Chapel Hill Herald, Saturday August 20, 2005
Political observers appear baffled by Carrboro's mayoral race. None seems willing to go out on a limb to characterize how the race may play out. But all agree that it will be tough to find clear-cut political differences between aldermen Mark Chilton and Alex Zaffron.
Current Mayor Mike Nelson told a reporter recently that he could not recall any time that Chilton and Zaffron were on opposite sides of the issue. He characterized their opposing votes on the northeast area annexation as a disagreement on timing and procedure rather than on outcome. Alderman Jacquie Gist, herself seeking re-election, said "they both come from the same progressive base."
Chapel Hill political veteran Joe Herzenberg concurred, offering that, "As far as the issues are concerned, there is not a great deal of difference between the two. It has a great deal more to do with style and what kind of person you want as your mayor." Nelson added that "as aldermen, their role is different from what their role as mayor would be."
Perhaps the race will find its fault line on the issue of lifestyle, the more mainstream vs. the somewhat alternative.
Zaffron works as house manager for the ArtsCenter and is single and a renter. On that basis, it is arguable that he would appeal more to Carrboro's singles, artists and grad students, to folks who hang out at Open Eye Café or the Orange County Social Club.
Chilton is a family man with children in day care and grade school, a homeowner, businessman and lawyer. His background might appeal to those Carrburators who are raising families, paying off mortgages and more career-minded, those more likely to be found at Southern States or Chicken Noodle Soup.
But there is another aspect of style, that involving how the candidates might pursue the big issues before the town even when they largely agree on the final outcome.
Zaffron is best known for his involvement in Carrboro's long-range planning efforts.
Those who want to push forward on those plans will be among his strongest supporters.
Many will expect Chilton to take a slower, perhaps more deliberative approach.
He could be more appealing to those anxious that the growth expected downtown and at the perimeter not arrive at the expense of what lies in between.
Another question surrounding Carrboro's mayoral race is why Katrina Ryan isn't in it. Instead, she opted to enter the race for alderman. To be eligible to run, she recently moved to an in-town apartment from her home in the northeast annexation area.
In 2003, Mike Nelson beat write-in candidate Jeff Vanke by a margin of 1,423 votes to 995.
It is simplistic but not unreasonable to think that if the two similar candidates, Zaffron and Chilton, split the Nelson vote, a candidate who could hold the votes of Vanke might win.
Instead, Ryan has given herself the much more formidable task of winning one of three alderman seats against two incumbents (Gist and John Herrera) and two better-known and more experienced challengers (Catherine DeVine and Randee Haven-O'Donnell -- David Marshall is the final and, like Ryan, inexperienced challenger).
There is the possibility that those four will split the votes enough to let Ryan in.
She may look optimistically at Steve Rose's close fourth-place finish in 2003. But Rose was a former alderman and an established Carrburator. Ryan is neither.
I don't recall if it was Ryan, her husband or some other annexation area resident who is on the record as speaking out so strongly about preferring to be annexed into Chapel Hill.
But it doesn't really matter: As part of the group that so vociferously protested the annexation, Ryan is tarred with that brush.
Thus, the activity she is best known for is not wanting to be a resident of the town whose government she now campaigns to join. It would seem an odd form of municipal masochism for Carrboro residents to now elect her to office.
The alderman race will require Carrboro voters to evaluate John Herrera's record on the board. I was astounded by Herrera's comment on filing: "These past few years, I have learned how the system works. It takes a while to learn and build relationships, not just with staff but with neighboring communities, state legislators and the county commissioners, to be able to deliver and get important projects done."
Most elected officials learn all that, at least enough to get comfortable, in the first few months. They have to in order to do their job.
Herrera will need to demonstrate that he's done more over the past four years than learn how the system works. Otherwise, he may find these challengers showing him the door on election day.
Issues:
Comments
Frank, you do know that we
Frank, you do know that we get only a small portion of the sales tax back into Carrboro, right ?
And BTW the tax rate is 62.44 cents, and sale price and assessed value aren't the same.
We can talk about math later, when you bone up on the subject.
Carrboro's portion of the
Carrboro's portion of the sales tax must be more significant than you believe Katrina since it makes up 17.7% of the town's revenue stream.
