FREE WHITEWATER

Conflicts of Interest

Daily Bread for 5.30.24: Update on Another Fine Public Servant (Mount Pleasant Edition)

Good morning.

Thursday in Whitewater will be sunny with a high of 71. Sunrise is 5:19 and sunset 8:25 for 15h 06m 45s of daytime. The moon is a waning gibbous with 51.2 percent of its visible disk illuminated.

On this day in 1860, two cars were drawn over the line known as the “River & Lake Shore Street Railway for the first time.” Four horses pulled the cars. The car track was laid in early May from East Water Street, north to Division Street. George H. Walker, Lemuel W. Weeks, Col. W.S. Johnson, and F.S. Blodgett were prominent among the builders of this street railway. A company was organized to sell $50,000 in stock subscriptions to pay for the service.

On this day in 1922, the Lincoln Memorial is dedicated in Washington, D.C..


Readers will recall a story from early May about how the Mount Pleasant village president dumped waste from a private pond on public land to avoid cost. See Another Fine Public Servant (Mount Pleasant Edition). There’s an update from Mount Pleasant, as a resident of that village has now filed an ethics complaint against village president over pond muck dumping:

A Mount Pleasant resident has filed a complaint with the Wisconsin Ethics Commission against Village President Dave DeGroot over the dumping of muck from his neighborhood pond on a village-owned property. 

….

Last fall, residents began seeing trucks dumping “black sludge” into the park. One neighbor, Kevin Rannow, followed the trucks back to their source, a pond in DeGroot’s subdivision, and traced a posted Department of Natural Resources permit to the village president. 

DeGroot and the homeowners’ association in his neighborhood have been working to “revitalize” the pond near their homes and acquired the DNR permit to fill a small bit of wetland. The approval from the DNR notes that the homeowners association is “responsible for obtaining any other permit or approval that may be required before starting your project. These include but are limited to local zoning ordinances, shoreland zoning, floodplain zoning, DNR construction site stormwater (for land disturbances greater than an acre), and requirements by the U.S. Army Corps of Engineers.” 

The contractor hired to complete the project began hauling the waste from the pond to the village property. The pond waste includes a small amount of harmful chemicals, including DDE — a substance that is formed when the banned pesticide DDT breaks down in the environment. 

Village staff learned about the dumping and issued a cease and desist order against the contractor. The contractor appealed the decision to the village’s zoning board of appeals, which consists entirely of members appointed by DeGroot. At an appeal hearing, with no input allowed from the public, DeGroot testified in favor of overturning the decision to block the dumping. 

This ilk uses government preferentially & selfishly as a personal tool to advance their interests. They are proud private men when that status suits them but willing manipulators of public institutions when that status profits them.


Gas leak blows out first floor of Ohio building:

Daily Bread for 5.21.24: On Arguments from Yesteryear’s Community Development Authority

Good morning.

Tuesday in Whitewater will see afternoon clouds and evening thunderstorms with a high of 85. Sunrise is 5:25 and sunset 8:17 for 14h 52m 53s of daytime. The moon is a waxing gibbous with 95.5 percent of its visible disk illuminated.

Whitewater’s Lakes Advisory Special Committee meets at 9 AM and the Common Council meets at 6:30 PM.

On or about May 21, 1673, Fr. Jacques Marquette, fur-trader Louis Joliet, and five French voyageurs pulled into a Menominee community near modern Marinette, Mich.

On this day in 1792, a lava dome collapses on Mount Unzen, near the city of Shimbara on the Japanese island of Kyushu, creating a deadly tsunami that kills nearly 15,000 people.


Witness conflicts of interest and hear self-serving claims long enough, and one risks becoming accustomed to them. The claims offered may be no better than a child’s connivances, yet repetition will cause hesitation even among reasonable and independent-minded people. FREE WHITEWATER published a few words on Monday about Whitewater’s new Common Council and Community Development Authority majorities. See On a New Common Council & New Community Development Authority. Today, a few remarks will follow about specific contentions from holdovers of yesteryear’s CDA.

The video of the Whitewater CDA meeting from 5.16.24 is embedded above. In remarks below, I will refer to specific claims from that meeting, and from earlier public meetings.

