Tuesday, February 28, 2012

VALID VENDORS REAL-ESTATE SERVICES LLC, AMASSeco Corporate Responsibility.

Peter Palomino Corporate Responsibility.

For the 21st Century, a Network of Beneficial Philanthropy and Corporate Citizenship

The United States is experiencing an evolution in its expectations of corporations and their responsibilities in society. Regulatory pressures have failed to guarantee ethical behavior and social responsibility in corporate America, and efforts at self-management have fallen short time and again. The government usually turns either to regulation or to tax credits to spur responsibility, but to make these programs work, we need a combination of incentives (usually through tax breaks or tax credits) and government involvement to create new kinds of social systems.
There is one avenue that holds promise for revitalizing corporate social responsibility in a time of distrust and doubt: the creation of networks of stakeholders where responsibility is shared and the benefits accrue to all of the parties. In this construction, the three legs of the social compact – government, nonprofit organizations and corporations – come together to harvest capital, remake policy and employ strategies for the public good.
In recent columns I have discussed the importance of corporate citizenship and corporate social responsibility, teasing out the differences and pointing the way for a new role for corporations in a new century. Critical in these discussions has been the underlying notion that corporations reach the bar of citizenship best when they are able to serve their shareholders while satisfying their community responsibilities.
This is a key characteristic. When looking for innovative solutions to out-size problems, such as developing renewable energy resources or resolving health care financing dilemmas, the answer can’t be a regime of tax credits, venture capital or corporate giving. They aren’t sufficient to finance and maintain the momentum for massive, long-term undertakings. Instead, what is needed is a mutually beneficial philanthropy where corporations work with government and nonprofit organizations to create intense networks of capital, policy and practice.
The networks among stakeholders are critical; tax credits alone do not usually solve problems, just as regulation alone does not solve issues, though legislators often seem to miss the importance of building dense networks of stakeholders. This is the main reason recent tax credit-driven solutions, such as the New Markets Tax Credit and the Renewable Energy Tax Credit have failed to stimulate the growth in the areas they have targeted.
The most successful example of this case in recent years is the Low-Income Housing Tax Credit (LIHTC), the 1986 provision to the federal tax code that sparked a revolution in urban redevelopment and resulted in an upsurge of new organizations and activities to promote the development of low-income housing. The 1970s and early 1980s were dark times for urban America, and few in Congress knew how to turn the ship around. Congress had seen its earlier efforts to incentivize the investment of corporate resources in the development of low-income housing, including the Community Reinvestment Act of 1977 (CRA) and the passive-loss provision in the Economic Recovery Act of 1981, fail. With the CRA, Congress pressed banks to invest in poor communities, but they were reluctant to do so and looked for ways, including traditional grant giving to local nonprofits, to avoid what was arguably a risky financial proposition. Meanwhile, congressional efforts to encourage wealthy individuals to purchase low-income housing through the passive-loss provision had proven problematic as investors allowed their properties to decline to capture a greater tax write-off.
By the mid-1980s, Congress knew that something new had to be done. The LIHTC, approved in 1986, was the legislative response to significant changes in government housing policies. First, it addressed the elimination of direct federal subsidies for low-income housing development. Known as the Section 8 New Construction Projects grants, the U.S. Department of Housing and Urban Development struck them as they became politically untenable.
