Grandiose Schemes For Legacy Projects Lead To Total Mismanagement
In Thursday's (6/17) Star Tribune Metro Section, page B6, an article by reporter Chao Xiong appeared discussing this fiasco on Park property at Ft. Snelling, and how the taxpayers via the Park Board are likely to be on the hook for millions of dollars:
"At least four contractors have filed liens totaling more than $2.5 million against the Minneapolis Park and Recreation Board for unpaid labor on a privately funded project on city land that failed because of financial troubles.
The companies said they weren't fully paid for work on the The Fort, a multimillion-dollar attempt to build an indoor skate park, climbing gym and meeting facility in Fort Snelling's historic Drill Hall. Phase Two of the project called for outdoor skate parks, two roller and ice-hockey rinks, and space for music events on the 6-acre site, according to the Web site for the Project's private developer, Fort Inc. [sic]"
The web site for this project and The Fort LLC can be found here.
Work started on the building in September but stopped in January when contractors were not paid. Work restarted a month later when more funding came through, but again financial problems caught up with it and all worked stopped for good in late April, according to Mark Dongoske, owner of Associated Construction, which filed a $1.7 million lien this past week.
"The Fort project was supposed to dovetail with the Park Board's $14 million Leonard Neiman Sports Complex completed just across the street in 2002, said Don Siggelkow, the board's assistant superintendent."
And we wonder why the Park Board is so broke they can't mow the grass or open beaches? Note that the Sport Complex project was sold to the public as only costing $12 million in May, 2000.
"'We certainly aren't happy with the outcome, but there's nothing the board could have done to protect the contractors,' Siggelkow said." Nothing -- such as a performance bond, insurance or maybe doing due diligence on the financial viability of the proposed project before leasing the land, right? In fact, this very topic came up in a commissioner committee meeting, and Commissioner Bob Fine pointed out that The Fort LLC was a shell company with no assets and if something went wrong, the Park Board would have no protection. The lease was supposed to be amended to include such protection, but when it came up for a vote by the full board of comissioners, no such changes for financial protection were included. Bob Fine and other majority commissioners voted in favor of it anyway.
The Park Board signed a lease with The Fort LLC in July 2002 agreeing to let them renovate and build on the site in return for 15% of the facility's monthly income as rent.
"Bob Naegele III, son of Minnesota Wild owner Bob Naegele Jr., initially invested several hundred thousand dollars in the project, Fort attorney Todd Duckson said." That's quite the contrast. The lead investor puts in several hundred thousand, but the contractors are out more than $2.5 million in labor costs alone for a project that is not even close to complete.
"Aside from Naegele's investment, financial backing for the project was not secured when the lease was signed, Duckson said. But the board was confident Fort Inc. would find the money before construction began, Siggelkow said." How many private landlords out there do business like this, leasing out property before demonstrated ability to pay?
The Park Board terminated the lease with The Fort LLC on June 1 after learning of the situation in early March, according to Siggelkow.
The Park Board cooked the books and deceived the public when they spent $14 million on the Sports Complex at Ft. Snelling. The Park Board cooked the books and deceived the public when they spent $6 million their new HQ building. The Park Board failed to do due diligence on The Fort project. The Park Board complains that due to cuts in LGA from the state, they don't have enough money to man the beaches, fill the wading pools, run the fountains and mow the grass. I think it's clear that the Park Board is focusing on giant, unnecessary "legacy" projects, which enrich a few people, at the expense of maintaining the park system that we have. The Park Board has abrogated its obligations, both moral and legal, to the taxpayers of this city to run the park system as it was intended.
Have similar feelings? Wonder what you can do? Here are some ideas:
- Attend the Park Board meetings, usually the first and third Wednesday evenings of the month. Tell others what you see and hear there.
- Demand satisfaction: contact any and all commissioners to ask questions, express your opinion and demand action; contact Park Board staff to ask for public data, such as budget information. File a legal action if necessary. Don't take no for an answer.
- Support campaign efforts to vote the bad apples out of office.
- Demand that a good superintendent be hired, and the new superintendent clean house -- the superintendent appoints more than 15 positions.
- Have some good evidence of illegal activity? Call the County Attorney's office and ask them to investigate.
- Demand that Brian Rice's law firm be fired as both counsel and lobbyist. He is the single largest contributor to commissioner election campaigns. The conflict of interest is staggering.
- Keep the pressure on. Take names, and mete out consequences.
Alternatively, do nothing, and continue to have your pocket book pilfered via property taxes and park fees to enrich and empower the corrupt individuals and their backroom pals.