This 2 MILLION dollar parking garage will be a useful tool for the MDC IF , and only IF , it includes showers/restrooms on each floor and accessible laundromats.

I expect cable and wireless are a given.

Who needs to waste money on apartments when you can live out of your car !

and WALK to work.

How many public spaces in existing parking garages and off-hours use by arrangement would $2 Million buy in EXISTING parking garages across from the Downtown Square (like Bank of America or Centenial Tower)?

Ospurt ! Crunching numbers time !

Before I retired I parked in the BOA parking facility on the East end of Colorado.

The facility CLOSED at 8:00 PM or sooner ( mostly sooner).

Figure 8pm to ...say... 6am as 10 lost hours of no income ,

ALMOST half a day. Fiqure in holidays and add that to your pie.

How long would it take for the parking facility to pay for itself ..including inflation ? Hmmmm?

They tore down the SHERIDON to build a parking lot no one parks in. What will make this different ? Price?

Such asshats! Learn from the past dammit !

technically, they didn't demolish the Sheridan to build a parking lot, it's just that after all was said and done, that's all it ended up being (for now).

When Midland wants to get serious about downtown renewal, they'll start putting cash and real estate toward affordable housing downtown. I work downtown and have NO problem finding a place to park ... EVER. (Check that, once I had to walk an entire block from a parking spot to where I was going -- don't worry, I carried a canteen and took several rest breaks).

John:

When you say "Midland" wants to get serious, who do you mean exactly?

Private investors or those spending public monies?

John !

My lord ! Are you alright !
Someone get a spicy rum for this hero !
I, too , have had to work "downtown"but cannot remember a time I have had to walk a whole block !

Many was the time I had to dash between the raindrops ( when we had rain) to get to my parking garage (which was mostly empty) a whole half block away !

I suppose if we built another parking garage downtown it would further enrich the ...er,,,

...uh.... well maybe THE BAR would be open on Sundays !

Yeah ! Effen A !

Also please note that to the east of 511 Ohio is a parking garage for the old United Bank/Superior/Mobil, now CBTD and Kinder Morgan building. It likely has over 100 spaces in it. And the building to the west of the old Hightower building was acquired by MISD for additional classroom space for Midland High. The first floor is parking.

Where IS this new garage going to go? North is a block owned by the Subsurface Library folks. Did Basic and MDC do a back door deal with MISD for the SW quarter of the Hightower block? Did the Belt Buckle building go away for a garage?

2 blocks NW from the Hightower Building is a 2 story garage. I think it was built for the Hightower building.

Another question: does anyone know why the Hightower Building was never occupied?

Don't forget that the Downtown folk hold a barn dance of some kind each year on the roof of the Fasken Center garage. Maybe we are paying for more parking for a one-evening-a-year event.

There was no back door deal done with MISD, give them a break. The parking garage will be located where the "Belt Buckle Building" used to stand.

I guess you could say the MDC is getting a "DEAL" on these parking spaces. In September of 2008 MDC members were quoted as saying parking spaces would cost about $15,000 to develop, and for 440 spaces and $2 Million, that's just $4,545 each. Though, the public is only getting 75, so that's $26,666 for each public space.

However, if a major part of providing this $2M for a parking garage is for revitalizing downtown to provide parking for folks coming to downtown and eating, recreating, etc. it seems subsidising a parking garage many blocks from the places for those activities seems contrary to the requirements MDC said lenders have for building parking:

“We receive so many inquires about our central business district,” MDC staff Mike Hatley said. “But parking continues to be a problem in making the purchase of buildings viable. And if MDC can assist, it would give developers more bang for the buck and help in the downtown revitalization effort.”

Currently, most lenders require that parking for a building must be within a half-a-block away, Hatley said.

And with the cost of building parking structures at about $15,000 a space, many developers have not moved forward with downtown projects.

It seems to me, for the Downtown Revitalization angle to hold water, for its investment the MDC should be able to get the parking garage closer to the cultural and recreational centers of downtown (without the need to cross a major street) and receive a number of totally public and unrestriced spaces equal to their investment. Using the MDC's "$15,000 figure" we should be getting about 133 spaces of the garage and we should have a better say in picking a location that would impact more of downtown.

Anything short of that means this is a gift to BASIC, wrapped up in "Downtown Revitalization" plain and simple.

Ohhh, and for those that want to talk about the prospect of retaining a major employer in Midland, how soon many of you forget GREYWOLF. BASIC was a proxy vote away from not building this complex in the first place, no matter how much money the MDC could have thrown at them.

