Knowing About Memphis Part 7-Wells Fargo & Foreclosure Costs

Today in the news was the big announcement that the City got $7.5 million from Wells Fargo. To be honest, $7.5 million doesn't seem like much, considering the civic costs and emotional trauma Wells Fargo inflicted on this city. Some quick numbers, over a 5 year period, Wells Fargo foreclosed on almost 1,200 households in Shelby County, 95% of which were in Memphis. $7.5 million divided by 1,200 gives you a little less than $6,500 a foreclosure. Below is a map of Wells Fargo foreclosures.

You can see they happened in predominantly minority areas of the city and not entirely in areas losing population, one of the primary points of their defense. Memphis and Shelby County hasn't done this but a few years ago the Home Ownership Preservation Foundation did a study in Chicago to figure out all the costs to local government related to a foreclosure. They looked at everything from filing records at the Register of Deeds, to building inspections, to court costs, to a police call, to property tax loss, to fire suppression. The study is called "Collateral Damage: The Municipal Impact of Today's Mortgage Foreclosure Boom". The broke down the combined costs for the 5 likely scenarios that would happen with a foreclosed property. Scenario A cost $430, B $5,358, C $13,452, D $19,227, and E $34,199. If Memphis had a similar matrix to calculate costs, we could see what proportion of Wells Fargo foreclosures fell under each scenario and know if we got ripped off. Lets not forget that Wells Fargo displaced nearly 1,200 families over 5 years. How much stress did that do to those families? How many kids had to switch schools? How much stress did that put on social service providers already swamped in a city with 25%+ poverty rate? Lastly, while today Wells Fargo was happy to stand in front of the camera and talk about how much they wanted to help the community, a couple years ago they weren't so excited to be in front of the camera here in Memphis.

Knowing About Memphis Part 6-Memphis Tomorrow and the CA

Today in the Commercial Appeal, there was an article about how "irked" Mayor Wharton was about the ad running criticizing local government giving away tax breaks to corporate and real estate interests. In the article Memphis Tomorrow was mentioned and the Memphis Fast Forward Plan. A lot of people don't have any idea who Memphis Tomorrow is and why it should be granted such large role in shaping public policy. Their first introduction to Memphis Tomorrow was most likely the Consolidation fight a couple years ago. I thought it would be enlightening to take a look at Memphis Tomorrow and it's relationship with the CA, since they do so much to shape the subject matter and tone of political discourse here. First, it should be remember that the CA editorial board and Memphis Tomorrow are made up of people. They are people with families that live the same neighborhoods, who go to the same churches, parties, stores, and restaurants, and their kids to the same schools. Many underestimate the role of how social circles and environments play on shaping political (policy) narratives and frameworks of acceptability. Taking a look at the first map, you can see how small and close knit the Memphis Tomorrow and CA editorial board are with themselves and each other.

One of the most interesting things I find about Memphis Tomorrow is how relatively politically inept and ham handed they are. Especially in the Consolidation fight. To say Memphis Tomorrow has little to no legitimacy outside the Poplar Corridor and halls of government would be an understatement. Why is this? Memphis Tomorrow has 20 members. Six are high turnout democratic voters. Three are high turnout republican voters. Three others are slightly leaning republican voters. One is completely nonpartisan. Another member has voted once, two have never voted here in Shelby County, and one has not bothered to vote in several years. Some of them might be new but that still begs the question why do you get to be on Memphis Tomorrow since you just got here Yesterday? Also, check out the proximity with which Memphis Tomorrow members live to each other. Almost half of them live in the same neighborhood as another member. Hell, the publisher of the CA is in Memphis Tomorrow and has two members living right by him. Aside from a couple members in Cordova, they don't live by many black folks either. (It should be noted one of the Memphis Tomorrow members living in Cordova is black so I'm not sure how that counts.)Is it any wonder the organization can not relate to most of the public and the issues those people face.

The focus of the ad so "irking" Mayor Wharton is about tax breaks and squandering resources. Here's a map of PILOTS. Notice how the Center City Commission has giving away our tax base like it is candy. Remember that the redevelopment of downtown was supposed help everyone in the city. Most of those CCC PILOTs are for real estate development (apartments, condos, etc) not necessarily economic development. The city has a whole subsidizes real estate development without seeing much returned to the tax base, at the same time city government tells employees and citizens not in downtown we must all sacrifice because of narrowing tax base. I wonder why that negatively resonates with so many Memphians?

The final map is about bubbles. Now certainly the candidates running against Wharton were not stellar, but almost everyone of the CA editors and Memphis Tomorrow members had a fairly good chance of not even knowing a person that didn't vote for AC. Seriously, some precincts voted 97% for AC. Saddam Hussein had to actually kill to get vote percentages that high. (I heard Sacha Baron Cohen will play AC in the movie of his life. Just joking) This illustrates group think and what is that? Corporatist Neo-liberalism. The ad is referencing AC's political Achilles Heel. A lot of black folks in Memphis are not feeling they are benefiting from Memphis Fast Forward.

Knowing About Memphis Part 5- Worker Commuting Into Memphis

This week Edmund Ford proposed an auto inspection fee for residents of Memphis and non-resident who come into the city 3 or more times a week regularly. Here is the article in the CA . I like this idea as a starting point but I do not think it is ambitious enough. Since the city is able to create a database of drivers entering the city, it can also determine when these drivers are entering the city. This is important because rather than a flat fee applied to everyone for inspection, you charge an additional congestion tax. Drivers who regularly enter the city during peak traffic times (6:30 to 9 am) Monday through Friday are disproportionately contributing to road congestion and air pollution. The city's data collection system will also give information on the type of car is driven. If you drive Chevy Suburban into the city, not only should you get the flat fee and congestion tax, you should also get a heavy vehicle tax. This helps pay for the road repair done to Memphis streets. The heavier the car the more it contributes potholes and infrastructure wear and tear. It is only fair those drivers be held responsible for their personal choices in vehicle type. Here are some maps and charts showing commute times and how many people come to work in Memphis from various communities.

Arlington

Bartlett

Collierville

Germantown

Hornlake

Lakeland

Millington

Olive Branch

Southaven

West Memphis

Just running a quick calculation of how many people from these surrounding communities work in Memphis show over 24,500 people. That is 24,500 new City of Memphis tax payers.