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As Wichita considers the need for a new public library, a more central and fundamental question goes unconsidered: what is the role of the public library today, and do we really want one?

Consider the difference between public and private institutions. The public institution has to satisfy only a small group of people, namely the politicians that fund it. Yes, once in a while voters get to select the politicians, but issues such as a library are usually far down the list of important topics, notwithstanding a recent Wichita Eagle editorial promoting a public library as “one of the most important cultural institutions in a community. It’s an investment in our future, a symbol of our values and aspirations.”

Private institutions, or businesses, on the other hand, are voted on every day by customers, who choose one over the other for their own personal reasons. This is the idea of “consumer sovereignty.”

Public institutions, open to all, appeal to few in the end. The problem caused by unwanted “customers” at the central library is well known, and must serve to decrease its usage by some large amount.

Reading the 2006 annual report of the library, it appears that 34% of the loans made at the central branch were art, music, and video. (Due to the way the library presented the figures, I couldn’t determine this number for the branches.) Disregarding the presumably small number of artworks loaned (in comparison to the number of DVDs), the library is competing with services provided by the free market, namely video rental stores.

Even the loaning of books competes with bookstores. The library reports tells us that the value of the books the library circulated — that is, what it would cost if each person who borrowed a book had bought the book instead — is $29,068,288. I am tempted to ask what the City of Wichita has against local bookstore owners. But the reality is that the library competes rather poorly with bookstores. It has been many years since I relied on the library for timely books in my field, computers and software engineering. I found the shelves filled with titles referring to software and computers long out of date.

Today, if you want to borrow a recently-released book, especially a bestseller, you are likely to find yourself waiting in line behind dozens of borrowers, each with up to two weeks to use the book. This makes buying the book an attractive alternative, which is often what I do.

If you want to read a classic, good luck to you. I wanted to read Capitalism and Freedom, one of Time Magazine’s 100 most important books published since World War II. But, the library didn’t own it.

Could a privately-owned library be what Wichita needs? Could it do a better job? How would such a library work?

As it turns out, I can’t find an example of a city with a private library. That alone doesn’t mean a private library couldn’t work. It is, I believe, more a symptom of our increasing reliance on government instead of private solutions.

There are many ways a private library could work. Patrons might be charged a small admission fee. Patrons might buy monthly or annual memberships for unlimited use. There might be a fee for checking out items, perhaps based on the newness or popularity of the item and the length of the loan period. Items might carry advertising. Meeting rooms and other services could carry rental fees.

The point is that the library would be directly accountable to its customers who use the library, instead of a governing board, the city council, and the “public,” whoever that is. The library, wishing to earn a profit for its owners, would have strong motivation to provide services that people are willing to actually pay for. It would be free to act on its own to raise capital and provide these services, instead of complaining about the lack of funding, which is the case with the current library, as with nearly all other cultural institutions, too.

Plans for new libraries call for coffee shops in the mode of Starbucks. Will the refreshments served be free? Of course not. So charging for some services is okay, it seems.

What about people who can’t afford even the small fees a private library might charge? We are all already paying these fees now in the form of taxes. We are already paying for a library, both those who use it and those who don’t. Spreading out the costs over everyone doesn’t make it more affordable for the town as a whole. As Thomas Sowell recently wrote: “This was all before politicians gave us the idea that the things we could not afford individually we could somehow afford collectively through the magic of government.”

I wish that the Wichta Eagle editorial board would consider the alternative to government provision of things like libraries, entertainment facilities, airports, arts and culture, schools, and many other aspects of life. Relying on coercive government action over individual and voluntary group initiative makes us less free as a country and city.

Payday loans are expensive, a recent Wichita Eagle articles tells us. If someone needs to borrow money and has access to a loan from almost any other source, they should avoid payday lenders. But the reality is that there are people who have poor credit and are not able to obtain credit through the usual channels such as banks, credit unions, credit cards, and family and friends. These people may have but one source for loans: the maligned payday lenders.

Why can’t these people borrow from traditional, “legitimate” lenders? The answer is that making small loans to people who have a history of credit problems is expensive. Wishing it weren’t so and imposing government regulation won’t change this fact.