Attacking a business like
Attacking a business like Frank's is a unique campaign strategy.
But what great publicity for Phydeaux! I can see the ads:
Ok. Ok. So ad copy's not really my thing. But I'd be very surprised to learn that anyone ever won elected office by campaigning against a pet store.
I've never forgotten that
I've never forgotten that the most read issue of the Independent was one several years ago that had a dog on the cover. Jut a gut feeling, but I'd avoid going negative on dogs...
I'm not against pet food
I'm not against pet food stores. I'm against taxpayers subsidising pet food stores.
When it comes to increasing sales tax revenues, I think the more important issue is raising incomes in Carrboro so people can afford to spend more money on things we should be taxing. That's how Austin grew. Sales tax revenue only grew when the good jobs came to town. People who make subsistence wages can't afford chi-chi dog food. Ya'll are getting the cart before the horse.
Are you saying the Town's
Are you saying the Town's Revolving Loan Fund should not be used to "subsidize" any business that does not pay sufficient wages to buy chi chi dog food? My cat objects to all the references to dogs and wonders whether Phydeaux has any chi-chi cat food.
On a more serious note , the RLF is not a subsidy since it must be paid back with interest. Also a review of the Vision20/20 document shows that the Board of Alderman and the community have a clearly stated perspective on how economic development should occur.
"While our citizens may not be able to meet all of their consumer needs in Carrboro, it is important that the town encourage the widest possible diversity of locally operated businesses. The objective is a balanced portrait of convenience: a movie theater, overnight accommodations, home businesses, technology, retail, a variety of department storess, restaurants and entertainment.
Carrboro is a town rich in economic diversity. The town should strive to continue this tradition by adopting ordinances and policies that recognize diverse employment types and pay scales."
I may be wrong on this, but I believe the town encourages all employers to pay a living wage even if that isn't codified. For all you lawyers out there....could a local government require businesses inside their jurisdiction to pay more than the state minimum wage?
Wow, My hat is off to you
Wow, My hat is off to you Frank. Do you do all that business retail, or do you have wholesale/mail order business too?
Terri, If Frank gets a loan
Terri,
If Frank gets a loan at below market rate, it is a business subsidy. I'm less ineterested in what the Board says it's going to do than in what it actually does. The proof, as they say, is in the pudding. And this pudding is gruel.
Ok I think I have to say a
Ok
I think I have to say a few things here.I 've been working outside with students all day and am a little hot and tired BUT ....
1.I usualy don't toot my own horn but having community wide faciltated meetings to deal with complicated or controversial issues was an idea that I initated in Carrboro over 14 years ago. It was pooh poohed at first -probably because it was coming from a girl social worker! and deemed inefficent and an shirking of responsibiltiy.It is now simply a part of how we do things.I did it because I was sick of folks yelling at meetings and of the citizens only getting to speak at public hearings without a chance for two way dialoge.
2. Carrboro is not poor-we have some citizens who are poor,particulary modest income retired homeowners.I have long been concerned about them.But students,including undergrads who live in our apartment complexes and who come from middle and upper class families but who only declare their own income really booger up our data
3. The revolving loan fund has a great record and really has been a major force in the growth of healthy businesses downtown.The money came from a fed CDBG
4.Although I am often at the losing end of 6-1 or 5-2 votes.I do not consider myself at all marginalized.In fact every day people tell me that I ask the questions and the vote the way they would.I may not be at the center of the board but I think many of my votes speak for a bunch of Carrboro citizens and they let me know that I do.But thanks for sticking up for me Jeff
5. I think Phydoes(sp?) is great
Ok Thanks for letting me say this on a hot sticky day
Peace
Jacquie
I disagree Katrina, but
I disagree Katrina, but let's proceed. What's the difference between your incentive for a small thermal solar installation business (11:45 am post) and the current RLF? How much will it cost to recruit businesses such as the solar business vs working with those businesses who want to locate here?
