Resident Audit Request Statement  Jun23, 2022

My name is Masashi Nakano, and I am requesting a residents' audit.
I was in charge of railroad car export at Sumitomo Corporation, and then obtained an MBA from the University of London Business School. I succeeded my father's company and am now engaged in the real estate business.
I have joined the audit claimants because I find many inconsistencies and questions in the contract concluded with Osaka IR this time.


(1) I think it is unreasonable why the huge amount of soil improvement costs, etc. must be borne at public expense.
Originally, the condition of the public solicitation was that the land improvement costs would not be covered by any warranty, and the transactions up to that point were also made under that condition, so there is no consistency.
That was Osaka City's condition up to that point.


The root of this land problem is that the Osaka City Urban Planning Council deliberated on changing the zoning of Yumeshima from an industrial or semi-industrial zone to a commercial zone, and the decision was made by a majority vote.


During the deliberation, the following issues were raised
(1) Yumeshima is vulnerable to large-scale disasters such as typhoons, tsunamis, storm surges, and Nankai Trough earthquakes, and is the most vulnerable land along the Osaka Bay coast to storm and tsunami damage. In addition, soil liquefaction and flooding, as well as the isolation of visitors expected from the Expo, casino, and IR due to the shutdown of transportation infrastructure functions during earthquakes and storms, were anticipated, and opinions were expressed that it is not appropriate to build commercial and visitor facilities where many people will stay for long periods of time.


In response, Osaka City responded that the area to be used as an international tourism center is filled with soil at least 5 meters higher than the height of the highest tsunami expected to be generated by a Nankai Trough earthquake, and that the land was reclaimed with clay soil and sand, making it a foundation that is resistant to liquefaction, and that there would be no problem. The land is reclaimed with clay soil, which is resistant to liquefaction, and therefore, there is no problem.




As the second point regarding the location of commercial and visitor-attracting facilities on Yumeshima, there was an opinion that it is not appropriate to construct commercial and visitor-attracting facilities on Yumeshima because the soil there is unstable and contains pollutants and toxic substances.


The City of Osaka's position on this is that "the area to be used as an international tourist center is being reclaimed with dredged soil and construction debris in compliance with the standards in place at the time of acceptance of the site.

In other words, we must say that this lax city planning council was the cause of Osaka City having to bear the cost of the significant soil challenge this time.


Even though the change of use was implemented by the Metropolitan Planning Commission, based on the strong argument that the land could sufficiently withstand use as a commercial district, we cannot help but be amazed at the attitude of a single business operator that simply complies when asked to resolve the land issue based on a little research.


This is nothing short of a major operational oversight by the City of Osaka, and the mistake has resulted in the need to spend a great deal of taxpayer money.


The Metropolitan Accounting Commission also has a total of 29 members on its Metropolitan Accounting Commission, consisting of 14 members of the Osaka City Council and 15 academics. On the day of the meeting, seven academics were absent, and no questions or opinions were raised by the participating committee members. 

It seems to me that the change of zoning was really allowed to take place at such a meeting.

I am a licensed real estate transaction manager, and I am well aware of the importance of the meaning of zoning designation from my daily work. I am truly dismayed to learn of this situation.

When the zoning was changed, why was it not changed to match the original situation of the land? I have great doubts.

(2) Regarding the public solicitation of business operators, the first round of solicitation resulted in zero applicants.
Therefore, ORIX + MGM Group asked for a condition to bear the cost of soil improvement, to which the City of Osaka agreed, and this led to only one company responding to the second round of solicitation.
However, this also raised the question from others as to whether sufficient time was given to other groups to consider their applications, despite the major change in conditions, such as the change in the cost burden of land improvement.


In addition, the fact that the party making the public solicitation did so without any prior consideration of what and to what extent they should bear the cost, must be said to have been an absolutely terrible change procedure, in which the applicants were to bear the cost at the behest of the operators.

