A Lighter Side

With all the recent posts, there has been WAY too much seriousness.

For once, let's not worry about politics and keep it light.

I'm asking you to help out with some comments.

What real-world topics are on your mind? I want to know.

What do you think about the Manny trade or the Patriots season coming up???

In addition, I am going to conduct an informal survey - What are your three favorite TV shows and why? It can be past, present or a mix of both.

I'm just looking to hear your opinions, and all I ask is that we leave politics out of this post. There will be plenty more posts to talk about politics, but if there's a good response to this post I'll try to make "A Lighter Side" a more regular part of this blog.

Yet Another Post About the (Now Failed) Joakim Recall Attempt

Writing entries about COG's futile attempt to recall Town Council President Janet Joakim is starting to get tiresome and repetitive. Yet, necessity is the mother of invention, and so I create another post.

Yesterday, in an already anticipated move, Town Attorney Ruth Weil declared COG's recall affidavit invalid because it did not clearly inform possible signers that that they were "signing under the penalties of perjury", which is required for a legal affidavit. Citing multiple case laws, including a 1975 Massachusetts Supreme Judicial Court and a 1994 Superior Court ruling. Both clearly articulate the fact that this language is a REQUIREMENT of affidavits and how a Town Clerk handles them (whether or not she lets the process continue) does not supersede any state law or court rulings.

As the Barnstable Patriot pointed out, the recall attempt in Barnstable not involving Joakim ended up dying for the same reason. The 2003 attempt to recall Councilor Carl Riedell failed for very similar language issues.

It looks like this one is crystal clear. No amount of COG whining, moaning, groaning, yelling or screaming is going to change matters. Nor will any amount of phone calls or emails to the State Attorney General, Secretary of the Commonwealth of Massachusetts or Radio Hall of Fame Talk Show Host Howie Carr will result in any change. There is clear legal precedent in this matter, and the lawyer they hired to review this petition (and approved it) should be fired. This one is all on COG.

Though on this one, they might just go out and start over again. After they whine a bit first.

Of course, Weil's ruling and the anticipation of the expected ruling brought out more of the worst of COG. Over on the COG Living blog, they're talking about getting guns and "bankrolling" the next attempt to the tune of $2,000. The worst is coming from the main COG blog. There has been ethnic slurs (A "Femme Nazi" quote from Lopez even made it into the Barnstable Patriot's article), countless shameless attacks of all types on both the Town Attorney and Town Clerk, as well as the "piece de resistance" - a very large photo of someone giving the middle finger. Real family reading!


Now that people will be told that they are signing any recall paperwork under "the penalties of perjury", I wonder how many will actually sign it. This is not a simple sign-and-make-the-annoying-person-go-away petition anymore.


To those who complain that this ruling somehow "overturned the will of the voters": 255 signatures from a tiny precinct in Barnstable do not overrule the Massachusetts Supreme Judicial Court. Ruth Weil and the Town Clerk were simply doing their jobs in ensuring that all legal issues were covered. They could tell everyone that the petition was illegal now or a nice judge could. I'm glad they saved us the trouble.


Anyway, our friends down at the Barnstable Patriot did an excellent job of summarizing the Weil decision, so here's the link to the complete story and here's a shortened version below:

Joakim recall ends on invalid affidavit (updated)
Written by David Still II
August 05, 2008

The affidavit submitted to initiate the recall of Barnstable town council president was flawed, according to the town attorney’s office, and the recall election cannot proceed.

That is the essence of the Aug. 5 opinion from town attorney Ruth Weil in response to a request from Town Clerk Linda Hutchenrider. Hutchenrider did find that the petition submitted to recall Precinct 6 councilor Janet Joakim contained more than the necessary 255 “good signatures,” but asked for an opinion from the town attorney’s office regarding the entirety of the submission.

The defect in the affidavit is that it was not signed under the penalties of perjury, which Weil argues is a condition for a valid affidavit. In support of her opinion, Weil cited several Massachusetts cases, including a 1994 Massachusetts Superior Court case in which despite a town clerk’s issuance of recall petitions based on an improper affidavit, the recall was defective....

Weil's opinion is similar to one offered by her predecessor in 2003 during the attempted recall of then-Precinct 5 councilor Carl Riedell. The affidavits submitted to begin that process were deemed defective for the same reason after the collection of what appeared to be sufficient signatures....