Thanks to my customers
Thanks to my customers who've chimed in. It means a *lot* to all of us here. But for the record, most of our bills are being paid (don't worry Katrina... we've never been late on a loan payment to the town), and we're not planning on going anywhere for quite some time. So when I talk about small businesses in Carrboro, in all honesty, I'm not talking about us in particular. Of course, we can always do better, but I'm more interested in getting the *rest* of Carrboro hopping. I feel that it's good for everybody when downtown Carrboro does well. Customers win and employees win, and other local businesses all do better because we share customers (and in many cases, even parking spaces). And of course, regarding this discussion, contrary to what Katrina says, I firmly believe that the municipality benefits as well.
Katrina, I look forward to seeing what your ideas are as to how to contribute to Carrboro. I know that our business adds a significant chunk of change to the town coffers, provides good jobs, and provides at least one more reason for people to enjoy spending time downtown. And from what I know about Carrboro's other businesses, I know that most of them are very similar in these respects. If you think that you can do better, then please go right ahead. But so far, I've seen nothing from you that suggests that you have any real ideas that will improve the town, and the only things I have seen from you have been negative.
The revolving loan fund can
The revolving loan fund can be a very useful tool to recruit businesses to one's community. Administered effectively (and what I know about Carrboro's indicates that it is) it can pay for itself many times over.
My husband is a banker. I have owned successful businesses that my own husband's bank would not have financed. It is very hard for a non-proven business whose major asset is "goodwill" to get financed through traditional sources, unless the person doing it has sufficient assets to guarantee the loan in the event of default---ie it's the "you can't get money unless you don't need it " syndrome. Getting SBA money is very difficult and time consuming. Private lenders can be very costly. Any good banker will tell you that they loan money based on "worst case scenarios" and that just because they don't loan money for a business venture doesn't mean it won't be successful. Their job is to mitigate losses, not finance entrepreneurs. (***disclaimer--my opinion, not my husband's!! sorry honey).
For a municipality to have some flexible funds that it controls locally and can make available to promising businesses is a fantastic business recruitment tool. I think the return on investment just in this one case of Frank's business shows that it can pay off many times over. And at 6% the "subsidy" is quite minimal or nonexistent, given that the current LIBOR rate is about 4% and the Discount rate is below 5%. Prime is at 6.5% today but a year ago was at 4.5% and a bank makes money even at prime. I don't know what the RLF's cost of funds is, but I suspect that it is a close-to or better than break even venture for the town.
And as for Frank's business not being "essential" that's not the issue. Essential in who's eyes? It's profitable, it returns money to the local coffers, and it's supported by the buying patterns of the community. It's low impact environmentally, locally owned, and just the kind of business that most communities would give their right arm to have.
Day cares and energy diversity businesses may provide an important public service, but Frank's business generates sales taxes in addition to providing employment and local shopping options. It also reels in money from people who shop in our town but dont' live here and consume other town services. It captures that all important "discretionary tax" income we all want.
Anita, I know what you mean
Anita,
I know what you mean about Frank's numbers --- Wow!?!? Open more Phydeauxs!
Jackie,
I have a lot of respect for you and for all you have done for this community. You clearly care about Carrboro and you clearly care about people.
That's what I was thinking,
That's what I was thinking, Anita, as I read through this. It's not a subsidy the town is offering as much as it is an opportunity. I doubt it's a budget-breaker. For example, given a purely hypothetical 1% interest rate subsidy (the difference between the town's rate and commercial rates), for a $20K loan, it would be less than $200 the first year. Less than that in future years. Compare that to the deal Dell got! We should fill up every empty storefront, if we can do so for that much incentive.
By the way, my dog takes exception to the term chi-chi. He says he is a rough and tumble working dog, though chronically unemployed except for keeping the UPS truck away. He just prefers dog food that is mostly meat instead of cornmeal. I think the name Phydeaux makes you think chi-chi when it isn't. It's not a boutique.
And also, the loan varies
And also, the loan varies based on need. The loan we happened to get was for $40K over 2 years at 6% APR plus a large-ish fee up front ($800, I think). That was all we needed to get us past the hump to expand into Carrboro Family Vision's old space as they moved across the street to their new building. Not only was it a relative drop in the bucket as far as business loans go (banks were not interested in even talking to us for an amont that small), but Carrboro made a decent bit of money on the loan itself. And of course, the loan did was it was supposed to. We expanded, we were able to carry more products, and generate more revenue, of which the town sees a percentage.