Community activists call for existing banks and financial institutions to offer small loans at reasonable interest rates. One institution in Wichita, Communities United Credit Union, did just that. But earlier this year it failed after suffering losses from bad loans, providing more evidence that it is costly to offer small loans to credit-challenged customers.

If existing financial institutions are to make small loans to credit-challenged borrowers, they should do so only with the reasonable expectation of earning profits from these loans. To do otherwise is to abandon their responsibility to their investors, and, should I learn that my bank or a bank I had invested in was making risky loans without being compensated for the risk, I would withdraw my investment in that bank.

An irony is that existing government regulation may be a contributing factor as to why payday loans are so prevalent. In an Wichita Eagle article from earlier this year, we read “Some bankers are reluctant to offer them [small loans] because their industry is so tightly regulated …” These regulations either prohibit or add to the cost of making small loans, bankers say.

Furthermore, usury laws, which limit the interest that banks and other traditional lenders may charge, are perhaps too restrictive. If traditional banks and credit unions could charge, say 25%, 40%, or even 50% for small loans, they might find it profitable to do so. An interest rate of 50%, while high, is certainly preferable to the several hundred percent rates that payday loan borrowers who roll over their loans pay.

Those who call for a limit on the interest rate that payday lenders can charge may very well drive these lenders out of business. I suspect that is their unstated goal. If they are successful, where will credit-challenged borrowers go for loans? As shown above, traditional lenders are not serving these borrowers.

A group named Sunflower Community Action says that payday lenders prey on poor people who have few financial options. I believe this group is misinformed on two points. First, the transaction between the borrower and lender is voluntary. Neither party is coerced, so there is no “preying.” Second, it is true that poor people have few options. Eliminating payday loans removes one more option, an option that evidently some people use. To its credit, this group promotes financial education and literacy, which is the best weapon to fight the cycle of poverty that some find themselves stuck in.

As reported in The Wichita Business Journal:

The response from the Wichita Historic Preservation Board was positive. The six members liked the design and thought the project could be good for downtown.

They still voted no.

So for the moment, a developer’s plan for a downtown hotel and conference center is blocked by a law, the Kansas preservation statute. What is the problem with the proposed building? “[the problem] is that it incorporates too many materials and features inconsistent with the surrounding buildings. That includes glass, marble, stainless steel, redwood and balconies.”

This design is judged as “too modern” to be compatible with the “overall historic appearance of downtown.”

It is a sad day in Wichita when a law prevents an individual from making an investment in the improvement of his property, especially when private investment in downtown Wichita is desired and needed. This law needs to be repealed before it causes more harm.

Furthermore, it devalues private property rights when property owners or developers must subject themselves to the whims of groups such as the Wichita Historic Preservation Board. As John W. Sommer wrote in The Cato Journal:

With few exceptions, historic or landmark preservation illustrates the powerful force of cultural elites who impose their tastes on the landscape at the expense of the general public. City after city has been confronted by small groups of architectural aesthetes who are as highly organized as they are both righteous and wealthy. In city after city these groups have succeeded in stalling, or permanently freezing, the pace of physical and functional change. In the name of “heritage” or “culture” or “a livable city,” and invariably “in the public interest,” preservationists seek to legislate “charm” for others.

We would be much better off with out these two disruptive forces — the Kansas preservation statute and the Wichita Historic Preservation Board — acting against our economy and private property rights.

Thank you to John Todd for this material. John has much experience in real estate, and cares deeply about the rights of property owners.

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To: Mayor Mayans and Wichita City Council members:

Subject: Comments and concerns regarding the proposed changes for the Housing Code of the city of Wichita.

The city’s housing code has problems. Here is an overview of the problems. Some suggested improvements follow.

General concerns covering the Housing Code ordinances and enforcement.

1. Has a “crime” actually been committed if a property owner owns a property in which a board and paint separate (peel) in violation of the Housing Code? Are folks who are found in violation in front of the city’s municipal court becoming part of the growth in the population in the county jail sometimes?
2. Is there “selective enforcement” of the existing ordinance? Does peeling paint receive the same attention in Reflection Ridge as it does in Midtown?
3. Are city, county, and school district owned properties subject to the same code? Are code violations on government owned properties subject to no penalties?
4. Is “blight” the cause of neighborhood crime or is the lack of enforcement of criminal activity in certain neighborhoods creating the neighborhood flight and subsequent need by property owners to secure their properties by boarding up windows and doors?
5. Is the Municipal Environmental Court free and independent from the legislative (City Council) and executive functions (City Manager) of the City? Does the setup of the Municipal Court meet the “separation of powers” doctrine we expect from government?

