Tuesday, September 30, 2008

Just Empty The Damn Dishwasher Already

The drama unfolding in our nation's capitol yesterday reminded me of watching my two teenage sons argue over whose turn it was to empty the dishwasher. Each boy presents passionate explanations and defenses as to why he should not have to sully his hands with such a menial task as lifting dishes, glasses and silverware from the appliance under the counter to the cabinet and drawer above the counter.

As you listen to the arguments made individually you might even find yourself siding with one boy over the other. But you don't because you're the parent and you just want the damn dishwasher emptied and you don't see what the big deal is, seeing as both boys live rent free and eat rather well. If the world made sense, if it were fair and just, the boys would be fighting over who would show their parents just how grateful they are for the largesse of living under someone else's roof.

If the world were fair and just and made sense our elected officials would welcome the opportunity to do the right thing for the country. Instead we get "This is all his fault" and "I'm not going to vote for this if she's going to take that attitude."

The only way to settle the dishwasher debate is for the parent to step in and say, "Enough! You both live here, you both have to empty the dishwasher. Figure it out and get it done." Then you walk away and come back a few minutes later to make sure the deed is done.

That's what we as voters need to do. Call our representatives in Congress and say, "Enough already. Get it done." To their credit, all five Congressional representatives from Long Island - Peter King, Steve Israel, Tim Bishop, Carolyn McCarthy and Gary Ackerman - voted for the bailout. They need to convince their Congressional brethren, however, of the gravity of the situation, that this is not the federal government bailing out the "fat cats" of Wall Street but rather the government doing what it is supposed to do - step in where needed to ensure that the country can function.

The longer we wait, the deeper the hole. Get it done already.

Monday, September 29, 2008

$700 Billion Is A Lot of Money

During the "Weekend Update" segment of "Saturday Night Live" this past weekend, anchorman Seth Meyers reported that "$700 billion is so much money that I can't even but it into perspective as to how much money it is," or something like that.

The point is, it is a lot of money. Of course, nobody knows if that is the actual amount this bailout program will cost the American taxpayer - or even how the American government will come up with the scratch. But it is a nice round number and Americans love round numbers so everybody is running with it.

I could not even begin any kind of authoritative discussion regarding the merits of this bailout program in this space. I do know, however, that the country in general and Long Island in particular needs to move on, and quickly. The sooner we can be in a position to say, "Well, if you think this is bad, you should have been there in 2008!" the better off we all will be.

Unfortunately, just as there is no rewind button in life there is no fast-forward control either. We must do what we can with what we have, even as we read about New York State controller Thomas DiNapoli ruling last week that workers must be on the job six hours a day in order to be considered a full-time employee of the State. Six hours! Most LIBI members work six hours before they take lunch. Then, in this morning's Newsday, several local municipalities revealed that they are trimming their budgets by not filling job vacancies caused by retirement. If those jobs do not need to be filled, then how important were they in the first place? Why wait for the people to retire? If the position is unnecessary, then why not eliminate the positions now?

That won't happen, of course, because governments operate with Monopoly money. Unfortunately, landing on Free Parking with $700 billion is not an option. We'll just have to pass "Go" 3,500,000 times before we can pay off the debt.

Friday, September 26, 2008

Builders to the rescue, face flak anyway

Amidst the reports this past week about the economic turmoil and financial chaos that looms on the horizon were two news stories about builders looking to develop significant housing projects on Long Island.

Given the Island's well-documented housing shortage - not to mention the utter lack of building activity of late that has idled every aspect of the industry as well as dried up several revenue streams for local municipalities - you would think that such announcements would be greeted with huzzahs, if not a parade down Main Street.

But no - this is Long Island. Both stories featured headlines highlighting the fact that local civic groups plan to fight the development.

The first, "Groups to fight planned development in Middle Island", appeared in Newsday on Wednesday. The following day saw this article, "Hicksville developer struggles to win over Islandia neighbors", appear in the Long Island Business News Flash Report.

There is hope, however. To her credit, Brookhaven Councilwoman Connie Kepert supports the project. She gets it, if you will, and is quoted in the article as saying, "the 39-acre project would be a boon for Brookhaven's tax base and fit into the town's development plan for Middle Island. She said the project includes about 18 acres of open space and would be a walkable, urban alternative to typical Long Island sprawl."

