The Short, Unhappy Life of a Libertarian Paradise – POLITICO … – POLITICO Magazine

Colorado Springs has always leaned hard on its reputation for natural beauty. An hours drive south of Denver, it sits at the base of the Rocky Mountains southern range and features two of the states top tourist destinations: the ancient sandstone rock formations known as Garden of the Gods, and Pikes Peak, the 14,000-foot summit visible from nearly every street corner. Its also a staunchly Republican cityheadquarters of the politically active Christian group Focus on the Family (Colorado Springs is nicknamed the Evangelical Vatican) and the fourth most conservative city in America, according to a recent study. Its a right-wing counterweight to liberal Boulder, just a couple of hours north, along the Front Range.

It was its jut-jawed conservatism that not that long ago made the citys local government a brief national fixation. During the recession, like nearly every other city in America, Colorado Springs revenueheavily dependent on sales taxplunged. Faced with massive shortfalls, the citys leaders began slashing. Gone were weekend bus service and nine buses.

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Out went some police officers along with three of the departments helicopters, which were auctioned online. Trash cans vanished from city parks, because when you cut 75 percent of the parks budget, one of the things you lose is someone to empty the garbage. For a city that was founded when a wealthy industrialist planted 10,000 trees on a shadeless prairie, the suddenly sparse watering of the citys grassy lawns was a profound and dire statement of retreat.

To fill a $28 million budget hole, Colorado Springs political leaderswho until that point might have been described by most voters as fiscal conservativesproposed tripling property taxes. Nearly two-thirds of voters said no. In response, city officials (some would say almost petulantly) turned off one out of every three street lights. Thats when people started paying attention to a city that seemed to be conducting a real-time experiment in fiscal self-starvation. But that was just the prelude. The city wasnt content simply to reject a tax increase. Voters wanted something genuinely different, so a little more than a year later, they elected a real estate entrepreneur as mayor who promised a radical break from politics as usual.

For a city, like the country at large, that was hurting economically, Steve Bach seemed like a man with an answer. What he promised sounded radically simple: Wasteful government is the root of the pain, and if you just run government like the best businesses, the pain will go away. Easy. Because he had never held office and because he actually had been a successful entrepreneur, people were inclined to believe he really could reinvent the way a city was governed.

The citys experiment was fascinating because it offered a chance to observe some of the most extreme conservative principles in action in a real-world laboratory. Producers from 60 Minutes flew out to talk with the towns leaders. The New York Times found a woman in a dark trailer park pawning her flat screen TV to buy a shotgun for protection. This American Life did a segment portraying Springs citizens as the ultimate anti-tax zealots, willing to pay $125 in a new Adopt a Streetlight program to illuminate their own neighborhoods, but not willing to spend the same to do so for the entire city. Ill take care of mine was the gist of what one council member heard from a resident when she confronted him with this fact.

Rocky Mountain Town Colorado Springs has a reputation as a GOP stronghold, though its downtown features art studios, a kombucha shop and a book seller that gives prominent shelf space to Noam Chomsky. | Erika Larsen for Politico Magazine

Thats where Colorado Springs was frozen in the consciousness of the countrya city determined to redefine the role of government, led by a sharp-elbowed businessman who didnt care whom he offended along the way (not unlike a certain president). But it has been five years since This American Life packed up its mics. A lot has changed in that time, not least of which is that the local economy, which nearly drowned the city like a concrete block tied around its balance sheet, is buoyant once again. Sales tax revenue has made the books plump with surplus. Enough to turn those famous streetlights back on. Seven years after the experiment began, the verdict is inand its not at all what its architects planned.

One of the lessons: Theres a real cost to saving money.

Take the streetlights. Turning them off had saved the city about $1.25 million. What had not made the national news stories was what had happened while those lights were off. Copper thieves, emboldened by the opportunity to work without fear of electrocution, had worked overtime scavenging wire. Some, the City Council learned, had even dressed up as utility workers and pried open the boxes at the base of streetlights in broad daylight. Keeping the lights off might have saved some money in the short term, but the cost to fix what had been stolen ran to some $5 million.

Sometimes the best-laid plans dont work out the way youd hope, says Merv Bennett, who served on the City Council at the time and asked officials at the utilities about whether the savings were real.

