To: The BOD of the NCNCHINC & Appropriate Governmental Agencies
From: Rev. Frank Paul Jones – President
RE: Avon Park’s Non Profit Sector and Our Economic Recovery:
Date: 20 August 2011
We at the NCNCHINC find ourselves in a state of emergency. The worst recession since the great depression gone worsted can lead to economic disaster here inHighlandsCountyand especially here inAvon Park,FLin the small business sector of the Southside Redevelopment Area.
In the coming fiscal year 2011-12 starting on October 20th, we must begin serious fund raising activities. The development of the Southside Redevelopment Area will not be without hurdles, as properties that are a part of the overall plan are in a worst state than the blue temple headquarters building. In my opinion the main problem with the NCNCHINC is complacency, because while we are in a depression here inAvon Park,FLand perhaps the country, we seem to think that we are have time as if it is on our side and it is not. If we watch others fold in silence our turn will also come!
Small business after small businesses are losing their corporate protections due to failure to submit annual reports to the Florida Department of Corporations. It does not stop there, it gets worst and more desperate. Many businesses here in the Redevelpment community ofAvonParkare going under for taxes. So we have a serious problem, businesses cannot make earnings with the doors closed for many years at a time and therefore here in Avon Park, FL we need a economic stimulus package to transition our businesses into long term sustainable properties. As things stand many business owners will lose their properties due to failure to pay their property taxes.
In this economy money is King and credit is hard to come by on real estate transitions in the State ofFlorida. Due to the enormous volume of mortgage foreclosures in the state ofFloridaeven banks are not as liquid as we would expect. In fact, banks are even going under, as the government is making cutbacks. So where could we possibly find stimulus money to ignite this local economies?
The Problem:
The Government needs more revenues and it is making cutbacks. The government is going to get smaller serving people less in order not to bankrupt. Many businesses felt the squeeze long before the government, especially in poor rural areas, where population expansion was expected and did not flourish due to the real estate market crash.
What you have here inAvon Park,FLis similar to places likeDetroit,Las VegasandAtlantic Citywhereby whole markets are failing. Whereby inDetroityou had the fall ofMotorCityand inLas VegasandAtlantic City, we saw the effects of how motor cities of some sort across the country caused a decrease in discretionary spending so places where people vacation was hit hard. Here inAvon Park,FLthe agriculture industry caused local bushiness to fold as they depended on agricultural workers to thrive.
As migrant workers replaced the local people in the agricultural fields, the economic downturn in the black community escalated here inAvon Park,FL. The Southside Redevelopment Area had a unique business design that is outdated and obsolete today for a sustainable local economy. The Southside Redevelopment Area used to be all Jug Joints and it was sustainable when the local community was supported by the agricultural industry and its employees.
Now the work hard and play hard mentality, meaning pick fruit and then get drunk days are gone. More people in the local community is in line with part-time jobs at retail establishments on Highway 27 and very few people have a single living wage job here inAvon Park,FL. Therefore the survival of the Southside Redevelopment Area of Avon Park, Fl, after development depends on a new business configuration. People do not live off of alcohol and drugs alone and in hard economic times the business structure has to be based on supplying the essential needs; as consumer demands will be determined by the lack of discretionary resources.
People cannot buy what they cannot afford, however we will not be ignorant to the fact that during hard economic times such as the great depression of past is evidence that people drink more alcohol and use more street drugs out of emotional and psychological stress. A lot of people simply will give up on life and this is expected but not desired, for only the strong will survive unless the strong also lifts the weak and perishing, leaving no one behind.
It is my position that Government, the People and the Local Businesses must partner together to battle this evil economy out to destroy whole nations in the world one after another. However, there is hope in a strong recovery if mapped out properly.
The Solution:
Before we can honestly forecast increased revenue at government level and decrease spending based on these forecasts, we have to acquire close to actual numbers. Tax owed is not tax collected especially in these economic hard times. Many businesses are behind on their taxes and may well never recover without some sort of forgiveness program. And we must also take into consideration that counting on revenue that is not recoverable can lead to economic disasters here inAvon Park,FLand the Nation abroad.
What I am about to propose is a corrective action and a budgetary effective measure.
The Economic Stimulus and Forgiveness Program
First; we will apply here inHighlandsCountyas a prototype to extend to major cities, an intuitive to place businesses in a position to be a service to the Nation, State, County and City, as we must really ask “What can we do for Country, in the worst recession since the great depression turned worsted?”
First step is to give a one time County property tax pardon relief, to businesses that qualify under this program. The basic guidelines should be that the property is a part of a determined Redevelopment Area and the owners can prove financial hardship and the inability to pay their property taxes and the business is at a competitive disadvantage. If already tax exempt this does not apply but does not eliminate the business from the program as one shoe does not fit all.
The business has to make a commitment to do charitable work or some other non profit service determined as essential to the fight against the economic crisis.
The logic to this is that some businesses simply cannot pay the past due taxes due to the business operation is not functional. A lot of these small businesses are owned by families hit hard by the real estate crash and the changes in the economy. We are talking about people who often receive government support in one way or another, to include but not limited to food stamps, social security and welfare.
In the case of the Southside Redevelopment Area of Avon Park, FL, many businesses are failing as I said due to economic trends. We have families with businesses that are not functional and bringing in no revenue, falling apart and costing the family a tax burden in a market that is totally a buyers market. And often a decision has to be made as to either or, meaning to keep the home and let the business go as a means of survival.
