What's Wrong With The Jim Smith Deal

In this morning's paper, Pinellas Property Appraiser Jim Smith is quoted again as saying he believes he has done absolutely nothing wrong in this scandal over Pinellas County's purchase of his personal land for nearly four times its appraised value.

Smith probably believes that, too, which shows a considerable capacity for denial. Let's consider several possible problem areas:

* First and most importantly, there is just no circumstance in which the elected county property appraiser -- who sets the size of the county's tax roll -- should be benefiting from doing personal land deals with the county. The Pinellas County Commission, which operates on the basis of the tax roll set by Smith, has paid him personally to the tune of $225,000. It is an automatic conflict of interest -- on both sides. Smith calls this an "arm's-length'' transaction. In the case of the county property appraiser, there is no such thing.

* Second, either Smith's own office appraised his personal land at a ridiculously low price, or he asked a ridiculous amount for it, and the county obliged by paying nearly four times the tax value. Smith says that everybody knows his tax appraisals are below market value. But how many people in Pinellas County could sell their land today for four times its tax appraisal from Smith's office?

* Third, Smith repeatedly and personally lobbied, if not pressured, the county administrator, the county attorney and the chairman of the County Commission into buying his land.

* Fourth, it is a good question as to just how damaged the land was, given the delay between the alleged damage caused by county workers and Smith's demands that the county buy it, since he was advertising it in the meantime as such a wonderful site for building.

Of course, the other half of this scandal involves the county's actions. The administrator, the county attorney, the County Commission chairman and the full commission did not have to listen, did not have to do him favors, did not have to rush through a deal on shaky grounds that was not available to the average citizen. The county attorney CERTAINLY did not have to represent both sides of the deal in the transaction.

The grand jury should investigate the county's actions.

But as for Smith's denial, how many people can look at this sequence of events and agree with his, er, appraisal of the situation?

Here's my column from this morning's newspaper.

Comments

[Lorraine Margeson]

Howard,

Great column,as always. Has anyone thought to look into land deals, appraisals, ANY mechanism involving possible favortism DELIVERED by Jim Smith TO any government officials in the past? In other words, was Smith calling in the chips on past favors to some of this very same Commission group, Steve Spratt or Churuti?? Because no one has asked the commission or Spratt THAT question. NOT, why did you vote to buy (prolly Spratt told them to in his usual pre-commission meeting rounds)........but the direct question of WHY did you choose to ignore your own typcial policy and procedure in a land buying event like this? AND, HOW many other Commissioners (if any) besides Duncan knew of the Churuti duality. Because how could ONLY Duncan say yes to the Churuti deal?.........does he have blanket permssion (I doubt it) from the other little commissioners to speak for them?
Also.......has Churuti ever served as personal counsel to any of the abovementioned county officials on a private basis in the past?
Just ruminating..........

[dim bulb]

I might not be very bright, but if one were just a little paranoid, perhaps the big kahuna of conspiracy theories would consider the possibility that the county needs their tax farmer to goose the tax roll by 6%, and this land sale is mere payola. I'm not saying this is really what happened, barely a flicker in this dim bulb, but a 7-0 decision, and you know these people all chat on the phones with each other too, well... making difficult budget decisions doesn't get you re-elected. A far reaching and hard-hitting investigation by a grand jury is really needed to restore public trust. A few resignations would help, too, but given the actions of the players this is probably asking too much.

[voxy]

boy someone must really hate smith to rat him out like this. This is going on all OVER tampa. The code enforcers do selective enforcement so the city can place liens and force people from their homes which then 'magically' become super developments OR casinos.
Still, I depend on Howard to keep the real eye on things and he never disappoints.

Awesome story, Howard.
Jim Smith, you should be ashamed but you're not the only one.
I want to know if Jim Smith is a mason like the ones I've found doing this in Tampa.
Fess up, Jim. Are you a Mason or a Shriner or both as in some cases?

[Joe]

Just another example of the corruption and waste within Pinellas County and St. Petersburg. All we hear about is how bad it's going to be if the bill to reduce taxes passes yet look how much money has been wasted and is going to be wasted dealing with this scandal. Too bad we can't have the election now.

[rocco capabianco]

Sure do miss Jimmy Russell! Not sure McCabe is cut from the same cloth. I still remember what happened to Eddie Taylor(past County Commissioner). Same nedds to happen now. Maybe Crist will assign a Special Prosecuter after the Grand Jury reports. We can only hope.

[Larry]

Howard, you have got the natives riled up on this one. 'Bout damn time, but then come election time, they forget all about all this stuff and vote the twits back in again. The Pinellas County Commission is a "group think" tank. They discuss everything amongst themselves out of the sunshine so everyone knows how to vote in the meetings when the sun is shining. But we keep electing them over and over and over again. Thanks for your tenacity, Howard. Keep up the good work.