There has been a lot of this kind of reckoning over the past half-decade. From crisis came a desire for disruption. From disruption came, well, too much disruption. And from that came a full-circle return to professional politicians. Including onea beloved mayor and respected bureaucrat who was short-listed to replace James Comey as FBI directorwho is so persuasive he has gotten Colorado Springs residents to do something the outside world assumed they were not capable of: Five years after its moment in the spotlight, revenue is so high that the same voters who refused to keep the lights on have overwhelmingly approved ballot measures allowing the city to not only keep some of its extra tax money, but impose new taxes as well.

In the process, many residents of Colorado Springs, but especially the men and women most committed to making the city thrive, have learned a few other lessons. That perpetual chaos can be exhausting. That the value of the status quo rises with the budgets bottom line. And that it helps when the people responsible for running the city are actually talking with one another. All it took was a few years running an experiment that everyone involved seems happy is over.

***

Like many revolutions, the one in Colorado Springs began with a manifesto.

It was an email that was intended to be private, sent from Steve Bartolin, then CEO of luxury hotel The Broadmoor, to the mayor and City Council. The Broadmoor is a city unto itselfa century-old resort whose three golf courses, 779 rooms and skating rink sprawl over 3,000 acres around a lake in the foothills on the citys western boundary. In a tourist-dependent region with an unusually large reliance on sales taxes, The Broadmoor is an economic powerhouse. In 2009, at the height of the impasse over the worsening budget, Bartolin had made a comparison between Colorado Springs budget and the budget of his resort. Observations like the fact that the city had a computer department with 81 people, while The Broadmoor employed only nine. The email didnt stay private for long. It quickly went viral, was published in full in the newspaper, and so energized the business community that it inspired a dozen locals to start their own shadow council, which they called the City Committee. One of the members of the committee was Bach, a private real-estate broker who had gotten his first corporate job by the audacious move of cold-callingcollectthe CEO of Procter & Gamble. Soon, the committee members prevailed upon Bach to run for mayor, to bring their principles to City Hall.

Merv Bennett Sometimes the best-laid plans dont work out the way youd hope. | Erika Larsen for Politico Magazine

Bachs mantra on the campaign trail was one that voters nationwide would recognize from last years presidential cycle: Run the government more like a business. He said he was intent on transforming city government so it works for everyoneand without tax increases. In fact, he wanted to do away with the personal property tax for businesses and expedite how long it takes developers to get permits, all in service of promoting job growth, which he later vowed would hit 6,000 a year. Bach considered himself an outsider fighting the citys regulatory agency mind-set.

The only difference I can see between me and Donald Trump, he told Politico Magazine recently, is that I dont tweet.

In 2011, Bach was swept into City Hall with nearly 60 percent of the vote. Not only did he win, but he arrived in office with powers no mayor of Colorado Springs had ever wielded. A ballot amendment approved by voters a year earlier had taken power away from the City Council and given it to the mayor. Now that mayor happened to be someone who felt that political compromise was a dirty word. Shortly after the election, two top council members asked Bach to give them a detailed weekly report just as the previous city manager had done. He said no. The mayor wouldnt answer to anyone. The council, he indicated, would answer to him. And he showed that by taking on a major deal, the council was negotiating to rid itself of the local hospital.

Leaders at Memorial Health claimed the hospital was hemorrhaging money in the recession. But to Bach, the hospital was an incredible asset that was just being mismanagedan argument he buttressed by pointing out that it was sitting on some $300 million in free cash. The council wanted to lease the hospital to a team of local leaders led by Memorial Healths CEO for about $15 million over 20 years. Bach called it a giveaway. He demanded that the council open up the process to other bidders. Eventually, that process led to a very different financial arrangement with the massive University of Colorado Health System: a 40-year lease that, counting capital improvements, came out to nearly $2 billion. You dont have to have an MBA to appreciate the benefits of Bachs deal.

Steve Bach The only difference I can see between me and Donald Trump is that I dont tweet. | Erika Larsen for Politico Magazine

I was really angry when I got on council and found out they just wanted to hand over the hospital, Merv Bennett says. Steve kept us from going down a terrible path.

Bach also turned out to be right on another deal he said City Council had mismanaged before he was elected. The council had approved a generous contract to a physicist from the nearby U.S. Air Force Academy to develop and implement what he said would be a $20 million, coal-scrubbing technology on the citys downtown power plant. Just a terrible deal, Bach says.

