secretary of the Interior Ken Salazar.


He noted the Mashpee tribe amended its 2007 land trust application to include Fall River. The tribe did that in mid-July.


“Development of that land that the tribe is seeking to have placed in trust will provide the good jobs that are so desperately needed in this area. In addition, revenue that will be provided to the city through an intergovernmental agreement will allow us to fund the public safety, education and infrastructure projects that are so important to the health of this city and the surrounding region,” reads the letter Flanagan wrote Aug. 17 and shared last week.


The issue eliciting the most questioning has been Flanagan’s continued prioritization of the 300-acre site for gambling instead of as a biotechnology and life sciences park with the University of Massachusetts Dartmouth building an anchor test facility with state-approved funding.


Instead of using that state forest land sold to the RDA for industry — after compromises with environmental groups — the administration has negotiated with the university for an alternative bio-park site.


UMass officials said they plan in early September to decide on a location between the Flanagan administration’s alternative Riverfront Business Park in Freetown and a second SouthCoast proposal at the New Bedford Business Park in that city.


Each plan provides 4 acres and a $3 million loan for the anchor facility, with another 50 acres for biomanufacturing expansion.


FROED would purchase and take title to the nearby Freetown acreage, Flanagan said.
According to RDA Chairman William Kenney, his authority received a legal recommendation that it cannot buy land outside the city, such as the adjacent Freetown acreage.


“Once UMass makes their announcement to locate in Greater Fall River,” Flanagan said, “it may prompt the RDA to amend their vote, which would allow for the infusion of $6 million to purchase the land in Freetown.”


That 325-acre undeveloped property is owned by controversial Rhode Island land developer Churchill & Banks, headed by Richard Baccari.


The RDA voted 3-2 on July 22 to sell the 300 acres of the former biopark to the Mashpees for $21 million pending legalization of gambling in Massachusetts this year and other conditions.


In order for FROED to purchase the acreage in the Freetown park, Flanagan said, “We would seek $6 million from a separate entity, more than likely the Mashpee Wampanoags. The $6 million is very critical to complete this transaction,” he said.

“Lurking in the background is what’s UMass going to do?” said Kenney, who has been contacted by concerned city councilors after voting against the RDA sale in July.

“If they say, ‘We’d like to go to New Bedford,’ what does the mayor do then?


He says they’re both going to happen,” Kenney said of Flanagan’s continued pronouncement the Mashpees will build a casino in Fall River and the university will build in Freetown through a multiparty transaction.


Flanagan and FROED’s director, Kenneth Fiola Jr., said the city would not lose significant tax revenue by shifting the biopark to Freetown because the university does not pay taxes and the level of companies agreeing to locate to such a park would require longterm tax breaks.

Also, Fall River would supply the water and sewer to the riverfront park, they said.

While the City Council has requested that Kenney, Fiola and the Flanagan administration update the status of the casino and land sale to the tribe at its next meeting Sept. 14, councilors recently considered issuing a resolution to change courses.

“It may be time to reshuffle again,” said council Vice President Linda Pereira. She called on Flanagan, whom she’s often at odds with, “to put all the cards on the table.”

The resolution proposed by Councilor Eric Poulin was signed onto by four councilors but never filed. It “encouraged the Fall River Redevelopment


Authority to convene a meeting as soon as possible and that they consider voting to offer the 300 acres (off Route 24) back to UMass before the university reaches its final decision.”


“My fear is to lose both,” Poulin said. Councilors Brad Kilby, Leo Pelletier and Pereira agreed, but Poulin fell short obtaining the unanimous council support he sought.


Poulin said when Flanagan in May announced the tentative casino agreement with the tribe, it was with the prospect the state would legalize gambling by the end of July.


That put the prior plan of developing a prestigious and state-backed biopark on the back burner.


The objective, Poulin said, was to find needed short-term casino jobs with city unemployment in the mid-teens, and the longer-term jobs coming from biotechnology. “Now we could be chasing after a casino for three years or more,” Poulin said.


He said Flanagan has not identified how casino construction could start quickly. “I have some questions and concerns about developing the site with sovereign nation status.”

That’s what prompted Kenney to vote against the RDA sale. It’s yet to be signed because the state has not legalized casino gaming.


Flanagan, through talks with tribal leaders and the Department of Interior, said final documents to designate the RDA-owned park as sovereign land could take “a few months.”


But according to the Bureau of Indian Affairs web site, there are more than 1,900 land trust applications, of which “over 95 percent are for non-gaming purposes.”


Salazar said this summer he’s prioritized restoring tribal lands for non-gaming applications, such as to provide housing, health care and education to improve tribal members’ self-sufficiency.


“He’s put a lot of eggs into this basket,” Poulin said of Flanagan’s secondary option for the tribe to build a casino.


“That’s a heck of risk the mayor took,” Pereira said. “I don’t buy that the pay-off is what he says it’s going to be.”
From materials Flanagan circulates from the Mashpees, he estimates the phased project would include: 1,000 to 1,200 construction jobs building the casino and first hotel and 3,500 to 5,000 permanent jobs; they’d pay $30,000 to $45,000 with tips; and would spur 5,000 to 6,000 “indirect jobs,” he said.


With funding by the Malaysian group that financed Foxwoods, the project would include two more hotels, a golf course, spa and retail/entertainment complex, the tribe stated.

Poulin said timing was a prime reason he did not file the council resolution. He said he tried unsuccessfully to have a special meeting before their regular session on Sept. 14. “At that point UMass would probably have made a decision,” he said.


Councilor Michael Lund, however, is among council members that believe the Flanagan administration should be given more time to bring a casino.


“I think Flanagan is looking at the casino as a way to bridge the gap for jobs for people in the 30-50-year-old age group who could be retrained. And I think there’s merit to that,” Lund said.