With the LIHTC, the government would create incentives for powerful alliances of banks, nonprofit organizations and corporate investors to build low-income housing. In fact, the LIHTC became a catalyst for one of the most significant injections of corporate dollars into the inner city in the history of this country, providing tax abatements for corporations and giving rise to a host of community-based housing developers and the nonprofit, locally based organizations that lobbied for more housing for low-income individuals and families.
The process set in motion with the LIHTC saw corporations provide capital in exchange for federal tax credits. This capital was then used to leverage resources from banks and private developers, many of which were in partnership with nonprofit development organizations known as community development corporations, to build low-income housing. In effect, this limited the government’s involvement in public housing development and management yet resulted in a massive private investment that has few rivals in U.S. housing development history.
However, the building of networks of stakeholders did not end there. The passive-loss provision from 1981 worked in tandem with the LIHTC to allow corporations to double-dip when it came to applying federal tax incentives. “With large tax liabilities, the tax credit made sense for corporations, but on its own, it is basically an even tradeoff with paying taxes to the government (a dollar-for-dollar write-off of tax liabilities). However, by combining the credits with book value depreciation of the property meant that corporations could receive the double-dip Congress had explicitly argued against individual receiving: with the passive loss provision still in place for corporations, the opportunity existed to take the tax liability and turn it into an investment for corporations. Over a 10-year period, beyond the credit corporations could yield an additional graduated write-off against future taxes,” my co-author Michael McQuarrie and I wrote in “Privatization and the Social Contract: Corporate Welfare and Low-Income Housing in the United States since 1986” in Research and Political Sociology.
To help serve this complex structure, new organizational forms emerged to manage these investments (so the corporations could own the “asset” and thus qualify for the passive loss without becoming property managers) in the form of intermediaries such as the National Equity Fund (NEF) and the Enterprise Social Investment Corporation (ESIC), which emerged to facilitate these investments. Working with local community development corporations (CDCs), these organizations built relationships with banks and corporations to make these deals work. These relationships evolved into dense social networks that changed the game significantly.
For corporate America, this could easily become a model of social investment, eclipsing traditional corporate philanthropy in favor of a muscular social investment that is built on a complex and financially beneficial network of relationships between government, nonprofit organizations and corporations. These public-private partnerships are obviously built, in part, on tax incentives and government regulations, but they succeed in creating a new social compact by encouraging these dynamic and dense networks. By transforming the social structure through economic alliances, corporations and their partners in government and the nonprofit sector may be able to promote social change through aggressive corporate philanthropy and citizenship.
What is clear from this model is that this type of game-changing corporate philanthropic investment does not occur without substantially rewarding the corporate community through tax incentives. Even so, the urban revitalization that came about as a result of these networks and the catalyzing federal tax incentives offers an opportunity for corporate citizens and government leaders looking for new ideas to spark the next revolution, whether it’s in energy, health care or biotechnology.
As we demand that corporations take on the mantle of citizenship, we as a society must ask ourselves if we are willing to provide the financial incentives to not only woo corporations to an expanded social responsibility but also to ensure that they are successful.
 

