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As Salisbury taxpayers face crime, an economy that continues to decline, and a city government that will soon be demanding yet another tax increase, tax dollars will again subsidize one business venture while harming others. What am I talking about? The reinvigorated Barrie Comegys council’s decision to move forward with selling the old Station 16 to local developer Palmer Gillis for $100,000.
The proposal is a simple one. The city will sell a property appraised for more than $700,000 to Gillis for less than 15 cents on the dollar. Gillis proposes to put apartments up top and lease the ground floor out to a unit of UMES’s school of Hotel / Restaurant management. Of course, this begs the question as to whether the city of Salisbury (and Wicomico County) will be able to collect property taxes on the property because UMES will be using the building.
I bear no malice towards Mr. Gillis. I certainly have none towards UMES. I can’t blame Gillis for attempting to get a sweet deal from the city. No – the problem lies with a council and mayor who are willing to sell a building for cents on the dollar knowing that the property will be used to compete against locally owned restaurants. Why should the city’s taxpayers subsidize one business to compete against businesses which already exist and add to the city’s tax base and the local economy?
To add insult to injury, we need to think back a few years. SbyNEWS publisher Joe Albero offered to purchase that same building from the city for $250,000 – CASH. Councilman Gary Comegys was caught on tape stating that he would never allow Albero to purchase the building. Given that the cost to Salisbury’s citizens will be AT LEAST $150,000 in lost revenue to the city treasury, we should be glad that an election is just around the corner. Sadly, that election isn’t soon enough. It appears that Salisbury citizens will be forced to pay for (at least) this folly before the Louise Smiths and Gary Comegyses of the world are sent packing to a generous retirement – again at taxpayer expense.
25 comments:
kick backs !
So it's ok for Joe to buy it at cents on the dollar but no one else? Give me a break.
3:35 PM
You got a break when and if you got your diploma. Obviously you can't do math very well. Do you work for the council?
Keep letting us know about the crap Smith and Comegys do ( or don't do rather). Come election time they will be out on their collective butts.
Quid pro quo
The decision was made at the PNC building downtown.
Look, the plan goes through undercutting the other restaurants and drives them out of business. More vacant property = more crime in Salisbury= more State crime fighting dollars= more politicians lining their pockets with Government grant $.
It's simple.
Why was it not put up for public auction? My son has mentioned many times that he would love to convert the building into an upstairs living space and a downstairs business but I continued to discourage his interest because he could only afford 150,ooo and I told him that would never be enough to buy the building. Salisbury politics at work again!!
Comegys and Smith might be out on their butts, but expect the landlord faction to install Boda and Insley in their places.
Comegys can go hide in Parsons Cemetary,Shields can hide in T.Maloneys rental,Smith will jump of the bridge near Market St. Inn yelling we screwed you. Barrie Tilghman is laughing all the way to the bank. These folks will agAIN BE RE_ELECTED.
Talk about good old boy network. Lining Mr. Gillis's pocket again at our expense. He is a little slick for me, smile to your face with his hand in your wallet.
let's call michael moore about this one!!!!
Anonymous said...
Comegys and Smith might be out on their butts, but expect the landlord faction to install Boda and Insley in their places.
4:54 PM
What Insley?
4:56 PM unfortunately you are probably right!!
Anonymous said...
The decision was made at the PNC building downtown.
4:10 PM
Please tell us the whole story here?
SO he makes millions building the new firehouse and then buys the old 16, which is a conflict and makes a great deal of money again.
Can you say CROOK! - Let guess you got your gas, tires from Ray Lewis
Do not sit here and complain.
Call every friend you have in the city of Salisbury and go to the Monday night meeting. I think the next one is Nov. 22.
Raise heck. If you do not, you deserve what you get.
wow another "training" place for UMES to show off a big nothing. Like other things the school did it has little benefit for the general student body. Shanie you are a useless piece of crap anyway how you got off your butt to do a TV interview surprised me. Sorry I don't think this is a good idea Use it to expand the library by moving some of the none related offices in the current library
Why was it not put up for public auction? My son has mentioned many times that he would love to convert the building into an upstairs living space and a downstairs business but I continued to discourage his interest because he could only afford 150,ooo and I told him that would never be enough to buy the building. Salisbury politics at work again!!
4:46 PM
You gave your son very good council Sir / Mam. That building will cost much more than that after purchasing and doing a full renovation. I would take a wild guess and say it will be around 1 million after it is completely renovated.
7:52, but the son could do what Gillis will probably do, borrow against the equity.
Yet another sweetheart deal for the privileged few of SBY.
Is this on the next agenda or will they make the announcemenat about it being sold and the Fire Boat being ordered? Hope the new Police Chief will be ready for the turn out. (I hope all of us will be there to tell them how we feel.) Will Smith get mad and close the meeting as she has in the past? As for Him, he knows he has no right to vote on either of these due to it being a conflict of interest! Shanie can't read the agenda so she will show up and vote the way her two crooks vote.
Value analysis - part 2
Now have a group of people (the City Council) say "You can only buy the building if you agree to develop it *just so*, and have these services in the building."
Who's jumping onboard the train now? Most investors would not touch this hot mess with a ten foot pole if you *gave* them the building.
So... where's our $895,000, $700,000, $500,000, $450,000 etc. firehouse buiding now? Oh that's right, it's being "given away" for $ 100,000 to someone willing to dance to the City Council's tune that NO ONE ELSE was willing to dance to.
Now if you don't like that tune what should you do? Change the City Council? Possibly, but bear in mind that historic buildings are something of a trust. If they had just let it sell at auction to an investor for the highest bid they would also be pilloried for not being sensitive to historical concerns and community organizations would have screamed bloody murder.
Being a Salisbury City Council person is a thankless task.
If someone is really convinced the taxpayers are being raped, put your money where your mouth is and get a professional MAI commercial appraisal on the building. Go ahead, I double dog dare you.
Anon 6:13 AM
Brad is that you or Daddy Palmer??
If you think that property is worth $700K ... I've got an ocean front condo in Nevada that I think you may be interested in
The original appraisal was utterly incompetent, and was made as instructed by the low bid appraiser, Ralph Krum to conform to the city's desire for a big number as a negotiation tool with potential developers. His original appraised price was around $ 895,000.
The reality is that the property is effectively, for almost all investors, a brick shell that will need to be completely gutted and rehabbed, and in that context it is worth (real world) approximately $225,000 to $250,000 at auction with no restrictions other than zoning. The argument can reasonably be made that the investors willing to dance to the city's tune are getting an acquistion price break of around $ 100,000 to $ 150,000 if they are willing to develop the property in line with the City Council's wishes.
That's about it. The council is judging that $100,000 or so of potential gain is not worth throwing a historic property like the firehouse up in the air in at auction for the highest bidder.
If you disagree vote them out next cycle.
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