The city had pitched it as a way of making a profitwhen the technology was licensed to other plants, Colorado Springs would share in the rewards. But the city was also on the hook to pay for the research and development it required, and costs quickly spiraled. Just last month, the business shut down without having made a single additional sale. The cost: some $150 million over budget. As with the hospital deal, in which the council chose to go with a local rather than open the bidding to all comers, Bach raked officials for their shortsighted provincialism that he and others felt wasnt befitting Americas 40th-most populous city.

This town is so easily scammed, says John Hazlehurst, himself a former council member and now a columnist with the Colorado Springs Business Journal. Why? Because were hicks. Its really that simple.

John Suthers Some personalities in the business world dont suffer fools very much. Youve got to suffer a lot of fools in politics. | Erika Larsen for Politico Magazine

But there was a cost for all that head-butting in City Hall. Although the economy continued to improve, and although Bachs outsourcing of jobs had done enough to repair the parks budget so that trees were being watered and the lights were back on, some business leaders were skittish about moving to town or expanding.

For those who opposed Bach, the political newcomer was doing damage by firing longstanding department heads without consulting anyone beforehand. Jan Martin, then the councils pro-tem president, said she heard of Bachs firing of the citys police chief by word of mouth, rather than from Bach himself. He was draining the city of all of this accumulated knowledge, she says. Hazlehurst, watching from the sidelines, is more succinct. Bachs dysfunction and [the] councils dysfunction were intimately related, he says. It was just a rookie government.

There was a price to pay for Bachs imperiousness and lack of diplomacy, and this is something about which he and his critics agree to some extent. Job creation, which had been a pillar of Bachs campaign, never got up the steam that he had promised and, by his own admission, lagged other similarly sized cities in the region like Albuquerque, Omaha and Oklahoma City. He never managed to get the business tax repealed. And his signature plan to boost tourism with a multipronged project of museums and an outdoor stadium ran into headwinds from a council that said it wasnt sufficiently involved in the planning.

By 2015, the final year of his term, Bach was no longer talking to any member of City Council, save for Bennett. Both sides were fighting proxy battles in the middle of council meetings, quibbling over the sorts of thingsmoving money from one government account to another to pay billsthat would normally be routine. People outside the council chambers were paying attention, and they didnt care for what they were seeingthe city that was supposed to run like a business was actually scaring companies. The business leaders who had once supported him had even started their own, newer version of the City Committeecalled Colorado Springs Forwardand were looking for a different candidate to back.

Richard Skorman They spent $200,000 to portray me as a tax-and-spend liberal, and thats why I lost. | Erika Larsen for Politico Magazine

Mike Juran, CEO of a midsized company that puts displays in anything thats not a laptop or a phone, had a choice to make in the last year of Bachs administration. He believed his company, Altia, was poised for big growththanks to an automobile industry that wanted to put more gadgets in their cars. Juran wanted to stay put, but he wondered whether he would have trouble attracting young software engineers to Colorado Springs. The city was in a weird funk and getting a bad national reputation, he says. Juran knew that if any of his potential recruits googled the city, they would see that it had gone dark, a wildfire had recently destroyed 300 homes, and the city was home to disgraced pastor Ted Haggard. Much of this had nothing to do with Bachs administration, but Juran also knew that Bachs belt-tightening had hidden effects that were going to erode the citys quality of life. Colorado Springs had spent years putting off enormous infrastructure problems that would one day come dueone, an issue with stormwater, was so bad it would soon be the focus of a lawsuit from the Environmental Protection Agency. Juran began looking into offices in Denver or Silicon Valley.

Bach had made a campaign promise to serve only one term. But the promise wasnt necessaryby 2015, he, along with everyone else, knew the then-71-year-olds chances for reelection were close to zero. Even the business leaders who had helped get him elected knew Bach wasnt the man for the job anymore. What was needed was a steady hand, and Colorado Springs ended up getting exactly what it needed.

Finally, Juran says, we had grown up and decided we wanted to be a real city.

***

If every election is a referendum on the politician who came before, John Suthers was as clear a renunciation of Steve Bach as could be found. Far from a political outsider, Suthers had spent his life working inside government, from student body president of his high school (No others than Suthers), to local district attorney, to head of the Department of Corrections, to state attorney and all the way up to attorney general of Colorado, where he served for 10 years.

