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Tragic #NotreDame

4/15/2019

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As a fan of architecture and history, the Notre Dame Cathedral fire is truly heartbreaking.

The collapse of the central spire of #NotreDame. Heart breaking. pic.twitter.com/3NAtgoa68b

— Mike Morrison (@MikeKMorrison) April 15, 2019
Hopefully they won't rebuild it as some Godforsaken modern glass cube or something. 
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If Julian Assange is Guilty, so is The New York Times

4/15/2019

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If Julian Assange and/or WikiLeaks is guilty of espionage or some other similar crime (as mainstream "journalists" keep telling us), than why wasn't The New York Times guilty of the same when they published the Pentagon Papers?

Former Harvard Law Professor Alan Dershowitz shows that the case against Assange is really, really, really weak,
If the New York Times, in 1971, could lawfully publish the Pentagon Papers knowing they included classified documents stolen by Rand Corporation military analyst Daniel Ellsberg from our federal government, then indeed WikiLeaks was entitled, under the First Amendment, to publish classified material that Assange knew was stolen by former United States Army intelligence analyst Chelsea Manning from our federal government.

So if prosecutors were to charge Assange with espionage or any other crime for merely publishing the Manning material, this would be another Pentagon Papers case with the same likely outcome. Many people have misunderstood the actual Supreme Court ruling in 1971. It did not say that the newspapers planning to publish the Pentagon Papers could not be prosecuted if they published classified material. It only said that they could not be restrained, or stopped in advance, from publishing them. Well, they did publish, and they were not prosecuted.
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The same result would probably follow if Assange were prosecuted for publishing classified material on WikiLeaks, though there is no guarantee that prosecutors might not try to distinguish the cases on the grounds that the New York Times is a more responsible outlet than WikiLeaks. But the First Amendment does not recognize degrees of responsibility. When the Constitution was written, our nation was plagued with irresponsible scandal sheets and broadsides. No one described political pamphleteers Thomas Paine or James Callender as responsible journalists of their day.
It's really remarkable that after Donald Trump had praised WikiLeaks so many times during the 2016 campaign that he would now say "I know nothing about WikiLeaks" and just allow this all to happen. Here's a helpful montage for those with a short memory.
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Support Group for Those in Danger of Overdosing on Wokeness

4/14/2019

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​This is good for a hearty laugh.
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Michael Malice Nails it Again #FreeAssange

4/13/2019

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Let's be clear: Julian Assange is not a journalist.
He uncovered and released information that the political establishment and government wanted to stay hidden.
Does that sound like the work of a journalist?

— Michael Malice (@michaelmalice) April 11, 2019
And by the way, the media is, for the most part, lying about Julian Assange and his arrest is blatantly outrageous.
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The War on Dank Memes

4/10/2019

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With the passing of the meme-destroying (and possibly Internet-destroying) Article 13 by the EU as well as government and social media-driven censorship campaigns, it appears that the fun-hating powers-that-be have realized they can't meme and thereby want to destroy all memes.

And of course, they'll use the malicious actions and content of the worst few to rationalize a blanket-censorship approach to the many. Now, they're starting to refer to photo shopped memes made to be humorous as "doctored." Michael Malice hits the nail on the head on this one:

the alternative is to believe that several different prominent organizations all coincidentally used such a specific but bizarre descriptor pic.twitter.com/xcRDQOIwYA

— Michael Malice (@michaelmalice) April 6, 2019
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Legacy Development: Commercial Property Management Company Profile

4/9/2019

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Here is a paper I wrote on Legacy Development for my MBA course at UMKC that those interested in commercial property management might find interesting. (Also check out my article for BiggerPockets on commercial property management for more.)

History and Business

Legacy Development is a commercial development and asset management company that was originally founded as Red Development in Phoenix, Arizona in 1995. For the first 20 years of its existence, it had dual headquarters in both Phoenix, AZ and Kansas City, MO. Indeed, at one time, it had upwards of 250 employees.