[Ron]

I am willing to offer Pinellas County a great deal. I will sell them my house for a mere 3 times it's appraised value. I'm going to start lobbying them to take my offer at the very next county commission meeting.

[jeckyll]

IT WAS AN "HONEST MISTAKE" OR WAS IT?

[Mark]

Howard, Have you (and your colleagues at the Times) ever considered the possibility that you got this story wrong? I don't mean partly wrong; I am suggesting the Times got the story COMPLETELY wrong. Here is my prediction: When all of this is fully investigated, the grand jury will issue no indictments and find no violation of the public trust. I am willing to buy you a dinner for two at Bern's (but don't get carried away with the wine) if my prediction proves to be incorrect. What will you offer me if my prediction is on the money? P.S. I am not interested in a free meal, but I wouldn't mind seeing you you eat some humble pie!

[lyle]

I think the current fiasco isnt as important as Mr Smith's appraisals. His interpretation of highest and best use does not seem to apply to his property, yet is destroying the beach businesses. We are all going broke! My taxes increased from $18,000- 04,$28,000-05,$39,000-06. Broke and no buyers!

[Howard Troxler]

Hi Mark, and thank you for the fresh point of view. However, I will respectfully point out a couple of things.

First, it sounds like you are saying if the grand jury does not find a criminal violation, then the newspaper is "completely wrong." I could not disagree more. I said myself, in a column in the newspaper, that I doubted the grand jury would find a criminal violation. Bad government is not, by itself, a crime.

But this is just awful government. The elected property appraiser, who ought not be doing personal land deals with the county for which he sets the tax roll in the first place, personally lobbied county officials to buy his land. The county short-cutted its procedures and rushed the deal through, with the county attorney representing both sides of the deal, acting with the blessing of the county commission chairman. The county paid nearly four times the appraised tax value.

I think it is fair to criticize this start to finish and disagee with the idea that there has to be a criminal violation for there to be something wrong with it.

I am eager for your reply. Best wishes, and thank you again for the comment.

[Karen]

I am very eager to hear how we could possibly have gotten this COMPLETLY wrong. I know that some situations look bad on the surface, but when explained, have more than reasonable explanations. I am at a total loss to imagine how this could be one of them. My Father always taught me to give every situation the kindest possible interpitation, and I just can't find one here. Now if the County Commision has decided to offer the services of the county attorney to ALL citizens of the county to help them sell their property, and get such a nice profit, and fast track it through the system, then maybe we did jump the gun at pointing fingers. Otherwise, this whole mess smells like the old south good ol' boy system, that I thought was dead decades ago(I'm so silly)

[Ernest]

Of interest is the Pinellas County Sheriff's office Forensic Division is on site right now marking areas with their evidence markers and taking photographs and video. Could this be the County preparing evidence in their defense?

[Mark]

Dear Howard, Let me clarify the terms of my proposed wager: When all the investigations and other inquiries have been completed, I predict that there will be no credible evidence of any actual impropriety in connection with this land sale. In other words, you and your wife enjoy a lovely dinner at Bern's (my treat) UNLESS the folks who have been tried and convicted in the Times are vindicated. I agree, of course, that not being indicted is not the same as being vindicated. Vindication in this instance would require a full investigation(s) which reveals no evidence of improper or unethical conduct, no waste of public funds, etc.
This bet is a no brainer, Howard. How could you possibly lose? With the odds so clearly in your favor, you ought to be willing to eat some real humble pie if it turns out that you rushed to judgment and acted irresponsibly. While you are thinking about that steak dinner, let me know what you are willing to wager in return.

[Brian]

If they need someone to file a formal complaint with the State Attorneys office I will be happy to do so.

However, I imagine I will be standing in a long line when I get over there.......

Mark is Steve's lackey and Pam's hubby!

Be careful Mark… or they just might do a story on how you got YOUR high-payoff… err… paying job.

[Howard Troxler]

Mark, thanks for the follow-up. I am grateful for the offer of a free dinner at Bern's, but I am constrained from being able to accept such an offer to begin with! We will have to split the check.

Now, as to your proposition -- it sounds to me like a Spratt-ian term-setting, subtly trying to change the terms from the get-go. You started with the assertion that the newspaper is "completely wrong" and now we are talking instead about whether the grand jury will find "no evidence of improper or unethical conduct."

It depends entirely on how far McCabe lets the grand jury go. If the grand jury stops at saying, "no laws were violated," then will this count as vindication in your book?