And although no loan program has a 100% success rate, I know that our loan program is more successful than most. I'd personally be interested to see some kind of evaluation of the program as a whole with an attempt to determine return on the loans (roughly). I know that a good percentage of businesses in Carrboro today are here and thriving because of that loan program (Weaver St. Market, OCSC, Bryan's Music, Phydeaux, Cat's Cradle, the Ink Spot, and many others) . Again, I'm just beside myself in trying to understand Kristina's criticism of such a successful program. And along with that criticism, I'd be really interested to know how she suggests that that money could be better spent.
Well, Frank, you're right.
Well, Frank, you're right. All banks get is the difference in the margin between what they pay for money and what they sell their money for. It does not matter how much that business pumps into the local economy, the important thing is that the business repays the loan.
A municipality like Carrboro reaps your sales tax, your added value to the property tax coffers, people work for you, and they live in the community (we hope). Small loans are not a priority for a bank. It's easier to get 200K than 20K in many circumstances from a bank. As far the Carrboro RLF goes, they can evaluate your business concept in a much broader and longer term context. They can see the overall contribution your business makes to the local climate.
Wow a 40 K loan results in a a 1 million + business within three years. You should be teaching small business wannabes. I hope your margins are good and that you are doing well.
You really should be a member of our local Chamber. There are so many ways that we can support your work and that you can contribute to a more positive business climate. :o}
,
Jacquie is too modest. Votes
Jacquie is too modest. Votes are only one of the ways that elected officials (and citizens too) can have an impact. Every time you put out an idea at an alderman meeting or in a committee it makes a difference. Hanging in there as Jacquie has done and articulating a consistent set of values brings those values to bear on public policy.
To take a non-Carrboro example that comes to mind, four council members in Chapel Hill voted against UNC's Cobb deck and chiller in June 2003. That led to a much improved proposal by the time of the next vote in August. Three of them still opposed it and were in the minority on the vote. Were they marginalized? Not at all.
The Carrboro "micro" loan
The Carrboro "micro" loan program (hard to think micro at $40K ranges) is an excellent tool for economic development. I've had some real difficulty with the large State-based incentive plans (giveaways like the $274M for Dell for instance - John H. care to join in?) but Carrboro has right-sized their program to fit their community's needs.
I've wondered why Chapel Hill (maybe through the DEDC) couldn't have a similar program to provide "bridging" loans for established Downtown business that are having trouble making it through the Summer doldrums. Throughout the years I've seen many "established" Franklin St. businesses have "one bad month" that forces a closure. Part of the problem is the razor thin margins some of the businesses operate at, a problem exacerbated by Downtown rents, where any downturn, seasonal or not, takes them out at the knees. Yes, it's problematic to have the government (or an agent like the DEDC) select winners and losers but what is worse, a pockmarked Downtown of empty storefronts or sustained established businesses?
The Streetscape project in front of University Square, covering about 700' of sidewalk, is going to cost in excess of $250K. It seems like those monies could be better spent as seedcorn for new startups, bridging loans for established businesses (businesses having "one bad month") and building up ourTown's economic profile by building a lowcost municipally-sponsored broadband network.
I'm hoping this issue gets an airing during this years election cycle.
Will , 40K is a micro loan
Will , 40K is a micro loan by most bank standards. But I agree with you, having such a program in chapel hill could be a very good thing. I am not sure I agree with you about financing the "one bad month" ----if a business cannot survive one bad month then the business plan may need some help overall--but I think I understand what you are saying.
You really need to talk to Liz Parham. You seem to be very curious about and interested in what the DEDC can do. she is very competent, well trained, credentialed, and open minded. I think that she had some kind of micro loan program in Lexington. I think it was structured somewhat differently from Carrboro's but she can tell you more. I think you would get a lot of your questions answered. Good luck in your candidacy and in finding out what you want.
Thanks for the response
Thanks for the response Anita.
I first approached the DEDC earlier this year about providing Wifi both Downtown and to the under-serverd communities of Northside and Pine Knolls (and caught their attention).