Today, it has consolidated its operations and only the Kansas City headquarters remains as well as about one-fifth as many employees. Legacy Development has also faced a few problems in the past few years. For example, in 2017, an audit found there was a conflict of interest in the renovation of the Ward Parkway Center at 8600 Ward Parkway Blvd in Kansas City, MO. Over $1.2 million was paid out without a bid process.

Despite this setback, the Ward Parkway Shopping Center won the Capstone Award in 2018 for greatest community impact. Legacy Development also won the Capstone Award in 2017 for the Truman Marketplace, which Legacy redeveloped and currently manages.

Legacy Development has two divisions of its business; the development side and the asset management side. Rarely do these two arms intersect, although Legacy’s management division often manages properties that Legacy’s development division either built or renovated. For example, Legacy Development added an expansion to the Ward Parkway Center referenced above. After the renovation, Legacy’s Management Division took over management of the property.

The vast majority of Legacy Development’s projects are located in the Kansas City Metro Area although the company does have a few outside of that area including one in Daytona, Florida and another in Basalt, Colorado.

Most of the information in this paper was provided by Legacy’s website (www.LegacyDevelopment.com), The Kansas City Business Journal and an interview with Legacy Development Media Representative Dave Claflin. Claflin’s recommendation for anyone who wants to get started in commercial property management is to work for another company first and foremost. That very will may include starting on the first rung. But it’s just generally not possible to start a commercial property management company on your own or even be hired as a manager without first being an assistant or leasing agent.

Key Facts
The key facts for Legacy Development, as of March 15th, 2019 are as follows:
  • Founded: 1995
  • Headquarters: 4717 Central St, Kansas City, MO 64112
  • Projects Managed: 50
  • Square Feet Managed: 31 Million
  • Officers: 5
  • Key Officers
    • Dan Lowe, Managing Partner (CCIM)
    • Chuck Oglesby (Managing Partner (CSM, CRX)
    • Sue Gallatin (Chief Financial Officer)
    • Heather Trower (Chief Development Officer)
    • Luke Gabel (Chief Analytics Officer)
  • Field Team: 10
  • Total Employees: 50
    • Management Division: 40
    • Development Division: 10
  • CPM (Certified Property Manager) Designees: 1
  • CCIM (Certified Commercial Investment Member) Designees: 2

Market Position
Legacy Development is focused almost exclusively in the Kansas City Metro Area and almost exclusively on Retail; or more precisely, Mixed-Use Retail. Legacy is not generally looking for a standalone Walgreens or gas station or retail property such as that. Instead, their primary market includes mixed-use retail-focused developments. Their largest projects (asset management) include:
  • The Legends Outlets (Kansas City, KS)
    • Destination/Outlet Center
    • 1.2 Million Sq. Ft.
  • The Ward Parkway Center (Kansas City, MO)
    • Power Center
    • 550,000 SF
  • Truman Marketplace (Grandview, MO)
    • Power Center
    • 395,000 SF
  • Willis Town Center (Basalt, CO)
    • Mixed-Use Center
    • 402,959 SF
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Marketing (for Clients)
At this time, Legacy rarely markets for new potential clients. As of now, they are not aggressively expanding and have relied predominantly on the reputation they have built up over the previous 20 years as well as networking to procure new development projects and properties to manage. Relying on word-of-mouth has been sufficient for their current goals.

Management Strategy
Whether or not Legacy will have an onsite manager or offsite manager depends on the size of the property. Generally, it breaks down into three categories:

- Large Complexes: Onsite Management (General Manager, Facility Manager, etc.) and Maintenance
- Midsized Complexes: Onsite Manager and Maintenance (no other staff)
- Smaller Complexes: Offsite Manager and Maintenance


Depending on the situation, Legacy will offer either Gross Leases or Net Leases. They use PMI as their property management software; which is the industry standard.

Management is generally simpler with retail properties than residential properties as there are less tenants and the tenants are businesses with standard operating procedures as well. Even still, of course, there are management challenges that Legacy faces.


