Corruption? Sweet-heart Deal, or Just the Best Answer
Posted by Jim Sack in City & County Government, Fort WayneBy Jim Sack
I heard the other day about what seemed to be a real blatant bit of insider dealing. It is a lesson in how Fort Wayne works and how rumors grow into something more.
The story was of a sweet-heart deal and conflict of interest. It involved a leading citizen and one of his employees sitting on a board making the decision on the matter.
You might recall newspaper accounts that the old Allen County/Dimension Ford site just west of Swinney Park may soon become the property of Sweetwater Sound owner Chuck Surack. He is considering a Jag
uar dealership there and has stated he will make significant improvements to the building and grounds, in exchange for a very good deal on the building and grounds. The cost to Mr. Surack will be minimal, the value of the real estate is considerable. It seems a sweet-heart deal among political and business insiders. Add to that the fact that Mr. Surack is the employer of one Chris Guerin who is the president of the Redevelopment Commission, the appointed board tasked with unloading the building and grounds.
It just looks, well, a bit oily.
After a number of calls and chats with those involved it seems only a matter of fact in a smallish town with an even smaller pool of potential players.
The plan is to put an upscale Jaguar dealership in the bland little building. That appeals to the City which wants the building to be put back into use and returned to the tax rolls.
A source in government tells me that a number of other people came forward to offer uses for the building, but Mr. Surack’s offer was the best by far. The other proposals, did not plan to substantially rehab the building, nor improve the grounds, nor increase the tax base nor create many if any new jobs. Some of the offers were “okay,” according to my contact, but mostly just took the building as is and did little to improve the economic situation in the city.
At the commission meeting which I did not attend, I am told by two people that Mr. Guerin was surprised the matter was on the agenda and recused himself from the discussion and voting: “He did not speak or participate in the discussion.” I was also told that the attorney for the commission, John Wernet, also recused himself because his law firm also occasionally represents Sweetwater Sound, the company Mr. Surack has built into an international musical instrument sales powerhouse.
So, that left the other members of the commission to decide whether to accept Mr. Surack’s offer. They did. One member added that the other candidates for the property “backed out” and that the whole deal was “above board.” That member has an excellent reputation in Fort Wayne, so I take her word.
Fort Wayne is a small town. I will guess there is one degree of separation between most of us; introduce two strangers and they are likely to have twenty contacts or friends in common. When one moves to the more rarefied air of political of social leadership the links are immediate. I know Mr. Surack and Mr. Wernet, I know Chris Guerin, I know Greg Leatherman, the Economic Development director for the city, and I know two other members of the Commission. One is an old junior high buddy and we remain friends, even though he recently turned down my refinance request. Tisk.
In Fort Wayne, it is hard not to know many of the players in deals that affect the public purse or the community well being. On the surface this looks very much like a sweet-heart deal. Dig deeper and it seems that Mr. Surack has offered to invest some of his considerable wealth in a dilapidated building that will soon yield a few jobs and return to the tax rolls. He will certainly benefit, as well. I should add that Mr. Surack is a major donor to many charities in the area and has a spotless reputation. He has created a company, built it into a powerhouse and greatly benefits the city.
So, we have looked into the matter and it seems much worse than it turned out to be. It seems to have been a fair dealing, but confused by the inherent problems of a city our size in a down economy. I don’t think this is a conflict of interest.
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Tags: Chris Guerin, Chuck Surack, Fort Wayne
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Millionaire Chuck Surack plans to put a Jaguar dealership in Fort Wayne … in the middle of a recession (or perhaps depression).
The crooks in local government (along with Surack's buddies in Fort Wayne government) are certainly ready to give Surack the land for a song with a SWEET tax deal — in which a millionaire with a Jaguar dealership will get a break on paying property tax.
Why don't citizens ever get breaks like Chuck Surack or Jerry Henry? Because most citizens are not millionaires with family and friends running city government.
Why does millionaire Chuck Surack need welfare from the taxpayers in Fort Wayne? Sweetwater Sound is one of the most profitable music retailers IN THE WORLD. I have purchased products from Chuck's company and probably will again — despite his arrogant behavior in this matter.
Chuck Surack is insulting the entire city just to show off this opulent lifestyle.
Fort Wayne, you just got Chuck Slapped!
Chuck, just stick with music-equipment retailing and stop promoting yourself as the Freemason elitist that you are. Sweetwater Sound does good business, as far as I know. Don't spoil your reputation by pandering to elitists with Jaguar tastes.
From Jim Sack:
… Mr. Guerin was surprised the matter was on the agenda and recused himself from the discussion and voting: “He did not speak or participate in the discussion.” I was also told that the attorney for the commission, John Wernet, also recused himself because his law firm also occasionally represents Sweetwater Sound, the company Mr. Surack has built into an international musical instrument sales powerhouse.
So, that left the other members of the commission to decide whether to accept Mr. Surack’s offer. They did.
So Guerin and Wernet — because of their obvious conflicts of interests here — did not do their jobs. They had to remove themselves from doing their jobs because they are in bed with Surack. Then everybody else votes FOR SURACK and we're supposed to believe there was no conflict of interest … when Guerin and Wernet ADMIT a conflict of interest.
Do people actually think that Guerin and Wernet have absolutely NO influence on the commission?
Just beause Surack throws around a lot of money to a bunch of charities that do NOTHING to change the status quo, Jim Sack believes everything is above board.
Wow.
We have gone way too far done the path toward government hand outs in the name of “economic development” and have allowed the public to be fooled by what local governments are doing in the name of “economic development”. Economic Development has become ripe with hand outs, government interference with the free market, government favoritism, etc. This example is just one of many local examples. No one seems to care that the Alliance, Regional Partnership and IEDC, etc. are simply vehicles to give away our tax dollars or take our property yet this is exactly what we are all up in arms about at the national level – socialism.
Does anybody know what the true value of the land will be? If Mr. Surack gets the property for free, how much can he invest in the property since it is in a flood plain?Seems like the gentleman who owns the Dog House on Taylor Street is limited to how much he can spend to improve his business.
It's picking winners and losers. Do other car dealerships get a break? Your conclusion is bizarre.
Things must be going well at Sweetwater, the stock market sucks, and Chuck Surack is bored, bored, bored! There is no other reason to invest in a dinky upper-end automobile brand that Ford dumped in 2008 because worldwide sales are going nowhere.
Tata Group of India bought the Jaguar and Land Rover business at a bargain price hoping that the sagging U.S. dollar would assure sales growth into the future. That is exactly the same strategy Ford used . . . and they lost a couple of billion dollars in the venture.. With Jaguar sales running at about 1,000 cars per month in the U.S., it would seem that the dealership investment would far outstrip the profit potential of the business in the short run. Return on investment is everything, but on the surface it would appear that there will be a long wait for Investment recapture, even with the generous help from the City of Fort Wayne.
Can you say: "Tax write-off, Baby?"
dean, would you rather let that eyesore sit there and rot because "the Man" shouldn't get a break? I realize that your style is to get attention by being confrontational, and you may or may not have a reason to lug that chip around on your shoulder. But to me, your attitude on this issue is rather doltish.
Give a call to Greg Leatherman. 427 1140. Ask him the details of the deal.