A few points worth remembering:

1. Whitewater lacks adequate housing. This condition should be evident to everyone and anyone. See Video, CDA Meeting of 5.16.24 @ 33:02.

2. Whitewater’s new CDA majority has proposed a residential development on South Moraine View Drive. See Video, CDA Meeting of 5.16.24 @ 31:47 and professional reporting from WhitewaterWise, CDA recommends approval of 128-unit multifamily development on Moraine View Parkway. This proposal is well-located and would provide a needed boost to our housing supply.

3. Rents in Whitewater are high for many residents.

4. A former CDA chairman, a second-generation landlord, when arguing against these new opportunities for others, concedes his belief that the proposed developments will affect his financial condition:

He [a consultant] mentioned that it would have no effect on student housing. And he’s absolutely wrong.

See Video, CDA Meeting of 5.16.24 @ 36:14.

It’s a candid admission: an acknowledgment that his view is particular, specific, and biased, impacting his interests.

These are not the views of an independent, unbiased analyst. It’s as though someone asked a Volkswagen salesman on commission which car to buy. (Be careful: someone may try to slip in some TruCoat.)

It is an implicit concession that rents will decline in conditions of steady demand and increased supply. With holdings in incumbent properties, this gentleman has a financial interest in preventing an increase in supply that might affect his bottom line.

5. He follows with a disingenuous assertion that he knows of no instance in which the city has provided financial assistance to a project like this. See Video, CDA Meeting of 5.16.24 @ 36:37.

The closer you look at his claim, the less you see.

The claim that there hasn’t been an effort to subsidize is disingenuous because policymakers (and self-interested men) can influence policy not merely through spending but through zoning. They can pay to make something happen, or they can argue against zoning regulations to limit competitors.

These gentlemen once backed zoning liberalization in the mid-Aughts when they wanted more opportunities for rental properties. See from March 2014 Last Night’s Zoning Rewrite Meeting (Residential Sections).

Later, when, as incumbents, they decided that they’d rather not have competition, they began to argue against others’ new properties. From 2014 see Daily Union, Whitewater council eyes zoning for Campus Edge development, where the CDA chairman produced a parade of horribles against more development.

See also FREE WHITEWATER @ Boo! Scariest Things in Whitewater, 2014 (“So a new apartment building at Main & Prince is ‘too extreme’ in design for Whitewater? Well, I would guess that existing landlords must think so. [Update: For consumers, it’s a good thing, and a bad joke that anyone from the CDA would shill against it.]”)

Years later (they’re tenacious!) they similarly fought in 2018 against a project on Tratt Street. See Daily Union, Common council rezones annexed land.

That project has been quite helpful and attractive.

As with the 2014 effort, they argued up and down against more supply to meet demand.

6. Perhaps, as someone now contends, he’s simply an advocate of affordable single-family homes. No, he’s not. These gentlemen have argued against affordable homes in Whitewater. In 2022, they argued against smaller homes, insisting on larger ones instead.

See from 2022 Housing Opportunity and Opportunity’s Adversaries, where these men argued against smaller lots for more modest, affordable homes. Fortunately, at least some lots were approved.

Whitewater’s Common Council, by a vote of 5-2 at its 9.20.22 session, sensibly approved on first reading the creation of an R1-S zoning district for detachedsingle-family homes on smaller lots. A zoning change that offers some builders and buyers, even in limited areas, more options is, prima facie, the right decision.

So what a this lights on for us, lights off for you public policy? It’s this:

A tiny clique of landlords has for years addressed this issue opportunistically. These few wanted to liberalize Whitewater’s ordinances to permit more student housing. And so, and so, there were more student apartments in the center of town. Ah, but when competitors sought approval to build on Prince or Tratt Streets, an incumbent landlord (and sometime public official) used one claim after another under the city’s ordinances to prevent or restrict those competitive projects.

These are proud, private businessmen right up until the time they hold public offices and entreat public bodies to bend to their special-interest desires. 

The larger homes these men advocated would have been out of reach for many residents.

It’s as though you told a struggling person that he should hold off buying tuna until he could afford caviar. A person taking that advice would go hungry waiting.