Management Challenges
The biggest challenges Legacy faces managing its properties and tenants (not including leasing) are:

- Making sure everyone does what they say they will do
- Keeping the peace (when tenants have disputes with each other; for example over parking or noise)
- Keeping the common areas clean and maintained
- Capital Improvements (I.e. timing, which potential solutions to implement, negotiations with contractors, etc.)
- Budgeting


So, for example, with regards to capital improvements, whether the parking lot should be repaved now or later and finding a contractor to do so would be a standard example.

For budgeting, each client (whom are mostly large funds) takes a different approach. Legacy always listens to and works with their clients as well as getting feedback from outside professionals to put their operating and capital improvements budget together. By working together with their clients on this process, they reduce the likelihood of miscommunications or other such problems in the future.


Leasing Strategy
Legacy Development is much more aggressive with marketing to potential tenants than to potential clients. Generally, Legacy markets in the following ways:

- Online portals: CoStar.com, Loopnet.com, etc.
- Finding retailers that are expanding and marketing directly to them
- Networking and Recruiting

One time Legacy Development staff went so far as to fly to Europe to meet with expanding retailers there. As noted above, Legacy offers both Gross and Net Leases depending on the situation, although they usually look for a 10-year lease. That being said, tenant mix is the most important aspect of their leasing strategy.


Tenant Mix
Legacy Development will go so far as to decline quality tenants if they don’t meet the mix they are seeking. This also goes, of course, for quality too. For example, Legacy would turn down a liquor store in a high-end retail property.     

Today, with their mixed-use projects, they aim for approximately 70% retail and 30% restaurants or entertainment (which is less retail than the past). They also want to find tenants that will draw customers to other tenants. For example, a theater will draw potential shoppers to a grocery store.
    

There are finally issues of co-tenancy Legacy considers. For example, tenants often have clauses that allow them to opt out of their lease if the anchor tenant leaves. Or a jewelry store may demand a clause that prohibits the owner from leasing to another jewelry store at that complex.

​
The Town Center Plaza Example
Nothing better illustrates the commitment to a strong tenant mix than Legacy’s operation of the Town Center Plaza in Leawood, KS. The property opened during the Great Recession of 2008 and had only 20% of its space occupied. Banks were willing to extend additional credit, but only if occupancy was increased to 50%.     

​
In addition to this, there were qualified tenants who wanted to lease space at the Town Center Plaza. But because they didn’t fit the mix (either in terms of type or quality), Legacy turned them down and found a way to weather the storm. Eventually, they were able to turn the building around and just recently sold it at the best cap rate in Kansas City history.
 

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Where Commercial Real Estate is Going

There are two major market pressures, particularly on retail properties. They are,

  • Online Competition
  • Changing Consumer Preferences

Both of these trends are leading consumers to prefer “experiential” activities when they go out. After all, why go out in the first place when you can just order what you want on Amazon.com?

Experiential activities include more than just restaurants and movie theaters, such as new outlets like Chicken N’ Pickle; where consumers can get lunch and play a game of Pickle at the same place. Another example is Blade and Timber, which allows customers to try their luck throwing a hatchet.
​

In the past, mixed-use developments have generally been about 90% retail and 10% restaurants and entertainment. Nowadays, that mix is moving toward 70% retail and 30% restaurants and entertainment. Addressing this shift in consumer demand is the biggest overall challenge retail property managers currently face in what is becoming a rapidly changing market.
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Andrew Yang and the Rise of the Robots

4/8/2019

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The Luddites were a 19th century movement in Britain who destroyed factories and machines because they were taking their jobs.

Of course, the Luddites were completely wrong and those 19th century machines simply improved productivity which freed up labor to move into more valuable areas of production. Thus, capital accumulation lead to to wage growth as capitalists competed for workers with better pay, benefits and conditions. 

