Citizens Call for Transparent Process

The Anderson County Election Commission certified petition results today, making a referendum a reality for a planned City subsidy of a retail center on Pine Ridge.  With the strong public support for a referendum, Citizens Oak Ridge is calling on the City to adopt an objective and transparent process for considering major public subsidies of private retail development.

“Giving $10.5 million of City money for a single site and developer is a highly unusual move,” according to Bill Schramm, president of Citizens Oak Ridge.  “A gift of this magnitude requires more disclosure and scrutiny than a bank loan would.  So far we have seen less.”

While the City’s rationale for its approach has changed over the past few weeks, there is still ambiguity regarding the actual deal and related transactions that would occur.  There is a continuing need for the City to undertake an objective and thorough examination of the land deal itself and its cost to the City.

Promotion of the project has created a number of misperceptions regarding planned City funding.  Early City statements stressed that giving voters time to evaluate the deal and to vote on the subsidy would cause the community to lose the project and the proposed retail occupants.  Recent characterizations of the deal have suggested that City expenditures would be repaid to the City and would go for infrastructure, and that no significant increases in City services would be necessary.  In fact, City officials have stressed that allowing more time for public examination of the planned expenditures would be devastating to the City’s economic future.  “Such a threatening posture toward public scrutiny is inappropriate,” Schramm commented.  “It is also misleading, as the deal’s newly extended timeline demonstrates.”

For Oak Ridge residents, there are many remaining questions regarding the deal and the City’s expenditure: Why GBT and not other developers? Why would citizens pay for purchasing and blasting away a ridge, when private business does not find it economically viable to do so? Perhaps most persistent: is the question of why the City is abandoning its master plan to do this.

Citizens Oak Ridge can be contacted through their website at www.citizensoakridge.com or at 220-0829.

For Further Information, Contact:
Bill Schramm, President
Citizens Oak Ridge
220-0829

The Meaning of Petition Success

Now that petition results have been certified by the Election Commission, it seems reasonable to reflect on what this means for the City of Oak Ridge and its citizens.  City officials, in viewing the petition results, may draw conclusions that benefit or damage the long term prospects of the City. 

On March 15, the Oak Ridge Observer ran an editorial titled "One-Sided Democracy".  That editorial claimed that the petition was successful because City officials did not put sufficient effort into making the case for the project. Besides being demonstrably false, the premise suggests that the City needs "better marketing" to promote its plan of action.  This is exactly the wrong conclusion for officials to draw from the petition's success. 

The major causes of public frustration were the City's inappropriate promotion and fast-tracking of a major public expenditure designed to benefit a single private interest.  The petition was successful not because the marketing wizards at Citizens Oak Ridge somehow convinced Oak Ridgers that the Pine Ridge project was contrary to their interests, but because Oak Ridgers have experience in this area - we have been burned before.  The petition gave people an opportunity to express themselves in a meaningful way on an issue that many had little doubt about.  The petition was successful because citizens have lost confidence in the City on real estate deals such as the proposed Pine Ridge development.  This is a problem of the City's making.  The City lost public trust through a series of ill-conceived deals that suffered from a lack of transparency and appropriate public review, as well as a tendency to favor the interests of a few individuals at the expense of the community as a whole.

The City will suffer in the long run if City officials conclude that more effective marketing will solve the problem.   Citizens do not believe that the process of handling real estate deals is sufficiently open or fair.  Nor do they believe that the review and analysis of deals has been adequate, objective and impartial.  If City officials wish to regain the confidence of the citizens, a new approach to development is needed. Oak Ridge desperately needs a process that is followed consistently and is driven by agreed-upon criteria that are established before the appearance of proposals.  In short, Oak Ridge needs a process that protects against favoritism and inappropriate last minute deals. 

Between now and the referendum, Citizens Oak Ridge will seek more information, analysis and disclosure from City officials.  The Pine Ridge development, however, fits into a larger context.  Our ultimate goal will be to help define a development process that restores the confidence of citizens in the City and its decisions.  For others who share this goal, we can be reached at www.citizensoakridge.com or at 220-0829.