(3) Changing the conditions of the project is a major change, and the merits and demerits of such a change should have been fully considered.
Why should these conditions be changed at the request of a single company?
The fact that the Tokyo Metropolitan Planning Commission stated so clearly that there would be no liquefaction is also the fact that the Association of World Expositions has been informed that there will be no liquefaction.

Furthermore, will you retract the fact that you are reclaiming the site with dredged soil and construction debris that complies with the standards set forth by the Metropolitan Board of Accountancy? It is unbelievable to me that something so clearly stated at the TMTR could be so easily overturned.

(4) I am also very concerned that Osaka City has not conducted a thorough independent soil survey in accepting the operator's claims.
Even if Osaka City were to completely retract its previous claims, it would naturally investigate the current state of the soil, etc., and this would enable it to compare costs and consider whether or not this land should continue to be used to host an IR project, which I believe is a step that should have been taken.


It is too violent to declare that they will bear the burden of the soil in Yumeshima before they have conducted a study of the soil. Is it acceptable to promise to bear the burden of something that we do not know how much it will cost? I think Osaka City should have taken responsibility for the survey and then decided whether or not to bear the burden.
How did something that both the governor and the mayor had publicly stated would not use any taxpayer funds because it was a private building become a huge burden? The validity of that decision should be verified.

(5) It is undesirable to use an act of debt burden to resolve the land issue, as the actual financial burden on Osaka City is likely to be even greater.
 
(If a large amount of financial expenditure is made based on an act of debt burden, it will be extremely difficult from a political and administrative standpoint not to raise the limit in subsequent years.)

The actual underground conditions of the land issue measures (removal of underground obstructions, soil contamination countermeasures, and liquefaction countermeasures) are unknown, so the basis for the 78.8 billion yen debt burden act is questionable.

In ordinary public works projects, the local government estimates the cost of the project, and then the contractor is required to perform the project after securing a fair price through bidding. In contrast, this project is a "negotiated contract" with Osaka IR Corporation, and there is no guarantee that the project will be carried out at a fair price.

➡I don't see why we need to go to the trouble of making this an act of debt burden.
If you are going to reform yourself, you should find a way to reduce the cost by even one yen.

(6) Normally, it is common practice in real estate transactions to carefully sign contracts regarding land transactions where there are problems such as soil contamination. Therefore, the soil problem is stipulated as something that should be explained in the important matters.

However, in the course of this series of transactions, it appears that the City of Osaka, to take it to the extreme, tried to cover up or conceal the fact that there was a problem with the land.

In other words, the city's Port and Harbor Bureau, which had been responsible for the project, was reorganized and merged with the prefectural government's Port and Harbor Bureau, even though it was not necessary, and it appears that the city's Port and Harbor Bureau staff may have weakened their authority to speak out. In fact, we have heard that serious city officials who continued to earnestly warn about the Yumeshima land issue have been reassigned.

Why did a senior official of the IR Promotion Bureau, who is not familiar with the Yumeshima land issue, take the initiative in the Yumeshima land issue?
(7) The basic agreement is set up with a remarkably unequal right of release.
The conditions for withdrawal by Osaka IR Corporation (the operator) are very loose, whereas the penalty for cancellation by Osaka Prefecture and Osaka City is extremely large. This can be said to place Osaka City in a position of substantial and formal subordination to Osaka IR Co.


If a private company were to enter into such a contract, it would be so unequal and egregious that it would be considered a breach of trust in some cases.


(8) The profitability of the project has not been thoroughly verified, nor have the details been disclosed to the public.
If a private business operator is to conduct a project entirely with private-sector money, it is not necessary to disclose the details of the project, but since an unprecedentedly large amount of public money is to be spent, the feasibility of the project must be clarified in detail so that the people of the prefecture can understand the project. There is no room for trade secrets.

(9) This IR plan itself is nothing like what was originally proposed.
The original explanation to us, the residents of the prefecture, was that the casino would be opened for wealthy foreign residents, with the aim of attracting wealthy foreign residents, promoting the tourism industry to a large extent, and attracting a major entertainment industry.

