I . . . → Read More: The Endless Fall Of The Lamest Lamestream Media On Earth]]> Today, the so called broadcast journalism in the United States reached a new low.  The NBC and ABC television channels have earned the distinction of being the lamest lamestream media in the world.  Referring to the kind of television we now see in America, as the mainstream media, is an insult to America.

I turned on the idiot box in the morning, ABC came on and George Stephenopoulous was talking about the tornadoes.  Soon after, the coverage shifted to London, where Robert Robins and Diane Sawyer, made a customary reference to the tornadoes with a faux sad face and started yakking about the royal wedding between Prince William and Kate Middleton.

Here’s the scope and the damage caused by the tornadoes:

• Number of tornadoes=160.
• Number of people dead=300 (210 in Alabama, 33 in Mississippi and Tennessee, 15 in Georgia, 5 in Virginia and 1 in Kentucky.
• Number of States affected=7.
• Jerry Mays, Mayor of the small town of Phil Campbell in Alabama said,

We’ve lost everything.  Let’s just say it like it is.  I’m afraid we might have some suicides because of this.

I switched to NBC, Matt Lauer and Meredith Viera were in London covering the royal wedding.  As far as I am concerned, the wedding is a personal celebration between the parties involved.  I couldn’t care less about the wedding.  Are there Americans who give a hoot about the royal wedding given the tragedies in Southern America and our country hanging on the precipice of insolvency?

On the flip side, I reckon I must be naive and wrong.  The royal wedding was a juicy ratings opportunity for the corporations.  There is a market for everything, particularly in our country.  And the rich are more human.

What is the Federal Reserve?  Its the central bank of the United States of America.  What does the Federal Reserve do?  It provides the United States of America with a safe, flexible, monetary and financial system.  How does the Federal Reserve provide the nation . . . → Read More: US Federal Reserve Wins The New Nobel Prize For Comedy]]>

Snapshot of Federal Reserve Website on April 19, 2011

What is the Federal Reserve?  Its the central bank of the United States of America.  What does the Federal Reserve do?  It provides the United States of America with a safe, flexible, monetary and financial system.  How does the Federal Reserve provide the nation with a safe, flexible, monetary and financial system?  In a press release dated April 2011, the Federal Reserve proposed a rule under Regulation Z of the Dodd Frank Act that would require creditors to determine a consumer’s ability to repay a mortgage before making the loan and would establish minimum mortgage underwriting standards

To paraphrase Patrick McEnroe, the Federal Reserve cannot be serious.  I don’t know if President Obama deserved the Nobel Prize for Peace but the Federal Reserve definitely deserves a new Nobel Prize for Comedy.  Can the Federal Reserve get more comical than this?  It is insulting to the people of the United States that public comments are invited over this proposed rule.

Winston Churchill supposedly said about us that, “Americans always do the right thing – after they’ve tried everything else”.  One can hope that Churchill is right.

National Debt Versus Federal Budget Deficit

The national debt is the total accumulated indebtedness of the U.S. government and this stands at 14 trillion.  The federal budget deficit, the difference between what the government spends in a given year and what it takes in stands at 1.5 trillion.  At that level, for every $1 the government spends, it must borrow 43 cents.

US National Debt

Nailing the floor joist bracing may be a ‘Rainy Day Job’.  If the nailing is inadequate, it should be completed when the floor is not loaded.

The law is well settled that local zoning boards have broad . . . → Read More: New York Court On Zoning Boards and Area Variance]]> Hat tip to Patricia E. Salkin, Professor, Government Law Center, Albany Law School for blogging about the Matter of Kenneth Russo, Appellant v. City of Albany Zoning Board et. al., Respondents (508996).  According to New York Supreme Court, Appellate Division, Third Judicial Department:

The law is well settled that local zoning boards have broad discretion in considering applications for variances, and that judicial review is limited to determining whether the action taken by the board was

• illegal,
• arbitrary or
• an abuse of discretion.