The article also mentions that the developer, Frank Weber of Sandy Hollow Estates, has the right to build 34 single-family homes on the property under the current zoning. Kepert smartly points out the sewage treatment plant planned for the development would release less nitrogen than 34 homes built without the plant.

The developer plans to leave 18 acres for open, walkable space at no cost to the local taxpayer. That fact is buried six paragraphs into the story, however, and is conveniently ignored by Dick Amper, the leader of the groups vowing to fight the effort.

The second article reports on Pinewood Development Corp.'s plans to build a condo community where a horse farm now stands. The neighbors say the "traffic will be a nightmare," even though the horse farm itself at one time accommodated hundreds of customers and tractor-trailers coming and going all week long. The owner of the horse farm, according to the article, can no longer keep his farm operating at a profit and is perfectly within his right to sell his property to Pinewood.

The Long Island Builders Institute will keep a close eye on both projects. We salute Councilwoman Kepert for her willingness to consider the big picture, although we fear in doing so we will make her a target of Amper's Army. Of course, her day job involves teaching teenagers in high school so we have no doubts about her ability to deal with the angst Amper plans to send her way.

Thursday, September 25, 2008

Races Worth Watching - Trunzo in the Lead

A Newsday article this morning points out that a Siena Market Research study shows the races across the state for New York Senate positions are still very much up for grabs.

According to the article, written by Rick Brand, "Veteran Republican state Sen. Caesar Trunzo, facing the toughest race in his 36-year career, has a 6-point lead in a new poll, but his foe, Brookhaven's Democratic Supervisor Brian Foley, says the survey shows he's "within striking distance" and that Trunzo has "already peaked."

The article goes on to report: "The Siena Research Institute poll of 405 likely voters with a margin of error of plus or minus 4.9 percentage points, shows Trunzo leading Foley 46-40 in a race where Senate Democrats have so far spent $291,000, their most money statewide. The poll also showed Long Island's newest state senator, Democrat Craig Johnson, leads Plandome Manor Mayor Barbara Donno 49 percent to 25 percent."

The Senate races bear watching because the Democrat-controlled Assembly passed a number of bills that were detrimental to the building industry. These bills - listed below - died in the Republican controlled Senate. This is why LIBI co-hosted with the New York State Builders Association a fund-raising event for NYS Senate Majority Dean Skelos of Rockville Centre. We know we can count on Dean to keep a watchful eye on matters that could present problems for Long Islanders in general and builders in particular.

LIBI encourages all of its members to do what they can to support the elected officials who understand how valuable the building community is to the economic well-being of Long Island. We will spotlight these officials in this space as time goes on. Stay tuned.

LEGISLATIVE PROPOSALS APPROVED BY THE DEMOCRAT-CONTROLLED ASSEMBLY:

• Allows a person to institute an action for a violation of the provisions of the environmental quality review even if the injury does not affect the public at large.
• Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work
• Authorizes the commissioner of labor to implement rules and regulations regarding the removal of lead, asbestos, and other hazardous waste
• Provides for riparian/littoral property lines to be shown on subdivision maps that are contiguous to water bodies of the state.
• Requires the commissioner of health to take action when areas of lead poisoning are designated; the commissioner of health is also required to provide written notice instructing such condition be discontinued within a specified period of time
• Directs the department of environmental conservation to update any forms or documentation prepared by such department which are designed to assist applicants and lead agencies in determining whether certain projects or actions have a significant effect on the environment; and provides such updates shall ensure the consideration of certain changes, including, impacts on sensitive populations such as children
• Establishes requirements for notice, access to information and public comment period with respect to uniform procedures for pending environmental protection agency projects and regulation.
• Requires applicants seeking land use approval from a municipal corporation to certify compliance with applicable state zoning and building procedures and requirements.
• Relates to requiring notice to neighboring landowners of intention to develop in wetland areas.
• Requires agencies to post contractor utilization plans on the agency website
• Requires state agencies, departments or authorities which let more than ten million dollars in service and construction contracts to establish mentor-protege programs to enable the development and success of small, minority, and women-owned businesses.
• Enacts the "New York State fair pay act"; provides that it shall be an unlawful employment practice for an employer to discriminate between employees on the basis of sex, race and/or national origin by paying different wages.