John Hazlehurst This town is so easily scammed. Why? Because were hicks. Its really that simple. | Erika Larsen for Politico Magazine

When Suthers came in it was as if Michael Jordan had joined your pickup basketball team, says columnist Hazlehurst. Hes a consummate politician. He knows what hes doing.

Suthers was a Republican like Bach, and he shared Bachs belief in keeping government budgets on a leash. But unlike Bach, he wasnt going to try to strangle the city with it. Suthers believed there was a fundamental difference between business and governmentno matter how strong the mayors office is, there are still a bunch of other elected officials who need a say. So Suthers first goal after getting elected was, he says, to improve his relationship with the City Council. He did that by scheduling two monthly catered lunch meetings, acquiescing to many of their requests for staff and resources and, in the minds of many, treating them like partners rather than combatants. My predecessor sent over a budget on the day it was due and said, Take it or leave it, Suthers says. Ive been doing this for a long time. I didnt wait until [the last minute] to tell [the council] what I was thinking.

Suthers collaborative approach also led to something that might have been unthinkable in the dark, budget-strapped days of 2010.

Colorado Springs reputation as a Republican stronghold might seem overblown to a visitor walking downtown. Just minutes from the pricey liberal arts school Colorado College is a kombucha shop, a store that sells hour-and-a-half stays in sensory deprivation tanks, and a book seller that gives prominent shelf space to the latest Noam Chomsky and is owned by Richard Skorman, the current City Council president. Yet despite those superficial signs of changing demographics, Donald Trump still beat Hillary Clinton by more than 22 points in Colorado Springs El Paso County. Even with that small-government mind-set still relatively intact, three times in his first two years as mayor, Suthers has gone to voters either proposing a new tax or asking to keep extra tax revenue. By overwhelming margins, he has now persuaded the supposedly anti-tax zealots of Colorado Springs to commit $250 million to new roads, $2 million to new park trails and as much as $12 million for new stormwater projects. The ballot items were enormous statements of confidence, says Chamber of Commerce Director Dirk Draper. They showed that while the community is fiscally conservative, its not radically so. If you can find someone to explain it to where it makes sense, voters will allow it.

Seeing the Light In some cases, the citys budget-cutting backfired: Turning off the streetlights saved about $1.25 million, but after thieves stole the copper wiring inside, the cost to fix the lights ran to some $5 million. | Erika Larsen for Politico Magazine

Today, Suthers can point to a whole host of data points that suggest Colorado Springs has more than recovered. Were on a roll, big-time, he says. The citys unemployment is a vanishingly low 2.7 percent. Some 16,000 jobs have been created in the past 24 monthsa pace that exceeds Bachs lofty goals. Flights at the airport have increased nearly 50 percent from a year ago. And large projects have either opened recentlysuch as a National Cybersecurity Center that takes advantage of the defense ecosystem built up around the Air Force Academyor will soon, like the U.S. Olympic Museum slated for 2018, a natural offshoot of the fact that Colorado Springs has been home to the U.S. Olympic Training Center for nearly 40 years.

The citys experience as a political petri dish might not have produced any easy answers. But at least for Suthers, it has produced a verdict on the run-the-government-as-a-business mantra. Some personalities in the business world dont suffer fools very much, he says. Youve got to suffer a lot of fools in politics.

This is the larger lesson of Colorado Springs experiment: Ideas matter, but so do relationships. Colorado Springs remains fiscally conservative; on this score, theres more agreement than not between elected officials and their constituents. But ideological consensus isnt enough to overcome a lack of surrogates willing to advocate your policies when, even with the strongest mayor system, its not entirely up to you.

At a recent charity roast, the 180-degree change in attitude among the citys political class was on full display. The emcee joked that while Suthers had agreed to come and endure good-natured jokes about his comb-over, the previous year Bach had been invited and offered a different response. It was two words, he said, and the second one was you.

Despite Bachs sandpapery reputation, many who used to spar with him are willing to give the former mayor credit today. Suthers says Bachs extreme focus on the budget helped right the city financially, and his efforts helped set the stage for a revival of the airport. But most of all, what the leaders of Colorado Springs seem most thankful for is that one mans turmoil begat another mans harmony.

Steve was the ultimate change agent, and they usually have a short shelf life, Bennett says. If it werent for the lights going out, we might not have had Steve. And if it werent for Steve, we might not have John.

Caleb Hannan is a writer in Denver.

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