He said by the Legislature apparently not passing gaming this year, “We’re not under the gun. Let’s take our time and get this right … I think Flanagan is trying to do the right thing, and I think we have a unique opportunity.”


Lund said he also believes the city needs to be careful if the RDA property goes into sovereign land trust with the tribe. “What happens if the casino doesn’t come and the Indians own it and there’s no reverter clause (back to city ownership)?” he asked.


Flanagan said the tribe’s financial backers would invest to build a casino. Also, having the park in land trust would not lift the prohibition against using it for a landfill, Flanagan said. “It would never happen,” he said, stating the city and state would sue the tribe for such a use that would be tied up for years.


“If I believed this project had no life in it, I would never pursue it,” Flanagan said. He’s convinced Massachusetts soon will legalize gambling. “There’s been too much of an investment for this not to occur.”
E-mail Michael Holtzman at mholtzman@heraldnews.com.

Yes, it IS the silly season in Fall River, which means not only are representatives in our Great and General Court facing primaries and final elections in the upcoming next few months, but Mayor Sylvanagan has started reelection drum beating quite early after his monumentally poor performance, and all of it enough to drown ANY mayor, even though he is but 8 months through his first term. What an utter disaster this Prince of Putz has been! I fear it's the only taste of royalty Bag Boy Deluxe will ever know.

Ah yes, just call me "Lt. Col. Bill Kilgore". I can see it all know, the skies filled with Huey's bringing "Death from Above", the sound of the Ride of the Valkyries screaming loudly during the carnage and the turmoil and then the lull in the battle, as Lt. Col. Kilgore decides he wants to surf on the roiling waters of the mighty Quequechan River.

 "Let's surf, private, that's an order!" yells Kilgore "But it's dangerous in Fall River's politics, sir...shouldn't we wait until the casino is built?" asks the electorate, hiding in a hastily dug fox hole in the shore sands.
"This is Bag Boy Deluxe's beach...Do you want to wait here like this until the election next year?!"
" NO SIR!"
"So let's SURF, GOD DAMMIT!"
Then , after the refusal of the Interior Department to declare the sacred "300 acres" sovereign Indian land, and finding out Bag Boys' crack legal team is, well , basically "crack-ish" in it's legal opinions and the City has no right to purchase land in another town from Bacarri the (alleged) Indicted One, a heavy campaign contributor to BB Deluxe and other elected officials in Fall River, an eerie silence comes over the beach.

Then Lt. Col.Kilgore says: "Smell that son......that's the smell of weak and incompetent politicans scrambling for cover like the sociopaths they are....I love it....it's the smell of....VICTORY....."


And that's exactly what this letter from Mayor Sylvanagan to the Interior Department is...PANIC. Pure and unadulterated panic. His political fortunes, and the livelihoods of his pilot fish followers,  will rest entirely on the ability of he and his too live crew of morons, psychopaths and mental defectives working for him in his legal offices, at FROED and in his campaign to get that casino open, or at least have everything sign , sealed and delivered, well before the next election. I just don't see it happening.

Hubris. In the dictionary next to the word hubris should be a picture of Mayor Sylvanagan. It has destroyed the political careers of men and women who were far better leaders, statement, administrators and politicians than Bag Boy Deluxe. And he is still blind to these realities, both that it is what he suffers from the most, and that it will lead to his utter failure. The only trouble is, it will lead to all of our downfalls as well. To this he is also either blind, or in true politician sociopathy, doesn't care!

He must know what one of the commenters to this story on the pages of the Herald News wrote:

Skoorey:


So we give the land to the Mashpees as trust land, no taxes paid, no laws of the Commonwealth or the USA have to be followed, and then we supply the water and sewer to UMass. Wow! A huge biotech deal gets whittled down to water and poop. Perfect. Thanks Mayor! Just what Fall River always wanted! Crap squared.


AND LATER:


FACTS THE MAYOR HAS IGNORED:
1. Land into Trust applications cannot be amended, they must be resubmitted
2. Mashpees say different things, that they have a) amended their application, and b) submitted a new application that is for Fall River land (so which is it???)
3. The Mashpees have not submitted a new application. Source: Federal Register
4. The Mashpees DO NOT OWN THE LAND YET as the contract has not been signed, pending legislature passing gaming bill and signed by governor
5. It takes a minimum of 5-7 YEARS for an application to process
6. Mashpees have NO ancestral ties to Fall River, thus their future application will be denied


This is what happens when you are advised by a corporate council who does not have IGRA experience. Due diligence Mr. Fiola? Due diligence Mr. Torres? Due diligence Mr. Flanagan?


I think not.
SHIP OF FOOLS!

He simply cannot be that stupid or blind, even though he IS an attorney! No, this letter is as much about the next election as it is actually trying to bring jobs, any kind of jobs, home to Fall River.

With everything that he's been caught up in lately, unseemly things and exercises in power politics that appear to benefit ONLY members of the FROED Board of Directors and campaign contributors personally, any seasoned watcher of politics in the United States can read how desperate this man is right now. And that's not a good place for Fall River to be. Not good or safe at all.

Nope. Time to surf  Bag Boy's beach now, early and often. I smell fear, raw and palpable fear, as real as the drops of sweat falling off of Mayor Sylvanagan's  increasingly meaty brow and cheeks. Soon he'll look like Louis Armstrong, always with a handkerchief in hand, not for wiping off spittle after playing a mean jazz trumpet, but from nervous perspiration. Or maybe like the character Big Daddy from "Cat on a Hot Tin Roof". He'll take to telling how much work he's done by himself, what he's built, what a legacy he'll leave Fall River when in reality he's the last one to know his political career is moribund without that casino. Dead.

