Posted by: thepinetree on 10/28/2014 05:36 PM
Updated by: thepinetree on 10/28/2014 05:36 PM
Expires: 01/01/2019 12:00 AM
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Facts or Fiction ~ By Guy Puccio
Arnold, CA...Daniel Patrick Moynihan was an author, speaker, and public servant who served with distinction in many positions for the State and Federal Governments during the Kennedy, Johnson, Nixon, and Ford Administrations and as United States Senator from New York from 1977 to 2001, or for 24 years. As a result, he possessed a substantial history and institutional memory about public policy contributing to his outstanding success as a public servant and was known for brilliant quotes. In response to a speaker with whom he disagreed, Senator Moynihan quipped, “Everyone is entitled to his own opinions, but not his own facts.” He has also observed, “The single most exciting thing you encounter in government is competence, because it’s so rare.”
When opinions are expressed in the absence of knowledge, experience, and training about the subject and without the application of analytical and critical thinking, the usual outcome is “Fiction”. This is precisely what is occurring in the current campaign for Supervisor, 3rd District, in Calaveras County.
The opposition to Supervisor, Merita Callaway seeking reelection asserts it is local government, namely the County Board of Supervisors, which is responsible for the downturn in economic development and growth affecting various communities, including Arnold. These opinions arise from “Fiction” and not from “Facts.”
Local governments have little or nothing to do with the economic development and growth issues experienced by rural communities which are typically dependent upon small to moderate sized businesses, whether engaged in agribusiness, tourism, or real estate. Historically, Arnold’s economic base has relied heavily upon local businesses pursuing new residential construction and resale of real properties, as well as providing support services for the tourism industry.
Since 2007, new residential construction and the resale of existing properties has substantially diminished. This significant drop is not a local issue, but rather a reflection of the national economy and the public policies being pursued by Federal and State Governments. A thriving new residential construction and resale real estate market requires adequate purchasing power for interested buyers.
Purchasing power requires financing from financial institutions, licensed lenders, or mortgage bankers who generally deliver their loan products through local mortgage brokers. In rural communities, this financing is often originated through community and regional banks.
The “Dodd-Frank…Act” was enacted by the Congress and this Administration as a necessary revision to applicable law to control lenders which were “…too big to fail”. In truth, this Act neither addresses Wall Street Investment Bankers, the broker-dealers, the underwriters, the bond raters, or the financial intermediaries who produced the loan products which led to the financial collapse nor did it adequately address financial institutions that were “…too big to fail”.
Rather, the approximate 10,000 pages of regulations currently promulgated as a result of this Act (reportedly representing 40% of what is expected to be issued) has weighed most heavily on small to moderate sized participants of the financial services industry. These participants are typically the sources of financing necessary for purchasing power in rural communities. When the current Administration took office approximately 7,000 community and regional banks existed. The leadership of the financial services industry participants active in rural communities expects their number of local banks to be reduced by 2016 to less than 3,000.
This decline in number is related to the regulations imposed as a result of the “Dodd-Frank…Act”. Leaders of this industry have suggested community and regional banks must originate at least $750 million in consumer loans annually to support the expanded internal compliance cost to respond to these regulations. In rural communities, lenders, bankers, and brokers pursuing residential lending are fewer in number and many have left this market resulting in a reduction in purchasing power for interested buyers.
Merita Callaway’s opposition also claims the Calaveras Building and Planning Departments are impeding economic growth and development. However, these Departments are largely administering standards mandated by Federal and State Government. It is the Uniform Building Code which applies in Calaveras County with local building standards being consistent with the standards imposed throughout California.
Local planning and zoning is implemented through the General Plan, currently undergoing revision and updating and will soon be ready for public comment. Conditions required for local developments are subject to the California Government Code, including the Subdivision Map Act and, depending upon the nature of the project, the Subdivided Lands Act. Other laws too numerous to mention are mandated by Federal and State Law upon local government.
Past complaints about Calaveras County Planning and Building Departments have been addressed by the Board of Supervisors and the County staff. The Building and Planning Departments are cooperative, business oriented, and current complaints offered by the opposition are frequently without merit. For example, development projects may not be approved on parcels which lack direct access to a public road, through a deeded easement, or otherwise by an appropriate court order establishing an easement access.
The bottom line it is “Fiction” not “Facts” when you hear the opposition assert local government is responsible for the decline of local economic growth and development. Calaveras County citizens should look to and bring pressure upon representatives of the State and Federal Governments to alter public policies implemented subsequent to 2007-2008 which have substantially contributed to the decline of local economic growth and development.
A vote for Merita Callaway will ensure local decisions are made on the basis of the “Facts” and not through unsupported opinions. The constituents of District 3 will continue to benefit from Merita’s institutional and historic memory and what Senator Moynihan described as, “The single most exciting thing you encounter in government is competence, because it’s so rare.”
Authored by S. Guy Puccio, Commercial Broker, Former Advisory Commissioner for the Department of Real Estate, and former Instructor/Part-Time Faculty Member at various Community Colleges and Cal State University at Hayward
Edited by Paul Bertini, General Contractor
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