 
 

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Monday, February 27, 2012

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Isleton's Ire: How A Tiny California Town Got Tangled In The Complex Web Of Cannabis Laws

Isleton
First Posted: 07/28/11 12:21 PM ET Updated: 09/26/11 06:12 AM ET
9
"We asked: Is it state or federal law you're concerned with? She wasn't really clear," Larsen said. "I've been a city attorney for 30 years. We're not hayseeds here. But all we could get from them was that they were going to conduct an investigation."
"We tried to cooperate," added Pope. "We kept asking 'What's your issue here? Let's work to resolve it.'... We never got an answer."
'THERE'S NO INDUSTRY HERE'
Isleton, a tranquil settlement along the winding Sacramento River surrounded by cornfields and pear orchards, has had more than its share of troubles with the law over its 88-year history. The labyrinths of the river delta's sloughs and tributaries have long provided privacy to smugglers and other kinds of people looking to live below the radar. Locals still mention the former brothels on the two-block long Main Street, which today features only few restaurants, shops and art galleries.
More recently, the city's failure to file annual audits and charges of corruption in the police department and city government have resulted in other grand jury investigations -- until Pope and Sullivan were hired a few years ago to straighten things out.
"There is nothing we've done that has not been fully public," said Pope.
The economy now victimizes Isleton more than any criminal activity. Half the storefronts on Main Street have "For Lease" signs in their windows, and businesses elsewhere in the city limp along with the patronage of loyal locals and a limited number of tourists, bikers and boaters.
"Isleton is not a river stop anymore. The canneries are gone. Asparagus is being grown elsewhere," said John Romero, a boater and Bay Area telecommunications specialist who lives in an unincorporated part of town. It was no wonder, he said, that a city with no remaining economic foundation saw in the cannabis project a hope of survival.
"We're really bummed it's not happening," said Karen Franscioni, a stained glass artist and gallery owner. "All the people we know in town were in favor of it. Because it was going to bring money into town. There is no industry here."
Hair stylist Maria Vasquez, proprietor of The Hairloom on Main Street and the mother of two school-aged children, said that not everyone in Isleton initially supported the cannabis farm.
"I was concerned at first. None of my family or friends do drugs, and my children are young, so I didn't really know what this proposal was going to do, and whether it would create a drug environment here, or what," she said.
But as she found out more about the nature of the project, "I came to agree that it would do a good thing for this town," she said. "Because of the money, and also those people who really need it."
"Where was the harm? Who was going to be hurt by it? No one," said Pace, sitting in her bar among sparse customers on a recent weekday afternoon. "All the money would've been put to good use."
While it was too soon for any sort of allocations to have been devised, Pope said that every department in the city government would have benefited from the increase in funding, from the volunteer Fire Department to youth recreation programs. More than 50 Isleton area residents would have found employment on the project, including a local architect and contractors.
Pope disputes the grand jury's characterization of DAG as an "elusive" company that "exploited" a city "highly vulnerable to a seemingly lucrative proposal." He said that the jury's charge that DAG came in and offered to beef up the local police department with new computers and video surveillance equipment to secure the grow facility -- and the town -- was also false.
"They didn't offer -- I insisted on it," Pope said.
Sullivan felt particularly angered by the grand jury investigation's implications that he stood behind the proposal for personal or departmental gain.
"Some media have painted me as being blinded by greed for these things," said Sullivan. "It's not greed. It's reality ... Here we've always been poor. But when the economy tanked, this place suffered even more."
Sullivan added that revenue from the project could have been used to pay his reserve officers, who currently volunteer, an hourly wage. "We could have a state of the art police department here," he said.
As a former enforcer of marijuana law, flying helicopter patrols with the California Highway Patrol, Sullivan explained that things look different to him now, on the ground.
"I've educated myself: What's a collective, a dispensary, that there are people already growing medical marijuana within our city and around the state," he said. "I also know about the Mexican cartels and the white boy grows up in Humboldt County. I know there are people in it for the money. The real problem is we have people who are legitimately ill and need it. I'm not opposed to that; I am opposed to abuses of a system that permits it."
"I think the D.A.'s and the A.G.'s concern is that it's going to get so big -- we're talking beaucoup bucks," he added. "And they haven't figured out what they want to do about it."
FOLLOW HUFFPOST SAN FRANCISCO


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12:45 PM on 08/01/2011
It's actually more straight forward , the government rather see 40 000 mexican killed in the most horrific condition than legalize something that would put all these cartel out of business , it is to the point when one must wonder how far in the political ladder drug made it's way .
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03:49 PM on 07/31/2011
check out the plaque in the fifth photo.
there's yer problem town. built on an indian burial ground.

hahaha!
03:08 PM on 07/31/2011
Great reorting! Thank you for keeping Californians informed about what's happening to our fellow citizens and neighbors. Isn't it funny (not funny ha ha; funny predictable) that first, Oakland approves four industrial medical cannabis growing locations then Isleton does it and they move to put a stop to it real quick. Typical. What happened to equal protection under the law? Sounds like the tyranny of the majority strikes again.
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HUFFPOST SUPER USER
BKearney
Life is funny, skies are sunny, bees make honey
09:24 AM on 07/31/2011
It's really a win-win; the people of Isleton are spared the evil of marijuana and the Mexican cartels keep their market share.
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HUFFPOST SUPER USER
missouriwatcher
military veteran, veteran teacher, father, grandpa
04:21 PM on 07/30/2011
We may have won the day in WW2; but it did not put an end to the fascists, or those that think as they do.
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HUFFPOST SUPER USER
Al Nava
Working-Class & Progressive Revolutionary Leader
03:09 AM on 07/30/2011
Anti-Cannabis people are either ignorant, stupid sheep, racist, support corruption, and/ or greedy. They would rather have a person locked up for possession of a plant than to spend the money on capturing murderers, rapists, child molestors, & other dangerous criminals. These fools lack Spirituality because they are controlled by corruption.