They opportunistically shift from one position to another while leaving residents without genuine, real options. Wait a bit is easier for men who already have than men and women who would like something affordable.

These gentlemen want the law liberalized when it liberalization suits their bottom line, but want the law restricted when restriction suits their bottom line. They could not be more obvious if they tried. (In my own case, the best policy would be fewer restrictions all the way down, but that’s not the point here. The point is that their views have shifted with their interests rather than the common good, and their interests are not the same as the city’s interests


7. Tax incremental funding comes up as an objection to this project. One should remember that the new CDA’s program here is to meet an existing need for affordable housing. A reminder: food, clothing, shelter. Any tax incremental fiancing now would meet a fundamental need. (I write this, by the way, as a long-standing critic of tax incremental financing; yet, this critic can see that some cases are more important than others, are more understandable than others.)

For years, these older men were involved in tax increment financing for Whitewater. They weren’t critics then; they’re raising doubts now they see competition. (These are not free-market men; they’re a few self-helping businessmen.) 

See from the 2013 Whitewater Register, TIF districts reviewed by city’s CDA:

Expressing optimism with perceived economic improvements, members of the Whitewater CDA recently discussed a number of the areas of the city designated as tax incremental financing (TIF) districts.

Officials briefly went over TIF districts 5 to 8 during a meeting Oct. 23. TIFS 5 and 7 are designated for mixed-use, a term denoting a blend of commercial and residential uses. TIFs 6 and 8, meanwhile, are earmarked for industrial use.

“We’re kind of getting out of the doldrums of this economy,” said CDA Chair Jeff Knight, expressing optimism of future development within the city.

Our current housing needs are, by far, greater than those of any tax incremental plan or other plan that a former CDA has ever advocated in this city.

If these few holdovers from another time would like to lecture others about tax incremental financing, they should first look to their past roles in tax incremental financing in this community.

Most important of all: it’s a city of 15,000 equal people, many of whom have good ideas for our future. A few older men who keep insisting ‘we’ve never done it that way’ or ‘that’s not our history’ only bolster the case for encouraging new officials, new voices, to advance a different way. We’ve not benefited from the public policy advice of the last generation. See A Candid Admission from the Whitewater CDA and Whitewater’s Still Waiting for That Boom.

It’s time — well past time — to blaze a new trail.


Daily Bread for 5.8.24: The Special-Interest Hierarchy of a Small Town (Adjacent Support)

Good morning.

Wednesday in Whitewater will be partly sunny with a high of 75. Sunrise is 5:38 and sunset 8:04 for 14h 26m 27s of daytime. The moon is new with 0.2 percent of its visible disk illuminated.

On this day in 1877, at Gilmore’s Gardens in New York City, the first Westminster Kennel Club Dog Show opens.


In September, I wrote of The Special-Interest Hierarchy of a Small Town:

In a small town, and perhaps elsewhere, there are four tiers within a special-interest hierarchy: principals, operatives, catspaws, and residents. Only the first three serve, reliably, the special interest; the fourth is a large group of unaffiliated people that the special interests must persuade or dissuade repeatedly. 

A special-interest faction, or in the case of the Whitewater Schools an unresponsive board and superintendent, depends on the reliable service of the first three groups (principals, operatives, and catspaws). Some residents, however, may be counted on now and again to support special-interest or insider-group actions. These kinds of residents offer hit-or-miss support. I’ll list a few of them, readily recognizable in Whitewater and towns across the world.

Boosterism and Toxic Positivity. There are always a few residents who feel that criticism is a crime, an offense against man and God, and so must not be tolerated. The boosters feel that accentuating the positive, and burying the negative, is a legitimate (indeed necessary) pursuit. You’ll see them patrol social media looking to rebuke others who offer sincere criticism.

The delusional are sufferers of toxic positivity; the most acute cases are simply lickspittles.

Many of these types are a few moments away from screaming ‘love it or leave it.’ All of those who would do so are ignorant of their own country’s proud history of robust criticism. Even the most degraded hovel in medieval Europe, flea and lice-infested, had apologists of someone’s special schemes. Centuries later, in an America that is a world-historical state, there are still a few locals who live as though American liberties meant nothing, carrying on as though vulgar locals in a rat-dominated hamlet of 1300s Bavaria.