Because of the past "Leave Midland" scare of BASIC, I don't see why our $2M can't truly make this project more downtown serving, lest we wind up with another rotting "state of the art parking garage" in the wrong place.

Hey ! Howcome we can get all this money for parking garages but nobody remembers or CARES, I suppose, about the loooong walk from the parking facility to the courthouse when you are doing Jury Duty .

I think Ospurt is getting there. Don't be distracted by the parking for the public square issue. This isn't about public parking, it's about keeping the Permian Plaza project going. Without dedicated parking, the owners of this project (BASIC) won't be able to compete with other properties, they won't be able to charge as much for rents, and the project won't make sense. Someone asked why this building has been closed for so long. It has no parking. Why pay rent to office here when you can pay about the same across the street and have a covered parking spot? No dedicated parking=no Hightower redevelopment. When oil was high the numbers must have worked to build the parking garage privately. Now the numbers must not look so hot. Basic is a service company and they feel the pinch of the current oil prices more than your average Midlander. Real estate is the least of their worries at the moment, I imagine they would like to pull the plug, though maybe they are in too deep.

And MDC likes to give money to projects that were put together by others. So this is a perfect storm for them.

To me this would be a perfect project for TIRZ funding. To bring a building like Hightower back from abandoment will add a lot to the tax base downtown. Maybe the TIRZ already spent all it's money on another parking lot project. I lose track.

As of last June, the TIRZ was sitting on $785,000, and there I have no knowledge of there being any project funded by TIRZ...maybe Centennial Plaza non-grant costs? I don't know, there are no on-line budgets or audits of TIRZ funds.

Besides, as I understand it, TIRZ money can only be spent on public infrastructure associated with a project, or the differential between rehabbing a building for office to residential or mixed use space (under strict guidelines). Basically, the funded improvements are supposed to be public and benefit the property value of all the TIRZ members, or increase residential housing opportunities in the zone. So, unless BASIC was willing to fork over total control of a certain number of spaces for anytime public use, or take Otto's idea of installing showers/Laundromats for living in the Structure, TIRZ wouldn't work.

This is not to say that TIRZ money hasn't been, or isn't going to be used for utility relocations, street repair, sidewalks, curb repair, etc. associated with the Permian Plaza project. If you reach your hand out to one cookie jar, you can bet hands are fishing around in all of them.

They blew the TIRZ Wad on Centennial Plaza:

City of Midland Website

Renovations to Centennial Plaza are fueled by an Economic Development Initiative grant. The $250,000 grant was secured with the assistance of U.S. Representatives Mike Conaway and Kay Bailey Hutchison and is to be used in Midland for a project such as this one. Other project funding includes $800,000 from the Tax Increment Reinvestment Zone (TIRZ) and Hotel/Motel funds.

I think bob is trending a bit closer to the root of the matter than I am. BASIC stated in their Form 425 Regarding Business Mergers, back during the Grey Wolf saga:

16) Q. Will Grey Wolf, Inc. continue the Permian Plaza project in Midland?

A. Yes. We will continue to build out the property. We expect at some point to sell the property to a firm that specializes in developing
and managing such properties.

So it is a real estate play in the end and to finance a buyer in the future it has to have the parking garage.

Additionally, the date (September 2008) of the MDC story I quoted above regarding participating in parking garages occurs not too long before BASIC's stock price drops from the $30s to $12 and the credit markets froze.

Prior to that, BASIC did a courtsey presentation for the MDC in February 2008, and the MDC was happy to see a totally private driven project in downtown, only to say they would be happy to look at ways to help.

I guess I need to watch the MDC's lips a bit closer, because they have been signaling this incentive since September 2008 with them talking about how to incent parking and why it is so necessary to the Central Business District.

That begs the question, what went on between February 2008 and September 2008 that would have had BASIC taking MDC's financing part of the parking garage BESIDES the economic and credit market melt-downs?

Don't be distracted by the parking for the public square issue. This isn't about public parking, it's about keeping the Permian Plaza project going.

Bingo! We have a winner.

Every word in the press release that had to do with how this "partnership" would serve the general public somehow as to their parking needs downtown is utter nonsense. The public neither needs parking at this location nor have they ever even signaled any sort of interest.

At worst, this is an after the fact photo op.

At best, it another case of the government forcing us all to become investors in a private venture.

And if it is the transfer of wealth by the government from one set of private citizens to another in order to keep the private venture of the latter's afloat then is this not just Chrysler or GM writ small?

Killer research, guys! Thanks!

MR-T where are you??