However, the casino is for Japanese people in Japan, and the MICE facility, which will boost the entertainment industry, will be on a much smaller scale than originally planned, and is not expected to attract a large number of visitors.


(10) In the first place, isn't the legalization of gambling not something that has been approved with a great deal of fanfare, but is largely legal in nature, the price of great economic benefits?
That being said, business profitability is the most essential element for a casino to operate.
It is obvious that a casino cannot be opened unless it is proven that this is exactly guaranteed.
However, no data has been presented to verify the feasibility of the project, and it is clear even to the untrained eye that the figures presented in piecemeal fashion do not represent the feasibility of the project.

Finally, I believe that the Osaka IR project is a very sloppy plan that will be a disaster for future generations, and rather than contributing to Osaka's growth, it contains the danger of leading the city to bankruptcy.

Translated with DeepL

維新の会は、市会議員の給料が高いとか、反対のための反対をしているとか良く言っていますが、本当にそうなのでしょうか?

地方行政が、国政と違って、二元行政になっているのは、行政の暴走を議会が牽制し、コントロールするということが議会の目的であるからです。
地方議員の主な仕事は、行政の行うことのチェックです。
だから、地方議員には、国会議員とは違って政策秘書が置かれていません。
もともとそのような機能を有していませんでした。

橋下氏が知事になった時に、議会が橋下氏が行おうとしたことに府議会がストップをかけた時に、初めて対案を出せという話がでました。
でも、その時、議会はそれは、議会の仕事ではないと突っぱねたのです。
それに対して、橋下氏は、メディアを使い、対案を出さない議会がさも怠慢であるかのようなプロパガンダをおこなったのです。
そのプロパガンダが成功したのは、メディアも私たちも地方議会の成り立ちや仕組みと国会との根本的な違いを十分に知らなかった、あるいは、メディアは、わかっていたのかも知れませんが、はやしたてる方に回ったほうが面白いと踏んだのか、対案を示さないのは議会がダメな為だという風潮が強くなってしまいました。

それ以来、対案を出せということが、大手をふってまかり通ることになってしまったと記憶しています。

行政側は、理事者を自由に使えるし、必要があれば、公費で専門家も雇えるのに対して、議員側は、国会議員と比べて圧倒的に公設秘書の数が少なく、政策秘書すらありません。
それは、議会の成り立ちからして、必要ないものだったのだと思います
対案作成するには、圧倒的なマンパワーの不足や時間、コストが足りないという現状があるわけです。
ですから、もし、反対するのであれば、対案をだすというルールに変更されるのであれば、地方議員にそれができるような環境を与える必要があるのではないでしょうか?
そういう理解の上に立てば、それでもなお、しっかりと対案を出そうとしている現在の大阪府議会、市会の各会派は、頑張っているのではないかと私は思っています。他の都道府県の地方議員よりも遥かに仕事をしているというのが現実ではないでしょうか?
それにも関わらず、最近は、市会議員は、給料が高いというようなキャンペーンを貼っていること自体が、自分たちの地方議会の質をさらに落としこむ活動の片棒を担いているように感じられて、とても心配しています。

もっとも、トップの言うことをそのままオウム返しに喋るだけの某党の議員の給与は高いと言われてもしかるべきかもしれませんが・・・

二重行政の代表例としてWTCとりんくうゲートタワーが上げている方がおられますが、
これを二重行政でなければ防げたなんて言うことが、ちゃんちゃらおかしくって、笑ってしまう。

この2件のプロジェクトは、たとえその時期に「大阪都」であったとしても、この2つの建設をやめることは、無理であった。
唯一やめることができたとしたら、それは、周りの騒ぎに惑わされず、第3者からどのように非難されようが曲げない冷静な判断力を持って、各々のプロジェクトの将来像を厳しく算定できる人物だけであったのではないだろうか?