For Further Information, Contact:
Bill Schramm, President
Citizens Oak Ridge
220-0829

Press Release March 13, 2007

Citizens’ Petition Weighs In at 3,632

Oak Ridge Citizens Win Right to Referendum on City Shopping Center Subsidy 

Citizens Oak Ridge delivered its second and final installment of petitions Tuesday to require a referendum on the City’s planned bond issue for a new shopping center on Pine Ridge.  The final count of 3,632 signatures was 80% more than the 1,942 required for a referendum, based on the number of registered voters in the city as of February 20^th.  That puts the petition count only 300 people less than the total number of voters in the last city election. 

Citizens Oak Ridge is a newly formed group supporting sound government decision-making, and has organized the all volunteer petition drive.  Bill Schramm, the group president, said that people were eager to work for the drive and to give their signatures, but the volunteers were not able to get to everyone in the time available.  “We apologize for not being able to reach everybody and every street – there were limited non-business daylight hours when volunteers could get signatures in the 20 day period.” 

“The volunteers were amazing,” Schramm said.  “People felt strongly about the need to have more of a say in this decision.”  Schramm said that common concerns were the fast-tracking of a major public expenditure, the manner in which the City has approached the project, the viability of the project itself, and concern about the effects on the mall and surrounding area.  “There is a deep distrust of the City’s handling of real estate decisions and an outpouring of demand for reform in the City’s approach,” Schramm observed.  “From every corner of the city and walk of life, people are deeply frustrated and feel disrespected in the handling of the issue.” 

Schramm personally sees a great deal of hope in the current situation: “Citizens have vital perspective to offer in considering decisions with long term implications.  While it may feel like a negative to officials to have citizens who want to be involved, it shows a level of dedication and engagement that is an asset to the city.  The city’s prospects can be improved by honestly vetting and addressing shortcomings and oversights on major public decisions – and any project that wants substantial public resources is by definition a public project.” 

Citizens Oak Ridge will host an open house Tuesday, March 20^th from 7 to 9pm at the Midtown Community Center to thank volunteers and the community for their efforts, and to give the many supporters the opportunity to gather and talk.  Formerly the Wildcat Den, the center is located at 102 Robertsville Road and the Oak Ridge Turnpike.  For more information, contact 220-0829 or visit www.citizensoakridge.com.

For Further Information, Contact:
Bill Schramm, President
Citizens Oak Ridge
220-0829

Financial Overview.

Overview: City officials have presented numbers provided by GBT outlining the rosy potential of Crest Point. They have not undertaken their own analysis to critically evaluate the viability and financial impact of this development. There are no cost benefit analysis or realistic cash flow analysis provided.

Major Concerns:

1. Financially is this development viable
    

   • Oak Ridge's commit 96% of retail spending in Oak Ridge

   • Surrounding communities have other convenient option

   • Surrounding communities do not have the money  
      

2. Is there an additional $142 million purchase power in and around Oak Ridge?

• Wishful thinking

• Magic numbers

• No due diligence

Analysis and Numbers

• --> (click) Survey Demystified

• --> (click) Time, distance and demographics study

• --> (click) Financial impact and Cash flow analysis.

• --> (click) TVA leakage study

• --> (click) Demand side analysis - Is any money left?  
   

Communication with City Officials

• --> (click) Correspondence with City officials regarding "Leakage Study"

Mudruckers
Provocateurs or Blathering _______? (Fill in the blank, send your responses via e-mail)
Responses may be posted here.

• --> (click) Rumor that appeared on School Board Member Angi Agle's site  

Bouquets and Brickbats

•  raj@oakridgetn.net

Download Petition & Collect Signatures (registered Oak Ridge voters)

1. Petition Introduction Script

2. Petition - to collect signatures (nine per sheet)

3. Petition - Mail-in Version for individual households (four per sheet)