Harrison Square debacle continues
Posted by Mike Sylvester - 8/27/10 @ 6:00 am - Filed Under City Council, Featured
I have posted very little about the failed and misguided Harrison Square Project.
I truly think at least 90% of Fort Wayne at this point realizes that the Harrison Square Project was poorly thought out and has 100% failed by ANY definition of failure.
The only real result of this project has been a little “Economic Re-arrangement” in Fort Wayne.
Councilman John Shoaff has finally brought up the $5000 per day penalty that Barry Real Estate should have paid to the City of Fort Wayne since June 1st, 2009. Barry Real Estate has been contractually obligated to pay the City of Fort Wayne $5000 per day since June 1st because they breached their contract to build the Harrison Square Condominiums by June 1st, 2009.
The City of Fort Wayne to date has made excuse after excuse for Barry Real Estate and has failed to collect a dime. The City of Fort Wayne has underfunded pension plans and is looking at very “tough” budgets for the next couple of years and desperately needs more revenue. When you factor in the loss of revenue from the loss of Navistar over the next three years the City budget looks especially grim.
I personally think the City of Fort Wayne is failing its fiduciary duties to the taxpayers of Fort Wayne by not collecting the money from Barry Real Estate that the City is due.
It will be interesting to see how the City Council members align themselves on this issue. I fully expect the Mayor’s office to continue to make excuses for Barry Real Estate. I fully expect Mitch Harper (R), John Shoaff (D), and Tom Smith (R) to attempt to hold Barry Real Estate to the terms of their contract.
I am not sure about the rest. I have a feeling they will stand as follows:
- Marty Bender (R), he will support the Mayors office as usual.
- Liz Brown (R), I have no idea.
- Karen Goldner (D), I expect her to support the Mayors office.
- Tom Didier (R), he supported the original project and I expect he will support the Mayor’s office as well.
- Tim Pape (D), he supported the original project and I expect he will support the Mayor’s office as well.
- Glynn Hines, (D), he supported the original project and I expect he will support the Mayor’s office as well.
So I think it is likely our Mayor and our City Council will decide to let Barry Real Estate get away without fulfilling their contract with the City of Fort Wayne which disgusts me. Please realize that if you stop paying your City Utilities bills they will turn off your utilities. If you fail to pay your property taxes the County will sell your house at auction. For some reason Barry Real Estate is not required to pay the money they owe…
Mike Sylvester
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35 Responses to “Harrison Square debacle continues”
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Going after Barry would be an admission of failure. No one who voted for the project will want to pursue them. Let’s see if any of them will put principle and the taxpayers above expedience.
Business as usual for the City Of Fort Wayne. But they sure acted quickly to ban K2.
The City makes way too much money off the illegal narcotics trafficicking here to ever allow a legal alternative to disrupt the flow.
Marty vote against his boss - NO WAY!!! (THE main reason he should not be a member of the City Common Council!!)
Tom the crooner Didier vote against his erroneous prior vote - NO WAY!!! (After all - he did visit Dayton before voting - by the way they still don’t have much new going on around their downtown ballpark!!).
Liz can vote her conservative ways - and just might on this one.
So what do we need to do in 2011 - replace Didier, Pape and Bender with three Republicans with enough intestinal fortitude to vote on what’s best for our city!
Kalb for Kouncil.
The city could push to collect the fines, or it could use the fines as leverage to get other concessions. Something other than condos will have to go in that empty space. I say sell the land to the highest bidder so that it can start generating property taxes again.
I would guess that HS supporters want SOMETHING done with the empty lot. I would love to hear their thoughts.
Robert, here’s my idea for the empty space: A nice park-like setting with benches and a metal plaque bearing the names of the Mayor and City Council members who sold us this deal. And, also, there should be room on the plaque for the current Mayor and his robots on Council that refuse to enforce the contract.
Douglas - That’s a great idea - But we will do it without using any tax revenue! So, count me in for the first $100 toward the cost!
