Owning a commercial storefront and living along a busy street in an urban area can be quite the eye opening experience. The noise ceased to bother me a long time ago, but there is one thing I just can’t just and probably never will be able to tolerate: TRASH.No matter where you live, litter is always a problem, but in dense urban areas such as St. Louis City, managing this litter becomes an increasingly difficult task.

At its heart, the problem in this situation is with the people that litter. The people who care so little about their neighborhood and environment, they use the whole world as their trashcan. Its disgusting, but there is not a whole lot that can be done to turn around these people’s habits save a massive, and expensive, effort by our police force.

What we can control is the trash disposal options and, in that, we are failing miserably. Along Gravois Avenue in South St. Louis, where I am located, there are almost no trash cans along the street. Despite the fact that there are bus stops every 50 yards and convenience stores and fast food restaurants on every corner, there are hardly any trash cans. Should it surprise anyone that there is trash everywhere?

I understand the budgetary concerns involved with installing these trash cans and keeping up with unloading them, but one would have to think that this would cut down the amount of street cleaning and greatly improve the health and appearance of our neighborhoods and commercial districts. This in turn would increase property values and attract more residents, businesses and patrons, which all increase the tax base. Over the long term, an increased focus on litter-control would probably more than pay for itself.

Apparently the powers-that-be don’t agree. Business owners and residents are left holding the buck to keep our own real estate clean as well as our streets. That gets mighty old after a while and isn’t effective. On a windy day, I can clean up in front of my storefront five times a day and it still keeps coming back. I’m not expecting the trash to ever totally disappear, but sometimes I think it would be nice to see a little bit of help now and then. Or we can just continue to bury ourselves in our own filth. Personally, I like the first option.

Just say no… to Bradford Pear trees! They might grow quickly, and might be full and lush, but that comes at a price: They are are as fragile as glass (a slight exaggeration). With the strong winds we have been having the past few days provide a perfect example.  This picture of a split Bradford Pear on Texas, near Gravois Avenue, is a snapshot of the eventual fate of most of these trees when the stress becomes to much. As they grow bigger and more bushy, they become more and more susceptible to this affect. Things get even worse during the all too common freezing rain sessions we see during Missouri winters.  These trees simple can’t stand up to the elements.

There are appropriate venues and purposes for the Bradford Pear, but for most of us horticultural laymen, its probably best to just stay away from them altogether. They are, at best, a temporary tree and will not stand the test of time. Subdivision develops are fond of them because of the quick greenery they provide, but for most of us, the desired results are a little more long-term. Whether you’re a landlord, a rehabber or a homeowner; fight the temptation to use this tree. If you do, its just going to be a matter of time until the breakup. Something more permanent might not satisfy the need for immediate satisfaction as well, but everyone involved will be better for it.

And did I mention that the flowers really stink. STAY AWAY!

It’s no secret that far too many quality buildings in the City of St. Louis fall victim to the wrecking ball. With some buildings, only the most die-hard preservationists take notice and offense. But every once in a while something is torn down that raises the “What were they thinking?” flag.

Case in point, 2001 South Jefferson, in the Fox Park Neighborhood. The property is located at the southwest corner of Jefferson and Allen, directly south of the McDonald’s. Not unlike many properties along this stretch of Jefferson, this one could use some work. It’s clearly been idle for some time and needs reinvestment. The forces of renovation, however, are close at hand. Many of the commercial and mixed-use properties in the area have been renovated in recent years and it seemed like a matter of time before this one joined the mix.

A few days ago a banner for New Vision Contracting, noting an upcoming demolition, appeared on the property. Clever name for a demo company. Checking up on the matter, it seems the City had some major concerns over structural issues and issued a rush demo order. Before berating the powers-that-be over this seemingly unnecessary move, I drove by the property this morning. It seems that the rear porch was removed in the past few years (verified through Geo St. Louis permit records) and the building wasn’t properly reinforced. Weather and time finally took their toll and part of the rear wall collapsed. You can see a picture for yourself in the gallery below.

Does this damage require attention? Yes is does. To leave it be would invite a lawsuit. That doesn’t mean the property needs to be torn down. Why not sell the property off to a developer who will fix the issue. Sell it to them for $1. What is there to lose? That would save the building and improve the area in one stroke. Instead we’ll be left with another vacant city lot that will erode the streetscape. Now that’s forward thinking action.

