Miller is the beachfront area of Gary and one of the few places you can by an elaborate property on the lake for a very reasonable price. Of course, since property prices in this area of Gary are at $100,000+ property owners have been pretty much subsidizing this city.

It will be interesting to see what happens to this area of Gary. Some people there have been interested in de-annexation but that’s pretty expensive. Other people in this area have been hoping for a state takeover. Of course, most think that’s the last thing “My man Mitch” or anyone in Indianapolis really wants to do.

It would be interesting to see what you all think about this matter.

It has become something of a bedroom community for Silicon Valley and its properties are part of an international market given its location and scenic assets.

However, the middle class (except for the Silicon Valley commuters) is going quickly leaving the rich folk with the views and a bunch of poor doper slackers and welfare types.

You can get a job there waiting tables on Fisherman’s Wharf or selling tie-dye shirts in the Haight-Ashbury but even the financial and corporate centers have moved to the ‘burbs (Chevron, for example, in San Ramon, Clorox in Oakland, etc).

San Francisco is dirty with more and more weirdos roaming the streets.

You’d think a mini-mill would have the capital to run its own coal furnace, with a greenhouse on the roof. Zero carbon emissions.

Mini-mills use large quantities of electric power, and the war on energy being conducted by the Democratic Party could do grievous harm to this industry.

But successful cities (Chicago, San Fransisco) in the U.S. lost their manufacturing too and did not die–in fact, they are richer and in better shape than they were back in the days when Chicago had its steel mills and stock yards.

Chicago is in bad shape, and the worst is coming in the next year when real estate taxes will be re-assessed. The city is already out of money, taxed to the limit, the free-fall that is coming when revenues drop (severely) will probably be similar to Gary and Detroit where it is not just city services which are affected but actual blight, the decay of buildings, the flight of business and affluence. Chicago is well on its way to ruin, not that I am a doomsayer by nature, but most cities and local governments have seen their apex and are now sliding towards contraction because revenues cannot be sustained over the ever expanding trend in spending.

Gary is just a step in the path. Detroit, Chicago, Los Angeles, New York, San Francisco….. Not all cities, some will do well, but those run over the long term by liberal mayors and governors, many will fail.

But land and houses in better areas in the region are just not so expensive that a group with that kind of ability would want/need to locate in the city of Detroit itself.

The problem with doing it in Detroit is that death spiral cities latch on to remaining areas of functionality and tax/regulate them to death in an attempt to stay alive just a bit longer.

Well, yes. Property values are low, but tax rates are high. If you do manage to build something of value, the taxes will get onerous very quickly.

BTW, what blows my mind as much as the $7K blue-collar houses in Detroit are lovely, 5000 sq ft arts & crafts mansions in green neighborhoods for next to nothing:

http://www.trulia.com/property/photos/1094355402-19430-Suffolk-Dr-Detroit-MI-48203

Slocum – For large family/clans with a mix of well off and young working class people there is an opportunity. You essentially buy up a neighborhood, pay for extra security, rehab the housing stock, put up CCTV cameras everywhere, and move in enough of your relatives so that there’s a core group of people who care. The problem with doing it in Detroit is that death spiral cities latch on to remaining areas of functionality and tax/regulate them to death in an attempt to stay alive just a bit longer.

The Detroit suburbs are filled with people who tried to escape from Detroit. Lake County is filled with refugees from Gary. The psychology of both populations is to contain their poorly run neighbors, making it difficult for them to be “overrun” Chicago has a different attitude.

I very much agree with your second comment.

Jonathan Walz – The difference is that Detroit is the county seat of Wayne county, Michigan. The county seat of Lake county, Indiana is Crown Point. You kill Detroit and you kill the county, not just the city. With Gary it’s different. I’m hoping that makes a difference.

Joel – Obama dollars have already arrived via the ARRA. Gary has used those dollars to hire extra police and now cannot cut the police force for the next three years. This makes public safety budget cuts much more difficult. Unintended consequences, meet Gary.

Mike – I pray for the day when you won’t be saying “the Greens” but rather have access to a quick report that identifies each politician doing it, the acts they are responsible for, and their major opponent in the next election. The impersonal nature of “the Greens” lets a lot of bad actors off the hook. That’s not your fault. I am working on this problem.

John – I think you were very close. On the same site look for circuit breaker information ( http://www.in.gov/dlgf/8225.htm ) and you should get more specific information.

Chester White – The differing fates of Trabant and Dacia (both E European communist era car brands) are the reason why bulldozing and starting over may not be the best idea. Trabant shut down, Dacia retooled and partnered with Renault. Today new models are being sold in a couple dozen countries and it’s making popular cars and sports increasing brand equity. I hope you agree that the latter is the better solution. It’s the same with Gary.

But successful cities (Chicago, San Fransisco) in the U.S. lost their manufacturing too and did not die–in fact, they are richer and in better shape than they were back in the days when Chicago had its steel mills and stock yards. Look at Detroit — situated on the Great Lakes almost as a mirror image of Chicago. It’s the southern gateway into Canada, about half way between Chicago and Toronto. There’s no effing reason Detroit shouldn’t be a great city like Chicago or Toronto even without manufacturing. It’s not the economic downturn or the loss of manufacturing — Detroit has been dying since the 1960s, during good and bad times in the auto industry (and in Michigan and the metro region). It has been corrupt, inept governance that has destroyed Detroit.

Why is it frightening? Anyone with any sense doesn’t live there. When Gary goes under, move everyone out and bulldoze the damn place. Should have been done years ago.

John – The page you refer to seems to be from around the early 2000’s. In 2007 the caps were reworked to avoid exactly that sort of trick. Assessments are now calculated based on actual market prices for comparable homes over the past two years. This is called the “true tax value” and is relatively new. The new system just started to kick in this year (2009) and will fully kick in come 2012.

TMLutas:

I followed the debate etc. pretty closely this year, and I’m very skeptical of your interpretation. My tax bill went up 88% in 2008… I assure you that the value of my property didn’t go up anything like 88% (probably down actually).

I suspect that “comparable homes” is just a name for the political process I referred to above. Do you have a more recent link where I can read up on how this is calculated now?

It seems to me that as long as they start with the levy (how much they want to spend) and back out from there that there is no effective cap on the tax, and therefore no relief for those of us paying it, and no danger to Gary apart from the usual one of any parasite destroying its host.

I did find this page: http://www.in.gov/dlgf/4988.htm which is seriously obfuscated, but does say “TAX RATE = Estimate of funds to be raised/net assessed value.” I think that googling “indiana property tax how calculated” doesn’t produce a state web page giving the exact formula speaks volumes about the attitude of the folks in Indianapolis.” They want this to be obscure.

It *appears* to me that they are using the “true tax value” merely as a means of allocating the burden among tax payers, rather than as a limit to the total “levy”.

Went to college with some kids from the Region whose fathers were millworkers. They mainly came from Crown Point. Don’t know the commute time or mills’ locations, but it seems Gary was doing its best to scare away taxpayers decades ago.