Therefore, a zoning board’s determination will not be disturbed if it has a rational basis and is supported by substantial evidence in the record.  Furthermore, in determining whether to grant an area variance, a zoning board must weigh the benefit to the applicant against the detriment to the health, safety and welfare of the neighborhood or community if the variance is granted.

“monopoly, it’s a cartel, it’s an oligopoly,”

that derives its . . . → Read More: The Real Estate Cartel]]> A cartel refers to a small group of producers of a good or service who agree to regulate supply in an effort to control or manipulate prices.  Larry MacDonald writes that according to Ned Goodman of Dundee Corp. the real estate industry is a

“monopoly, it’s a cartel, it’s an oligopoly,”

that derives its power by controlling access to the Multiple Listing Service.

A study by Stephen Brobeck and Patrick Woodall of Consumer Federation of America titled How The Rel Estate Cartel Harms Consumers and How Consumers Can Protect Themselves states the following about the real estate industry,

Begin Copy and Paste

Can across-the-board 6% or 7% commissions be justified?  We respond with a series of questions that suggest there is not one shred of a justification for this fixed price.

• Do all brokers offer services of exactly equal value?
• Should novice brokers who have just received their license routinely charge the same prices of highly skilled brokers who have been practicing for decades
• Should listing brokers who just list houses on a multiple listing service receive the same compensation as those who look aggressively for buyers?
• Should buyer brokers who work hard to find the best house for a client receive the same compensation as those who just show their own listings or those of their firm?
• Should these brokers who persuade buyers to purchase their listings receive twice as much compensation as those who split the commission with a second broker
• Should facilitators (often called “transactional brokers”), who do not represent the financial interests of either sellers or buyers, receive the same compensation as agents who agree to serve the interests of either party?
• Are brokerage services on a sale of an $800,000 house worth four times as much as these services on the sale of a $200,000 house?
• Are the services of brokers worth the money?
• Does a “double-dipping” broker deserve, for instance, $24,000 compensation on a sale of a $400,000 house? Are these services worth far more than the value of many new cars or complex, technology-dependent surgery by highly trained medical specialists
• Why are comparable brokerage services offered in other economically developed countries much less expensively than in the United States?
• Why can brokers in those countries do well by charging 2-4% commissions or much lower fixed fees?

End Copy and Paste

My 2 Cents on The Real Estate Cartel

A cartel formation is one path to making insane amounts of easy money.  The marketing of home ownership as the American dream is bogus.

The American Dream, as expressed by James Truslow Adams is

life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement” regardless of social class or circumstances of birth.

When complete control if exercised over the most expensive purchase of people that is funded by debt, it provides a lot of leverage to the players who are part of this equation.  Control of debt provides power.  Voluntarily relinquishing leverage is not consistent with independence and therefore in unAmerican.  Is the formation of a cartel or a real estate cartel kosher?  I am not sure about the legitimacy of a real estate cartel within the context of capitalism.  What is troubling is that the tentacles of the real industry do suck out lot of money that society can spend on important needs.

I have met many several real estate agents but I haven’t run into one that is completely trustworthy.  Typically, home buyers and home sellers employ real estate agents and brokers through a “standard” or “solid” home purchase agreement that is designed to protect the real estate agent and the real estate broker and to throw the home buyer and the home seller under the bus, if and when necessary.   I don’t think that there is a standard home purchase contract.  There are standard/required clauses in a home purchase agreement.  The real estate agent plays the roles of

• a friend,
• an enemy,
• a sociopath and
• all three

at times, at different phases of a home transaction.  The notion that a real estate agent is on the side of the home buyer or home seller is an illusion, unless it is in writing.  If there are no “good” or “ethical” real estate agents and this may be partially linked to the nature of the real estate industry, then the foundation of the real estate industry is dubious and harmful to the society.  And unless sheeple expect and demand better, and act less foolishly, they will get what they deserve.  Trust but verify is a Russian proverb that President Ronald Reagan was fond of.  When it comes to the real estate industry the rule must be Don’t Trust and Verify Everything.

