TALES FROM THE GALT GULAG

Horror stories abound at the condo towers on Galt Ocean Mile

The Bubble And The Crash

By Dr. Grayson Walker

City News Of Fort Lauderdale

June 10, 2008

Table of Contents  

Tales From The Galt Gulag

Gulag is an acronym for the former Soviet Union 's penal system. Since then, it has come into common use to describe any repressive system. I named my column the “Tales From The Galt Gulag,” because I write about the repression of condominium Owners on the Galt Ocean Mile. As publisher Steve Kelly wrote, “the Galt Ocean Mile is the biggest crime scene in Broward County .”

Bloated Salaries

To paraphrase Will Rogers, everybody talks about the economy, but nobody does anything about it – except the Florida Legislature. Florida passed a tax relief law that was happily signed into law by Governor Crist. Local governments are complaining that services will be cut because of the tax cut and spending caps. Why is Fort Lauderdale refusing to cut the bloated salaries of our “public servants.”

For example, the Fort Lauderdale City Attorney makes $348,016, City Manager Gretsas makes $315,210, and his “assistants” make almost $250,000 a year. According to the Sun Sentinel, “Other than top officials and people with "manager," "director" or "chief" next to their name, the Top 300 list is almost completely filled by police and fire officials, as in prior years. ... The lowest compensation of the Top 300 was Police Officer Gino Ferri's $133,050.”

Let me put these numbers into perspective. The President of the United States makes $400,000, and the Vice President, Speaker of the House, and Chief Justice of the Supreme Court each make $208,100. Our Senators and Representatives each make $162,100. A Florida Supreme Court Justice makes $161,000 and a Circuit Court Judge $145,000.

Only the President of the United States makes more than Fort Lauderdale ’s attorney, city manager, or the assistants. Is it possible that Mayor Naugle, Commissioner Teel, and the others believe we can afford – or should pay these people more than a Circuit Court Judge, a Supreme Court Justice, a Senator, the Chief Justice of the Supreme Court, or the Vice President of the United States ? It appears that Naugle, Teel, and the others have no concept of scale. They spend our tax dollars as if they were monopoly money.

The Real Estate Bubble And Crash

The Florida real estate market began a dizzying spiral upward. One year, property values increased by a factor of four. Nobody could lose money on real estate. Speculators poured into the condominium market. The combination of speculation and population growth drove the market to unrealistically high levels. This economic phenomenon is called a bubble. The funny thing about bubbles is that they pop. When they pop, the market crashes.

A major hurricane struck South Florida , the bubble burst, and the market began crashing. There were massive waves of foreclosures. There were many who simply walked away from their condominiums, leaving the Condominium Association to declare bankruptcy.

I know this sounds like today, but this is what happened in 1925. The arrival of the September 1926 hurricane triggered the bursting of the bubble and the real estate market crash. By the time the stock market crashed in 1929, Florida ’s economy was so bad that the great depression had little effect upon Florida .

"Those who cannot remember the past are condemned to repeat it." (George Santayana, Life of Reason, Reason in Common Sense, Scribner's, 1905, page 284) It seems that Florida did not heed Santayana’s warning, for the crash of 2005 was the duplicate of 1925. Will the pattern be repeated? Will we see a depression in 2009?

Bankruptcy Of Your Condominium Association

The real estate market peaked in late 2005, and has been falling since then. We have seen a loss of about fifteen-percent per year since the peak. It is likely that the bottom of the market will not be reached until 2010. There have been record levels of foreclosure and short sales, with record-breaking levels coming in the next two years. Medical technology means that people are living longer. This is wonderful. However, living longer in a spendthrift condominium association means that octogenarians are outliving their money.

What is your Condominium Association doing in response to the burst bubble and the crash of 2005? What is your Condominium Association doing to prepare for the possibility of waves of foreclosures and the risk that your Association would have to declare bankruptcy? What would happen to your home if your Condominium Association declared bankruptcy? Where would you go if your Board spends your Association into bankruptcy? Remember the words of Santayana.

Budgets Of Your Condominium Association

Pay attention to your Board and Management, and their plans to spend your money. Your Association should be reducing expenses, renegotiating contracts, and postponing all but the most essential maintenance. This is a time to tighten your belt, not renovate your lobby. Is your Condominium Association Manager earning a six-figure salary? Is your Association paying huge retainers to big law firms, or are they being as careful with your money as you are? Is your Board spending your money on political events? Is your Board paying tribute to the CAI?

Your Board and Management should be coming up with creative ways to save money and reduce your maintenance assessments. If you do not see your costs dropping, your Board and Management are not doing their job, and should be replaced. Perhaps it is time for condominium spending caps that are based upon assessed value. Remember the words of the Condominium Owner’s champion, Julio Robaina. “You may live in paradise now, but you're one election away from hell." (Representative Julio Robaina, February 2008) Please – do not put me in the position of having to say, “I told you so.”


Help for Owners

Is a Condo Commando is trampling upon your rights? Are you the victim of voting fraud? Are you the victim of financial fraud? What can you do about it? How can you protect your rights? Talk to your neighbors. Organize. Call Ombudsman Danille Carroll or State Representative Julio Robaina. Join the AARP and support their Owner’s Bill Of Rights. Perhaps the single most important thing you can do is to join the Cyber Citizens For Justice.

 

Attorney Inger Garcia can be reached by telephone at 954-524-0506, at www.IngerGarcia.com, or at [email protected].

 

Jan Bergemann of the Cyber Citizens For Justice can be reached at www.ccfj.net, 386-740-1503 or at [email protected] .

  

Condominium Ombudsman Danille R. Carroll, Esquire can be reached at 954-202-3234 or at [email protected].

 

Governor Charlie Crist can be reached at 850-488-7146 or at [email protected] .

 

State Representative Julio Robaina can be reached at 305-442-6868 or by email at [email protected] 

 

The Southpoint Condominium Owners website is at http://www.Southpoint-Condominium.org

and you can join the Southpoint Owners group by sending an email to: [email protected]


ABOUT THE AUTHOR:

I own a condominium at Southpoint, in the Galt Gulag. I am a University Professor and teach American Government. Nothing prepared me for life in the Galt Gulag. Because of the terms of the Florida Condominium Act, owners have no Constitutional Rights or rights to due process. I have been assaulted, battered, slandered, libeled, disparaged, stalked, had my car keyed, and had my life threatened because I believe in the Constitution. Do you have a story to tell? Write to me at [email protected] or call me at 954-892-5599.

 

 


 

TALES FROM THE GALT GULAG -- PART I

TALES FROM THE GALT GULAG -- PART II

TALES FROM THE GALT GULAG -- PART III

TALES FROM THE GALT GULAG -- PART IV

TALES FROM THE GALT GULAG -- PART V

TALES FROM THE GALT GULAG -- PART VI

TALES FROM THE GALT GULAG -- PART VII

TALES FROM THE GALT GULAG -- PART VIII

TALES FROM THE GAL GULAG-- PART IX


THE CONDO LAWYER -- INGER GARCIA

THE CONDO LAWYER -- INGER GARCIA II

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