Recommendations to improve Wichita housing and the city’s housing code:

1. Reports of prospective housing code violation complaints need to be in writing with copies of the signed complaint given to the property owner and to the person reporting the alleged violation. Nothing undermines a sense of community more than government allowing one group of people to anonymously “snitch” on another group.
2. Mediation between the aggrieved parties should be required before the complaint goes to court. The Wichita Bar Association has a system of mediation already in place.
3. City Code Enforcement Officials should be licensed, and be required to have at least five years of prior “hands-on” building experience.
4. Municipal Court Judges need to be elected by the people rather than appointed by the City Council. The City Council could handle this through the passage of a Charter Ordinance.
5. Blight needs to be defined in the ordinance.
6. City owned properties should comply with the ordinance just like privately owned property.

Here are the detailed comments on the proposed changes in the city’s housing code.

1. Comments concerning the new term “Resident Agent” are discussed below.
2. Section 20.04.055 The Minimum requirements for maintaining vacant dwellings.

Proposed Section 11 Vacant Structures. The phrase used to describe the material used to board windows and doors shall now in addition to having a protective coating now must be “matching the predominant color of the structure”. The question of what is a matching color leaves wide latitude on the part of the city code enforcement official deciding what is matching. Perhaps a contrasting color might be appropriate? And, perhaps after a damaging weather event, unpainted plywood or OSB board should meet the requirement?

3. Section 20.04.200 the penalty section.

Existing Section. Since the notice of violation that the city issues to a property owner refers to a “uniform criminal complaint”, perhaps the word “crime” should be added after the word “misdemeanor” or suggested “misdemeanor crime”?

Existing Section. The penalties discussed in the existing section seem adequate and allow the Municipal Court Judge what might be considered extreme additional latitude if he or she invokes the provision in the existing ordinance, “Each day that any violation of this ordinance continues shall constitute a separate offense and be punishable hereunder as a separate violation.” Also, jail time for a Municipal Court is limited to “a period of not exceeding one year”. Invoking this provision of the existing ordinance would potentially allow multiple years jail time to be assessed in excess of this maximum “not exceeding one year”.

Proposed Section. The new proposed ordinance essentially doubles existing fines. Before increasing the fines, several questions need to be answered. How is the current fine schedule working? Are convicted property owners paying the fines? What is happening to property owners who do not have the money to pay the fines? Are there property owners who are being assessed fines people who could pay for the repair of their property if they had money they are being fined to do the repair(s)? Is jail time being assessed against property owners? Who bears the costs associated with incarceration? Are the additional fines actually a new “revenue source” for the city? The new proposed ordinance also requires the “mandatory” imposition of fines by Municipal Court Judges with a provision requiring alternative community service in lieu of the fines for defendants who are financially unable to pay the fines imposed. Several questions, relating to “mandatory” and alternative “community service” for the poor need to be answered before this ordinance is passed. Don’t “mandatory” fines take away the need for judgment on the part of the Municipal Court Judge when dealing with property owner defendants in his or her court in seeking compliance with the housing code ordinance? Are there not circumstances where defendant property owners that are physically, mentally, as well as financially unable to care for their properties due to age, loss of employment, disability, or other extenuating circumstance who needs “judgment” on the part of a judge rather than mandatory fines or community service? Could not a defendant property owner be earning money to repair his or her property or actually doing the repair during the time imposed for “community service”? Does the registering of a defendant property owner’s property with the Superintendent of Central Inspection comply with “equal protection under of the law” that has been a requirement under our legal system?

Chapter 20.04.010 the Definitions are amended. The definition of “Resident Agent” is created.