And I have spoken with Liz twice since she hit Town. She seems really charged up and ready to roll on some substantive issues (though I wish Wifi is a little more of priority).
I gave her a quick brief on my conversations with Nick D. about a number of Downtown issues I've been concerned about: surveying Downtown "producers" (R&D/software dev./professionals) as well as "consumers" (service/retail), playing a little hardball with UNC on free on-campus parking for citizens during Memorial Hall events, muni-networking (especially in terms of providing access to Northside/Pine Knolls), both a true inventory of all available Downtown parking and a new collaborative approach to allocating it appropriately, etc.
If you have ever heard me when I get going, you'd know I can dump a lot of concepts and detail in a short time - she definitely kept up.
Whatever role I have in Town government going forward, I look forward to working with Liz and the DEDC (and maybe an expanded Town-wide EDC) to heighten Chapel Hill's economic profile.
Carrboro's Revolving loan
Carrboro's Revolving loan fund was originally funded when my (then) business, Cleora Sterling, received a Community Block Grant Development loan of $100,000 from the federal government (I believe it was administered by the state). We paid the loan back (at 9% or maybe 6%) to the town of Carrboro. This money became what is now Carrboro's Revolving Loan Fund. So Carrborrians pay no more for the funds in this program than any other NC citizens.
This is a wonderful program that strengthens G'ment/business relations in a very real and helpful way. Carrboro is fortunate to have such a program and I am please that I helped get it started.
If I have some little fact wrong, please don't jump my shit; 'cause this is all based on my memory of something that happened almost twenty years ago.
From the N&O: With a
From the N&O: With a gasoline supply shortage looming, Gov. Mike Easley today suspended all non-essential state government travel and is asking all North Carolinians to conserve gas and not to rush pump stations ahead of the weekend.
http://www.newsobserver.com/news/story/2771705p-9210372c.html
This should make the fall election more interesting. Definitely brings home the issue of walkable communities and public transportation.
I will add to Anita's former
I will add to Anita's former comment about gas...At 9:30 pm I spoke to my Charlotte in-laws who went to several gas stations, only to find them "empty". They finally found some at $4 a gal.
Time to take the bus y'all.
And I will add that I think
And I will add that I think the RLF is a great thing. Banks are in the business to make $$$...period. They could care less (or at least what I've experienced) about anything else. Keep the $$$ circulating in CH & Carrboro...
What are the chances of forming a community credit union? I'm sure there are many banking regulations...but it would be nice to have a community based bank. Where I grew up (outside of Pittsburgh, PA) we had a community credit union that we dealt exclusively for our banking purposes. Much nicer than BB&T, SunTrust, etc.
Kudos to Mark Chilton for
Kudos to Mark Chilton for interceding on behalf of a Northside woman who holds small church services in her home. Appears Chapel Hill has informed her she is violating a zoning ordinance:
http://www.newsobserver.com/news/orange/story/2774397p-9212956c.html
[Mark Chilton] wrote Chapel Hill leaders, saying he agreed that a church is prohibited on Gomains Street but that Saunders' ministry doesn't qualify as such.
He told them the services would continue and asked for the town's understanding.
Town officials said they would have to consider Chilton's letter and decide how to handle this and other similar cases that might arise in the future.
Meanwhile, Saunders has her door open to anyone.
"In any event, we're going to obey God," she said. "The town? Ha. I'm obeying God."
I just discovered this
I just discovered this website and found out that Alex Zaffron and Mark Chilton are running for mayor of Carrboro. I lived in Carrboro when Ellie Kinnaird was our mayor, trying to drag Carrboro into the 20th century. Mayoral races were always "Old Carrboro" vs. "New Carrboro." And now it's two really great candidates running for Mayor. It's a real win-win situation for Carrboro. I have the highest regard for both Alex and Mark, though I think, when it comes down to it, I'd probably vote for Alex. He's worked so hard for so many years to make Carrboro a better place. He loves the town with all his heart and soul. I worked with Alex on a few of Ellie's campaigns, he's a good person to work with, very respectful of others' input--he'll be a great mayor. But whoever wins--the town wins.
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