Don't look away

For sale. One bright, shiny retail store on New Albany's west end. Completely renovated with new lighting and carpet, all occupancy permits in place. Municipalities invited to bid. Asking price: $350,000 and up. During sale period, new owner will be entitled to profits from operations. Non-government bidders should be aware that city government appears prepared to reimburse owner fully for all capital and operating expenses not covered by revenues.

As amazing as it sounds, the city is preparing to buy an adult DVD store. You'll remember that the city spent $69,000 defending the indefensible after-the-fact ordinance designed to kill the store in its crib. Federal District Judge Sarah Evans Barker took one look at the case and ruled the store could reopen.

Lacking any ordinance to regulate such businesses, the city rushed to stop it after the fact. Setting aside any First Amendment issues, the city had to know it was discarding any semblance of due process. They had to know it. But, unwilling to admit their mistake, the city council decided to spend at least $69,000 defending it.

Now, exacerbating the city's budget problem, they plan to meet Monday in executive session to consider paying off the store's owners to the tune of $350,000 or more.

A blast-fax and e-mail chain must be spinning through the ether right now with the headline "New Albany Ripe for the Plucking." The city needs to recruit new businesses, but this isn't the way. "Extortion Capital of the Midwest" isn't the title we want.

One would expect lawyers to start combing over the city's code of ordinances looking for loopholes and escape hatches.

Build a new business that will offend one or more constituencies, goad the city into shutting you down, file a federal lawsuit, and within a few months you can pick up your payoff check at the City-County Building.

That will certainly be convenient. You can apply for your new permits while you're there. Be sure to bring a check for your new building permits and kill two birds with one stone.

Hey. Give me $419,000 and I'll have a half-dozen new retailers downtown by summer. But the city would never give new business grants to prospective entrepreneurs. I'm sure the council would consider that "wasteful."

To be fair, the story as written by Ben Zion Hershberg of The Courier-Journal is much worse than that. The real lede on the story is the previously unknown $2 million liability to the sewer board that may well handcuff the city for the next year. Read Unpaid loan may hinder settlement.


Meanwhile, in Indianapolis, lawmakers are debating House Bill 1518, a bill that would completely remove all regulation of local phone service. The telecommunication companies are dangling incentives and promises, and have persuaded Rep. Mike Murphy, R-Indianapolis, to carry their water. Capital Correspondent Lesley Stedman Weidenbener reports for The Courier-Journal in Local phone rules might be eliminated.