Proposed Ordinance No._______Section 30.01.020 of the Code of the City of Wichita, Kansas. The responsibilities and potential liabilities of the “resident agent” might be troublesome. Would a licensed real estate broker or salesperson be exempt from this ordinance due to provisions enumerated in the Real Estate License Act? Is it legal for an agent to be held responsible for the action or inaction of his client property owner? Why would an agent be willing to take on responsibilities for the actions or inactions of his client property owner? Is this a “can of worms” for a “resident agent”?

To Wichita City Manager George Kolb, Regarding Urban Renewal in Wichita
By Karl Peterjohn, Executive Director Kansas Taxpayers Network

Today, city government plays a large role in this city’s life. The most recent municipal budget is in the neighborhood of $1/2 billion. That massive sum does not seem to be large enough for many of the city leaders since there is now an effort underway to recreate one of the major mistakes of the 20th century: Urban Renewal.

Urban renewal was a major issue in the middle of the 20th century. Cities across the country attempted to improve and revitalize themselves using urban renewal. They wanted to improve their community and remove dilapidated and blighted properties. Despite the best of intentions, urban renewal failed. The failure took a number of forms and was very costly. Minority and low income citizens were hurt badly. Housing costs rose massively while the choices available for low income citizens were reduced. At that time, this was a national program and a significant part of the urban renewal costs were paid for by the federal government. Today, that is not the case. In addition, beneficiaries of urban renewal were often more affluent citizens who positioned themselves to take advantage of this program.

Ironically, much of the city’s land that has been provided for the east bank/Waterwalk redevelopment project in downtown Wichita was originally acquired by the city back in the urban renewal era. Cost figures on what the city paid for this land were not available when I sought that information during the public hearings over the Waterwalk project. It is a sad fact that much of this city owned land simply stagnated economically during the close to half a century that the city has exercised control over this property. In addition, the city’s need to be able to condemn private property by using eminent domain has raised the risk of property owners, diminished property rights, and made this community less competitive by expanding the public sector over the private.

Recently, the city manager and some other local leaders have been looking at establishing another layer of local government by setting up a new redevelopment authority. I heard that you were outspoken in support of this concept at the August meeting at the Hughes Center. This is the first step in recreating urban renewal in Wichita.

The presentation that the city council had June 27, 2006 indicates the close ties between the proposed redevelopment authority in the 21st century that relies upon the 1950’s era K.S.A. 17-4712 et seq. as well as 17-4757 and 12-2904 urban renewal statutes as the legal authority for creating this authority. These statutes indicate that Sedgwick County will also be involved in this new layer of local government too.

What is the city going to do to avoid repeating the numerous and myriad mistakes made roughly a half century ago?

The academic literature (a partial reading list is provided below) is clear in pointing out the mistakes and failures made with the urban renewal efforts half a century ago. A major, but unspecified, increase in taxing authority will be needed to finance this new layer of local government.

As an organization representing taxpayers, we see that the growth of local government is a major burden stifling development locally and statewide. Recent Bureau of Labor Statistics data shows that Kansas is near the bottom of the 50 states in private sector job growth. Adding a new layer of bureaucracy is likely to hurt this community’s economy, not help it.

City Manager Kolb and other proponents for a new “Redevelopment Authority” need to provide a clear road map on how this new governmental body will avoid repeating the very expensive and harmful mistakes made during the urban renewal era from the 1950’s. Citizens of Wichita need to know how this expensive new entity will be paid for. Will the city council want to pay for it with higher property taxes? Or sales taxes? Or some new tax?

Our organization’s position on raising taxes is clear: voters must be able to decide this issue at the ballot box. Let’s not make Wichita worse with more expensive red tape, bureaucracy, and resurrecting urban renewal. There are many ways to improve Wichita, but recreating urban renewal is not one of them.

Urban Renewal Reading List:
1) The Unheavenly City, Edward Banfield.
2) The Federal Bulldozer, A Critical Analysis of Urban Renewal 1949-1962, Martin Anderson.
3) The Death and Life of Great American Cities, Jane Jacobs.
4) Race and Economics, Thomas Sowell.
5) The Art of Community, Spencer MacCallum.
6) Beyond the Melting Pot, Nathan Glazer & Daniel Moynihan.
7) The Tyranny of Good Intentions, Paul C. Roberts & Lawrence M. Stratton.