We know better, but we don't have the corrupt money that these anti-Cannabis fools have. We must use our networking skills to reach a wider audience and vote out all these corrupt individuals and defeat the enemies of Freedom and Justice.
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HUFFPOST SUPER USER
missouriwatcher
military veteran, veteran teacher, father, grandpa
04:22 PM on 07/30/2011
faved and fanned--#998.
02:13 AM on 07/30/2011
You got slapped around by California?
I'd have seized the Model Home titles
after taking criminal evidence found
hidden in the garages. I'd ask courts
to sledgehammer city government as
it would criminal organizations. I'd
ask for Federal Zip Code removal.
12:39 AM on 07/29/2011
The feds are overwhelmed by weed. Random busts of major growers isn't a means of operation that will bring victory against the increasing amount of weed being grown in N. America.
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:14 AM on 07/29/2011
And it grows wild in the midwest, you can see it growing by the roadside in Iowa.
02:18 AM on 07/30/2011
What you see isn't the bred big money versions that knock your socks off.
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HUFFPOST SUPER USER
Al Nava
Working-Class & Progressive Revolutionary Leader
03:10 AM on 07/30/2011
That is more than likely the Hemp strain.
09:37 PM on 07/28/2011
I do not understand the evangelical frothing at the mouth that occurs every time the federal government talks about marijuana, yet the two biggest trouble-makers and citizen-killers, alcohol and tobacco, are allowed and encouraged.

This country, steeped in a tradition of drinking and smoking, is also steeped in a tradition of Joe Citizen paying a high price for stepping over the line. Cancer and DUI's go hand-in-hand in the great country that is America. The misery and mistakes, profited on, by the government, courts, lawyers, doctors and anyone else who can make a buck on the addictions of the drinkers and smokers.

That's all good though. These are Americas “government approved” intoxicants. Drinking and smoking is hardwired into everything we do and it reeks devastation across the landscape. But don't smoke a joint. That's illegal. That's a gateway drug.

