1. Licensing: Minnesota Real Estate Developers (REDs) are not licensed or bonded and therefore not subject to peer, professional or regulatory scrutiny. They can do what they damn well please without consequence. Virtually every other profession, trade, or service provider is licensed, bonded or both. Does this mean REDs are not professional?
Solution: License and bond Real Estate Developers.
2. Corporate Law: Minnesota corporate laws allow REDs to form a new corporation for every parcel of land they develop. The ability is to incorporate is vital to our economy. We do not need more, restrictive laws for incorporation; we need better written laws. Specifically better wording that clearly defines a corporation's fiduciary responsibilities to its creditors and stronger punitive measures for principles of corporations who breech those fiduciary responsibilities. By paying themselves handsome salaries and dividends, greedy, unethical REDs become judgement proof. They simply can walk away from creditors and re-invest the paid salaries and dividends into a new corporations. This is wrong and violates the spirit of the law.
3. Lack Of Over-sight: Since REDs are not licensed or bonded citizens it is difficult for citizens know if a corporation is reputable. In years past, the Better Business Bureau used provide consumers information about the reputation of businesses and corporations. Today, the Better Business Bureau is totally impotent. If a summary judgement against a corporation is NOT sufficient ground for the BBB to reports a complaint against a corporation, then how egregious must the actions of a corporation be before the BBB will report a complaint? Why won't the BBB answer this question?
Solution: Licensing Real Estate Developers would provide over-sight.
4. Eminent Domain Abuse is on the rise across America. In many cases, it is GREEDY REDs that initiate the abuse by integrating local government in their greedy get rich schemes.
Solution: There is no easy solution for this problem. Over-sight from the licensing and bonding of REDs would be helpful.
5. Fraud: Since the practice of real estate development can encompass many entities (lawyers, realtors, contractors, architects, partnerships etc) greedy, unethical pass themselves off as a lawyer, realtor (or other profession) without proper licensing. This is illegal. At least one GREEDY RED told a judge that he was a lawyer, but his license was not current. The judge informed him otherwise.
Solution: Defining the profession and licensing REDs would help deter fraud.
6. Environment Issues - Wetlands: GREEDY REDs often violate and skirt municipal and state environmental regulations. Filling low, marginal wetland without proper local and state permit is one example abuse.
6. Environment Issues - Tree Cutting: Many localities have regulations concerning the cutting of tree. Some species of trees are susceptible to spreading disease when cut during certain times of the year. The spread of Oak wilt is one issue. GREEDY REDs often violate and skirt municipal and state environmental regulations for personal gain.
Solution: Defining the profession and licensing REDs would help deter environmental abuse.
There are now six questions that legislators should be able to readily answer when considering enacting legislation for solution to these problems.
1. For how many different corporate entities does GREEDY RED serve as a principle or corporate officer?
2.What are the names of these corporate entities?
3.How many times have these corporate entities been sued?
4. What are the outcomes of these suits?
5. How many times have these corporate entities violated local and state environmental regulations?
6. Have these violations resulted in fines?
7. Has GREEDY RED paid income tax on the forgiven debt when law suits have been settled?
Unfortunately Minnesotans, politicians and citizens, are not concerned. I can understand why the politicians are not concerned; they are part of the problem. Where are citizens with respect to corporate greed?
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