Are you aware that the Lafayette Consolidated Government proposed a 1/2 cent sales tax increase?
Thursday, February 2, 2012
Editorial in Acadiana Gazette - February 8, 2012
The effects of cronyism
Why? We ask, is the turnout so low in elections? Why is the rating so low on Congress? Less than 20% approval. Why the cynicism of the general public toward all elected officials? Why the distrust of almost anyone who stands for public office?
Could it be well-earned? Could it be the cronyism that has become prevalent in politics? From Washington we are told that the government will shut down in two days if the debt ceiling is not raised. That Social Security checks and pay day for the Armed Forces could be delayed. So Congress passes a new debt ceiling and forms a committee to reduce spending. The debt ceiling is raised and the committee reaches no agreement thus spending continues as it was.
We are told that the auto industry will shut down if government does not intervene. So the Obama administration bails out GM and Chrysler with billions of dollars while giving control of the large auto makers to the union members, ignoring the legitimate stockholders.
Locally, garbage and trash contracts as well as Redflex's contract are extended by the administration without knowledge of the council. A "tax swap" is proposed. Presented by the Lafayette Consolidated Government administration it calls for a new half cent sales tax to replace the reduction of certain property tax millages. However, it is learned that the document before the council does not address the property tax reduction and that the net result will not be an even "swap" of taxes but a $10 million windfall for the city.
Now we look at the Lafayette Public Trust Financing Authority (LPTFA) a public trust organized under the laws of the state and established for the benefit of the city of Lafayette. Because of obvious mismanagement, Acadiana Outreach Corporation(AOC) is virturally out of business. At their request, LPTFA has acquired AOC's interest and other assets in the vicinity of the project called Joie de Vivre. AOC was facing the requirement of posting a half-million dollar performance bond. They didn't have the funds for that.
LPTFA already had an interest in Joie de Vivre, as it loaned the project $1 million. One big inducement for LPTFA is a $1.9 million development fee
which it would share with the project consultant, its former chairman Greg Gachassin. Gachassin resigned from his position in November 2009, and appeared before the LPTFA on December 2, as a consultant for an apartment development for which he and his board had been instrumental in obtaining land and funding.
About two weeks after he resigned, Gachassin also signed on as a consultant for a developer of a subdivision in which the LPTFA also participated by loaning the Lafayette Housing Authority (LHA) $400,000. The LPTFA's counsel was also counsel for the developer, as well as for the LHA.
Yes, that's the same Lafayette Housing Authority (LHA) that made news of its own last year. First Mayor-President Joey Durel fired several members of the board and several resigned after a non-flattering audit exposed possibly illegitimate activities. Three fired members sued and were reinstated to the board. They were fired again under different circumstances, but took their seats back after a court order and were then ordered to vacate as HUD took over the entire operation.
Some call it business as usual. Some call it cronyism. Some call it corruption. By any name it smells the same.
http://www.acadianagazette.com/archives/volume8/issue5/commentary/Editorial.php