The $5,000 per day was capped at 90 days. Read more on my blog: http://allencountywatchdog.wordpress.com/2010/08/31/harrison-square-correcting-the-mistakes/
Kevin,
I went and read the contract Kevin and I do not think you are at all correct. I see nothing that limits the damages to 90 days…
Mike Sylvester
Mike- Christopher Guerin, President of the Redevelopment Commission, stated the same thing in his op-ed piece in today’s JG.
I have it on good authority that the commssions attorney’s say it is capped at 90 days.
Kevin,
Well I will take your word for it; however, when I read the actual contract it does not look like it is capped at all. Based on the last Council Meeting I can tell you that John Shoaff does not think it is capped either…
Mike
Nor do a lot of other people in our town. Chris Guerin’s editorial in this morning’s JG had a questionable heading to it, “There’s no point in punishing a partner”.
I would hope that Mr. Guerin plans to inform us of just what this “partner” has contributed to this project! Not one cent of the profit from the ball team operation of Hardball Capital is going to support the lease payments or the total utilities cost for Parkview Field. Yes, I agree that this was the way it was planned with the agreement - BUT - they did not live up to , and really are in default on the Harrison part of it!
So why not renegotiate the Stadium Management Contract because neither side could have predicted the present condition of our economy?
This would NOT be, as Chris charged, “in revenge”, but in “good faith”.
How could this possibly affect future dealings with other entities? The short-sightedness and lack of public trust on the part of our Redevelopment Commission is the real problem here - in the opinion of many in Fort Wayne and Allen County.
Guerin’s pompous piece is part of the JG’s effort to discredit John Schoaff, the only councilman who did his homework when this project was proposed. I can assure Mr. Guerin that John is not motivated by “revenge” and that the “winning side” is the one which can back up their “I told you so” with facts.
The condo project was going nowhere even before the bubble burst. Fill the hole with grass and trees, get whatever we can from Barry and move on. In the meanwhile have some spectaculars in the ballpark to divert public attention from the hole, like Lions vs. Democrats (John Schoaff excepted).
The same Christopher Guerin who works at Sweetwater Sound and is President of the Redevelopment Commission. Redevelopment Commission gives away taxpayer financed propety on West Jefferson to the owner of Sweetwater for free to be used for a used Jaguar dealership. Sweet, yessiree.
Goldner is a slam dunk supporter of anything and everything related to Harrison Square. She was a member of the Redevelopment Commission at the time Harrison Square was approved and voted for every little last bit of everything that was proposed.
You are missing part of the story.. not only is Barry Real Estate on the hook but so is are the Tincaps owner company. Hmmmm.. I wonder how this will work out. Are they going to now penalize the company that actually allows the entire Parkview Ballpark concept to work? I doubt it. Anyone with a brain, knew that the Tincaps park, while now pretty and nice, was a bad idea from the beginning. Ironically, putting up apartments in front of the ballpark would simply make things worse. The previous ballpark near IPFW was more than adequate for our needs. Just because a brown field exists in town, does not mean that we need to use public funds to fill the space. The next story will come about when the Courtyard next door can’t make enough money and it will end up being subsidized by the City also….. I’m quite sure there is a guarantee by the city for some minimum revenue. Yes.. it can get worse.
Nobody else wanted the old Dimension / West Jefferson property. The city tried to sell it…nobody wanted it. At least the Sweetwater dude will create a few new jobs and the site will be cleaned up…plus taxes will be paid. Give him a break, what is there to complain about?
>>Nobody else wanted the old Dimension / West Jefferson property. The city tried to sell it…nobody wanted it.
Are you serious?? At what price? Was the price it was being sold for “free”? I doubt that. Was the “free” price extended to anyone else?
Please let me know when more “free” commercial real estate is available.. If someone wants to give me some I’m pretty sure I can create a few jobs.
Geez …….
I understand it was offered for free and no one would take the city up on it. I was told this was the best deal the city could get and it was better than paying to tear it down.
I was in that building before when it was a dealership and the building appeared to be in good condition at the time. I find it unusually coincidental that the guy who made the “best offer” on the “free” property is also involved in the redevelopment commission. What an amazing coincident!?!? And how convenient. Gee, do other members of the commission also routinely receive commercial property for free? ;-) If that is how it works, why wasn’t the old Wizards ball park given to someone for free also? The city could have saved a million or so in demolition costs!
