Reidblog [The Reid Report blog]

"My wonk-ish hope is that more attention will be paid to bogus community redevelopment/urban blight eradication/tax increment-financing schemes masquerading as "public use" projects. In the New London case, the private corporate beneficiary was Pfizer, the pharmaceutical giant. In Seattle, it was Nordstrom (reg reqd). Across the country, it's money-losing multiplexes and luxury stadium deals. In all cases, the losers are taxpayers, homeowners, and small businesses..."

In 1993, while walking through the stadium, Bush told the Houston Chronicle, "When all those people in Austin say, 'He ain't never done anything,' well, this is it." But Bush would have never gotten the stadium deal off the ground if the city of Arlington had not agreed to use its power of eminent domain to seize the property that belonged to the Mathes family. And evidence presented in the Mathes lawsuit suggests that the Rangers' owners -- remember that Bush was the managing general partner -- were conspiring to use the city's condemnation powers to obtain the thirteen-acre tract a full six months before the ASFDA [Arlington Sports Facilities Development Authority [... which was set up by the city to condemn land for, and administer, the Ballpark at Arlington project] was even created.

In an October 26, 1990, memo from Mike Reilly (an Arlington real estate broker and part owner of the Rangers), to Tom Schieffer, Reilly says of the Mathes property, "... in this particular situation our first offer should be our final offer.... If this fails, we will probably have to initiate condemnation proceedings after the bond election passes."

The Mathes memo reveals a sharp contrast between Bush's public pronouncements in defense of property rights and his private profiteering. While running against Ann
Richards, Bush said, "I understand full well the value of private property and its importance not only in our state but in capitalism in general, and I will do everything I can to defend the power of private property and private property rights when I am the governor of this state."

Yet Bush and his partners used Arlington's powers to condemn the land for the stadium, and relied on taxpayers to repay the bonds sold to build the Ballpark -- receiving what amounts to a direct $135-million subsidy. Now, after tripling the amount they paid for the Rangers, Bush and his partners won't re-pay the city a measly $7.5 million.

Briefly, here’s what happened on the Ballpark deal. Bush and his partners in the Rangers convinced Arlington officials to:

• Pass a half cent sales tax to pay for 70 percent of the stadium;

• Use the government’s powers of eminent domain to condemn land the Rangers couldn’t or didn’t want to buy on the open market;

• Give the Rangers control over what happens in and around the stadium;

• Allow the Rangers to buy the stadium (which cost $191 million to construct) for just $60 million;

Finally, after twelve years as the sole occupant and primary beneficiary of the stadium project, the Rangers, a privately owned business, can take title to the most expensive stadium ever built in Texas for the $60 million worth of rent and upkeep they will have already paid the city.