Tales from the Mendacious Toads

FROED loan to one of its directors
 deemed to be above board.
 (WITH  chowmeinsammich EDITORIAL COMMENTS)

By Michael Holtzman
Herald News Staff Reporter
Posted Aug 27, 2010 @ 11:12 AM


FALL RIVER — Office of Economic Development officials said the $250,000 loan made this spring to one of its directors, Fall River Ford owner Fernando Garcia, has limited precedent but is well secured and consistent with its mission to advance businesses.

[ED. NOTE:  Especially as long as the business in question is owned by a member of the FROED Board of Directors (B of D)]

“It’s a fair question,” FROED Executive Vice President Kenneth Fiola Jr. said when asked about the large loan to one of the 32 members of the board of directors.

He listed three or four working capital loans to directors for companies they owned or managed compared with over 600 gap loans the non-profit agency has issued since formed in 1978.

[ ED. NOTE: So, in other words, you only violated IRS regulations with regard to non-profits three or four times! What was it Mr. Executive Vice President, three or four? Please speak directly into the microphone!]

They included $450,000 from five loans to Engineered Yarn Assoc. and Gerry Mauretti from 1991 to 2005; two loans totaling $100,000 to Winter Rock and the late David Westgate in 2002; and by far the largest amount, about $9 million to Lightolier in a series of loans from the mid-1980s until 1992.


Loretta George was Lightolier’s vice president, and has served as a director since FROED's founding.


“Everything was done above board,” Fiola said of the Fall River Ford loan. “Everyone felt very comfortable issuing the loan.”

[ ED. NOTE: “Everything was done above board,” Fiola said  - According to who, Mr. Executive Vice President, YOU?! Not quite who I'd call an impartial third party, more like a potential unindicted co-conspirator. Can repeated violations of IRS non-profit regulations and financial activities be covered under RICO statutes? I wonder?]

He said the Finance Committee, chaired by Anthony Riccitelli, recommended the loan and it was unanimously approved by the full board, with Garcia abstaining on the vote.


[ED. NOTE: "Our "FRIEND" in duh bizinezz" Garcia was at least smart enough to abstain from the vote...LOL!]

He noted the quasi-government agency includes the mayor as chairman and representation by the heads or representatives of the school department, local community college and university, Redevelopment Authority, Fall Area Chamber of Commerce and others.

[ED. NOTE: If the public, or taxpayer and grant funds, are co-mingled, does that mean Mr. Riccitelli is admitting the use of public , taxpayer funds for personal,  private gain? There are strict rules on the reasons for which Massachusetts municipalities can do financial business...Loaning monies to buddies is not one of them...too much risk!]

Garcia received in May a five-year loan at a 6 percent interest rate, which falls within the 5-6 percent range several other loans FROED made this year of comparable amounts, Fiola said.

[ED. NOTE: And he was precluded from going to banks and other private sector debt markets because....? Was his business such a bad risk that his buddies on the FROED B of D who run banks refused to grant him working capital financing loans? Something is not right here!]

“This is a job retention loan,” said Fiola, which Garcia explained in an interview.

[ ED. NOTE: No doubt! For both Garcia, personally, and Fiola, personally. You won't keep your job as Executive Vice President of FROED, especially given the hideously poor job you've done, if you refuse to grant extremely questionable  and risky loans to members of the FROED B of D, will you Mr. Fiola?]

“It’s no secret the automotive industry has been severely impacted,” Fiola said, stating that Garcia’s long-term ownership of the auto dealership and being “a strong community leader” were important factors making the loan.


He said the funds were to provide Fall River Ford with “working capital” aimed at job retention. Garcia’s business serves as collateral on the loan, he said.

[ED. NOTE : Sales must really be awful for him to have to come to FROED for a loan as opposed to private sector sources, LIKE BANKS!....The only way a local bank would refuse a loan at market rates to a business as long established as Garcia's is if the risk of default was very great, PERIOD! And isn't Ford doing well? I don't get this at all! Don't banks hold the notes on the new vehicles in stock? Something isn't right here, or we aren't being told the truth!]

The key reason FROED made the loan rather than the owner seeking a standard commercial lender, Fiola said, “It’s a better interest rate, and we were able to turn it around quickly, within 30 days.”

Garcia explained what he called “really a bridge loan” for the dealership he’s owned for the past 12 years because of his long-time lender’s financial problems and inability to lend funds. He said Millennium Bank “was not functioning.”


[ED. NOTE: I've never heard such nonsense in my life! And the purpose of FROED is not to act as bank to firms managed and owned by it's B of D members! FROED is not here to make cheap money loans on favorable terms to Fernando Garcia or any other board member.  It's public money for God's sake! I demand to see where the articles of incoporation as a non -profit organization are that specifically state such loans can be made to it's board members! That would violate the spirit and letter of the law of non-profits, and all such loan activity would have to have been submitted in audit reports made to the IRS. I doubt these reports and audits containing such activity exist!]

“There really is no rule against a board member borrowing. In this particular case, I’m trying to create jobs and retain jobs,” Garcia said.With the economy failing, his full-service dealership has cut 125 employees it had in peak years 2006-07 in half, Garcia said.


"Without it," he said, “I probably would have had more layoffs.”


Garcia said he increased business from $10 million when he took over to $65 million several years ago, but sales have dropped to “the mid-$20 million” range.

He now has slightly more than 50 employees and is trying to retain them while expanding business offerings.

In particular, while they’ve added “quick line” services to compete with other automotive services. Garcia said he needed to borrow the $250,000 quickly to maintain his inventory and for redoing his service area.

[ED. NOTE: So the taxpayers will be forced to pay for your lack of business acumen and inability to compete, as well as a total lack of proactive planning, by granting you access to a credit source when the private sector realizes you are running your business into the ground and are a serious credit risk? Ever hear about bankruptcy and reorganization? Ever hear about the free enterprise system? FORD won't loan you money to tide things over? They are doing quite well right now! You only do business with Millenium Bank? If so, why? Are they going under too? Won't the local banks help you out, you know, the ones owned by fellow FROED B of D members? Is your riskiness that bad? Why should taxpayers bail you out, because it sounds like it's YOU personally that will be bailed out, Fernando? This is a joke!]