Wednesday, September 24, 2008

Do The Right Thing

Builders know better than anyone that there are no shortcuts when it comes to doing things properly. You might get away with a cut corner in the short term, but eventually it will catch up to you.

In the late 1990s / early 2000s I worked for an Internet company trying to launch a regional search engine (longisland.com). From a distance we watched as investors poured ridiculous amounts of money into Web sites that were more-often-than-not little more than "a good idea" hatched from the brain of a poorly-shaven 20-something. My favorite site was boo.com. Back then it was going to set the fashion world on its ear with its new "business dynamic" of selling designer clothes over the Internet. It burned through $188 million in six months. Its subsequent crash in May, 2000 proved to be a precursor of the tech-bubble bursting that launched the country into the economic troubles of the early 2000s.

Lately we have been learning quite a bit about mortgage brokers and lending institutions taking shortcuts and, quite frankly, providing mortgages for people who had no right signing on the bottom line. There's lots of blame to go around for this fiasco, and as expected our friends on Capitol Hill are lining up for the opportunity to get on camera so they can "demand answers" well past the point where those answers will do us any good.

Had everyone done their job when they were supposed to, of course, we would not find ourselves in this economic mess. If the lenders did their due diligence, if the regulators paid attention to what the lenders were doing and if the folks getting the mortgages had exercised responsibility and not signed for something they could not reasonably expect to pay back, then we would still be plodding along - perhaps not as busy as we were during the "boom years" but certainly not floundering as we are now, wondering just where the bottom is.

But they didn't and now we have a mess to clean up. Clean it up we will - hopefully soon - and when we do we will go back to building houses. Sturdy, well built houses that will stand for decades to come. Because when LIBI builders build, you can be sure they will do the right thing.

Tuesday, September 23, 2008

Where's the Accountability?

If LIBI members ran their businesses the way the government goes about its daily operations, the world would be in a lot more trouble than it is in right now.

Take these news items, for instance.

This morning's New York Daily reports that "despite enacting a state hiring freeze, the Paterson administration created a $140,000-a-year job for a recently retired Queens assemblyman. Ivan Lafayette, 78, was named deputy superintendent for community affairs at the state Insurance Department...The higher pay will also help him boost his pension, which is based on the combined average of the last three years of a person's salary."

Closer to home, the North Shore Sun has a cover story this week detailing how the Suffolk County Deparment of Public Works changed the speed limit signs on the William Floyd Parkway to 45 miles per hour from 55 mph. What's newsworthy about that? Funny you should ask.

Turns out the Brookhaven Town Board voted to lower the speed limit in 1992! It took 16 years but SC DPW finally got around to posting the new limits!

Or how about this one from the Sunday New York Times: "Virtually every career employee — as many as 97 percent in one recent year — applies for and gets disability payments soon after retirement, a computer analysis of federal records by The New York Times has found. Since 2000, those records show, about a quarter of a billion dollars in federal disability money has gone to former L.I.R.R. employees, including about 2,000 who retired during that time.

"The L.I.R.R.’s disability rate suggests it is one of the nation’s most dangerous places to work. Yet in four of the last five years, the railroad has won national awards for improving worker safety."

Now, I don't know Ivan Lafayette from Marquis de Lafayette, I rarely drive on the William Floyd and I know my brother in-law works real hard at his job at the LIRR. I mention these items because they epitomize why Long Islanders get socked with some of the highest taxes in the region. Inefficiencies and government officials "taking care of each other" have been the norm for way too long. Long Islanders have to start holding our elected officials more accountable because we can no longer afford business as usual.

Years ago I attended an LIA breakfast featuring the two county executives reporting on the state of their respective economies. One of them went on and on about how he had reduced the number of "non-essential" employees on the county payroll. One of the business owners at my table looked around at his table mates and wondered aloud, "How many 'non-essential' employees do you have on your payroll?"

LIBI members have all taken measures to stay "lean and mean," and more often than not these measures required painful decisions involving valued employees. It's time we started demanding the same painful decisions - and lean and mean results - from our elected officials.