The indictment and conviction of the boosters: narrow of mind and small of heart.

These types, however, are useful as apologists and enforcers of special-interest schemes.

(A better outlook: Tragic Optimism as an Alternative to Toxic Positivity.)

The Concerned Passerby. When faced with a challenge to their position, special interest men cannot always count on themselves as principals, or their operatives and reliable catspaws. Cronyism and entitlement do not run themselves! They’ll look around, and find someone who seems unaffiliated, but is willing to do their work now and again. Although not reliable all the time, these types can be persuaded for a specific task.

They’ll seem like concerned passersby, simply trying to help, but no! They’re truly working to advance a special-interest or closed-government perspective. They’re harder to spot than boosters, sufferers of toxic positivity, or lickspittles, but still identifiable to ordinary residents. They’ll show up and profess simple concern, as ‘adults in the room,’ but after listening to them, it’s clear they’re rationalizing a nefarious cause (e.g., advancing a self-dealer’s plan, or shutting down a discussion).

Scoundrels. Special-interest men want to win, and that means bending public policy to their own ends. Closed-government types want to control public policy without public consent. In both cases, they pervert public life. They create a corrupted, degenerate form of government.

When faced with a difficult challenge, and when smearing challengers is too much even for principals, operatives, and catspaws, they’ll turn to scoundrels. The Oxford American Dictionary offers a plentiful list of synonyms that describe the type (e.g., rogue, rascal, good-for-nothing, reprobate, unprincipled person; cheat, swindler, fraudster, trickster, charlatan; informal villain, beast, son of a bitch, SOB, rat, louse, cur, hound, skunk, heel, snake, snake in the grass, wretch, scumbag, bad egg, stinker).

Scoundrels will say anything to aid a special-interest or closed-government cause, while the principals, operatives, and catspaws delight from a distance. (These main types know what’s happening, hoping it will benefit them, yet hoping it won’t be identified back to them.)

In all of this, however, the overwhelming majority of ordinary residents are normal & well-adjusted. It’s a only few, entitled and avaricious, or entitled and autocratic, who beset and bedevil a community.


NASA Simulation’s Plunge Into the Whitewater School District’s Central Office a Black Hole:

Daily Bread for 5.7.24: Another Fine Public Servant (Mount Pleasant Edition)

Good morning.

Tuesday in Whitewater will be rainy in the morning, partly sunny in the afternoon, with a high of 72. Sunrise is 5:39 and sunset 8:03 for 14h 24m 10s of daytime. The moon is a waning crescent with 0.3 percent of its visible disk illuminated.

Whitewater’s Common Council meets at 6:30 PM.

On this day in 1864, the Army of the Potomac, under General Ulysses S. Grant, breaks off from the Battle of the Wilderness and continues south, presenting a threat to Lee’s army and the Confederate capital city of Richmond.


Henry Redman reports Mount Pleasant village president dumps waste from private pond on public land to avoid cost:

The village president of Mount Pleasant is facing public criticism for using a village-owned property slated to become a public  park as a dumping ground for the waste created by his homeowners association’s dredging of a pond in his neighborhood.

Residents who live near the property say the president, Dave DeGroot, has used his position to skirt permitting rules for dumping and to help him and his neighbors avoid a hefty price tag to haul the waste elsewhere. 

….

Neighbors of the village property say that if they had tons of muck to dispose of, they wouldn’t have the ability to dump it all on village-owned land. 

“Clearly it’s a cost factor,” Kathy Deverney, who also lives near the property, tells the Examiner. “Mr. DeGroot said, ‘Hey I know where we can dump it.’ If in fact they didn’t pay anything, can any association that has a pond that needs to be dredged can get a permit and go dump it on that land for free? Yeah, that’s irritating. He clearly took advantage of the system, undermined the people who work for him.” 

How many times, in towns across Wisconsin, has one heard repulsive self-dealers declare themselves public servants? How many times, in towns across Wisconsin, has one heard repulsive self-dealers reward themselves with participation trophies for their service (as though they were soldiers)? A better description: old-timers disclaiming conflicts of interest while advancing conflicted interests.

