I think it's fine for Mitch and Debra to have a healthy skepticism of
a deal that benefits a private enterprise, especially one that is struggling
financially. And sure, David Unowsky made a number of bad business decisions
that have contributed to Ruminator's current situation. But before Mitch gets
too far up on his high horse, I might point out that the building project
that houses the Bound to be Read bookstore at Victoria and Grand was heavily
subsidized by the city (a store owned by Stanley Hubbard's daughter, hardly
someone who needs the city's help). And need I mention all the money that Norm
Coleman handed out during his eight years in office, involving hundreds of
millions of dollars? You know, Lawson Software built for $110 million, sold to
Frauenschuch Companies for $56 million, etc., while all those jobs that Lawson
was supposed to create keep disappearing month after month. So if the city wants
to make what Mitch calls a "risky" loan in the neighborhood of $100,000, so
what? This is peanuts compared to what's been thrown around for far more risky
projects (i.e., all those downtown vacancies, all the revenue that the city
has given up by allowing the Wild to control all the event money for Xcel Energy
Center, etc.) in this city, and believe it or not, I think it's okay for the
city to invest money in a place that's provided a lot of cultural
enrichment for thousands upon thousands of folks the past thirty years. I might
also add that it's not like the City is bailing Ruminator out. There's over
$100,000 that's been raised from private individuals, as well as several other
financing sources that have been tapped, unlike what happens when the city's
bonding authority becomes the sole mechanism for funding these major downtown
projects that are simply handouts for well-funded corporate donors who don't
need the assistance.
When Ruminator asks the city for millions of dollars, then you can raise
eyebrows and complain about the lack of equal treatment or favoritism towards
only certain businesses in town. But I could find the amount of money that
Ruminator needs in attorneys fees that the city paid out to do the Wild
Arena deal, so this is really a disingenuous comparison. Ruminator is admittedly
a place where progressives feel more at home than City Hall or Barnes &
Noble, but you know what, if you look at the voting in the last election, this
is an overwhelmingly democratic city. Why can't the people who are in the
majority get something they want once in a while, as opposed to all the backroom
deals that suck away the downtown property tax base?
Tom Goldstein
Mac-Groveland
----- Original Message -----
Sent: Sunday, January 25, 2004 10:25 AM
Subject: Re: [StPaul] City Loan for Ruminator
Books
I was about to write about this.
I have
always loved shopping at Hungry Mind, and then at the Ruminator. It is one
of my favorite bookstores around (since Odegaards finally tanked).
But
let's be straight about this: This is not just a "low-interest" loan, it's
a *high risk* loan - as in nearly zero chance of being repaid. Owner David
Unowski has made a lot of stupid, disastrous decisions, and squandered an
unbelievable amount of money at a time when the bookstore market is, to say the
least, changing. And it could involve more than a loan - Jay Benanav wants
to *give* the store $50K STAR grant, from sales-tax funds.
OK - so
everyone who gasps in horror at the thought of supporting business through TIF,
or giving money to sports teams for stadiums - it's time for an integrity check
here. Does the city have the right, much less the need, to bail out a
private business whose only real problem is a complete inability to run a
successful business in a changing market?
Further question: Does
anyone think, in a million years, that Jay Benavav would be flying to the aid,
Council Ex Machina, of a bookstore that was not noted as a huge supporter of
acceptively "progressive" causes? That featured readings by P.J. O'Rourke
and Ann Coulter instead of Al Franken and Michael Moore?
Not a
chance.
Local bloggers Fraters Libertas have written about this at
greater depth.
http://www.fraterslibertas.com/2004_01_01_archive.html#107496238800295579No loan. No way.
Mitch Berg
English major,
outraged taxpayer
Da Midway!
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