The sad thing is that this kind of thing happens every day. Its just that many of these properties are in North City or more isolated areas so they aren’t as significant on the cultural radar. But don’t follow yourself. St. Louis is allowing itself to be torn down brick for brick. Who can tell what agenda is being satisfied here, but it clearly isn’t the agenda of common sense. Nice going City.

If you’re into the historic preservation issues, I recommend check out the Ecology of Absence blog.

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]]> http://thresholdstl.com/rants-and-raves/2001-jefferson-wrecking-ball/feed 4 http://thresholdstl.com/rants-and-raves/eminent-domain-fears http://thresholdstl.com/rants-and-raves/eminent-domain-fears#comments Tue, 13 Jan 2009 20:25:28 +0000 Matt Kastner http://stlinvestmentrealty.com/?p=1213

I have always felt a defined hatred for the concept of eminent domain. The thought that the government can forcefully take your property from you seems to be the definition of Un-American. In St. Louis City we have seen eminent domain used for transportation improvements such as as the Highway 40 (I-64) project and new housing developments such as the creation of Botanical Heights neighborhood in old McKree Town. We have also seen eminent domain successfully fought off (so far) in the Bohemian Hill area near Lafayette Square. I have always hated its use and cheered for the underdog property owners in the fight, but never really got involved. Until now that is.

I’m jumping a little out of the St. Louis area for this one (about 100 miles actually), but its pertinent. My family owns about 550 acres in Central Missouri along  Route 63. It’s half way between Rolla and Jefferson City in a town call Vienna. You might know it from cutting through along Route 42 to the Lake of the Ozarks. The reason I mention this is that our little secluded paradise will in all likelihood be right next to a realigned Route 63 within the next few years.

For years there has been talk that MODOT might one day straighten out the highway in our area, but it has been idle talk for over twenty years. Rumors started growing a bit more serious lately so I did a bit of research and it turns out that plans to move the road are almost finalized. This move would shift the highway about a mile and half to butt up against the property that has been in my family for over 100 years. The best part is that nobody bothered to tell us.

Despite the significant implications for our family, the state never bothered to let us know what was going on throughout the planning process. I have a lot of extended family that live in the area full-time and none of them knew about it either. There have been public meetings on the subject in the past few years, but the effort to contact affected citizens has been ridiculous. At this point there is still time to make a feeble attempt to stop these plans, but it appears to be too little too late.

The worst part is that this whole effort seems to cut off a couple minutes from the commute for truckers cutting from Jefferson City to Rolla. I drive on the road often and see no need for this change or the new lanes promised. Its just another case of over-expanding roads by the state, which entices more sprawl into an area that is otherwise relatively isolate.

And since our property is not actually in the path of the proposed road, merely next to it, we probably (99.999% sure) won’t be offered any sort of financial compensation for the change. At $2000 an acre our property is probably worth about $1,100,000. Maybe more since we have a lot of property fronting the Gasconade River and good hunting areas. But when this road goes in, the value of the property is going to go down. The quiet seclusion offered by our location and the prime n areas will be affected. This will in turn affect the value of the property, yet there won’t be a dime paid to us in compensation. Same goes for all the property owners around us. Some of them will even have their property taken away from them or cut in half by this change. The state will waste a couple hundred million dollars on this project and hurt Missouri property owners for some reason only known by the powers that be.

I know cases like this don’t excite people as much as the use of eminent domain to turn over property to private developers like in McKree Town or Bohemian Hill, but it seems unjust nonetheless. I am obviously biased, but there is no excuse for the state not notifying potentially impacted property owners. I am going to fight this thing in every way I can, but regardless of how things end up, I will be even more sympathetic to the use of eminant domain in the St. Louis area in the future. If you come across any eminant domain threats in St. Louis City that I don’t mention in this blog, please let me know. I want to raise awareness about this issue in the future. The next time you hear a story about someones property being taken away through eminent domain, don’t just shrug it off. You might be next.

I know I am preaching to the choir here, but the looting in our area seems to be getting worse all the time. Whether the target is scrap or antiques, its running rampant. Most of the time, the cost is economic, but sometimes the cost is much higher. Unfortunately, this is a pretty egregious case of the latter.