Sorry, I wasn’t born yesterday. Geez..
The guy involved in the redevelopment commission was not given the building and has nothing to do with the new business. If you think the building is in good condition, stop by and check it out. It has been sitting empty for years and it was not maintained very well for years before that. It is a disaster and the parking lot is a mess…full of weeds, bad asphalt, etc. I was there last week trying to sell them advertising and I saw it all. If it were mine, I would have just torn it down and started over. That guy did not get a good deal, even if it was free. He is spending a bunch to fix it up.
So some of this information is bad??
Then who took over the building from the city?
Weeds… yeah those tend to grown naturally…
I have no problems with weeds and bad asphalt..
Hey, If your house driveway becomes contaminated with “weeds” and the driveway starts to breakup, the gutters start to fall off.. just give me a call. I’ll take your house off your hands for free also..
Hmmm… what is the property tax on a “free” property - ie $0 valuation?? Not a bad deal…
To Dave,
Yes there is a nice little guarantee of occupancy for the White Lodging owned Courtyard. Look back at previous post it has been debated. The occupancy guarantee was given since the city could only get one hotel group to bid on this mess.
Dave, you are one cynical dude! If you were given the property would you even know what to do with it? What track record do you have? Come on and tell us all.
Not cynical - critical and I’m not alone. This city operates much like the state does. The officials get elected in and then just do what they want. The people pay little to no attention to what happens. And virtually no one is held accountable. Mitch sold off the toll road.. against overwhelming opposition. This Stadium was built to fill a space downtown against strong opposition. Remember the uprising against the increase in state sales tax. Yeah, there was none. And you wonder why I and others are critical. Contracts are selectively enforced (the $5000 per day amount against Barry). Gee, I had a bad year last year.. do you mind if I just don’t pay my property tax this year?? … That $5000 per day is real money. How many residential tax bills would that pay? Why is my “track record” even relevant. If I make a good case for the property can I still get it?? I am not aware of any attempt by the city to offer the property to anyone. I’m making a point. You can’t justify the situation, so you attack the critic. Sorry.. I’m not falling for that move. This entire Ballpark mess doesn’t pass the smell test. Neither does the Dimension Ford property give away. This is what happens when Government “partners” with private interests. At some point things usually start to stink. John Shoaff was “right on” in his commentary.
I asked about your track record because you said you could create a few jobs. Have you ever even created one?
Do you want our city to become a rust bucket? Come on, it takes some initiative to get things going.
The city did try and offer the Jefferson property for sale. In fact a google search found this from last Feb…
Greg Leatherman, redevelopment executive director, said the other building was always targeted for possible redevelopment. He said while several people expressed interest in the property, the proposal by Surack was the only one with promised immediate investment. ….. geez, what is wrong with that?
Gee.. I think I hit a nerve..
Jobs.. yes I have. But that is not relevant. Once again you have no counter argument so you attack the critic.
Initiative? I don’t have any problems with initiatives. I have a problem with giving away public tax money and property to private individuals who own corporations. Apparently you are ok with that?
I think this is the link you mentioned..
http://www.journalgazette.net/article/20100209/LOCAL/302099961/1002/LOCAL
OK… so in a not so smart business move?.. the city bought the property for 1.3 million, then paid .11 million to demo part of it and then gave it away? Is that correct? Robert what else do you know about this? How is that a good business move? Buy for 1.3 million, invest .11 million and then give it away. What did the city gain by doing this deal? That is not at all clear in the article.
Robert is that dealership now open and functioning? And they still have big weeds growing in the parking lot as of last week?? Must be a new way to sell Jaguars that I am not familiar with. I don’t drive by that property much these days so someone is going to have to educate me on how well this deal has worked out..
I do see a connection here Robert ..
>>
The city’s redevelopment commission Monday heard a proposal for Chuck Surack, owner of Sweetwater Sound, to develop World Class Auto Mall on the former Dimension Ford property on West Jefferson Boulevard.