And thus, you got this:​
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And don't get me wrong, that's great and all. Indeed, in many ways the world has gotten a lot better. But nowadays, when anyone talks about machines replacing humans and ask as I did a while back, "how exactly will the normal person be able to sell his or her labor?" they are likely to get called a"Neoluddites" or something like that. But the Luddites only have to be right once for it to be a disaster. And eventually, they will be.

Indeed, if you can imagine AI that can make pretty much any computation immediately as well as "think" strategically and add that to high-end robots with Iron Man-like capabilities, how could humans possibly compete?

This presents an incredible opportunity. We could conceivably end poverty, protect the environment and achieve all sorts of medical and scientific breakthroughs. It also presents an enormous risk; namely a technofeudalistic dystopia where elites pretty much run everything and not only is there no hope for social mobility, there's also no hope of overthrowing the regime in charge. With robots like those, who exactly is going to overthrow them?

This is why it's rather shocking that of all the Democratic candidates for President (and Trump for that matter), only Andrew Yang is talking about this issue. His plan for $1000/month Universal Basic Income may not suffice, but at least he's actually talking about it. As he notes, "the entire socialism-capitalism dichotomy is out of date" and is basically a 20th century debate. (Capitalism won, by the way.)  Here he describes his thesis to a surprisingly receptive Neil Cavuto:
For an idea of just how big a challenge this is, I recommend reading Rise of the Robots by Martin Ford. It's rather terrifying to say the least.
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New American Thinker Article: The Media Must Face Consequences for the Russia Hoax

4/7/2019

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My latest article for The American Thinker is up, this one being on the media and the Russia hoax. (Which I've written about here and here on this blog.) And the article has hit quite the nerve with 296 comments and 1700 Facebook shares, likes and comments as of this writing.

Indeed, as Matt Taibbi put it "It's official: Russiagate is this generation's WMD." And of course, we should remember that the media was utterly pathetic in that case as well. (As they've been with almost every other war, hate crime hoax or hit piece on some dissident leftwing or rightwing figure). 

We can't just let this one slide. The mainstream press has been pushing to silence and censor other voices online. Yes, some of them are hateful and some are crazy, but many are just dissidents. There is no good reason we should allow multibillion dollar, multinational corporations to decide who can speak and who can't. Especially given that these same corporations lied to us about muh Russia and WMD's and Catholic kids smiling and some weird "MAGA country" hate crime in Chicago and just about everything else.

The way I finished my piece for American Thinker really sums up my thoughts on the matter,
The mainstream liberal press has betrayed the trust of the American people in a cynical ploy to try to remove a President they openly hate while lining their own pockets. Don’t allow them to move on to the next topic as if nothing happened. Their credibility is gone. Don’t let them forget it.
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InstaFOMO

4/5/2019

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The great Charisma on Command Youtube channel has a great video that takes on why Instagram (and other social media sites to a lesser degree) or so bad for your mental health. Instagram particularly increases the FOMO (Fear of Missing Out) which I have talked about before. Everyone puts ups a curated version of their life that makes it look like they are "living the dream." 

Then, when you see all of these curated lives in a sequence with just the highlights being shown, it looks like your life is pathetic by comparison. But it's not folks. It's all a bogus illusion. It's probably best to delete your Instagram and spend less time on social media in general.
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Two Minutes of Distilled NeoMcCarthyist Hysteria

4/4/2019

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For anyone saying the mainstream press did a good job covering the Russia hoax, well, this two minute video Glenn Greenwald shared should set the record straight:

A short two-minute video for those of you in the media pitifully insisting that no media reckoning is needed and journalists performed beautifully, soberly and responsibly throughout this whole saga: pic.twitter.com/PF5s2kTcYA

— Glenn Greenwald (@ggreenwald) March 25, 2019
But don't worry, The New York Times is still "proud" of their Pulitizer-worthy coverage of the Russia hoax:

Just out of curiosity, are you proud of your reporting on the Holodomor as well? Walter Duranty also won a Pulitzer Prize.

— Andrew Syrios (@rios9000) March 30, 2019
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    Andrew Syrios

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