The tax certificate is sold with interest to the buyer and if not paid up in 7 years cumulatively to the purchase of tax certificates, the property changes ownership. This is fair in a strong economy, but as big businesses has been bailed out for hundreds of billions of dollars, this would be small in comparison as it will come from 4 tiers, allow for share burden.
We should give a one time tax relief to small businesses experiencing financial hardships due to economic trends, that are willing to become non profit and do community service.
Second Step is to follow up on the conditional order and allow for a free application thru the State Department of Corporations to incorporate these business entities as a non profit corporation. This has to be done within 90 days of the tax relief.
Third Step is to allow for a $400 application fee exemption when applying for 501 c 3 statuses with the federal government. If the corporation exceeds the $10G financial projection they will be able to afford the Additional $400 that will be owed the IRS.
Fourth Step is for qualifying businesses the $5,000 façade grant inAvon Park,FL should be made available without matching funds by said business provided that the maintenance given will allow the business to pass building inspections on the exterior part of the property.
Overview
Federal: Charitable Organization Statuses 501 c 3 – $400 fee exemption
State: State Department of Corporation Certification – State Fee exemption – about $50 – $100
County: Property Tax Relief - One time Property Tax pardon – up to $50,000
City: Renovation Façade Grant – $5,000 – $15,000 grant without matching funds
Elaboration
This idea is cost effective without any real additional spending by government, that will create a stronger community during economic hard times as such a current day reality. At the same time it takes out of business signs down and back into business signs up. It really will cost nothing to implement when you understand the business design and how to funding is delivered.
The first step the county tax relief sounds large, as it could be as high as a couple of thousand dollars to as much as $50G in big cities or not to exceed $50G. However, aside from the tax certificates sold the tax revenue is unrecoverable. Why? Because we are talking about businesses that are not in operation and have not been in operation for over two years or more in many cases which attracts crime. Therefore the condition of these properties are often not attractive further bringing down property values in an already bad real estate market. This is the best investment the county can make in the Southside Redeployment Area ofAvonPark, FL and places like this around the country.
The second step the Certificate of Incorporation, will probably cost the state little or nothing in administrative costs.
The third step of the federal exemption for 501 c 3 statuses again will cost very little in administrative costs. While the costs are low to the government it
will be considered large scale government spending at Federal and state levels.
The fourth step the façade grant not only beautifies these neighborhoods, but should be the springboard to reopening the business to the public.
Sincerely,
Rev. Frank Paul Jones
One Comment
From: Sen. Rubio FL-(R)
Dear Reverend Jones,
Thank you for contacting me in regard to the job market and its effects on our economy and the American taxpayer. One of the most significant challenges we face as a nation is an overwhelming debt and a stagnant economy. We must immediately address these issues in order to put more people to work and achieve a fiscally secure future, including changes to our tax code through common sense reforms and reforming our regulatory structure.
As of July 2011, the Bureau of Labor Statistics (BLS) has put our unemployment rate at 9.1%, up from 7.8% in January 2009. Jobs will only be created when job creators feel confident in the economic climate. What America needs is more taxpayers, not more taxes which can only be achieved when businesses are assured the economy is stable and begin to hire again.
Our overwhelming debt and growing deficit are being exacerbated by a complicated tax code. Our economy can only grow if we increase the availability of jobs and attract investment to promote the growth of business. In order to accomplish this, we must reform our tax code. Tax reform must include a simpler code and lower taxes across the board.
Unfortunately, taxes have increased more than $670 billion since January 2009. Reliance on these anti-competitive tax increases will cause more economic uncertainty, stifle job creation and keep America on a path toward a diminished future, at a time when unemployment is high.
In order to work toward steady job growth, we must take tax increases out of the conversation in Washington. Unless Congress acts expeditiously, every taxpayer will see unprecedented tax increases in 2013. We can encourage investment in the United States for both foreign and domestic businesses and establish an atmosphere where job creation is easier than it is under our current economic climate by taking tax hikes off the table.
I am also concerned about the unprecedented increase in federal regulations imposed on Florida from Washington, D.C. For example, the Environmental Protection Agency (EPA) is moving forward with a variety of new, top down mandates that will act as a national energy tax and hurt the economy in the process. In total, the Administration has added over 50,000 new pages of regulations to the books this year alone, forcing employers to focus on government paperwork – not on creating jobs at a time when unemployment remains above nine percent. Instead of allowing agencies to continue enacting policies without Congressional approval, I strongly believe Congress should enact pro-growth regulatory reform that ensures agencies take into account the economic costs of new regulations on the economy. I have cosponsored a variety of bills that would help overhaul our regulatory structure – notably, the Regulations From the Executive in Need of Scrutiny (REINS) Act, which requires Congress approve regulations costing the economy $100 million or more per year before they go into effect. Along with an overhaul of our outdated tax system, regulatory reform is an essential part of growing our economy and creating jobs.
I was elected on pro-growth economic policies that would reform our tax code and regulatory structures to help create jobs. The American people have every reason to be disappointed by Congress’ unwillingness to fix our complicated tax code and our burdensome regulatory structure. As Florida’s junior senator, I will keep your thoughts in mind as I work to grow our economy and assist in the creation of jobs.