Writing on his blog..., recall organizer Gary Lopez indicated that a new recall effort would commence.

“We will eschew a court challenge and begin the recall process anew on August 12th,” he wrote.

How Exactly Does A Recall Election Work in Barnstable?

I raised a question in my post back on July 19 - "Another Recall Attempt?".

Having read and reread the section of the town's charter dealing with recalls, I have to wonder exactly how a recall ELECTION process works in Barnstable. Maybe one of Barnstable's town attorneys could fill me in, but I'm still unclear on how the process works. I have a pretty good idea, but am always open to other suggestions.

The highest profile recall election in recent years occurred back in 2003. Governor Gray Davis of California had presided over some bad economic times in California - the state budget was a mess and electric rates had tripled. All necessary steps were completed to result in a recall election. When voters went to the polls to vote on the recall, they had TWO things to do - Vote YES or NO on whether or not to recall Davis AND Vote for his replacement IF he ended up being recalled.

A number of high profile candidates ended up on the ballot as possible replacements, and when the dust had settled, the people had voted to recall Davis and the replacement candidate with the most votes was selected as the new governor. That is how former actor (and alleged Republican) Arnold Schwarzenegger became Governor of California.

California placed the recall question and the replacement election on the same ballot. However, after reading Barnstable's charter, I am pretty sure that there has to be TWO SEPARATE elections. Here are some quotes from the charter:

Section 8-8 Recall of Elected Office Holders
(c) Recall Election
If the petition shall be found and certified by the town clerk to be sufficient, the town clerk shall submit the same with such certificate to the town council within five working days, and the town council shall forthwith give written notice of the receipt of the certificate to the officer sought to be recalled and shall, if the officer does not resign within five days thereafter, order an election to be held on a date fixed by them not less than forty five and not more than sixty days after the date of the town clerk's certificate that a sufficient petition has been filed; provided, however, that if any other town election is to occur within sixty days after the date of the certificate the town council shall postpone the holding of the recall election to the date of such other election.

The recall election for any officer elected by precinct, shall only be held in the precinct that the officer represents.

If a vacancy occurs in said office after a recall election has been ordered, the election shall not proceed as provided in this section.

(e) Office Holder
The incumbent shall continue to perform the duties of the office until the recall election. If said incumbent is not recalled, the incumbent shall continue in office for the remainder of the unexpired term subject to recall as before. If recalled the officer shall be deemed removed and the office vacant. The vacancy created thereby shall be filled in accordance with this charter. Any person appointed to fill the vacancy caused by such recall shall hold office for the unexpired term of the officer recalled.

How does the charter say that a vacancy on the Town Council shall be filled?

Section 2-5 Filling of Vacancies
If a vacancy occurs in the office of councillor occurs during the first forty-four months of a term, it shall be filled by a precinct election. If a regular town election is scheduled to be held within 120 days, but more than fifty days, after the date vacancy occurs, it shall be filled by a special election within that regular election; otherwise, the council shall schedule a special election to be held as soon as is practical to fill the vacancy for the balance of the unexpired term. The provisions of the charter governing regular elections shall, so far as they are apt, apply to said special election, provided no preliminary election shall be held.
(Amended by Town Council item 91-03-02 on 6/20/91; amendment approved by voters 11/5/91).

Perhaps, one could read Section 8-8(e) that says "Any person appointed to fill the vacancy caused by such recall shall hold office for the unexpired term of the officer recalled" as saying that we should have a recall like California's - recall question and replacement election on the same ballot. BUT that comes AFTER the section says that "The vacancy created [by a successful recall] shall be filled in accordance with this charter."

Now, as I read that section, I am left to conclude that we have a two-part recall election process. Section 2-5 specifically deals with vacancies in Council office. It says that IF a town/precinct election is already being held 50-120 days AFTER the vacancy occurs, then a special election will be piggybacked on it OR if that doesn't exist, then a special election shall be held as soon as practical. It does not seem to allow for a vacancy to be filled on the same ballot as a recall designed to create a vacancy.