According to the Post Dispatch, burglars have stolen about 1,500 pounds of historic brass hardware from Larry Giles, who leads the St. Louis Building Arts Foundation. The hardware had been salvaged from historic locations throughout the area, which were doomed for the wrecking ball or undergoing major renovations. This stuff is a piece of our local historic.

The worst of it is that since brass materials seem to have been the target in this Soulard warehouse, the perpetrators are probably trying to sell everything for scrap. Antiques stolen for resale are bad enough, but when something like this is destroyed, its a travesty.

On the positive side, one of the suspects has reportedly been caught. Since he probably didn’t haul of 1,500 pounds of metal himself, I am sure there are others out there. If you see anyone trying to sell off a truckload of antique brass hardware, you’d be doing Mr. Giles and all of St. Louis a favor by calling the authorities.

For more information, refer to the full Post Dispatch article.

With all the closures, takeovers and relocations St. Louis has seen in recent years, we could always take solace in the fact that the King of Beers called St. Louis home. I’m sure I’m not alone in always feeling a bit of (misplaced) pride every time I hear the tagline “Anheuser-Busch, St. Louis, Missouri” at the end of and A-B commercial. It was that one truly bright spot of international recognition that we could always hold on to. But now, its gone.

Obviously this isn’t some sort of Doomsday, but it is yet another eye-opener for the St. Louis community. In the end, this newly combined company might bring in even more tax dollars to the area, but we are going to lose an important chip in the game of marketing. Image is everything for big cities, and we are losing a major part of our long-term image.

I’m really proud of a lot of the things that have happened in the City in the past ten years, but we need to wake up and pick up our game. Stalled projects next to ballparks and new marketing slogans for the Division of Tourism don’t make people remember who we are. If we don’t step outside the box we have built for ourselves, we will continue to decline. We need to quit looking back to 1904 and start lookign ahead to the future.

The City needs to stop going on and on about projects like Ballpark Village, which they have little control over, and start worrying about things they have the power and ability to do something about. Hideous and unfunctional streetscapes through major corridors, a riverfront that would make Mark Twain cry, unsynchronized stop lights that make a five minute drive take ten, seemingly ignoring the concept of beatification in many areas: these are issues they can and should handle.

Why should any business take on the extra burden of a local earning tax if the local government can’t even provide these basic services? What can they offer that businesses can’t get in Clayton or Chesterfield? Its time for a reinvention. It’s time to show people what St. Louis can do. And it needs to start from square one.

As well as things are going in the relative sense, and while I love being just blocks away from countless restaurants and nightlife destinations, I must admit that I miss some of the perks of suburban life. For whatever reason, some businesses seem to be shying away from opening up shop. To me, the two things that seem to be the most glaringly absent in the area are gyms and movie theaters. I’ve managed to adequately take care of my needs on both fronts, but not as conveniently as I would like.

Consider that the only movie theaters in the City of St. Louis are the Moolah Theatre, the Chase Park Plaza and the soon to be reopened Hi-Pointe. All but Chase Park Plaza have only a single screen and that only has three. As much as I like those places, with all the movies constantly coming out, I often find that the movie I want to see is not playing at one of these theaters.

The nearest megaplex is the Esquire in Richmond Heights and its definitely in need of a little work. Its also far from mega, coming in at only seven screens. To find your way to one of the true megaplexes, you’ve really got to go out of your way. If you live in West County or St. Charles, however, you are always just minutes away from a 12+ screen theater. I’m sure theater chains have concerns over security and vandalism, but I have to think a large theater closer to, if not in the city limits, could do quite well. Rather than cannibalize their existing customer bases by continuing to construct theaters closer and closer together, why don’t they give the urban core of the area a look? Think of all the customers they could pull from Downtown, Soulard, Maplewood, etc..

I look at gyms the same way. I work out at the Fitness Factory Downtown, but if I didn’t want to go there, I don’t have many other choices other than the YMCA. All the other gyms in the city are small and don’t have a lot of the equipment I like. There are things about the Fitness Factory I don’t like too, but since nobody else has opened shop in the city limits, I don’t have a .lot of options. How can the large gym chains like 24 Hour Fitness or Gold’s Gym (I know there used to be one Downtown) not give the area a try?

