By Jim Sack
Mitch Harper is one of the members of the task force trying to resolve the city-county “space” dilemma caused by Mayor Tom Henry. He recently offered a solution to the county’s unwillingness to dip deeper in its treasury to pay for the increasing costs of moving offices, renovating space, vacating existing structures.
The idea was put forth at a meeting of the task force of city and county officials, of which the good Mr. Harper is one. His suggestion is to take money from the Capital Improvement Board to subsidize the move. Councilman Harper is from the school of thought that seeks to resolve the impasse and move both city and county forward. There should be more like him around.
I am, however, uneasy with taking money from that source, or digging any deeper at all. I think the CIB should be in the business of building, first, a sizable nest-egg and then doing big things for the city and county. To empty the fund on such a questionable project bothers me. Poach it once and it will become increasingly attractive to politicians in the lean years to come, an beyond. Note, too, this tax was to be temporary, as I remember.
I would rather see the co-location task force spend time wringing expense out of the estimated $11 in renovation costs, or toss it right back at the mayor to do that.
We have already seen the costs balloon from Mayor Henry’s initial pronouncement. Council was told the building would cost $7 million and a bit to buy. That grew by almost $4 million later when incidental costs were added in, such as the lawyer’s cut. The mayor also told council the renovation cost would be a bit over $7 million. But, a month ago, they had to revise that estimate, too; the two design firms that had initially offered that figure, the $7 renovation figure, went over their numbers again and added another $4 million to the renovation costs. The design firms said they were forced to conduct their analyses in haste by the Henry Administration, thus causing the underestimation error of 60%. Woooo. Add the overruns together and a building that was to cost $14 million and a bit is now expected to cost $23 million. They missed by a whopping 60 percent. I expect more surprises in the months to come.
So, instead of finding new sources of funds to be devoured by the Henry Administration, it is time to look for creative savings. Mitch Harper is trying hard to move the city forward. I am not critical of him, but I think the Henry Administration got us into this mess and should now sharpen their pencils and find a few million dollars of efficiencies. Perhaps they could have someone on the county side double check their numbers.
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Call me crazy, but let's try this: Since the cost of this fiasco, er, project continues to expand exponentially, just like a runaway Amway pyramid, why not take the 7 million or 14 million and build a brand new building to house all these folks. Why, I know of a nice piece of land downtown that's vacant…….right there on the corner of Ewing and Jefferson. I think the actual address is 301 West Jefferson. It's a vacant lot and would be perfect…….no one is using it right now, and I bet we could get it on the cheap……
Jim, you missed the point.
And, I think you owe the readers of the blog a little bit of the history of the idea for the Capital Improvements Board. Since you haven't, I will.
I voted against acquisition of the old Wolf & Dessaur Building when it was presented to the City Council. It frankly is an increase in the size of government we don't need. But more importantly, the way in which the Mayor and Controller Pat Roller chose to finance the building takes future CEDIT dollars away from the full range of neighborhood capital improvements this city needs.
I'm not for spending money we don't need to spend. But if others are going to go ahead and do so, I would rather the money not be a taking from the essential tasks of government like paving streets and maintaining public safety.
I also said it was presented to Council with "artificial haste." The mayor did not have an agreement with the county regarding the building and he sure as didn't have more than a superficial – and inaccurate – number for the renovations.
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As you rightly point out, the projected dollars needed to open this building keep escalating. That, of course, is nothing new for the Henry administration. I, too, think that costs need to be squeezed out of this project.
But, the problem is, while I voted against the purchase of the building, the majority of council voted to go along with the expenditure. At the time of that vote and at the time of the vote on the issuance of the bonds I said that the Mayor should eat up the future CEDIT dollars on this project when there will be funds available through the new Capital Improvements Board.
Those who supported the idea of an expanded Capital Improvements Board which would have claim on food and beverage tax money said that the Board was needed to sort through the many and varied capital projects being proposed for bonding.
Those were such things as for the juvenile justice center, the library and the schools. Those were at least for core functions – traditional functions – of government regardless of controversies regarding size, scope and need.
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Now, the public is being told the CIB will spend those monies on anything BUT core and traditional functions of government. Indeed, they are a board in seach of a mission. But, truth be told, the projects that will ultimately be funded will be "public-private partnerships". A partnership where the public side is to reduce the risk for the private side. That is, the public finances the downside risk and the private investors get the upside.
I am not for spending more money. I am saying spare the CEDIT dollars and substitute CIB dollars. Now, the public is being told the CIB will spend those monies on anything BUT core and traditional functions of government. Indeed, they are a board in seach of a mission. But, truth be told, the projects that will ultimately be funded will be "public-private partnerships". A partnership where the public side is to reduce the risk for the private side. That is, the public finances the downside risk and the private investors get the upside.
I am not for spending more money. I am saying spare the CEDIT dollars and substitute CIB dollars.
I think we agree on the key point which is to stop additional spending on this project. They mayor has created a mess – no fundamental agreement with the county and fallacious estimates of the cost, hastily produced and questionably presented – Mayor Henry should find economies first, before he begins draining CEDIT or the improvment board or any other source of funds. The cost has only gone up, Mayor Henry needs to show some creativity and save a few bucks.
And, you are right on another point: this purchase can only cause city government to grow and cost us all more. The space available in the W&D's building far exceeds the city's needs, so the urge will be to fill it. The question for me is whether governmental growth will improve the quality of life in this city, whether it will better facilitate economic improvement, whether it will solve problems? Most of us clamour for government cuts in areas where we are not directly affected, but also lobby for improvements and expenditures where we have an interest. Thus, competing forces and differing views of the grow and application of government..
Thanks for the insights into the CIB. I would prefer it spend money on projects other than helping Mayor Henry out of this mess. A little pressure might stimulate creative thinking.
As for your comment about not spending more money, I hope I did not mis-characterize your position: I think you are trying to make the best out of a bad situation, and, you have consistently been, along with Mr. Smith and Mr. Shoaff, the most prudent member of council in the matters of tax expenditures.