A vacancy can NOT possibly occur until a recall election has happened. Then, IF the Councilor has been recalled, a special election (or special ballot question added onto that precinct's ballot for an already occurring election) can occur. That's the way I read the charter.

Now, maybe I'm wrong... but if I am, could you please fill me in with the facts? Comments are open... and frequently monitored... or email @ dedicatedprecinct3voter@yahoo.com

It Is NOT "Illegal" To Have Political Signs Up

The latest hot-button subtopic of the attempted recall of Janet Joakim is the appearance of her campaign signs. Her political signs have allegedly started appearing around her precinct, and for some unknown reason, that has some COGers jumping mad. They are complaining that it is "illegal" to place political signs any time other than 30 days before an election. They want the town to waste money confiscating these signs.

Here, on this blog, I like to discuss the TRUTH. The TRUTH about political signs is that there is no ordinance in the Town of Barnstable that limits political sign placement to a window 30 days before an election.

The Town Council has considered enacting such an ordinance in the past, but it has NEVER approved one. First Amendment and enforcement issues forced the Council to take an alternative route.

Instead of passing a binding, enforceable LAW, the Council passed a resolve "discouraging" the use of political signs anytime other than 30 days before an election. Here's what they said:

98-135A RESOLVE - CAMPAIGN SIGNS
RESOLVE: That the standard of community character for the Town of Barnstable shall reflect the policy that political signs are discouraged prior to 30 days before an election or referendum.
(Passed by the Barnstable Town Council on 8/20/98 by a 10 yes 0 No vote.)

This is NOT a law. It is NOT an ordinance. It is NOT a court order. It is NOT legally binding in ANY way, shape or form. It is merely the opinion of the 1998 Town Council. This opinion cannot force people to take down political signs, it merely discourages them.

Is it tacky to have political signs out before an election? Maybe. However, look at the BIGGER issue: Which is more important - A person's First Amendment Rights? or You not having to see "tacky" signs?


I don't know why, but this sign issue seems to come up year, after year, after year. Every time, there is someone complaining how the signs are "illegal". They may be "discouraged", but the TRUTH is that they are NOT "illegal".

Thoughts For Today

That was an awesome thunderstorm that just passed through...

Here is a collection of thoughts I have right now as the storm has kept me awake...

• The "recall": This "recall" situation is an example of the many things our current charter gets right. While citizens are given the highly powerful right to recall an elected official, our charter makes sure it can't be done without some real backing. In fact, because it takes 100 signatures to initiate the recall of a town-wide officer and 50 for a precinct officer (Town Councilor), the charter's authors actually made it HARDER to recall a Councilor than a School Committee member... The number of detailed steps that must be followed ensures that a small disputes do not make recalls commonplace. I think the current Charter Commission should take note of how well the charter is working in this fiasco.
• The Water Company: I've been looking at the Council documents (agendas & minutes) related to the purchase of the Hyannis Water Company. As I read over these items, I have learned that the Hyannis Civic Association unanimously approved the purchase, AND that the Town Council voted UNANIMOUSLY to purchase the company.
• Yet, the COGers seem to forget that fact. When they criticize Councilors for endorsing that deal, they only attack the Councilors they hate most. In other words, they criticize everyone except COG's resident Councilor/"White Knight"/Man of the "People" Greg Milne. They conveniently choose NOT to criticize him for voting for the purchase, while suggesting that other Councilors committed heinous crimes by voting for it. Gotta love the double-standard.
• Serving on a town board/committee: I know that not everyone has the time to serve as a volunteer on a town board/committee, but the recent Zoning Board of Appeals mass resignation highlights the importance these boards play. Simply put, these boards are much more influential than we realize. Having enough people willing to serve is a problem, one that you can easily fix.
• You can start by reading about the different boards/committees HERE.
• You can also just download the application form HERE.
• Driving Issues: LIGHTS: Maybe I am wrong, but it seems like a lot of the town's so called "smart" traffic lights just aren't working right. In the past, when there was no traffic in the other direction, I never had to wait more than a few seconds at "smart" lights... Now it seems like I am waiting forever... Am I the only one experiencing this?
• BAD DRIVING: Is it just me, or does it seem like there are more bad drivers out there this Summer? I have had so many near accidents because drivers either cut me off, had no idea how an intersection works (aka doesn't have a 4-way stop), missed Stop signs, ran CLEARLY red lights or simply had no clue how to drive. It's getting scary out there... Which segue ways nicely into my last thought...
• Hearing on Proposed New Traffic Signals on Rt. 28: On Wednesday August 13 @ 7:00 PM, Mass Highway will be conducting a public hearing on proposed intersection & signal upgrades at 3 locations on Rt. 28. They are looking for public input. The locations in question are: Lumbert's Mill Road, South County Road/Main Street (Marstons Mills), and Rt. 149.
• Improvements and a signal are definitely needed at Lumbert's Mill Road (mostly because of the incredibly bad driving exhibited in this town).
• The Rt. 149 intersection has had a poor design for a long time. The fact that the intersection is located in the middle of a hill does not help the traffic problems there. A light there might not be such a bad idea.
• The South County Road/Main Street (Marstons Mills) intersection is the least busy/dangerous of the three. I'm not so sure that a light is needed there, especially if a light is added @ Route 149.
• The biggest issue is the vast number of stops and lights in this stretch of Rt. 28. Lumbert's Mill Road to the new Stop & Shop could have 6 traffic signals. That's 6 signals in less that 3 miles. Traffic on Rt. 28 already crawls along for good portions of this stretch. Adding 3 new lights seems like a lot, when you consider that of the 3 that currently exist, 2 are for the Stop & Shop plaza and one is for the road leading to the Town Dump.