I don’t know if its simply that these companies don’t see the City as a viable investment option or if something else is to blame. Have our local leaders been doing all they can to court these types of companies? We need to do everything we can to eliminate all the possible objections people might have when considering buying or renting in the City. These might seem like frivolous complaints, but I’m sure I’m not the only one who has noticed. Hopefully the powers that be notice as well.

So what do you think about this situation? Any other insight why these establishments are so glaringly absent? Any other type of business that you think is missing in the City?

This is a piece of trash. Intimidating isn’t it. Well don’t worry. If the St. Louis Board of Alderman has it’s way you won’t have to see this stuff anymore. According to an article recently published in the South Side Journal (Business owners want trash bill canned), Alderman Steve Conway, D-8th Ward, has sponsored a bill requiring convenience stores and carryout restaurants to pick up all trash originating from their place of business within a 300 foot radius at least once a day.

I’ve always liked Steve Conway, but this is the worst idea I have ever heard. The most alarming part is that he isn’t alone. The paper makes it sound like the alderman are gung-ho about the bill and are all clambering over getting on as a cosponsor. These businesses come in and improve our neighborhoods despite an already oppressive atmosphere caused by the earnings tax and umpteen other ordinances. Our officials should be trying to help these business owners not hurt them.

Consider the logistics of cleaning up an area 300 feet around your place of business. I don’t care if it is only cleaning up the trash coming from your place of business, it is insane. That is the equivalent of an entire football field in each direction. Who is going to clean this area? Many of these businesses are barely staying alive and the extra manpower needed to to address this could bring them down. These aren’t corporate giants here, they are mom and pop shops and franchises. Times are tough and they shouldn’t be held responsible for litter violations of their patrons.

Perhaps there is a problem in our city. Maybe its the aldermanic system that needs to be cleaned up and not businesses. I encourage all readers to contact their local alderman and express their displeasure over this situation. If you don’t know who your alderman is you can search for your alderman on the City’s website.

So what do you all think of this proposed legislation?

Being a self-employed realtor by trade, payroll taxes are not taken out of my commission checks. While this might sound great, in practice it’s not. Giving up all this money in one sitting instead of spreading it out across the entire year is a hard pill to swallow. But its the life I chose so I shouldn’t complain.

Filing out my federal return was a pretty simple process. I used H&R’s TaxCut software and had no troubles. Even claiming my business expenses was a breeze. Since the State of Missouri plays by nearly identical rules as the federal government, it was just as easy to put together my state return. I didn’t like the fact that I had to pay, but it was a pretty painless paperwork process.

So where’s the rant and why is this pertinent to investing? I’m getting to that. Even though my federal and state returns were a breeze, my return for the City of St. Louis was another thing. If you didn’t already know, if you live or work in the City of St. Louis you are subject to a 1% tax on your earnings in addition to your other income taxes. I should note that rental income does not qualify unless you own the property through a Partnership or Corporation. Still, this tax has broad implications on our city and region as a whole.

I have my problems with this tax from an ethical and business point of view, but the the most frustrating thing is how it is tabulated. Rather than allow you to use the net and gross incomes claimed in your federal or state returns, St. Louis requires you to start from scratch. Many deductions allowed on other returns are not allow for the City.

For instance, you’d think all federal and state income taxes and the self-employment-tax would be write offs wouldn’t you? But no, hat would make too much sense. Not only does the City take away 1% of my income (Kansas City has the same tax by the way), but they base that 1% off an inflated number. When I get taxed on a tax I can’t help but feel like some great injustice is being done to me. I would rather the tax be raised to 1.25% than casually be screwed over like that.

So all those itemized breakdowns I put together for my federal and state returns had to be remade for City Hall. To me, this just seems like an unnecessary hassle, which turns off citizens, business owners and probably City employees. Though I am a huge advocate of figuring out some way to get rid of this tax, I think its unlikely at the current time. But that doesn’t mean we should keep things as they are. No wonder we keep losing businesses and are having such a hard time attracting new ones. Mayor Slay, simplify these taxes! And then get rid of them.