“Staying above board is what my intentions were, where they remain and where they always will remain,” he said. He's served for five years.

[ED. NOTE: This sounds way too much like Richard M. Nixon's "I am NOT a crook" statement!]

Mayor Will Flanagan, who chairs FROED in his capacity, said he did not vote on the loan but supported it.


“Mr. Garcia is a New Bedford resident who made a decision to open his business in Fall River and employ Fall River residents. He is a philanthropist and a leader in the Portuguese community.”


Flanagan said FROED’s role is to loan funds to help with job creation and retention, and Garcia borrowed like other funds like other business leaders would do.


“If he or other businesses apply and keep businesses operating and growing, I think that’s the purpose of the agency,” Flanagan said.

[ED. NOTE: There it is, the REAL reason for the loan...Mayor Sylvanagan is courting the Portuguese vote for the next election...we all should have known...LOL...he's such a toad!]

In contrast, he said, “If there are allegations of impropriety, that’s a whole other news story.” He was told none had been raised, only questions about a possible conflict of interest.

Flanagan said his key concern is the borrower’s ability to repay the funds. “The question is are they going to default on the loan?” he said.


Fiola said FROED receives public and private funds to operate an annual budget of about $1.2 million and over $8 million available in outstanding loans, a portion of which rolls over and is re-loaned each year.


They are receiving $335,000 in Community Development Agency funding.


Since January, FROED issued 17 loans totaling $1,934,000, well above their typical amount. “This is a good year for us,” Fiola said.

He said the loans come from “private funding sources,” mostly commercial lending companies.

[ED. NOTE: I do not believe a single word that comes from the mouths of Mayor Sylvangan, Fiola  or any member of the FROED B of D, PERIOD! If any group of public officials needed a Pinocchio Vaccine it is them!]

Three other large working capital/expansion loans Fiola cited this year included: Amaral’s Central Market, $350,000; Griffin Manufacturing, $300,000, and Ross Seafoods, $300,000.


While the agency has a strong record of loan repayment, one particularly sensitive default happened last year, Fiola said.


He said George Sousa, a board of director member who was president of the Fall River Area Chamber of Commerce last year, defaulted $31,000 of his loan.


Fiola said Sousa borrowed $50,000 for seven years in 2005 for expansion of Livery Specialists, a limousine company. He declared bankruptcy.


He was not on the board of directors when he received the loan but was when he defaulted, Fiola said, and FROED wrote off the loss.

[ED. NOTE: Oh, was that "public" money that was written off? Or was it proceeds of private funding that was written off? There is no way this can be legal, no way! Citizens of Fall River, if you let this collection of (ALLEGED) professional GRIFTERS, known as the FROED Board of Directors, to "steal" from you this way you deserve every headache and broken dream you get!]
 Flanagan said he does not like to see the leaders that volunteer to serve on non-paying boards like FROED being penalized for a loan or other opportunity.


“I hope they don’t do so for special interests or what can I do for you or quid quo pro, and do so because they want a better Fall River,” Flanagan said. “If someone volunteered for me and said, ‘You owe me a job, you owe me a loan,’ I’d be highly offended.”

[ED. NOTE: Sylvanagan, you are a sociopath politician and a lawyer...you cannot, by definition, be offended!]
E-mail Michael Holtzman at mholtzman@heraldnews.com.

FROED Board of Directors' Mascot:

The Lying Toad

Yes, I said it before and I'm saying it now. The entire Board of Directors of FROED are a bunch of LYING TOADS! That is as a group or as individuals, especially the Toad Master General, Mayor Warts Sylvanagan.

 Do not let this politician kiss your baby or shake your hand without some extra strength Wart-Off handy !

I tried kicking him as he walked by and when I went home that night, this is what my foot looked like!

After about $200 worth of Wart-Off I was able to exorcise the evil wart off of my foot. But I was one of the lucky ones. You see, I did not vote for this vile scum that rules the City of Fall River, this lying fool, this asinine, mendacious amphibian. No, my better wits about me, I avoided the scourge of the Toad and stand  (sit, actually) before you today giving thanks above for my salvation from THE MENDACIOUS TOAD SYLVANAGAN.

I can offer Fall River no more on this subject than this....Wart-Off is available at your local CVS and Walgreen's. Your vote is available only to YOU!

Election Year Siren's Song

OUR VIEW: Momentum on the water.

By The Herald News
Posted Aug 27, 2010 @ 12:00 AM

Fall River’s waterfront has long been a glaring example of unfulfilled potential. Despite being blessed with such enviable geography, city and state leaders have consistently squandered the opportunities waterfront land provides, beginning decades ago with the short-sighted decision to build a double-decker highway on what should be highly valuable property.

Political candidates have made multiple pledges of waterfront revitalization over the years, but, somehow, their promises never seem to pan out, leaving residents to wonder whether their community will ever boast the type of attractive coastal development that has led other cities to prosperity.

They may finally have the answer they’ve been looking for. At long last, disappointment may be turning to excitement. At the very least, strong momentum is being built as city and state leaders have teamed up with private sector developers and are putting in the consistent effort needed to spur real action. Some concrete plans are in place, raising hopes other businesses will follow and leaders will find the political will to do what’s necessary to turn the waterfront into the economic engine it always should have been.

Gov. Deval Patrick was in Fall River Wednesday to announce the latest waterfront development — a deal to bring a turbine blade manufacturer to the area. TPI Composites Inc. plans to convert a 69,000-square-foot masonry building on Water Street into a research, development and manufacturing facility, where it will create the 10-ton, 50-meter blades needed to generate clean electricity. The company will initially create about 30 engineering, technical and manufacturing jobs, with the hope that planned expansion will eventually increase that number ten-fold.