Another Recall Attempt?

COG is reporting that it has completed the first step in its latest attempt to recall Precinct 6 Town Councilor Janet Joakim. It found 50 or so people in Precinct 6 willing to sign anything. The affidavit these people signed allows the recallers to take out a recall petition. Recallers have 10 days from the issuance of the petition to get 10% of registered Precinct 6 voters (around 250) to sign the petition. If they obtain the correct amount of signatures (as certified by the Town Clerk), there will be a recall election scheduled for between 45-60 days after the Clerk certified the petition (unless Councilor Joakim were to resign, which is HIGHLY unlikely). In that election, AT LEAST 20% of Precinct 6 must show up for the results to count AND the majority must vote that she be recalled.

The recall process is not a simple one and is another good example of things that were done correctly in the construction of our current charter. A recall is an important voter tool and a serious matter, and (because of how the charter was written) it cannot be done on a whim.

The ironic matter of this recall is that it will cost between $7,000-$15,000 to perform the recall election (should the recallers succeed in reaching the election). Considering the EXTREMELY poor turnouts at Barnstable elections, it would not be surprising to see LESS that 20% of Precinct 6 show up, which would nullify the results. So, between actually LOSING the election (which is what COGers do best) and not getting enough voters to show up, there is a very good chance that they could be wasting a good amount of OUR money.

Now, I am not an expert on recalls, but the way that I read the charter makes this even more interesting. As I read it, IF a recall election is successful, then ANOTHER separate election must be held 50-120 days later to fill the vacant slot. Which means that a successful recall costs between $14,000-$30,000. YIKES!



Here's a good article from The Barnstable Patriot's archives describing the recall process.

Here's an article from the Patriot in 2007, that details the start of last failed attempt to recall Councilor Joakim and in which Town Clerk Linda Hutchenrider estimates that "a single-precinct recall election would cost between $6,000 and $7,000".

TJ, over at The Barnstable Beat puts the cost of a recall election at up to $15,000.

ZBA Issues Force COGers To Return To Roots

When I wrote my post on the Zoning Board of Appeals and the new Blanchard's proposed on Rt. 28, I had no idea about the tale that was about to drop in front of a couple of spectators that night.

While I have serious concerns about how the ZBA handled the Blanchard's situation, I have serious concerns about all issues concerning the entire board.

There are members (who recently resigned) who had served since 1973.

There were multiple openings, positions left unfilled by the Town Council, and members who had served for over a year waiting for a replacement.

There were qualified Alternate Members who were passed over for entirely new people and there was serious politicking in the election of the two newest ZBA members, whose qualifications are not what I am here to discuss.

There needed to be change and restoration on this board long ago. The Town Council and its Appointments Committee dropped the ball.


Meanwhile, back in Barnstable's Blogosphere, Blanchard's had been a topic of discussion just before the mass resignations. Now, of course, this overturning of the ZBA has become Topic #1. Even the Cape Cod Times actually mentioned it in an article.