If you’d like to know more about the earnings tax in the City of St. Louis, check out these links:

• St. Louis Collector of Revenue website (official earnings tax site)
• Show-Me Institutes’ on the earnings tax
• Earnings tax debated in Kansas CIty

Happy Tax Day everyone!

Obviously, the roadsides can’t be a lush garden from one end of the metro area to another. Grass with an occasional tree or flower bed is and should remain the norm. Costs would just be too prohibitive to do too much more. We should also address the fencing that borders the highway system. Bent, buckled and rusted chain-link fencing overgrown with weeds doesn’t really give people a sense of pride in the area. It just seems like there is no effort to beautify the area. Just maintain the inadequate current infrastructure.

With clever planning and a slightly increased budget, eyesores link the highway stretch displayed above could become assets. If the goals were modest and improvements were gradually made over a 10-year period, I see no reason why things couldn’t realistically be improved. Is anyone aware of any current efforts on this front?

Contracts seem to have gone from being legally binding agreements to mere pieces of paper. Have no contingencies left and decide you don’t like the deal anymore just days before closing? Just walk away from the contract. Pass your inspection contingency and decide a week later that you want to bail by fraudulently claiming that you can’t get financing? Just walk away from the contract. Decide that you want to sell your property to someone after you already have it under with someone else? Just walk away from the contract. Nobody seems to pay attention to these things anymore. Deadlines come and go and agents, lenders, buyers and sellers take no notice.

There was a time when businessmen, shady as many of them were, had a strong enough sense of follow-through that a mere handshake agreement was sufficient. Nowadays, I can have a legally binding agreement put down in writing only to have one of the parties spit on it as if it were meaningless. I don’t know if this is a sign of the world we live in today or something isolated to the world of real estate.

I am probably making the situation sound worse than it really is, but I often find myself quite frustrated during transactions. I often think we have come to this state due to the influx of unqualified or uninterested buyers that popped into the market over the last few years during the era of 100% financing and questionable appraisals. Hopefully with those days gone this trend will begin to dissipate. Hopefully.

Or maybe if more people would sue buyers or sellers that violate contracts we could curb this issue. Perhaps people are becoming emboldened due to the fact that it is very unlikely that they will face any repercussions from breaking a contract. I’m not advocating that everyone in the real estate world become sue-happy, but it’s a perfectly acceptable recourse in certain situations.

These issues probably play a role in the lack of respect shown to contracts, but in the end there is probably something less tangible at work. We all just need to remember that a contract is a contract is contract. Once you sign on the dotted line, you can’t just change your mind and walk away if there are no loopholes or contingencies. There is an endless amount of money to be made in this business if we all just learn to keep our heads. A well-written document protects the interests of all parties to our mutual benefit, but only if we can all have enough integrity to show these documents the respect they deserve.

One of those “little things” that always gets on my nerves is the trashcans found at the on and off ramps of the interstates in the City. Every time I am sitting at a stoplight getting on or off the highways I see these monstrosities and can’t help but be disgusted. Many times they are overflowing with trash laying all over the ground, but thats not my biggest problem with them.

My issue with these trashcans is their design. Just look at this thing. I don’t think you could build a more unsightly, utilitarian refuse container if you tried. What ever happened to beautification? I’m not asking for a $10,000 trashcan; just something that doesn’t look like it was put together by a local boyscout troop from donated materials.

When County residents or out-of-towners pay a visit to St. Louis, this is the welcome mat they see. It leaves a bad first impression. If we want to bring residents back to the City to fill our apartments or buy our rehabs, things like this have to be addressed. City officials are always looking for big high-dollar projects to transform the landscape. If only they would put as much emphasis on the small, affordable touches. We might might get more bang for our buck.

If anyone knows who to contact to comlain about this issue I would love to hear from you.

I live in Benton Park and workout at the Fitness Factory on Washington Avenue Downtown. My rage just increases every time I make that trip. My route takes me down Tucker Avenue and I swear that there are times that I hit ever light on a red. That half mile run from Chouteau to Washington can take forever under those conditions. Long enough to open even the most patient person’s eyes to this horrendous problem facing St. Louis: non-synchronized traffic lights!

