[Vision2020] Palouse Monopoly Empire Mall; Gas/Food prices

Mike Deleve coolerfixer at adelphia.net
Sun Apr 22 12:42:05 PDT 2007


Donovan- nice condecending tone. One question though, have you ever signed a commercial triple net lease? No? So you really don't know what you're talking about. So in the mean time, STFU!!!!
  ----- Original Message ----- 
  From: Donovan Arnold 
  To: Mike Deleve 
  Cc: vision2020 at moscow.com 
  Sent: Sunday, April 22, 2007 3:31 AM
  Subject: Re: [Vision2020] Palouse Monopoly Empire Mall; Gas/Food prices


  Mike,

  Tenants don't pay property taxes, they pay fees that the property owners pass onto the tenants. I checked this with the County Assessors office a year or so ago.

  What you don't seem to follow in my argument is that if the Palouse Empire Mall was forced to pay the taxes or lose all of its tenants. It would choose to pay the taxes.  

  Let me explain it this way, Mike. If management raised your rent from say $1500 a month to $2000 a month, and the taxes were raised $300, your rent would go from $1500 a month to $2300 a month. If the most you could afford was $2000 a month, then PEM would have to either lower your rent down $300, or lose you as a tenant. If it loses you as a tenant, it still has to pay the property taxes, and it has lost income from a tenant. If all businesses caved unless the PEM lowered rents, it would lower rents rather than lose every tenant. PEM can only charge what its richest tenants can afford. PEM would have to counter act the government's increases through lower rents, or go bankrupt. 

  I hope you followed that. 

  Let me also point out that the PEM is already forcing out non-chains and locally owned businesses anyway. So the only businesses we would be taxing from would be big national chain stores competing with small locally owned shops. And even if it didn't remove all the private locally owned businesses, remember, the taxes collected would be given to locally owned merchants as tax breaks. 

  You are already out of the mall for a reason, Mike, you were not good enough for PEM Management. Why you want to protect these people, that did you in unjustly, only baffles me.

  Best,

  Donovan 

  Mike Deleve <coolerfixer at adelphia.net> wrote:
    Gee Donovan, what a great idea! As a former tenant of the Palouse Empire Mall, I can speak with great confidence about the taxation there. Let me be very clear here. IT'S NOT THE MALL THAT PAYS THE TAXES!!!!! IT'S THE TENANTS!!! Furthermore, the "common area" space taxes are paid through common area fees.Common areas include the parking lot and any non retail space inside the mall, as well as any green areas outside. It's all divided up through a convoluted formula based on store frontage and total square footage of the store. So, no, the mall owners aren't going to be taxed any more at all. This is a very sore subject for me, I had months that the common are fees exceeded $2000.00 per month! That was for my little 600 square foot store. So yeah, lets revalue the mall, increase the taxes, chase away the remaining businesses in there so people have even more reason to spend money in Spokane. Sheesh.
      ----- Original Message ----- 
      From: Donovan Arnold 
      To: Ellen Roskovich ; vision2020 at moscow.com 
      Sent: Saturday, April 21, 2007 1:11 PM
      Subject: Re: [Vision2020] Palouse Monopoly Empire Mall; Gas/Food prices


      Food prices are only going to go up even more for several reasons;

      1) The massive extinction of honey bees has created a void in pollination of 1/3 of the US food supply. 60% of honey bees have died, with no cure or solution in the near future.

      2) Increases in fuel prices increase the shipping costs of food. 

      3) Many crops were wiped out this year due in the freakish winter storms. For example, oranges had a massive freeze.

      4) The UI and WSU student populations have decreased, the main income for Winco. With a reduced volume in sales, Winco has to raise prices to cover losses in volume sales.

      5) No competition. With no other discount grocery stores in the area, like say a Super Wal-Mart, Winco can raise its prices with no consequences, everybody has to eat.

      6) The owners of the Palouse Empire Mall are raising their rents. 

      I think it is obvious, Moscow needs competition in the area to curve rising prices. It also needs to do some sting operations on gas price fixing which obviously is going on. 

      Maybe, many of you guys should call Pat Vaughn and ask him to reassess the property value of the Palouse Empire Mall, which is monopoly. Perhaps if the mall can make such huge increases in their leases, the value of the only active retail mall on the Palouse is much higher than what the County Assessor has it listed as. 

      If I had the time, and a personal interest at stake, like so many of you do, I would contest the taxable value of the Palouse Empire Mall. It is clear that it has a really high value since it is able to charge so much for its lease spaces and has no real competition. Moscow is probably losing $100,000s in tax revenue that could go to things like finding a new space for the public bus to park on the west side of town, and to give property tax breaks to locally owned businesses that are having a hard time due to the fact no mall will let them conduct business on their property. Just a thought to those litigious and want what's best and for our community.

      Best,

      Donovan

      Ellen Roskovich <gussie443 at hotmail.com> wrote:
        As the cost of gas continues to climb at the pumps, the price of food starts to rise at the grocery stores.  Has anyone else noticed this recently?

        Ellen Roskovich


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