Patrick touted the facility’s location, noting the easy water access opens such companies to broad markets. “We believe if we get this right the whole world can be our customer,” he said.

The TPI deal is the latest in a string of announcements on waterfront revitalization in recent months. Local developer Anthony Cordeiro bought Commonwealth Landing, the former Quaker Mill headquarters on Davol Street, and plans to convert it into 40,000 square feet of commercial space. He is negotiating with two restaurants and bars, one of which may be Jerry Remy’s sports bar and grill, the original of which is directly across the street from Fenway Park in Boston. “We’re very close,” he said.

In May, Lt. Gov. Tim Murray traveled to Fall River to announce $2.2 million in state and federal funds dedicated to cleaning up the polluted city pier, where plans are in the works for a marina and office space. The marina would join another point of water access introduced Wednesday. Just south of Commonwealth Landing at Bicentennial Park, the $334,000 boat ramp provides easy access for boaters, helping draw more people to the waterfront.\

The building momentum has certainly caught the attention of state leaders, who have made frequent visits to the Spindle City in the past couple years. Having the commonwealth on board and convincing state leaders that redevelopment efforts are legitimate could help grease the wheels on the largest piece of waterfront development — the demolition of Route 79 in favor of a scenic waterfront boulevard that would open acres of developable land.


Combine the proposed projects with the ongoing improvements to the Braga Bridge and established attractions like Battleship Cove and Heritage State Park, and Fall River could soon have a vibrant, profitable waterfront that attracts businesses and visitors, finally taking advantage of its potential.

I have been in and around Fall River since the early 1980"s. I'm sure that makes me somewhere between a Boston area carpet bagger and a relative newcomer to most Fall River citizens, who approach anyone who grew up outside of Fall River with a sense of dread and  bewilderment, not to mention a complete lack of trust. But I think 30 years allows me the right to comment on  the odd , ooccasional truth about Fall River. And one of the most stable and undeniable truths I can think of is that once the election silly season starts in earnest, and trust me, even the campaign for the Mayoral election next year has already started for Mayor Sylvanagan, the siren's song of "The Treasure that can be Fall River's Waterfront" will be heard early and often.

Wasn't it just last year when the idea of opening up the Quequechan River was, excuse the expression, FLOATED by a group of local elected officials and businessmen, headed by Mayor Correia? Tear up Route 79 and let the holy waters of the Quequechan run wild and free and make that waterfall dance for scads of tourists and travelers to Fall River, as well as the soccer moms going into and out of Work Out World? (I can see it now - being able to walk from one bank of the Quequechan to the other without getting your feet wet by stepping on tossed away green 2 liter Mountain Dew bottles floating on the river!) Less than 12 short months ago that was the latest in a long line of promises to fix up the waterfront and make it relevant for tourism, restaurants (food carts , anyone?) and other commercial and industrial development. So excuse me if I am not moved by this call by the editorial staff of the HN (LISA STRATTAN, whose husband was on Mayor Sylvanagan's transition team) to open our eyes and see all the wonders and colors of the waterfront rainbow! All I see when I look down there are wasted potential and a genuine lack of caring by the powers that be that have run this City for the full 30 years I've been around. And for all you Sylvanagan droids out there, if that sounds too negative for you to accept, too bad, because here we deal with what has been and what IS, not " pie in the sky by and by when we all die". Mayor Sylvanagan is just another in a long and inglorious line of municipal pseudo Reverend Ike's to curse the City with their presence. And the HN is just his lapdog propaganda machine, all recent editorials calling him out to the contrary.

And please, let's not act like obtaining a grant to clean up eco-disastrous filth on the pier is something to bay at the moon over. It's expensive because for generations someone at City Hall was asleep at the wheel, probably under the guise of "supporting business growth in Fall River", the results of a "jobs and economy" Mayor from some earlier time, no doubt. Let's all wait and see how fast someone is willing to invest on that particular parcel. PCB's for breakfast, anyone? I thought this City had already cornered the market on mutagenic industrial waste caused club footed citizens? Why would we want to produce generations more by developing any business on that , for lack of a better term, "land"? Maybe the members of the FROED Board of Directors would be brave souls and make a joint purchase of the newly cleaned up pier and lead by example, put their personal money where their mouths are and develop a socko business there. And maybe wild monkees will fly out of my butt , too!

(Sylvanagan, Fiola and Torres Fly Out of My Butt! - actual scale)

I DO like and applaud the two local entrepreneurs that went ahead ON THEIR OWN to start what I hope could be both a viable manufacturing business ( TPI Composites Inc. ) and hub for commercial and restaurant properties (Anthony Cordeiro's Commonwealth Landing, the former Quaker Mill headquarters on Davol Street). Notice that FROED and Sylvanagan  were no where to be found. That's no doubt why both ventures actually started and will most likely succeed!

One thing that would make further business development on the waterfront much more viable would have been the development of "short shipping" facilities of the type recently started in New Bedford. Once again, FROED asleep at the wheel. New Bedford gets needed transportation facilities for commercial and industrial development, Fall River gets to sign  a sales agreement with the Wampanoag Indians for 300 acres of prime land previously set aside for the Bio-Park, to be used for gaming facilities, once the legislature gets around to legalizing gambling in Massachusetts. Oh yes, and there is no guarantee that will happen, or that if it does, that the state will award one of the casino licenses to Fall River and the Wampanoags, or that the federal government will recognize the Wampanoags claim to make that land sovereign Indian land. Nice, really nice job there FROED and Sylvanagan.

So, get ready to hear the siren's song of the waterfront yet again this election season. You'll hear about more glorious proposals presented at specially called news conferences given by a who's who of statewide elected officials, all to help out the powers that be in their election campaigns. And because there is a sucker born every minute, old timers in Fall River will remember the good old days and will vote for the slickest of the Reverend Ike's to offer them good times down on the waterfront.

