Opinion: George Eddie Lorton
Hello, my name is George Eddie Lorton and if the following opinion sounds familiar to you, its because I have been campaigning on it for 12 years. Opponents at campaign time tried to silence and mock my opinion, but now, here they are misusing my ideas for their same old corrupt games. Some years ago, the City of Reno created a redevelopment agency. The redevelopment agency is the most abused agency within the City of Reno government. Let me say it again- THE REDEVELOPMENT AGENCY IS THE MOST ABUSED AGENCY WITHIN THE CITY OF RENO GOVERNMENT.
Elected officials at the city now use this agency for their own personal gain, easily evidenced by candidates campaign and expense reports. The State of California has abolished redevelopment agencies because they foster so much unbridled corruption and abuse by the elected. Redevelopment agencies open the door for corrupt favors between elected officials and entities like casinos, developers, and other special interest groups, all at the taxpayers’ expense.
The City of Reno currently owns hundreds of millions of dollars in real estate, the bulk portion of which is held by the redevelopment agency. When city owned property is held by the redevelopment agency it means that the properties will not be offered at public auction if sold. The city holding that much control over the properties means that they can do any number of transactions with said properties. For example, they can give away properties at little or no cost or even give favoritism deals on leases or sales of property. On top of that, no city owned properties are on the tax rolls. This city of Reno has multimillion dollar properties wherein property taxes are not being paid. Meanwhile, the county continues to try and increase citizen property taxes.
As examples, these three city-owned properties are not creating necessary revenue and tax revenue: The National Bowling Stadium, The Reno Events Center, and the Downtown Reno Ballroom. In essence, not only are we not getting paid on these buildings either revenue or tax dollars, but we are paying the bond servicing debt to pay for the pieces while gaining little or nothing in return except more debt. The city claims to have a $24m deficit, while simultaneously owning properties like the Ballroom worth $65m which could be sold at public auction, both bringing in revenue to balance the debt and relieving the city of the bond servicing debt obligations. The building would then be added to the tax rolls, collecting revenue, with the debt paid, and millions in reserves. The same could be done with The Reno Events Center, the National Bowling Stadium and hundreds of other city owned properties. In my opinion, this creates the necessary solutions for the debt. If the redevelopment agency were abolished and all properties were to go to public bid, the corrupt practices would come to an end. They would bring the citizens the most for their taxpaying dollar, which by the way…..is their job. The city of Reno should NOT be in the real estate business. Some examples of fraud, waste, and abuse within the redevelopment agency-
1) Eldorado / Caesars Ent has a favoritism lease in which they pay nothing for the rental of the Reno Ballroom. The only associated costs to Caesars are the utilities which are minimal; water, power, sewer, and trash and are THEIR OWN EXPENSES ANYWAY. The special interest group holds control of the facility, including outside rentals, meaning when someone other than the Eldorado rents the Ballroom, the rental fees are paid to Eldorado / Caesars and NOT the City of Reno, while taxpayers foot the bill. Once again, the facility is not on the tax rolls making revenues as it should be. The lease is coming up for renewal and this council, some of whom are term limited out, are sure to make one final sweetheart deal to their campaign donors over at Caesars.
2) Another example was the underhanded lease of the vastly underutilized National Bowling Stadium (which the public can’t even use) to Hillary Schieve’s ex-business partner to create the Dark Corner Haunt haunted house. Another friend of the mayor’s receiving favors by using the redevelopment agency. Once again…citizens pay the bond servicing debt and the building is not on the tax rolls collecting revenue. Noticing the pattern yet?
3) Jacobs Group has been gifted and discounted land and property through the redevelopment agency which could have been sold at public auction and used to balance the debt for the taxpayers benefit. Many, many more examples could be cited. As far as the city’s ACTUAL debt is concerned, according to the Reno Gazette Journal the debt is $472m including the $60m the city just took on for the Moana Pool, the new public safety center (which is a disaster), and the new fire headquarters. This number is also grossly misrepresented. As of 5 years ago, the PERS debt alone was over $260m and going up at a rapid and unsustainable rate. Talk about creative bookkeeping! Also conveniently left out of the debt calculation is the over $400m in debt left over by the train trench which is under a forbearance agreement. The forbearance agreement puts the debt off until a later date with a higher interest rate. So realistically, the city’s debt is more like $800m to $1b dollars. My question is, why does this city continue to finance casinos and developers at the taxpayers’ expense when their only job is police, fire and public works? This city is WAY out of its lane and this redevelopment agency needs to be abolished NOW. I am disheartened to see our city in this position today when this has all been so preventable. I am disheartened to see the very good idea to sell off properties to balance our budget, instead be used to widen the budget gap and become another vessel for political gain by a corrupt council. I hope it has become clear that I have the people’s best interest at heart as I continue to stand against corruption in Reno.
Thank you for hearing me out.
-George Eddie Lorton