What a load of crap the populace is fed by our incompetent, ill-intentioned government.
02:30 AM on 07/30/2011
I want a drug testing required for any state or federal license.
I want zero tolerance for failures and six month wait to detox.
I want vehicles immediately impounded for DUI and auctioned
if zero tolerance fails second license application testing. Any
other drug testing failure is good for two years in State Pen.
or The Funny Farm.
01:37 AM on 08/01/2011
Attempting to control people is never more efficient, in the final analysis, than creating the conditions necessary for the development of healthy, intelligent and compassionate human beings. If external control was effective and more efficient it would have been successful in totalitarian states that have failed. It would also produce prison populations that are models of civility, but the failure of that system is obvious. You may be moved to such proclamations for control for good sentiment but where such a strategy would be restrained from becoming a stop and search fascist state is problematic. Eventually we would require an elite group of controllers for the controllers, and so forth in ever increasing spirals of paranoia and grandiosity. Developing an understanding for the contextual environment necessary for proper human development into a citizen who feels hopeful, meaningful and significant, may not be as simplistic in its formula as we have become accustomed to assuming. But sometimes tacking is more efficient than stubbornly sailing into the wind. Of course such a perspective requires a sense of the limits of human will and a healthy respect for both the external and internal biology of becoming human. Otherwise, the control everyone with enforcement and threats approach is doomed, in my opinion, to producing the similar failures of prohibition and "just say no".
09:24 PM on 07/28/2011
Side effects...you get hungry, horny and sleepy.
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HUFFPOST COMMUNITY MODERATOR
GiantsFan44
Happy wife, Happy life
09:22 PM on 07/28/2011
Dang I wish I had known what was in those garages.  We drive by there every couple weeks or so, under cover of night I could have scored.  Just kidding but those houses look so lonely just sitting there half done.  I always wondered why someone could not finish them, they were very close or sell them as is.  It would not take much to finish them off.  Pity
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:16 AM on 07/29/2011
Interestlingly the last house on the right hase windows in the door, wonder if they blacked them or obscured them, otherwise it woulda been obvious that something was going on, all they had to do was look thru them.
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HUFFPOST COMMUNITY MODERATOR
GiantsFan44
Happy wife, Happy life
11:45 AM on 07/29/2011
So, you actually got close to the houses?  How funny.  We drive by maybe every other month when we are coming bck to Rocklin from Antioch picking up our grandchild andI always felt the houses looked so lonely sitting there.  The town maybe should have kept their plan a little quieter or perhaps there ws a filing of some kind that alerted this Scully lady.  Oh well I hope they come up with another plan I thought it would be kind of nice to live there now that we are retired.
07:58 PM on 07/28/2011
This troubles me that Isleton is foreshadowing what would come of a state level legalization of marijuana. After two hundred years of implementing constitutional law, we have still not decided how federal legislature should affect state legislature (a catalyst for the American Civil War), as well as state leg. vs. city laws. If marijuana is ever legalized in California, I have little faith that the state government will do anything to protect its citizens' rights against the federal government drug war machine. Proposition 215 is a Catch 22, as in you can legally grow medical marijuana in large, industrious sized farms, and sold in clinics state-wide, but both farms and clinics can be raided and shut down at any time because the D.A is suspicious of the money changing hands, or because it conflicts with federal laws. It seems that inevitably government entities' own agendas trump common sense every time.
02:45 PM on 07/31/2011
Cry HAVOC! And unleash the dogs of war! ; No government or other entity will ever give up any power they have gained without a fight. Since it was ratified, the 10th Amendment has been either ignored or wrongly interpeted. The federal government DOES NOT have the authority to regulate ANY business that is conducted within any state, only importing and exporting with another state or country and, thanks to the 13th Amendment, slavery and involuntary servitude. Congress can pass any law they want but they have no constitutional authority to enforce those laws. Congress can't even amend the constitution, the states get to do that. In short, the federal government does not have the right to do anything unless expressly stated in the Constitution. The States and the People HAVE the right to do anything they want unless expressly prohibited by the Constitution.
07:39 PM on 07/28/2011
I liked this report. I have visited Isleton several times over the last twenty years and it has always felt like a ghost town. The town deserved the financial opportunity. At some point soon this state seriously needs to get its act together! Working with town and city officials to help improve the local and statewide economy is the solution - not fighting against them!
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:18 AM on 07/29/2011
What with global warming and such it might be better to pay folks to 'GET OUT' and break the levees and let it return to river bottom marshland.
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HUFFPOST COMMUNITY MODERATOR
GiantsFan44
Happy wife, Happy life
11:48 AM on 07/29/2011
It would destroy the water supply for most of California if they did that and ruin their crops and their homes.
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mikey09
Living off the grid.
07:18 PM on 07/28/2011
That darn Federal "Supremacy Law.
D-Driller
my micro-bio is empty
04:31 PM on 07/28/2011
You can't pick and choose what laws you want to follow. You can't say, "Hey, it's legal by California law, so that is all that matters". How naive. Of course Federal Law overrides state law - that is the way it works. Don't like it - change it. Or, if you don't have the votes, then suffer. But this isn't newsworthy - this is a bunch of folks who thought they could do whatever they wanted to do, and it doesn't work that way. I fi supported legalization, I'd be uppset with these people. First, it gives people like me someone to scoff at for their stupidity, and that is what it is here, make no mistake. But think of the money that could be used by PAC's and speical interest groups to go to Washington and get these laws changed, instead of blowing it on law suits and legal costs that, at the end of the day, they know they will lose.