The Year Ben Drove Old Dixie Down

You'll recall last spring when Dr. Ben Israel, the optometrist turned real estate developer, was blowing hard against the proposed Fayetteville road impact fees that would have required developers to pay their fair share for the infrastructure demands they were creating. He said the very the idea of making new construction pay a fee, especially when it adds to the city's tax base, is counterproductive and would deter investment. "Instead of punishing a developer, I think the city should encourage them to come into Fayetteville," he said, meaning that developers should get a free ride while the taxpayers paid for their mess.

Road impact fees are not the only thing Ben Israel and his Dixie Development conglomerate don't like to pay. Arkansas Business reports that for the first eight months of this year, Israel's business ventures have been the target of almost 50 lawsuits, liens or foreclosures valued at a combined $6 million, not including claims of damages, because they have not been paying their bills. The Bank of Fayetteville is among the financial institutions that are foreclosing on Israel's property, and unpaid subcontractors have been left hanging for millions. . The Internal Revenue Service filed a $302,425 lien against Israel for unpaid payroll taxes. On May 17, they laid off 30 employees, and in July the Arkansas workforce division filed a $30,493 lien against Israel for past due unemployment taxes. Israel still owes $7,133 to The Event Group of Fayetteville for last year's Christmas party. His lawyer says that filing Chapter 11 bankruptcy is "a definite possibility."

I hate to see any business fail, but I am glad when bogus arguments are exposed for all to see and keep in mind when they are used again to deceive the people. For all of the squawking that the Chamber of Commerce, the Fayetteville Economic Development Council, and the Arkansas Realtors Association did about how Fayetteville was killing jobs and businesses by asking developers to pay their fair share, none of this can be blamed on the road impact fees which they killed with a $40,000 ad campaign. They will have to come up with a new excuse next time they demand a free lunch and taxpayer subsidies.