Monday, September 22, 2008

The Truth Shall Set Us Free - or At Least Shed Some Light on the Situation

Good morning!

There was some interesting reading over the weekend pertaining to the home building and home remodeling industries.

First was this week's Long Island Business Newscover story: "sex, lies and property taxes". David Winzelberg's well-researched piece debunks the notion that housing development equals over-whelmed school districts. It's must reading for anyone planning to seek approval(s) for a housing project in the near future.

The second article "Debating How Green to Go" was written by Marcelle Fischler and appeared in the real estate section of the Sunday New York Times. It draws attention to Southampton's well-intentioned-but-flawed attempts to became the first town in the nation to tie HERS ratings to the size of the house (in other words, the bigger house the more energy efficient it has to be).

The third article was by Mark Harrington in Newsday. It reported on a study issued by the Network for New Energy Choices. The study examines how the trend toward local municipalities demanding more energy accountability is further encumbering the permit approval process.

Hopefully these articles will help shed some light on the realities of home building and remodeling on Long Island. LIBI members strive to do the right thing - especially when it comes to energy efficiencies. Sometimes the "right thing" gets muddled in the process, however, especially when other factions' idea of what the "right thing" is impossible to achieve.


I would to hear your comments on these pieces.

Friday, September 19, 2008

Fantasy Land

Newly re-minted LIBI member Michael Dubb (http://www.beechwoodhomes.com/news-whoswho-mdubb-augsep-05.htm) spoke about a fantasy of his during a panel yesterday at Building Long Island (http://www.buildinglongisland.com/) magazine's annual "Cutting Through The Red Tape" breakfast symposium at the The Milleridge Cottage in Jericho.

He shared with the 200-strong audience that he has enough property to build 700 houses in the Town of Brookhaven but that he is holding off from doing so for the time being. He said his fantasy is that the Town of Brookhaven comes to him and says, "What can we do to get you to build those 700 homes?"

Given the financial hardships the Town is going through right now, as well as the region's well-documented shortage of affordable housing you would think Mr. Dubb's fantasy would be a no-brainer reality. But no, we live on Long Island where there is an unfortunate disconnect amongst our elected officials in that they do not understand the relationship between home construction and remodeling and a healthy economy. Instead of encouragement, our members get roadblocks and delays by way of onerous paperwork, expensive and inexplicable fees and seemingly endless placating of civic associations.

The elected officials on the panel - Nassau County Executive Tom Suozzi (http://www.nassaucountyny.gov/agencies/CountyExecutive/Biography.html), Suffolk County Executive Steve Levy (http://www.co.suffolk.ny.us/departments/CountyExec.aspx) and Town of Oyster Bay Supervisor John Venditto (http://www.oysterbaytown.com/) all talked a good game. Suozzi pushed his "Cool Downtowns" concept - and multi-residential dwellings in downtown areas near train stations are key to Long Island's future. Levy discussed his on-going efforts to bring fiscal sanity to Suffolk County - including his efforts to have light-duty officers run the Suffolk County Police Athletic League, a move that will save County taxpayers $400,000 according to the County Executive. And Venditto suggested that Oyster Bay is doing "quite well." Tell that to the LIBI member who has a significant amount of business stuck in the limbo of the building moratorium in Massapequa.

Oh well. LIBI will use this space to monitor the local municipalities and draw attention to situations and government policies that are detrimental to the building community and, by extenstion, the Long Island economy. Stay tuned.

Thursday, September 18, 2008

The LIBI Blog

The Long Island Builders Institute wants to keep its members up to speed on new developments in the building industry, as well as on top of new government initiatives and special events hosted by LIBI. We are also looking to expand our digital footprint.

That is why we have opted to start a daily blog. Executive Vice President Michael Watt will update the blog, on a daily basis and by 9 am if possible. The blogs will draw attention to relevant news from the morning's newspapers, upcoming special events and position statements on matters that call for LIBI to take a stand.LIBI encourages its members to post comments in response to the daily blog, as well as to suggest topics for future blogs. You can post your suggestions here or send me an email at mwatt@libi.org.

This is your Web site. Let's work together to make it the best it can be so we can make LIBI the best it can be. Also - be sure to check your information on the site, to make sure we have it posted correctly and to make sure it links to your Web site.