My observations are political, not criminal or even legal. We agree (I think) that it is unlikely the grand jury can find a crime committed here. At the risk of repeating myself, let's go through it once again, and I ask you directly to defend it, rather than pinning your hopes that the grand jury will soft-pedal it:

The elected county property appraiser ought not be involved in personal land deals with the county. He personally pressed the chairman of the county commission, the county administrator and the county attorney for the county to buy his land. The county did not follow all of its usual procedures; the deal was rushed through; the county attorney represented both sides of the deal with the consent of the commission chairman; the county supplied guesstimated info to the outside appraiser; the county commission approved the purchase 7-0; the land was appraised for tax purposes by Smith's office at about a quarter of the sales price.

I just don't see how you can accept all that as fact and still say that this is all peachy keen. Either these facts are not true, or perhaps you can show that they are presented out of context, or else they are fair game for criticism. And I tell you what, even if by some chance the grand jury came out and said, "All these facts are true, but we have decided this was the greatest land deal in the history of the universe and that the ends justify the means," I would STILL stand by the opinion that it was done badly. In sum, I need you to tell me that this is not what happened, that YOU think this is all defensible, and not just that you predict a grand jury will not find a violation.

What say?

[dim bulb]

I might not be very bright, but I think you'd have to be severely retarded to think that this land deal was straight. If a real buyer were willing to pay $250,000 for this piece of paradise, I'm sure Jim would have taken it. I can see no reason why this deal was rushed, because if there was a good reason those under fire would have provided it long ago.

I'd love to see that appraisal report, and what comparables they used. I hope it is made public, we paid for it, after all. Was the appraisal for "market value" determination?

[bill]

Howard, have you taken a look at this property we bought? I was in the area today, and did drive by it.

If I paid $225,000 for this POS, I'd sure want my money back. I'd also say the county should have done a lot more cutting and clearing. I'm not even sure the land is useful! I don't think I'd be happy paying $125,000 for it, but I haven't walked it. Location is pretty crappy, and probably couldn't support anything but a stilt home.

[Boo Boo]

Now Now folks this seems to be getting out of hand. Mark and Howard don't make me come over there. Mark has a point, afterall same thing happend to O.J. he was tried in the press then vindicated in court. Mark you must agree that Howard has his justifiaction also. Look at how many times it took to get the Gambinos. They seemed to be "Teflon" until bada bing they hauled the scum off to jail. By the way Howard I like the peachy keen referance.

[VM]

Wonder if the Grand Jury or Mr. McCabe's office will subpoena computer records (i.e. e-mails, im's - especially those of ALL involved, including staff)? Unethical, immoral politicians have been brought down through these records in the past.

[Lorraine]

The Grand Jury should subpoena those records, VM, you're absolutely right. AND, You would think that whomever is in charge of Real Estate (the Assistant County Administrator over those offices, for instance) for the County would be getting a personalized Bernie McCabe invitation as well. Those are the person/persons who need to be subpoenaed to determine what procedures the County has in place to purchase lands for the county, whether these procedures were followed, if not, who knew they were not followed, when did these employees know the procedure was not being followed and what, if anything, did they do about it.

[Bobby]

Lorraine, no doubt one of the involved Assistant County Administrators happens to be Pam Iorio’s husband. Another dirty little incestuous secret that most people don’t know about. This county is dirty to the roots and needs a severe cleaning.

[Outraged]

Are you implying that a Pinellas county employee, and husband of the Mayor of ..., is making wagers, in a public place, upon the outcome of a Grand Jury investigation?

[Chris]

Dear Howard,

Kudos for exposing and keeping the tough questions going for Jim Smith and Pinellas Cnty. Gov. I love the unflattering pictures of him with his head down. Looks like a real hard worker. This is nothing more than a digusting example of a public servant who quickly worked the system to his own advantage and got caught. How this guy can keep saying "I've done nothing inappropriate whatsoever" again and again is beyond me. Does he think everyone in Pinellas and Florida is stupid? Evidently so. Crist should remove this guy by the end of the month at the latest so he can get off the public gravy train once and for all. Whatever Jim Smith makes a year is a complete waste of tax payer dollars.

[Lucia]

Nothing will happen to Smith because Fox McCabe is guarding the Pinellas Government Henhouse. They're all buddies who watch each others' backs. Maybe that's why "Mark" was willing to make that nice bet? I hope that voters won't forget this mess during the next elections in '08.

[Steve S.]

There's the key...remembering at election time '08...most people will have forgotten about it,as interest span for most people seems to last a few weeks,then it's huh?who?when?...I know I'll be taking a MUCH harder look at whom I'm putting my vote down for on a local level,and not being so nonchalant as I'm afraid alot of people are....thanks Howard for keepin' an eye out!

Does that shock you, Outraged? Why do you think he bailed when I outed him?