Joe,
I noticed 3 separate articles on the front page of the daily times today about state land purchases on the eastern shore for the purpose of conservation. Not in any of the articles was there any mention of how much the purchase of all this land is going to cost all of us tax payers.
I am all for land conservation, however, I am more for creating jobs. With what must be millions of dollars used for these land purchases, I would think that tax reductions and incentives to businesses that create NEW jobs would actually put food on the table of many and perhaps even help some stay in their home. While state republicans are scratching to find nearly a billion dollars to cut government and balance our budgets, the next day our Governor is spending millions for land to sit empty. I would think such purchases should wait until we are in a budget surplus (if that will ever be the case again).
By the way.... you blog is great and is a fantastic service to the community. If I ever want to see what's going on NOW, I go to SBYNews.
Sompa
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
7 comments:
This really burns me up. The state is broke and going further in the red every day and what do they do, buy more land. Not only do they pay to dollar for the land but after they buy the land they will never collect any more property tax on that same land. Where is the logic here. The land is just not going to dissapear if the state doesn't buy it. Also I hope some idiot doesn't come back and say they use open space or grant money for this purpose. It's all tax money that could be used for a better purpose.
No problem with this. At least the money is nott going to ACORN.
Hey Joe - just thought I'd point out that while the "land is just not going to disappear if the State doesn't buy it" the money will. This was already apportioned money that wouldn't be able to be used for anything else but land conservation. The fact that it went to the Shore and not to Montgomery county is the real story. We oughtta be relatively happy about this.
PS - I do agree that we should be spending more on job creation than other things right now, this just isn't related.
To 9:33, If anyone wanted to show how stupid these land purchases are, you just did. Why is it so hard to understand that MONEY is MONEY! In fact...it's MY MONEY. Your thoughts on this is the same twisted mentality that governments have when they feel they need to spend all their budgeted money or they wont get as much next year. I think it all boils down to priorities and timing.
Ok, before everybody gets their panties in a wad here, let me put something into perspective for you. 5 years ago the economy was great, real estate was booming and times were good right? What is that kind of economy referred as? More particularly, what is that kind of real estate market referred as? It is what they call a "Sellers' Market." Basically, what that means is that more money can be made by selling property than buying it-the demand was high and money was available thus people could sell at higher prices and still have people willing to buy.
Now, we are in a "Buyers' Market" because there is less available money, the demand is less because there are fewer potential buyers and the supply is high because people are being forced to sell thus causing the value of properties to be driven down.
For example, my brother bought a house 6 years ago during the peak of real estate for $425,000 (actually appraised for $485,000). He just recently took a job for which he had to relocate and sold his house for $295,000. The family that bought his house essentially got a $130,000 (30%) discount on the deal. The same concept applies for conservation purchases and easements.
So what does this mean for State and Local land acquisition? It means that they can afford to buy more land of a higher value at a lower price. 6 years ago, the State was purchasing agricultural easements in Wicomico, Worcester and Somerset for over $3,000 per an acre. Now they are purchasing conservation easements for less than $2,000 per an acre! Again, 30+% off! In the past 2 years, there have even been US FWS land purchases (not easements, purchases!) for less than $3,500 per an acre in the Pocomoke River area!
So you make the decision:
You have $1,000,0000
Scenario A - In 2005, you could have bought approximately 333 acres of conservation easements for $3,000 per an acre
Scenario B - In 2010, you could have bought approximately 500 acres of conservation easements for $2,000 per an acre
Which makes more sense? Who in their right mind would want less for more?
The reason why O'Malley is fully funding land preservation and acquisition programs is because it is cheaper NOW. Sure he could wait until the economy rebounds and the State has more money, but by then you are going to miss these great opportunities and you'll end up paying more! People want/need to sell now and they want/need to sell it cheap.
Everybody says that the government needs to operate more like a business, but when they do you all shoot it down. You would take advantage of cheap real estate if you could, wouldn't you? 5 years down the road when the economy bounces back a little the value of the land goes up, the State/County's assets increase and the State/County's bond ratings go up. It makes sense to do it now.
As for job creation-who do you think does all the work for these acquistions? The State/County isn't legally allowed to handle all the aspects of the acquisition. The land needs to be surveyed and appraised, lawyers and real estate attorneys need to do the settlement and people need to the the maintenance and monitoring of the property. In some programs there are also tax credits for property owners who place their property in conservation easements.
Now, I'm by no means an environmentalist. I like to hunt, camp and hike so naturally I would like to have land to do these activities on. But more than anything, I am a business man; I know a deal when I see one! The State is stealing these lands now for the betterment of our future; they are doing this to preserve our rural character.
The biggest problem that I have with the most recent State funds used in Wicomico County (the $1.5 million of Open Space funds for a 5 acre parking lot) is that those funds could have been used to support a much great cause! $1.5 million could have put agricultural easements on at least 750 acres of prime farmland in Wicomico County at $2,000 per an acre and supported a farmer who in turn would end up putting that money back into the local economy. Instead, we bought 5 acres of grey field-Now that is a waste of money!
9:50 is an idiot. Get this person off the internet.
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