Obviously, you feel the impact of this problem most significantly in areas with many intersections such as Downtown, but the problem is city-wide. The City has been talking up and “studying” plans for improved synchronization for years, but there has been little action. In early January, the Downtown St. Louis Partnership claimed that traffic signals Downtown, east of Tucker, will be synced by this April. That’s great, if true, but what about the rest of the City?

Just another one of those little things that leaves people with a bad impression of our fair city. How is it that virtually every county in the metropolitan area can have sensors in the ground to detect if a car is waiting at an intersection, but St. Louis can’t even sync the traffic lights of major transportation corridors without studying the problem for ten years? Unfortunately, nobody in City Hall seems to have a good answer to that question.

To be fair, I’m probably being overly dramatic about the situation, but there is not doubt that there is a problem. Feel free to share your displeasure with your local alderman if you feel particularly passionate. If there is a particular light you have had problems with, the City actually has a special website to report the issue. Let the complaints begin: light synchronization complaints.

Being new to the investment world, I don’t know a whole lot about the inspection process. In an attempt to learn more, as well as see what resources are currently available on the subject, I assumed the role of a prospective rental property buyer and paid a visit to the St. Louis City Inspections Department in City Hall, Room 407.

Upon my arrival, the receptionist politely asked if she could help. I told her that I found several rental properties I was interested in purchasing, but wanted to get a general idea of the codes and regulations inspectors would be looking at so that I might identify problems and calculate their costs. I explained that I was trying to minimize my headaches, by being proactive about addressing violations.

She asked if I had the exact addresses so she could look to see if there were any current violations. I told her that while it might give me part of what I was looking for, I really needed a resource that would allow me to cover all my bases, not just for specific properties.

She appeared baffled. The widely distributed Landlord handbook, InfoRent, was out of stock, but they had a brochure that might be of some help in my quest for knowledge. It was a Missouri Landlord-Tenant Law booklet. Not exactly what I had hoped for. Asking if there was any other office I might visit with helpful information, I was told to try “next door” in Room 406, the Housing Conservancy Office, or at 418, the Neighborhood Stabilization Team. She also stated that if I had specific questions I could make an appointment to talk to one of the inspectors. I noted that if I couldn’t even get guidelines for inspection expectations, it surely would be difficult to ask pointed questions.

Next door at the Conservancy I waited at the front of an entry area unfolding into a large office area. After a few moments of staring at the housing and community preservation brochure, a woman leaned backed from her desk and asked if she could help. Repeating my previous request, I was quickly informed that the brochure I was holding was all the available literature they had. So it was across the beautiful atrium to room 418, and the Neighborhood Stabilization Team office.

This group’s mission is to: “To empower constituents to sustain a quality environment within their neighborhood through assistance, education, intervention and organization.” Sounded like a place that may provide some much needed assistance in proper property management. Unfortunately, all the young receptionist could provide was a typical 8.5” x 11” piece of paper with the general concepts surrounding the Team and its officers. She told me, as I had been told before, to look at the InfoRent booklet, but she added that it was available online.

She pointed to a link listed at the bottom of the page. I skimmed the document, and noted the bulleted item outlining “problems” the Team addresses listed “physical violation of health, safety, and/or property maintenance codes.” This seemed as good a lead as any, and I asked if they had any documentation on the codes/regulations that governed these problem issues. I was told that all their information could be found on the website, and was given a brief tutorial on how to find their page through the City’s homepage.

I thanked her for her time and left City Hall after almost an hour of searching with only a Landlord-Tenant law booklet, an outline of the responsibilities of a Neighborhood Stabilization Officer and a Housing Conservation brochure to show for my time.

The latter came closest to answering my query with a small section at the bottom of its interior middle tri-fold. It read:

“More commonly cited items include:

• Smoke Detectors
• Overcrowding
• Unsanitary Conditions
• Doors and Locks
• Falling or Cracked Plaster
• Defective Electrical or Plumbing Systems”

That’s all well and good, but what specs need to be followed when addressing these issues? How can I be expected to fix something if nobody can tell me what I need to fix?

The City’s inspection process seems to reward neither initiative nor forward thinking. The overworked inspectors, and the property owners that deal with them, would both greatly benefit from a readily accessible and comprehensive information source outlining the responsibilities and expectations of each, and from one to the other. Not so dissimilar from the Landlord-Tenant guide I received in their department, just a bit more on target.