Meanwhile, in COGland, the Main COG Blog and Eric Schwaab's blog have returned to their COGer roots.

Schwaab, desperate for another COG friend, called Councilor Hank Farnham a COGer. Schwaab based his invitation on a post on Barnstable Beat that claimed that Farnham, NEVER a member of the COG clan, had called for Council President Janet Joakim's resignation. Schwaab forgot about the names, allegations and comments that COGers have made about Councilor Farnham in the past (especially when he served as Council President). Yet, because Farnham reportedly agreed with the COGers on their one pseudo-issue - Joakim's removal from office - Schwaab was ready to initiate him into the ranks.

Elsewhere, lead COGer Gary Lopez was busy drumming up false accusations against a fellow blogger. This is the ULTIMATE COG trick - when you don't agree with someone or they have proved you wrong - accuse an blogger or commenter of being a Town Councilor. I know, because I have been called so many different names and been accused of being so many different people, that I have lost track. Of course, as of the last couple years, the COGers love to accuse is Janet Joakim.

TJ, over at Barnstable Beat, has now been accused (again) of being Ms. Joakim. Lopez brings no EVIDENCE, only hopeful theories that may even have been altered to prove his point.

This kind of game is COG's favorite thing to do, and I wish the best to the falsely accused. However, they are not done with the game-playing.

Remember the "outrage" near the end of the last election cycle where people reportedly made "nasty" ethnic slurs against the COG candidate in Precinct 3 (Schwaab)? Remember how it was shown that COGers make more slurs and "nasty" attacks than any commenters have EVER been accused of making against COG?

Well, COG is making slurs again. On Sunday, Lopez created a follow-up post to his original post accusing TJ of being Joakim. Here is his title:

"SUSPICIONS CONFIRMED; Janet Joakim is a sicko femme Nazi...."

(My sincere apologies to Councilor Joakim for posting this, but people need to know what is being said.)

I am greatly disturbed by the nature of comments and posts made by COGers. TJ and I are not always on the same page, but we always have stood firm against the COG machine. TJ has been put through a purgatory online recently, and has come out stronger than ever. I know TJ will emerge victorious in this case, too.

As for Councilor Joakim, we rarely agree on larger political issues. Yet, in local politics, there are many instances of common ground. In the blogosphere, there are even more. Councilor Joakim does not deserve the treatment she has received from COG. She has stuck it out through treatment that no one in this town deserves.

The COG group will always resort to their typical tactics. They are:

• False Accusations
• Personal Attacks
• Lies and/or Manipulation of Facts
• Racial, ethnic or other Slurs (aka "cyber hate-crimes")

Let's take a stand as a town and not let them get away with it.

Blanchard's II

Back in March, I wrote a post about the new proposed Blanchard's Liqours at the edge of Precinct 3's borders on Route 28 (near CVS) at the old Knights of Columbus building.

The building was a hot button topic, thanks to discussion started on Janet Joakim's SevenVillages Blog. I chose to write my own post on the topic because of the magnitude of the issue and its extreme proximity to Precinct 3 - It's across the street from this Precinct.

When discussing it, I saw three major issues that needed to be discussed:

1. Since the town hands out liquor licenses, should it relocate the store into an area that already has two stores in a 1.5 mile area?
2. Traffic Impact of the new store
3. Impact of the store on children

After writing the article and reading the comments left by many (including the late Bradley Ouimette, who will be missed), I came up with the following answers:

1. While competition is a GOOD thing, too much competition will in this area will likely result in one of the two current stores being forced to close. Thus, we are left with a trade of abandoned buildings - Knights of Columbus for the closed liquor store(s).
2. The traffic impact of the store would be a MAJOR problem. This stretch of Rt. 28 is dangerous enough, and adding an entrance and exit at this location will only make it worse.
3. Contrary to the belief of some, adding a liquor store to this area is not an issue for the children at the nearby Middle School. There are already liquor stores closer to the High School, the Charter Schools, and Elementary Schools. Plus, it is absurd to think that Blachard's employees would be duped into selling to Middle Schoolers, no matter how good their fake IDs might be...