Solon Zoning Ordinance Section 1288.02 Item 2 T

Recently, McDonald’s Corporation approached City of Solon Planning Commission with a proposed project at the intersection of SOM Center Road and Aurora Road and requested a number of zoning variances.  The project features included a $2 million investment,  a 4,000-square-foot building and . . . → Read More: Solon Planning Commission Inconsistent With Granting Zoning Variances]]>  

Solon Zoning Ordinance Section 1288.02 Item 2 T

Recently, McDonald’s Corporation approached City of Solon Planning Commission with a proposed project at the intersection of SOM Center Road and Aurora Road and requested a number of zoning variances.  The project features included a $2 million investment,  a 4,000-square-foot building and a 20-year commitment.  Solon’s Zoning Ordinance, required that at least 81 parking spaces be provided to serve the proposed restaurant use.  As only 36 parking spaces were provided on the proposal, a 45 space parking variance was requested .

The owner of the property, Visconsi Solon Land Company Limited was agreeable to dedicating 13 feet of their property for a potential future right turn land which would have improved the the congested, high traffic volume intersection.  The high traffic volume is considered more profitable to businesses and makes this location desirable.  This request was approved by a 3-2 vote after an interesting discussion that involved among others, Kevin Westbrooks of URS and Michael Hobbs of GPD Group.  Here is an extract from the minutes of November 9th meeting of the Solon Planning Commission 

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Question 7:   Explain how the number of parking spaces on the site is adequate for McDonald’s operation and why the parking variance should be approved.

Mike Hobbs of GPD Group:  He explained the approach used for this issue was to review the ITE (Institute of Traffic Engineers) manuals that address the generation of parking requirements as well as the trip generation manual. In accordance with the parking generation manual, 31 spaces are estimated to be occupied during the peak hours based on the proposed 75 seats for the restaurant. Mr. Hobbs said the existing McDonald’s has seating to accommodate 110 patrons and, using the same calculation methods, equates to 55 parking spaces.  He said based on observations from the existing site during a busy lunch hour, there were approximately 40 patrons inside the restaurant. The majority of the patrons ordered items for carry out.  Therefore, it is believed that with the addition of a drive-through for the new restaurant, the majority of patrons would be using the drive-through.

Mr. Mike Hobbs said it is also believed, based on 65 to 75 percent of transactions occurring at the drive-through window and the ITE trip generation computations, that during the busiest hours, the proposed amount of parking spaces should satisfy the projected demand.

Kevin Westbrooks of URS:  He said the calculations used were taken from standard traffic engineering manuals and he agreed with Mr. Hobbs.  Mr. Westbrooks believes, in general, parking requirements are excessive and he feels that future requirements will call for a reduction in parking.  However, the request is for a significant parking variance which is for approximately 40 percent of what is required.

Mr. Westbrooks said the computations indicate there should be just enough parking. He believes the design should not be only for the capacity but a little extra as well.  He reviewed similar McDonald’s sites on Route 18 in the Akron/Bath area which also have double drive-thru lanes.  Mr. Westbrooks said it was important to review McDonald’s with the double drive-through lanes because it is believed that the focus for the future is to encourage drive-through traffic.  He said one of the sites had 48 parking spaces available.  He viewed it during the lunch rush and the most parking spaces utilized was 26.  Mr. Westbrooks said there was much activity in the drive-through lanes.

Mr. Westbrooks said the second McDonald’s he reviewed was in Bath and it had 58 parking spaces available and 36 were occupied. The dual drive-through lanes were very busy.  In addition, this facility had an indoor playground and there were many children using it.  He believes if there was no playground at this location, the number of occupied parking spaces would drop significantly.

Mr. Westbrooks said the calculations Mr. Hobbs provided indicates there will be enough parking spaces at the proposed location.  Mr. Westbrooks believes his research indicates the parking should be adequate.