Don't forget what happened to the sailors in mythology who listened to the siren's song....they ended up crashed on the rocks!

This Tide Is Going WAYYYYY Out!

Home values down, but tax bills rise


Struggling homeowners feel the pinch as Mass. communities try to make ends meet

By Matt Carroll and Stephanie S. Daly
Globe Staff
Globe Correspondent / August 22, 2010


 Despite dropping home values, Massachusetts property tax bills continued to rise last year.


Revenue-hungry cities and towns, looking for money to pay for new buildings and to maintain services, have continued to push up local taxes, often asking voters to approve property tax overrides even as real estate values drop further.


The double whammy of lower home values and higher taxes — a phenomenon that has hit Massachusetts homeowners for several years — frustrates taxpayers as they endure the rocky economy.

“There’s absolutely no way you can sell a house in Dedham for what it’s assessed at,’’ said Janet Gorman, who has lived in the town with her husband for about 30 years.


The couple, who own two single-family homes and rental property in town, sought a tax abatement on one of the rentals and got about $900 knocked off their tax bill.


“And is Dedham any different than any other town? Probably not,’’ Gorman said.


The average tax bill on a single-family home in fiscal 2010 increased about $140, a 3.3 percent increase, according to figures released this month by the state Department of Revenue. The average tax bill for a single-family home was $4,390.


The statewide home values, which have more than doubled since 2000, peaked in 2007 but dropped about 4.6 percent last year to an average of $373,702.

Taking a longer view, both taxes and home values have risen over the last decade. Since 2000, average property taxes on single-family homes in Massachusetts have increased about 64 percent.

State and local officials defend the tax increases, and lower values.


“Not only is the 3.3 increase the lowest in 20 years, but it also marks the first time in at least 20 years that the annual percentage increase has gone down for four consecutive years,’’ said Bob Bliss, spokesman for the Department of Revenue.

Local officials also point out that property assessments are a snapshot of values from a year or two ago.

Rick Henderson, the assistant director of assessing in Dedham, pointed out that assessed values for fiscal 2010 are based on a home’s worth on Jan. 1, 2009, which was determined by home sales in 2008 in that community. A home’s actual value — different from its assessed value — might have changed significantly over the last two years, he said.


“The taxes are high and I think everybody’s taxes are high,’’ said Jeanette Geller of Needham, who has filed for abatements at least three times in the 50 years she has lived in her split-level home. She recently won an abatement of nearly $400. Overall, property values dropped in 281 communities for the fiscal year that ended June 30. Hardest hit were Brockton, Revere,, Lynn, and Rockland, where values were clipped at least 14 percent.

“We still have a large number of foreclosures in the city, which impacts the values of homes,’’ when they sell at lower prices by lenders eager to get out of the real estate business, said Mayor Linda M. Balzotti of Brockton. This is the second cycle of foreclosures the city has endured, she said. The first was caused by sub-prime mortgages. This cycle largely stems from homeowners who have lost their jobs or are underemployed.

“We still haven’t quite leveled out yet, but I’m hopeful we will shortly,’’ she said.


“In Revere, things have really slowed down over the last three years,’’ said John Verrengia, an assessor. “Generally speaking the overall market has been tough.’’


Home values in 56 communities — mostly small towns in Central and Western Massachusetts — increased. Topping the list were the towns of Washington, New Ashford, and Granville, where values climbed at least 6 percent.

Values climbed more sharply in Eastern Massachusetts during the boom years of the last decade, but have tended to fall more sharply as well.

Arlington was of the few towns in Greater Boston where values increased, by 2.4 percent.


“Arlington has something for everyone, from cradle to grave,’’ said Robert Greeley, director of assessing, who pointing to the town’s location and its access to Boston, as well as a strong school system, recreational facilities, and senior center.

Greeley estimated seven out of 10 people buying are from outside of town — when homes come up for sale, which isn’t often. Individual homes go on the market every 28 years on average, he said.

The downturn has hit the rich as well. The number of towns where the average home value topped $1 million stood at 10, the same as a year ago. . But values dropped in seven of those towns. Chilmark, a small summer community on Martha’s Vineyard, had the state’s highest average value, at more than $1.8 million, down 1 percent from a year earlier.

In Weston, values slipped a fraction, but the community still had the second-highest average assessments, at $1.4 million. One home is assessed at $23.7 million, according to town records. Weston did top the list in one notable category — highest average taxes on a single-family home, at more than $15,000.

“The values here have been very stable,’’ said principal assessor Eric Josephson. Still, more than 40 people filed for property tax abatements, he said. “With the state of the economy, everyone is concerned where their money is going.’’

The town of Hancock had the state’s lowest average tax bill, at $824.

In Boston, the average assessment was $372,138, down 4.3 percent, according to the city. The average tax bill was $2,935, up 6.2 percent. However, Boston’s numbers were not included in the state data because it, along with 13 other communities, calculates data differently.

Nine towns, all west of Boston, had average taxes of more than $10,000. Not surprisingly, these towns, such as Dover and Lincoln, are among those with the highest values as well.

And nine communities had taxes jump at least 10 percent, with tax overrides or debt exclusions a major factor in most, noted the state.

Rockland was in the unenviable position of ending up among those communities with the greatest drop in valuations (14.3 percent) and highest percent increases in taxes (15.2 percent).

The tax hike was largely due to a $2.8 million override, said town administrator Allan R. Chiocca, who noted the town had the sixth-lowest average tax bills in Plymouth County, even after the override.

Overall, the town is doing well, he said. “Rockland offers a bargain to taxpayers with our low tax rate,’’ he said, pointing to major improvements in renovations and building on the high school and middle school.