1. So who in the world will invest in the new project? I think the office shortage that I was told existed in Midland last summer has evaporated. Could this fact coincide with the obvious work slowdown on Basic's project last fall?

2. When are we going to begin the petition to sunset these ridiculous taxes. My prop tax is up about 10% on a like increase in the valuation of my home, when no one in my (fairly nice) neighborhood has been able to give their house away in the last 6 months.

Prior to that, BASIC did a courtsey presentation for the MDC in February 2008, and the MDC was happy to see a totally private driven project in downtown, only to say they would be happy to look at ways to help.

So the project was to be privately funded. Then comes a reversal of one sort or another business or economy-wise.

The MDC comes to the rescue with an influx of tax dollars.

When the Obama administration does this everyone calls it a "bailout" and laments the death of capitalism.

In the world of parking, there is no parking plan that can satisfy all users. People have perceptions of what is a reasonable distance to walk, and that they should be able to see their vehicle at all times from where they live or work.

Perhaps we need to consider what the goal in the Permian Plaza development and subsequent parking plan just might be....is it to establish flexible tools for today and future office/retail/parking needs of the City of Midland and its Central Business District? I suspect it is.

Let’s look at it similar to the chicken or the egg scenario/analogy...do you have the office and retail space first and no parking....or parking AND the office and retail space? And, which scenario is going to be more successful?

Midland will have strong amount of Class "A" office space available with Permian Plaza...would you want to lease office or retail space if there was no parking available for your employees? Not me. Or parking for your customers? Not me, again.

I may not have walked to work - up hill both ways in the snow as some of you have - but the idea of investing in a parking garage as part of the infrastructure of continued development and revitalization of downtown Midland, is a smart investment for our generation and those to follow.

And...if $2,000,000 for infratstructure via a parking garage is what it takes to ensure Basic Energy Services stays in Midland, and they don't pick up and move headquarters and their employees to another city, then it's a $2,000,000 worth spending.

The wounds are still fresh of when Key Energy packed up and took their high-salaried employees to Houston...heck, they didn't even wave goodbye, did they?

Doya,

$2M won't keep BASIC if they pack up an move. They stated, in many forums, during the Grey Wolf merger saga that Permian Plaza was a real estate play and that they have always intended to sell the development at some time in the future to a management company, regardless of their remaining a tennant of the finished property.

Yes, this project has fig leafs and after thoughts that give the facade of being in line with downtown development goals of restaurants, retail, and additional parking, along with the ED Jobs goal promise to retain 50 primary jobs. However, when this project was developed by BASIC, meeting these "MDC Downtown Goals", were not advertised as a central theme of the project. It was to serve BASIC's needs for contiguous office space. The project just seems to have morphed into this "MDC aligned" project since last fall.

We have talked about the location/need flaws in MDC's justification for the project, so lets look at the goal of retaining of 50 primary jobs. This goal isn't even a fig leaf once you go back look at this quote in the MRT regarding BASIC's employment right after the Grey Wolf merger failed in July of 2008:

Basic employs more than 4,500 in 11 states, including more than 100 corporate jobs in Midland. Had the merger been completed, some corporate positions would have been eliminated or moved to Houston, with Basic's regional offices retained in Midland, Big Spring and Odessa. The only overlap between the two companies would have been in drilling services, with both companies having drilling operations in West Texas.

Yep, let's put $2M dollars of taxpayers money into a real estate development and set the employment retention goal at 50% of last summer's employment level.

As a taxpayer this is bad, but if I owned a development property downtown I'd be downright livid about my neighbor getting such a sweet deal on his development project.

O, O, O, Oh how you're not seeing the bigger picture, vision....have you searched for Class "A" office space in downtown of recent. Not a great deal available...and, if I were to move my biz downtown, they idea of fresh, revitalized Class "A" space with covered parking in our Tall City makes my mouth water...but, yours seems to runneth over regardless.

Oh! and one more thing O!

If I owned development property downtown, and my neighbor invested $15,000,000 and got the sweet deal of $2,000,000 as a partnership on the infrastructure of downtown and my project...I'd buy him a nice bottle of Kinclaith 36-year-old scotch.

This whole discussion isn't about BASIC Energy Services and their deal. I think they are an outstanding Company and I wish them all the best with the Permian Plaza development. I hope they make a killing on providing what some consider a scarce resource in Downtown Midland.

If I was a BASIC stockholder, I'd be applauding the way the company is playing the MDC to benefit the bottom line with very little risk.