John Hopkins, Sweetwater vice president of operations, made the presentation to the commission.
<>
The same Christopher Guerin who works at Sweetwater Sound and is President of the Redevelopment Commission.
<<
Very coincidental don’t you think?? Wait … I think I smell something again… ;-)
Man, you are tough..You didn’t hit a nerve, I just think it is a shame people can get on her and trash people for no reason.
What I said….(see above) was “The guy involved in the redevelopment commission was not given the building and has nothing to do with the new business”. I don’t for sure, but from what I have read that Surack guy owns it, not Guerin. You are mixing up facts.
I don’t think it is Surack’s fault the city couldn’t find a buyer for it. He, apparently has at least stepped up and is doing something good for the city (and of course, himself.
If you go by the place they are apparently working on it pretty hard to get it open from what I saw. I think this is much better than sitting there growing weeds.
You didn’t tell me about the jobs you have created.
Robert
Dave,
While I agree with you that situations like this should be scrutinized, I wonder if you are not looking for the corruption at the wrong end of the deal.
Has anyone ever questioned why the City would pay over a million dollars for a worthless property? If they had not done so, then the former owners would have continued to pay property taxes on it.
So, we paid money to lose revenue! What sense does that make? I cn’t help but wonder if any of that money found it’s way into the campaign funds of the elected officials who made the deal possible.
Robert Wilson,
Dave is not making accusations, so much as he is asking questions - just like I did in my previous comment. This is the role that the newspapers should be filling, but they have abdicated their duties to a large degree.
So, if you don’t want to be bothered with the inquisitive minds of those who just want to know the truth, then I would suggest that you just stick to reading the local morning paper.
Robert… Trash who? Obviously Sweetwater Sound has it’s fingers into the redevelopment commission. One of it’s employees is heading it up. And it just so happens that another person also involved in Sweetwater Sound, the owner, was given that property earlier this year apparently for little to no money. If this makes any of the participants look suspicious then they should have thought of that before they got involved in the deals.
Obviously Chuck needed to get the property at close to free since he was hard up for cash.. ;-)
http://www.sweetwater.com/feature/leed/press.php
Chuck is obviously no idiot. Someone offers you a million dollar plus property for free.. do you turn it down. Heck no..
That deal turned out so well… heck might as well get one of my employees on the redevelopment commission!
Apparently that wasn’t too difficult either.
These were public deals Robert.. hence they get public scrutiny. And they should, since we are talking about public money.
I don’t fault Chuck of Sweetwater for taking advantage of an offer. He might have great intentions, but getting it for nothing?? What kind of decision was that by the city? I suspect that if one of Chuck Surack’s employees had given away a million dollar property that Chuck owned, he would have been fired on the spot.
>>You didn’t tell me about the jobs you have created.
Robert …. it’s not relevant!
Why not ask me what color car I drive .. same answer - not relevant!
Phil,
>>This is the role that the newspapers should be filling, but they have abdicated their duties to a large degree.
No doubt… you can throw in the TV stations also now with Rupert Murdock controlling way too much of the media. Investigative reporting is pretty much history..
I predict that Glynn will days on council will be limited. He has accepted a position that clearly violates the Hatch Act; I can’t wait to file the paperwork in the coming months.
Knows2Much,
What position is that?
Mike
This is a tired argument. “knows” complaint is going to be in regards to Glynn Hines being a member of city council, and a teacher for a program that I believe received federal money.
However, the United States Court of Appeals ruled in 2003 that City Council members, AND teachers, are exempt from the Hatch Act.
http://ftp.resource.org/courts.gov/c/F3/331/331.F3d.1307.02-3217.html
Looks like “Knows2Much” is, perhaps, a bad moniker.
Covered federal employees include “any individual … employed or holding office in … the government of the District of Columbia, other than the Mayor or a member of the City Council or the Recorder of Deeds.” Id. § 7322(1)(C). DCPS teachers fall under that definition. However, state and local public school teachers are exempted from the Hatch Act. Id. § 1501 (”`A state or local officer or employee’ … does not include … an individual employed by an educational or