Joseph Modugno, a 52-year-old English professor at North Shore Community College, fought for an abatement on his Milton two-family. He likes that the community does not have many businesses, which means more “open space and unclogged streets.’’ But he understands that a small commercial base means the tax burden falls more heavily on homeowners.


“What can I say? Who wants to pay taxes?’’ he said about filing for the abatement.
Matt Carroll can be reached at mcarroll@globe.com and followed on Twitter @GlobeMattC.

Above is an extremely interesting article in today's Boston Sunday Globe that brings up a critical issues which have been impacting Fall River's financial picture over the last few years and will likely spell dire trouble in the very near future without a vast increase in tax base and employment to the City and the region, neither of which seems likely at all. Those issues are the  lowering of property values and the resulting increase in property taxes to keep vital municipal services operating.

The full article and related excellent graphics showing the changes over ten years time in property values and tax rates for every City and Town in MA can be found here:

http://www.boston.com/news/local/massachusetts/articles/2010/08/22/mass_home_values_down_but_tax_bills_rise/?p1=Local_Links

The data boils down to what we can see happening in Fall River, especially after people's outrage over the FY2010 valuations placed by City Assessors of their residential properties. Assessed valuations lag behind actual current  market valuation by almost 2 complete years (as the law dictates) and bear little resemblance to current market values of the properties within the overwhelming majority of cities and towns in Massachusetts. That means as property value increases have been weak over the last decade, or actual decreases over the last year or so, tax rates have had to be kept at Property 2 1/2 maximums, or more , with overrides and debt exclusions, to maintain the same or lesser level of public services.

What does that mean in Fall River? Property values have actually been impacted negatively here more than most municipalities in Massachusetts because of a number of critical reasons, the main one's being high unemployment, lack of growth of Commercial/Industrial tax base for tax shifting from residential to commercial/industrial properties, and a very week regional economy while the state's economy grows at twice the national average. The state's economy is recovering but Fall River's and it's surrounding region is not!

This will make the growing disparity between property values and the tax revenues raised from those properties even worse as time goes on, as long as the Fall River/regional economy stays moribund. By "economy", I mean those industries that are net exporters of goods and services out of the City /region. These type of industries produce employment and wages which in turn most often reliably creates sustainable new households and carries with them the consumption of locally and regionally produced goods and services typically required by those new households. What has to be excluded from this picture are wholly low paying, low skilled service sector jobs, those that do not typically create new households nor, in this case in particular, pay property taxes.

Fall River is already in extreme fiscal distress. This is primarily a function of the existence of  a structural gap between current property tax revenues (not including other fees, such as Water and Sewer Enterprise Funds, or other Enterprise Funds) and the basic, contractual and legally obligated costs of providing needed municipal services to residents of Fall River. As long as the City's tax base witnesses very little major new growth, especially in Commercial/Industrial property, this problem will grow almost exponentially. Without such extreme levels of property tax valuation increases, which are clearly NOT about to occur due to a poor Fall River /regional economic outlook, and because municipal labor contracts have promised millions in salary increases to most Fall River municipal employees in future years as a bargaining tool to offset current salary rollbacks, the full extent of the crisis is not yet visible, as dire as things seem to be year after year!

The economy of the region is stagnant at best, regardless of official statements otherwise. All you need to see this is true is to talk to your neighbors who have been out of work for long periods of time, or whose buying power has been butchered by increasing prices and static salaries. The family wallet and pocket book do not lie. As families/homeowners witness flat incomes and lessening purchasing power, in Fall River they are seeing the value of their largest single possessions, their homes, fade faster over time than elsewhere. Their net worth is eroding in Fall River faster than almost any other City and Town in Massachusetts. Hence, Fall River's ability to raise new tax revenues to meet expenses for the same level of services is virtually nill! This will place further pressure to increase fees and charges related to Water, Sewer and Ambulance Enterprise Funds to insulate fully the General Fund operating budgets from deficts in those enterprise funds! This at a time when cost increases to taxpayers is most painful due to stagnant income growth.

The kicker to this entire situation is that valuations STILL lag behind the actual current market by almost two full years. So, even if things were to turn around tomorrow, the tax base will reflect low or no growth while municpal expenses will continue to rise, especially those expenses related to negotiated union contracts with large built in cost increases and associated health and retirement benefits.

While federal grant funds have been available at the last minute for the last two fiscal years, and will provide a level of "tide you over" funds for FY 2011 and some into FY 2012 for fire and police salaries, the expenses related to those grants will not dry up as the grants do. Therefor, at some point, Fall River will have to find a way to cover those grant fund increased base expenditures, or there will be a drastic reduction in basic safety and other municipal services in the very near future. This is not good news as Republicans look as if they might take over either the US House of Representatives or Senate in the upcoming Fall elections. If that happens, the grant spiggot will immediately be turned off.

Clearly, without any other issues impacting Fall River's municipal finances, things look very bleak, like the tide is going out, not in. When you add into this equation a hyper political atmosphere which cripples the City's ability to move nimbly, and with emergent purpose, to solve these potentially terminal problems, and the incompetent and muddled day to day management ability of current finance managers for Fall River, you can quickly see that the tide is going way out...wayyyy out....for Fall River.

Hope everyone can doggy paddle!

Long Live Ka$hman

Well, just when you think it's safe to ridicule Soul Patch Bigelow, Ka$hman checks in and blows everyone out of the water.... Dude has MAD skills!. I think I'm going to spend some time on YouTube and hunt down his other masterpieces and host a Ka$hman video festival right here on chomeinsammich!. I just wish he'd do one about Sylvanagan and the Wampanoags!

Ka$shman, anytime you want something posted on this blog site, MI CASA ES SU CASA Dude! You are a legitimate Fall River natural resource and a true maven of political satire!

ENJOY ALL!!!