それを知らずにあたかもこれを二重行政の代表と声高らかに言うことが、日本の歴史や大阪の歴史を全く知らないばかりか、経済音痴の戯言であるばかりか、将来に渡ってこのような誤った投資を再燃させる危険性を大いに孕んでいるものである。

ましてや、これを単なる二重行政の失敗としてしまう政治家がいたとしたら、それは全く大阪どころか日本の歴史と経済と行政を知らないバカな嘘つきとしか言えない。

下記の経緯を了知しているのであれば、二重行政がりんくうタワーゲートとWTCを作らせたのではなく、バブルに踊った日本全体、そして、関西経済界が中心の推進力であったということがよくわかる筈。
勿論、計画した役所の責任は重大ではあるが、それは、大阪府と大阪市が2つあったからではないとうことは、よくわかる。

唯一、大阪府と大阪市が2つあったことで起こった弊害は、この2つの建物の高さを競争してしまったことだ。
そして、それは、不幸なことに、WTC(大阪府咲洲庁舎)の建物の固有の振動数と地盤の振動数を共鳴する高さにすることになってしまい、長周期振動の南海トラフ地震に対しては、極端に弱い建物になってしまったことに繋がっている。


不思議なことに、このプロジェクトには、維新の顧問でもある堺屋太一氏が深く関わっておられる。
それで、余計なことかもしれないが、維新が提案している大規模プロジェクトすなわちカジノ誘致等もWTCやりんくうタウン、そして先ごろの道頓堀プール等と同じような憂き目にあわないかと杞憂するのである。


(WTC)
1982年頃当時の日本は、大幅な貿易黒字を計上し、逆に多額の貿易赤字を抱えるアメリカから貿易のインバランスを解消する施策をとるよう強く求められ、内需拡大や輸入促進を強力に進める必要に迫られていた。そして、昭和60年(1985年)のプラザ合意により円高・ドル安誘導と内需拡大が進められることになった。
大阪市においては、1989年に市制施行100周年を控え、新しい都心の形成を図ることとし、南港・北港の埋立地に着目し、1983年8月に市制100周年記念事業の一つとして「テクノポート大阪」計画を発表した。先導的役割を担う地区として先端技術開発・国際交易・情報通信といった高次都市機能の集積を図ることを位置づけられた南港コスモスクエア地区には、埋立地にファナック等企業が誘致され、さらには、大阪国際見本市会場(インテックス大阪)、ATC(アジア・太平洋トレードセンター)、そして、WTCの建設へと向かっていく。大阪の21世紀の成長戦略を担うものとして、関西財界の期待を大いにになって進んだプロジェクトである。

(りんくうゲートタワー)
一方で、大阪のみならず、関西待望の24時間空港の誕生にあわせて、大阪南部の開発の中心を担ったのがりんくうタウンであった。
海上空港である関西国際空港の開業に合わせて、大阪府企業局などが空港対岸の沿岸部を埋め立て造成して誕生した。名称は空港を臨む「臨空」から。
公園、緑地、道路等を含めた総面積は318.4haで、うち129.7haの産業用地は、商業業務、流通・製造・加工、住宅関連、空港関連産業、工業団地の5つのゾーンに分かれている。
ちょうど、バブルの真っ只中であったため、関西の企業がこぞって土地購入の申し込みに血眼になっていたのをよく覚えています。誰もが一攫千金だと信じ、中小零細から大企業まで、申し込んでいた。スカイゲートブリッジのゲート的な役割を果たす2棟のツインビル(総工費1600億円)を筆頭に50棟を越す超高層ビルや百貨店などを建設する壮大な計画が立てられた。しかしバブル崩壊後の1991年(平成3年)から1992年(平成4年)にかけて次々と計画が凍結され、結局バブル崩壊直後の1991年より先行的に建設プロジェクトが開始されたツインビルの片方の1棟がりんくうゲートタワービル(1992年着工、1996年完成)として完成したのみとなった。