Whitewater has had, and still has, a few men like this.


From World Cats Black:

Daily Bread for 2.1.24: Private Company, Public Company, Public Agency

 Good morning.

Thursday in Whitewater will be partly cloudy with a high of 47. Sunrise is 7:08 and sunset 5:08 for 9h 59m 35s of daytime. The moon is a waning gibbous with 63.9% of its visible disk illuminated.

Whitewater’s Ethics Committee meets at 5 PM

On this day in 1942, Voice of America, the official external radio and television service of the United States government, begins broadcasting with programs aimed at areas controlled by the Axis powers.


There’s a difference between a private company, a public company, and a public agency. Ordinary people understand this difference, but special interests conflate these three different arrangements to maximize their influence over wholly public agencies. 

First the distinctions, with help from Matt Levine’s description of Elon Musk’s influence on private companies as against public companies. A private company is held individually or by shareholders with shares that do not trade on a public exchange. A public company is a private enterprise with shares that do trade on a public exchange (e.g., the New York Stock Exchange). Levine writes of Musk’s considerable leeway with a purely private company like SpaceX:

At all but one of his companies, he could stroll into the boardroom, throw a big bag of ketamine down onto the table, and say “I need the company to spend $50 million to build a giant golden statue of me riding a rocket,”1 and

  1. the board would be like “yes definitely let’s do it,”

  2. the board members themselves probably are, or represent, big shareholders of the company, and as shareholders they would happily go along with the statue plan to keep Musk happy and dedicated to their company,

  3. the other shareholders, the ones without board seats, are probably even bigger Musk fans, and are probably working on their own Musk statues in their garages anyway, so they’ll be fine with the company spending their money on a corporate gold statue, and

  4. nobody else really has any standing to complain.

And so in fact when Musk went to SpaceX and asked to borrow $1 billion until payday so that he could buy Twitter Inc., the board was like “here’s the check, we’ve left the amount blank, take whatever you need.” And, look, was there a Wall Street Journal article saying “hey that’s weird”? There was; it was weird. Did anything come of that? No. SpaceX could just do that: Musk controls SpaceX, the board loves him, the shareholders love him, nobody in a position to complain has any complaints, and everybody else is in no position to

SpaceX is a bigger version of many private companies: these companies may have one or more owners, and those owners may be shareholders, but those shares are not available for ready trading by the general public. These owners have considerable leeway. 

By contrast, a public company is also a private enterprise, but it offers shares on a public market to which the general public has access during trading hours. Trading on public markets comes with public — governmental — rules & regulations. (There’s a Securities and Exchange Commission, after all.) Levine explains how rules for a public company like Tesla limit Musk:

Tesla is a public company, which means that, even if 99% of shareholders love him, if 1% of shareholders don’t, they can sue.3 They can say: “Look, the board has a fiduciary duty to manage the company on behalf of all shareholders. Giving Musk a giant golden statue of himself is not necessary, or a good business decision, or fair to the shareholders; it’s just the controlling shareholder fulfilling his own whims with corporate money, and an ineffective board of directors giving him whatever he wants. He should have to give it back.” And they will go to court, and the shareholders will make those arguments, and the board will say — accurately! — “no you see giving him this giant golden statue is necessary for us to get more of his incredibly valuable time and attention,” and that will sound bad in court. And then a judge will get to decide whether the deal was fair to shareholders or not, and if it was not, the judge can make Musk pay the company back. Even if the board, and 99% of the shareholders, want him to keep it!

Levine’s description of Musk ends here, understandably, because Levine is writing about Musk’s role in private and public companies. An analysis of these companies is distinct — as Levine knows intuitively — from public agencies and governmental bodies. 

Special interests, however, don’t see it that way: they look at public bodies (a town council, a school board, or a community development agency) and expect that they can manipulate and control that public institution like a private company. They see a public body as another of their private possessions. 

No, and no again: formed only by statutes and ordinances, maintained only under statutes, ordinances, and publicly-adopted policies, these councils, boards, and agencies are public from alpha to omega. 