Blatant Thievery! (alleged, that is)

CDA asks feds for "conflict of interest" waiver

.By Michael Holtzman
Herald News Staff Reporter
Posted Aug 18, 2010 @ 09:44 PM


FALL RIVER — For the first time in five years, the Community Development Agency issued a legal ad and sought a waiver from federal officials under the “conflict of interest” statute to provide HOME funding loans, Executive Director Michael Dion said.
He provided a copy of a waiver request he wrote Monday to the U.S. Department of Housing and Urban Development in order to give $10,000 loans to three city employees as first-time homebuyers and a much larger loan to a member of the Redevelopment Authority.
The homebuyer loans were for two school department employees, Rakhi Shatri and Chou Siv Tang, and a third for Keith Hussey of the department of public works.
Hussey’s been out of work on workmen’s compensation after losing both of his legs last year when a vehicle crushed him on the back of a refuse truck.
The $10,000 first-time homebuyer loans are forgiven under the HOME program if the owner remains living in the residence for at least five years, Dion said.


The fourth loan, for $180,000, is for Thomas Martin Sr., who owns TM Construction and Remodeling Inc. in Fall River.


He’s seeking the HOME funds to rehabilitate three units at 178 Franklin St.

Mayor Will Flanagan nominated Martin to the Redevelopment Authority to replace longtime member David Raymondo, who resigned. The City Council unanimously ratified Martin on June 24.
A month later, Martin, at his first Redevelopment Authority meeting, voted in favor of a $21 million casino land sale agreement to the Mashpee Wampanoag tribe. That critical vote was 3-2, dependent upon the state legalizing casino gambling this year and other conditions.


Before Martin joined the Redevelopment Authority, he was approved for $220,540 in CDA HOME funds to rehabilitate six rental units at 2589 S. Main St.


On the recent $180,000 low-interest loan request, up to $22,500 could be forgiven under a lead abatement grant program, Dion said.


Dion, in a June 24 letter to the law department, wrote that HUD could consider a waiver for the city employees and board member if there was a public disclosure stating the nature of the conflict of interest, along with the legal counsel’s opinion the loans do not violate state or local laws.


“It is my understanding that Mr. Martin is not employed by the Community Development Agency, which is issuing the HUD-sponsored loans … will not participate in any way in his loan and will make full disclosure of his municipal employee status (as a board member),” wrote Assistant Corporation Counsel Elizabeth Pereira.


“Therefore, it is my opinion there is no violation of state law,” she wrote. She made the same points for the three city employees.


The HUD regulation applies to “any person who is an employee, agent, consultant, officer or elected or appointed official of the recipient,” Dion wrote HUD, identifying the four individuals.
In the conflict of interest public notice by the CDA, no names were issued, only general information about their work/service and the CDA program. “I’ve never named an individual in the newspaper,” Dion said. “We don’t usually get a lot of these.”


He read from the last legal ad they placed for a conflict of interest notice. It was from Aug. 4, 2005.
E-mail Michael Holtzman at mholtzman@heraldnews.com.

This is only the latest example of the blatant trashing of the public funds by the Sylvanagan administration. How much more clear of a classic quid pro quo can you get than this:

"The fourth loan, for $180,000, is for Thomas Martin Sr., who owns TM Construction and Remodeling Inc. in Fall River."

It's actually easy to follow, as long as you are not a Sylvanagan kool-aid drinker and bum kisser.

 The City faces a debt of gratitude , and maybe a Workman's Comp lawsuit, for injuries to one of several individuals who were injured on the job, and in one case, lost both legs in the service of Fall River. They also have two other School Department employees they wish to  help create new households.  Up to this point, I actually have no problem whatever. However, I'm also oh so sure none of these people could in any way be used for political purposes down the road, oh not at all!

You have a situation where Bag-Boy Deluxe Sylvanagan, he of the indolent brother recently hired by the School Department, is taking a vicious public relations beating for his asinine policy leading to the withdrawal of CD funding from the Y which was requested and awarded by the City's CD Office to help rehabilitate it's building for the apartments on upper floors typically used by qualified low to moderate income individuals and families.

So, me thinks a light bulb went on over the BB Deluxe's teeny weeny head, and he figured out a way to kill two birds with one, er, request for  allowing a waiver of "conflict of interest" requirements  called for in use of federal CD funds. This way, he gets to funnel $180,000 worth of reconstruction work to his good close personal friend, "Thomas Martin Sr., who owns TM Construction and Remodeling Inc. in Fall River", who will rehab the units to be purchased with the loans for the three employees in question. Only problem is, it's the very same "Thomas Martin Sr., who owns TM Construction and Remodeling Inc. in Fall River", appointed by BB Deluxe Sylvanagan to the Redevelopment Authority  to be the deciding vote , in a 3-2 vote, in the sale of the land originally designated for the Bio-Park to the Wampanoag Indians as a site for the currently dead Destination Casino!

Let' s see, it'a all just an unfortunate coincidence, right?  This one particular Construction and Remodeling firm owner, and probable Sylvanagan campaign contributor, happens to be the deciding vote in a $21 million dollar land sale, of which the residents will get NOTHING because it's going to the Redevlopment Authority, and then, lo and behold, gets a $180,000 home rehab building award from the Fall River CD office which is controlled lock , stock and barrel by that very same Mayor BB Deluxe Sylvanagan. I'm sure it's just a dizzying confluence of coincidence, in true, crooked politician Fall River style. Yep, it may not be a quid pro quo, but it sure seems "quid pro quo"ish to me. But hey, I'm just a negative old man, right, a hater . Yep, that's me all the way.

Lately, the smell from squalid politicians in Fall River is nauseating. YOU let this happen, not me. I didn't vote for the talentless idiot who is surrounded by a vicious cadre of sickening henchman and women who make the Brown Shirts look tame in comparison.

Watch out Fall River...things haven't even gotten ugly yet!