This whole discussion is about the MDC and their use of Taxpayer Funds to finance private development that is contrary to the vision of economic development advertised to the voters of Midland. The MDC was voted into existence with a primary mission to DIVERSIFY the Midland Economy CREATE jobs in new sectors, and RETAIN existing jobs.

In the last couple of years, with the MDC failing at their original mission, they have re-tasked themselves (without voter approval) to help Oil & Gas based companies grow, get into prospective real estate and take up TIRZ or Downtown Midland projects that aren't allowed by their charters.

You asked why fund the PUBLIC Hospital Bond with taxpayer money when the Hospital Adminsitration was so poor or the Hospital Board was so mis-managed. I ask why you support the MDC giving taxpayer money to a PRIVATE concern when the MDC is not adhering to the principles that were advertised to the public which voted them into existance?

Whoops.. I'm mixing up Hog Wash and doya.. which means there is much exciting debate going on. Which I like.

Sorry for putting words in your mouth doya.

If I were to move my business downtown, I'd like a Hooters every two blocks. That doesn't mean it should happen and it damned sure doesn't mean that other people should subsidize it.

Doya, the ease with which you lay claim to other people's money is astonishing. More astonishing is how you equate your particular needs and desires with "the greater good".

The situation must be desperate for a well respected business like BASIC to get wrapped up with the MDC. Does anyone walk away clean from them? As for the partners in this, of course many of them are the same partners in the buildings across downtown Midland. As is often is the case, we aren't talking about a diverse group of concerned citizens. It is a lot of the same old crowd.

The best argument the MDC can make is not parking, again that it is a distraction, which is why as long as you were talking about parking the MDC/Chamber lackeys kept silent. The best argument they have is that it is a good thing to bring a dilapidated building back, (unless the market for office space softens, all rents will suffer). Class A is thrown around pretty loosely in Midland. It is a realtive term, Class A is the best in town Class B and C everything else. Very little in Midland would be class A in other markets..but that's not important.

If parking, and if all these comments about retail, residential and general downtown development were really the goal, $2 million would have been better spent working with the pie in the sky mixed use development often suggested for the Midland Savings/Permian Building/Teco lot next to the courthouse. Perhaps $2 mil wouldn't be enough, I doubt it would, but if these things are really the goal, and necessary, and worthwhile investment, like doya believes, why not spend $10 or $20 million? Why limit it to $2 mil?

Last point, is this a loan? A forgivable loan?

At one point, Big Spring was a strong, thriving city...so, what happened? The City leaders weren't proactive or aggressive and the City didn't facilitate what is critical to a thriving communitiy: development, retention, or diversification.

Distraction? No, bob, I don't think so.

Proactive? Yes.

So Big Spring's decline was due to the fact that they didn't have enough Chamber minions running around spending other people's money?

That's it? That's your story?

Any and all declining communities can be rescued by a cadre of forward thinking "certified" economic developers?

I'm sure that a well crafted incentive package would have kept Webb Air Force Base open.

Big Spring was a strong thriving city until Webb AFB closed in the late 70s. It's been declining ever since, despite many efforts at redevelopment including an economic development tax driven by 'proactive' but misguided citizens. Their biggest 'successes' being prisons, which many there would argue may be a net loss for the community when it comes to crime and quality of life.

But then again, maybe it's unfair to say Big Spring is in decline. Big Spring adjusted to a new economic reality. When you subtract something as significant as an military base or say a college from a community, it redefines the economy in a way few businesses could. A huge stream of federal and state funding just vanishes, many families with little to connect them to the area are suddenly gone.

See any connection? If the 'success' of Midland depends on tax dollars, what happens when they go away? In your proactive model, can they ever go away? Are we forever dependent on the money and the ones who spend it?

Being that the MDC has had close to zero success, yet Midland has had a fine economy and some pretty significant growth over the last decade, I question the need for it.

800 signatures.

2 shrinking industries (oil and cattle) and a rapidly diminishing water supply had nothing to do with Big Spring's state?

I am fond of Big Spring. It's terrain and flora are unique an interesting, it has a bunch of great buildings, from many different periods. If I had a time machine, I would set it to 1977, go back and convince them to tear down the settles and put in a parking garage and a public transportation system. Then when I returned in my time machine to 2009 I would find it a burgeoning metropolis.

What about FiberRod? That was a Big Spring Company that received quite a bit of money from the Moore Development Corporation (their ED Entity), yet they opened up a facility here in Midland and got ED Money from the MDC to do it.

I'm sure Moore Development would have given money to retain/grow jobs at FiberRod's Big Spring Facility, so why are they in Midland? We're not significantly far enough from Big Spring to warrant building and staffing a second manufacturing plant.