The biggest issue turned out to be traffic. I feel that allowing the largest liquor store in the Mid-Cape area to be placed at this location without traffic correction is recipe for traffic disaster. If you think that the Lumbert's Mill or 149 intersections with Rt. 28 are bad, this could be even worse. Now, there were possible ways to deal with the traffic issues - back entrance/exit, median strip, etc... - but Blanchard's chose not to include them in their proposal.

The curb cuts they proposed are similar to Olive Garden, the McDonald's on Rt. 132 and both Christmas Tree Shops entrances on Rt. 28 and Rt. 132. In other words, these are the exits/entrances you see people cutting across multiple lanes of traffic to use incorrectly. This is mainly because there are no ways to turn around in Hyannis. Who in their right mind WANTS to go around the Airport Rotary so they can go to McDonald's? Why drive past it, when you can just sit in the Left-hand lane and pray for an opening (a big one) so that you can take the very awkward turn?

Curb cuts do not solve the problem, and often cause even greater problems because people driving by these cuts are not expecting other cars to take illegal left-hand turns.

Anyway, the proposed store required Zoning Board of Appeals (ZBA) approval because the land is not currently zoned for that use. However, when the proposal came up before the ZBA, the ZBA had no problem approving it even after the Town Manager, Town Council President AND the Town Councilor from that Precinct (Precinct 2) all spoke before the board about the negative impact on traffic that would occur in the area.

The opponents of the project stepped up to the nuclear option, obtaining Cape Cod Commission (CCC) review of the project. Blanchard's had originally escaped review because, at 9,800 square feet, their building fell just 200 square feet short of mandatory CCC review - 10,000 square feet. CCC review could very well kill the project either because of the time & expense or a disapproval. Opponents of the project have also been conducting a mini-"purge" of the ZBA.

More recently, the "Blogger Who Promises To Retire But Never Does" has claimed that the actions of at least the Council President were based because there is a distant family connection between her family and the family that owns one of the two liquor stores nearby the proposed Blanchard's site. Let me be the first to say that I have no idea whether or not this is true, but it would have no impact on my opinion either way.

Cape Cod Package Store (CCPS), located just seconds down Rt. 28, now wants to expand... The COG author asserts that the traffic coming out of this store at its current size is worse than any that would occur at the Blanchard's site. While there are always going to be morons who ignore traffic laws, the COG author leaves out one thing. It is POSSIBLE for people to take a left turn out of this store, BUT it is MORE likely that the will use the BACK entrance which will take them right to the smart light at the intersection that is a few feet away and will allow them to go wherever they want.

If the CCPS wants to expand, they should go through the same arduous process - ZBA and public opinion - that Blanchard's went through before receiving token approval from the ZBA. Let's see some real review of CCPS impact on traffic, and if that means changing the CCPS entrance on Rt. 28 to the Right ONLY In/Out entrance that was proposed for Blanchard's, then let's demand it. This time the Right ONLY In/Out curb cut will actually work - because patrons can exit out the back, right to the light at Phinney's Lane & Rt. 28.

If Blanchard's had included a rear entrance (like CCPS has) that would have placed patrons on Wequaquet Ave./Old Strawberry Hill Rd. in addition to their Right ONLY In/Out entrance on Rt. 28, then they probably would have eliminated traffic concerns and approval would never have been an issue. Patrons could take their lefts at the light. (Though, this plan might have required future alterations to the intersection - additional left turn lanes and signals - depending on how much traffic there really was.) Yet, even this plan caused unrest among Blanchard's prospective neighbors.

In the end, the ZBA ignored the pleas of both citizens and officials - that is why Blanchard's faces CCC review and that is why the ZBA is being shaken up. For once, the community actually voiced their opinion on a zoning issue, but the ZBA ignored them. Hopefully, the new members of the ZBA will listen as we begin some discussion on the proposed expansion of CCPS.

Lots of Rain Keeping You Locked In?

Other than the return of some snowbirds, it has been relatively quiet since my last post.

There has been some bad news - the recall rumors & threats are back in full force, but they don't mean anything until paperwork is accepted. Sure, Greg Milne is running for ANOTHER elected office, but that doesn't mean anything unless he actually gets elected.