Special interest men in Whitewater take public bodies and illegitimately and wrongfully refashion them through catspaws into versions of private companies. In this way, they place their hands around a public agency and squeeze until it does their private bidding.  

Which appointed officials come along matters less to the health of this community than that special interests meet their match from among residents until attrition and exhaustion take their toll on that scheming faction. 


What’s in the Night Sky February 2024

Daily Bread for 10.12.23: National Inflation Rate Holds Steady (and Local Implications)

 Good morning. Thursday in Whitewater will be cloudy with intermittent showers and a high of 56. Sunrise is 7:05 and sunset 6:16 PM for 11h 11m 23s of daytime. The moon is a waning crescent with 4.6% of its visible disk illuminated. Whitewater’s Finance Committee meets at 6 PM.    On this day in 1614,…

Daily Bread for 10.1.23: The Shamelessness of the Special-Interest Men

 Good morning. Sunday in Whitewater will be sunny with a high of 84. Sunrise is 6:52AM and sunset 6:35 PM for 11h 42m 48s of daytime. The moon is a waning gibbous with 93.3% of its visible disk illuminated. On this day in 331 BC, Alexander the Great defeats Darius III of Persia in the…

Daily Bread for 9.30.23: Fierce or Bust

 Good morning. Saturday in Whitewater will be sunny with a high of 82. Sunrise is 6:51AM and sunset 6:31 PM for 11h 45m 41s of daytime. The moon is a waning gibbous with 98.2% of its visible disk illuminated. On this day in 1954, the U.S. Navy submarine USS Nautilus is commissioned as the world’s first…

Daily Bread for 9.25.23: The Special-Interest Hierarchy of a Small Town

 Good morning. Monday in Whitewater will be partly cloudy with a high of 73. Sunrise is 6:46 AM and sunset 6:46 PM for 12h 00m 06s of daytime. The moon is a waxing gibbous with 78.7% of its visible disk illuminated. The Whitewater School Board goes into closed session shortly after 6:30 PM and returns…

Daily Bread for 9.22.23: A Dog-Bite Story (That’s Not Only About Dogs)

 Good morning. Friday in Whitewater will be mostly cloudy with a high of 76. Sunrise is 6:42 AM and sunset 6:51 PM for 12h 08m 45s of daytime. The moon is a waxing crescent with 47.2% of its visible disk illuminated. On this day in 1862, a preliminary version of the Emancipation Proclamation is released…

Daily Bread for 9.21.23: What’s Left of Old Whitewater’s Politicians Put Past Practice Ahead of Principle or Reason

 Good morning. Thursday in Whitewater will be cloudy with a high of 77. Sunrise is 6:41 AM and sunset 6:53 PM for 12h 11m 37s of daytime. The moon is a waxing crescent with 36.5% of its visible disk illuminated. On this day in 1780, Benedict Arnold gives the British the plans to West Point.…

Daily Bread for 9.19.23: There’s a Reason Some Local Politicians Have No Platform

 Good morning. Tuesday in Whitewater will see morning rain with a high of 69. Sunrise is 6:39 AM and sunset 6:57 PM for 12h 17m 24s of daytime. The moon is a waxing crescent with 18% of its visible disk illuminated. The Whitewater Common Council meets at 6:30 PM.  On this day in 1982, Scott…

Daily Bread for 9.13.23: Who Holds the Leash?

 Good morning. Wednesday in Whitewater will be partly sunny with a high of 66. Sunrise is 6:33 AM and sunset 7:07 PM for 12h 34m 37s of daytime. The moon is a waning crescent with 2.2% of its visible disk illuminated. On this day in 1948, Margaret Chase Smith is elected United States senator, and…

Daily Bread for 8.14.23: Two Wisconsin Congressmen Beg Court on Behalf of Their Donors

Good morning. Monday in Whitewater will be rainy with a high of 70. Sunrise is 6:00 AM and sunset 7:57 PM for 13h 57m 01s of daytime. The moon is a waning crescent with 3.2% of its visible disk illuminated. The Whitewater School Board’s Policy Review Committee meets at 9 AM. In the afternoon, the…