Mr. Westbrooks addressed a previous request for a parking space variance in a strip mall area located on Aurora Road that he did not recommend for approval.  Although this was a smaller variance, he made the determination based on the calculations for capacity for that location.  The decision to grant the parking space variance would have negatively impacted the other businesses in that strip.  Whereas, the decision to grant the parking space variance for the proposed McDonald’s will only directly affect McDonald’s.

Mr. Mazur said an email with the recommended space and parking requirements for McDonald’s restaurants from McDonald’s Corporation was forwarded to the Commission.  He said the Corporation plan recommended approximately 70 parking spaces, which is much less than the proposed plan.

Councilwoman Richmond said at the previous meeting, employees using parking spaces was discussed. It was determined that many of the employees walk to work or carpool and many take the bus.  However, this could change in the future.

Mr. Westbrooks said the statistics they use to determine the numbers are based on national averages and include the employees.

Ms. Meloney Karas, McDonald’s franchisee, was present and said historically for the last 13 years, her employees have been local residents or take the bus to work.

In response to Councilwoman Richmond’s question regarding snow removal, Ms. Melony Karas said the current site lacks storage area and she has the snow hauled away. If necessary, she will have the same arrangement made for the new site.

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Thomas Jewell‘s article in the Sun News, titled Proposed New McDonald’s placed on hold in Solon, refers to the inconsistency in City of Solon’s dealings:

Robert Paulson, former Solon Mayor, pointed to “inconsistency” in the city’s dealings with different people and entities.  He cited a previous requirement for Carquest to provide

• 6 parking spaces when it wanted to add a mezzanine for storage, and
• the denial of a 12-space parking variance for a Chinese carry-out — next to Solon’s existing McDonald’s.

According to Richard Zimmerman of ZZ Design Inc in Solon:

Recently a 14 parking space variance was denied to an Asian restaurant proposed for a location on Aurora Road within only 1/4 mile of this site.  How can a 14 parking space variance be disapproved there, yet a 45 parking space variance granted here, where the acknowledged consumer activity, parking demand and traffic will be far greater?  Granting this 45 parking space variance suggests not only inconsistency and favoritism, but also sets a disastrous precedent for all variance requests of the future.  How much credibility will our own zoning code regulations be left with?

By Richard Zimmerman of ZZ Design Inc.

The people of Solon Ohio spoke; according to one letter/email count survey presented by a Solon resident at the City Council meeting, 67 Solon residents indicated their disapproval for the proposed project and 5 Solon residents were for it.  This issue of inconsistency was also raised by one of the Solon Council member.

I don’t think anyone sets out to be inconsistent.  What’s a municipal government supposed to do when the choice is between providing consistency in the public process and the desire to advance an attractive (depending on the definition of attractive) project to fruition?  Should a good project be sacrificed at the altar of consistency?  Should pragmatism be placed on the back burner to provide consistency in the public process?  Providing consistency in decision making at government bodies, where each case is unique, without a formal mechanism, is complex but is probably doable.  It is conceivable that a brief and informal or a detailed and formal precedent study is usually conducted by city staff persons, on a case by case basis.  Members of local government bodies are appointed by the Mayor and they may be, consciously or unconsciously, obligated to support the Mayor’s line of thinking.  Establishing a mechanism for providing consistency in decision making at Planning Commissions and Zoning Boards may be desirable but it could also pan out to be a double edged sword.

Director of Solon Planning Department Robert Frankland stated that Solon’s Master Plan is not law and Solon’s zoning code is important.  The proposed site plan received a clear thumbs down (one Solon Councilman voted Yes!) from the Solon City Council despite the thoroughly excellent presentation by Bruce Rinker and the opinion letter referring to the Duncan v Middlefield case (this will be a future post).  The parking space variance was shot down 4-2.  This was, arguably, the most interesting project deliberated upon by Solon Planning Commission and Solon City Council.  The fat lady hasn’t sung yet.