There has been some good news - lighting on Main Street looks great, gas prices have leveled off, and our friend at Barnstable Beat is sticking it out through some petty attacks.

Anyway, I was sitting here admiring the torrential downpour, thankful that I have escaped the cicada invasion so far, and a question popped into my head. With all the rain pouring down recently, is anyone experiencing drainage problems? My street and the ones around it has been very bad with drainage in the past, but it seems to have weathered the last few storms OK. How about you?

The Value of a Business (or "The Cost of Doing Business in Barnstable")

Should a piece of business property be assessed at the value of the entire company?

Should my home assessment include the value of my laptop, TV, furniture, and pets?

In today's Barnstable - where taxes are high, homes are overvalued and not selling, good jobs are scarce and tourism (the lifeblood of our economy) has been low - people looking for any reason at all to lower their taxes are willing to suggest exactly that - a piece of business should be assessed at the ENTIRE value of that local business. Not that a Mobil station should be assessed at whatever billions of $$$ that Mobil is worth, but that a local store or mall that has only one location should have the property assessed at whatever price someone else pays for the property AND business.

Property assessments in Barnstable have been skewed for years. A combination of bad assessing, 2-acre zoning, building caps and a few other factors have caused a dramatic increase in assessed residential property value. We asked for 2-acre zoning. We wanted a cap on new homes. We knew that higher property values would result, and that was a major reason people wanted these measures - they wanted more valuable homes. BUT, now we are paying for it - because higher residential property values means higher residential property tax bills.

Now, looking to shift the burden of taxation to a faceless "Corporate America", there are some that will do anything to (unfairly) shift the burden away from themselves. Looking to avoid paying for their own mistakes, they try anything from the split-tax to trying to improperly assess business values. Let's take a closer look at the value of a business:

Assuming that someone is going to buy a business and its property, what are some major factors that make a business (and its property valuable)?

• Strength & viability of the business
• Property value
• Value of recurring contracts
• Local goodwill
• Historicity of business and site

Strength & viability of the business

If someone is buying both the business AND property, with the intention of continuing to run the business, then the actual value of the sale is going to be based (at least partially) on the strength and long-term viability of the business. If the business is floundering or outdated, it is worth less. If it is extremely successful or has a bright future, then it is worth more. If the business has a local monopoly, it is more valuable, too.

Property value

Property value is a very important factor in business value. Size, location, structures, parking, etc. all play a large role in setting property values. A desirable size & location and adequate parking allow a new owner to be comfortable on-site. A building without need of renovation is another valuable commodity. Without some of these items, a piece of property is worth less.

Value of recurring contracts

The value of recurring contracts is a value that cannot be underestimated. While some may be undesirable, generally, a recurring contract is a highly valuable asset for a purchaser. Guaranteed lease revenue, long-term contracts with large corporations or government, patents, etc... all help increase the investment value of a purchase.

Local goodwill

Local goodwill is a commodity unlike any other. Local goodwill can make an ordinary business into a nationally known commodity. Take Four Seas Ice Cream - an ordinary ice cream shop, BUT local goodwill (among both residents and tourists) has propelled Four Seas into a name known nationally and it has become synonymous with Cape Cod summers. Having a good name in the local community is key to business success, and having a GREAT reputation locally is what helps makes you into a GREAT success. If someone were to buy Four Seas tomorrow, they would be paying a premium for the name and its local success.

Historicity of business and site

Historicity of a business or site ties in with local goodwill. Do people go there because of history? Does the site have historical value? Is it located in a highly historical area? Take the Hyannisport general store, right next to the Hyannisport Post Office. That tiny little store makes a huge profit because everyone HAS to go see the Kennedy Compound and Hyannisport.

I say all this to illustrate my point - the sale price of a business and its property is not what the property should be assessed at. The innate characteristics, features and advantages a business contains cannot be included in the value of a piece of property. If someone buys Four Seas Ice Cream and its property to tear down the building and put a strip mall in, that value will lose the majority of its value because the one thing that makes that property so valuable is not the property itself, but the business and history that makes Four Seas Ice Cream (the company) so valuable. Without Four Seas Ice Cream (the company) included in any sale of the land, the sale would worth MUCH less.

(Please note that I was only using Four Seas Ice Cream as an example. I am not saying that it has/will be sold.)