Large Debt Load is Our Golf Course’s Biggest Handicap

Below is my weekly Friday article:

It’s been almost six months since the city of Neosho was forced to make some drastic cuts in services and staffing in an attempt to stop the bleeding of our city’s finances. While those decisions weren’t without consequence, I’m happy to report that the city’s overall financial health is beginning to show small signs of improvement.

As we begin to look past the immediate needs of cash flow, the next battle on the horizon will be discussions over how we deal with the large amount of long-term debt owed by our city. Some of that debt continues to burden the city’s general fund. The one that concerns me the most is the roughly $3 million owed on our 27-hole municipal golf course.

The good news is golf course revenues are more than adequate to cover the day-to-day operating costs of the course. But when you add in the annual payments of the course’s debt, the overall budget picture starts to get ugly. Knowing that these payments will continue to increase over the next five years, it becomes critical that a plan be put in place, sooner than later, to deal with this ever-increasing burden.

Over the next few months, you’ll likely be hearing about more and more discussions of what that long-term plan may be. It’s not going to be an easy fix and it’s not something that can be done overnight, but I am confident we can work together to find a solution that keeps our course operating while minimizing the subsidies it receives from our general fund. Once a solution is in place, it will be yet another step forward in making our city stronger financially.

Stay safe and stay warm. Winter looks to be back in full force early next week.

Until next time, this meeting is adjourned!

Post Office Closings Are The Right Decision

This week’s report that the US Postal Service will shutter up to an additional 2000 post offices (on top of the 491 announced last year) seems like a logical decision based on the continuing financial losses it saw in 2010.

With $8.5 billion in losses posted last year (losses that are made up by taxpayers), it seems only reasonable that the government MUST change the way it does business.  If this was a private organization, such changes would have been forced long ago.  It’s just one example among many others where our gov’t either needs to fix it or cut its losses and run.

It was almost two years ago that the US Postmaster General first went before Congress asking that the law be changed to permit the USPS to adapt its services to a changing business environment.  Lobbying continues in DC for more changes as losses continue to mount.

Those opposed the closings, ranging from residents of towns being impacted to the Postal Regulatory Commission itself, are fighting to prevent the closings citing the negative impact such closings could have on employees and local economies. Supporters say the system is outdated and losses cannot continue.

There is no doubt that cutting will be painful.  And with the size and scope of gov’t today, no one will likely be immune to the impact if the cuts that need to happen ultimately come to fruition.  But as the hole we dig continues to get deeper, it’s only a matter of time before we will no longer be able to afford the ladder and ropes we need to climb out of it.

Verizon Gets iPhone?

It seems more and more likely that whose who love the iPhone but hate the poor service from it’s sole provider – AT&T – will now have options.

Network World reported Saturday (along with the WSJ) that Verizon is preparing to announce it’s getting a version of the iPhone.

As an iPhone user myself, I’m about fed up with the poor service in select areas, including Neosho.  Verizon has had 3G here for years…AT&T is still stuck on dial-up speed “EDGE” around here.

http://www.networkworld.com/news/2011/010811-verizon-iphone-expected.html?source=NWWNLE_nlt_daily_am_2011-01-10

Park and Swipe

Sent by iPhone No coins in your pocket? Don't worry. In Beverly Hills, they take plastic too!

Jesse James - Out of Business

Above is a photo outside of what was West Coast Choppers. The business was shut down October 1st.

Should 405 Simply Say “NO MORE - Not Allowed”?

While past changes to 405 drew much opposition two years ago when the city pursued “updating” the existing 405, did anyone realize the potential consequences it would have on new/expanding businesses in Neosho?  Have we ultimately created a “non-business friendly” environment for people looking to grow in SW Missouri?

This issue comes from the small but significant change in 405 of removing what I refer to as “inclusive zoning” – in other words, allowing a lower class zoning in a higher level area (specifically, allowing commercial development on land zoned “industrial”) combined with putting more restrictive categories within a zone of what “industrial” means (what was “industrial” is now M-1 Light or M-2 Heavy.) 

So what exactly does that mean in the real world?

Well, one thing it means is that anyone wishing to open a business in our industrial park today would need to have an M-2 Heavy Industrial purpose in mind.  Why, because almost ALL of our industrial park is zoned M-2 Heavy Industrial.  If your intent is anything else, be prepared to submit a rezoning request, pay a fee, wait many weeks, and HOPE that no one opposes the idea. 

What was allowed and happened for years can no longer.  And while some may still think that’s ok, let me give you some better examples of what 405 would have done had it been in place years ago:

1)  Scholastic

If the flooding and subsequent relocation of Scholastic would have happened after the 405 changes (it happened prior), they would not have been allowed to relocate to their current location (and “save jobs”) without going through the costly and lengthy (and sometimes contentious) process of rezoning.  Where they are today is zoned M-2.  Commercial call centers are NOT ALLOWED in M-2.

2)  B&B Movie Theater

If B&B would want to open a movie theater today in their current location, they could not because that land is zoned M-2 Heavy Industrial.  Movies theatres are NOT ALLOWED in M-2.

3)  Expanded student housing for Crowder

While some opposed the construction of Rough Rider Village (because we “don’t need residential development in an industrial park”, that apartment complex has turned out to be a great thing for Crowder.  It’s full of students and employees who can now walk to work/school like others can at any other College/University in the state.

But what if someone wanted to further develop residential apartment complexes to help Crowder as it grows?  Good luck!  All of the land around Crowder is zoned M-1 and M-2.  Apartments (R-3) are NOT ALLOWED!

I’ll add a sidebar conversation here:  Like it or not, we have a Family YMCA and a Community college located in our industrial park.  Do those businesses (which by the way are NOT industrial) DRIVE commercial needs?  I think they do, but we’ve not made it easy for that to happen.

4) Neosho Concrete

If Neosho concrete had relocated to the industrial park (from downtown) after 405 was changed, guess what?  NOT ALLOWED!  All of the land on the south size of Industrial Dr. is zoned M-2.  According to the current 405, concrete block plants are M-1 and rezoning would be required.

5)  Any commercial business to help Crowder or the Y

Whether it’s a convenience store for Y members and Crowder folks, a Solar consulting businesses tied to MARET, or any business directed toward Crowder’s students (coffee shops, gas stations, eateries, etc.), don’t hold your breath!  All of the land around Missouri’s fastest growing community college is zoned M-1 and M-2 industrial.  What does that mean?  NOT ALLOWED!

6)  There are many more!

So where am I going with this?  I think the time has come to take another look at what we really want from the 405 and whether our future land uses in the industrial park fit the current and future needs of the area.  If we want Crowder to grow, shouldn’t we plan land use around that? 

If other cities like Carthage can grow and prosper without such restrictions, why can’t we?  Well, I think we can, and I believe the 405, while well-intentioned, is ultimately making Neosho a non-Business-friendly place to be.