Stealth Visitors from the South
Posted by Jim Sack in City & County Government, Fort WayneBy Jim Sack
September first is the grand opening day of the new hotel adjacent to Parkview Field in downtown Fort Wayne. It should be seen as a feather in the cap of Mayor Tom Henry, and should also call into question the administration’s support for Barry Realty.
When Mayor Graham Richard envisioned the massive central city development there were four components: the ball park, the hotel, the condo/retail building and a parking garage. Three are now operating. Only the Barry Realty promise to build the condo building -four stories, scores of condos, ground-floor entertainment and offices- remains unfulfilled.
Barry says the economy went south and they have had a devil of a time finding tenants and condo buyers. Without those leases in hand they are unable to find financing, they say.
The hotel was similarly stymied by financing problems, but the mayor, to his credit, walked from local bank to local bank hustling the necessary financing to finish the deal. He rounded it up and construction went forward.
So the question has to be asked why the city has not been as aggressive in finding financing for the Barry Building? Tapped out? Less enthusiasm? Bigger fish to fry? It seems that if the mayor could shake the bushes for the hotel he could do the same thing for the condo building where he and his wife avidly signed up to buy the first condo.
But, instead, city redevelopment director Greg Leatherman has been making the radio rounds apologizing for Barry’s unsuccessful fund raising effort and arguing that they should not have to pay $5,000 a day compensation to the city for failing to uphold their part of the deal. That provision, not a penalty, but compensation to the city for lost tax revenues, was negotiated into the contract which was happily signed by Barry/Hardball. Mr. Leatherman argues that such a punitive step would booger the relationship with Barry/Hardball and sully our reputation around the country among those who would like to have a similar sweet deal with local government, as does Barry/Hardball.
Recently, an article appeared in the Savannah Morning News, a leading Georgia paper, recounting a trip by some of their city leaders here to Fort Wayne to see our park. The city officials and chamber of commerce head were flown up by Barry/Hardball and given the grand tour in the hope that Savannah would then replicate Parkview Field in Savannah with Barry and Hardball that city’s partners. Oddly, the mid-August visit by these dignitaries was not mentioned by Mayor Henry to anyone in town, except Tim Pape and a few others. Most city council members found out about the visit ex-post facto. “Why am I always the last to know,” lamented one councilwoman. A second visit scheduled for this coming weekend was postponed by Savannah officials for a variety of reasons, mostly to do with the holiday. Mid-September is now penciled in.
Given that the Mayor has sent Mr. Leatherman to WOWO and WBOI to tout the benefits of the field and to refute Councilman John Shoaff’s demand that the $5k per day be assessed. Chris Guerin, a member of the Redevelopment Commission, also was enlisted to write an op-ed piece in the Journal in support of the mayor’s position. And, the Journal-Gazette issued an editorial last weekend further in support of the mayor’s position and critical of Mr. Shoaff. It is an orchestrated campaign to undermine the councilman’s demand to adhere to the contract or to rewrite it, a message that was fundamentally seconded by Councilman Mitch Harper.
So, why did the administration keep the Savannah dignitary visit hush-hush? Not even, it seems, did the mayor’s PR director know the Southerners were in town until they were gone. One would think that such a high level visit to ooooh and aaaaah over our little gem would be more ammunition for the mayor and Mr. Leatherman/Guerin.
So, one has to wonder why the stealth visit was not announced?
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I think Mr Shoaff is right.
They need to either pay-up, or renegotiate (prefer the payup part).
What do they have to lose talking renegotiation?
What is Barry & Hardball afraid of?
With a contract like this in place and not enforced, why isn't the Department of Local Government Finance from the state not making issues of this, and withholding state funding since the city is not doing everything they should to help themselves?
Instead Fort Wayne is spending money like a drunken sailor on everything they think they want, and to remodel what they buy.
I am surprised that the DLGF is so easy on Fort Wayne, they are not that easy on smaller towns and boards that they "control" funding through tax distribution.
Maybe Hardball constructed a Potemkin village complete with faux council members.
Would you buy a used Jaguar from Christopher Guerin?
When will the Journal Gazette or Charly Butcher or any other Fort Wayne MSMers report on the Savannah visitors? Never?
Let me speculate.Obviously hardball wants to keep Savannah insulated from all the controversy here over the Stadium and condos.The city is more than willing to help them do that.The media is in lock step with administration and their wishes.This is a long shot but what if Hardball has told the city that if they get the Savannah deal then they will start the project here.But you would sure think they would let all of council in on it.
The Mayor hustled on getting the Courtyard built because he needed it to play host to the IACT state conference coming to Fort Wayne next month. It would have been a huge black eye if they had to relocate and the conference was originally awarded to Fort Wayne with the understanding that those rooms would be available.
I think the city should get more agressive in holding them to the contract – there is a time to play nice and a time to play hardball…the time for playing nice has passed. It has been on excuse after another. Why would ANYONE committ to buying a condo in a structure that may not ever excist.
The Journal Gazette, the News Sentinel, WOWO, Indiana News Center, Channel 15, etc. won't cover the Savannah story because they wait for emails and facsimiles to roll across their desktops instead of developing sources. The only sources they have are the establishment sources they don't want to offend.
By the way, did anyone see Krista Stockman of the Fort Wayne Community Schools on Fox 55 News last night? She was denying that there was any overcrowding at Wayne High School but didn't sound very convincing. When she was saying there were plenty of desks and books she was shaking her head back and forth. Someone should explain to her that she needs to control that head shaking. Psychologists explain that is usually a reliable sign that a person knows that what they are saying isn't true. I feel sorry for her in her position.
Jim, no one "enlisted" me. As you know, I can speak for myself.
Christopher
Well, the more I chat with folk about this the more it sounds like Hardball is playing games with Fort Wayne. They made a promise, then signed a contract, they settled on a sum, $5k per day, to be paid if they came up short, which is now the case. Their stealth trip into Fort Wayne to wine and dine the city manager of Savannah and her companions seems to have been designed to avoid any potential criticisms. Only Councilman Tim Pape, it seems, other than Freier, acknowledges meeting with the dignitaries. The mayor is mum.
We have had a nice chat with reporters in Savannah so they are aware there is a debate underway up here, and, Ben Lanka has also been in contact with reporters there, as well, so he is writing something, but Ben will write from the Journal's perspective and they support Redevelopment Commission President Chris Guerin and seem indifferent to the cost we bear.
Greg Leatherman sincerely wants this to work, but Freier may well be stringing the administration along with a promise here and a bit of good news there all intended to keep hope alive that they will build something, someday. Greg made a good point today that financing for condos is different than that for hotels, thus the success of hte hotel and the ongoing failure of the condo building. But I do not think there were escape clauses in the contract that would excuse Freier and company should lenders turn them down or the moon not align with Mars…. I also remember that council members at that time asked to see personal financial statements of Freier and others to determine if they would have the where-with-all to complete the deal should outside financing fail. Those council members, as I remember, were rebuffed. Outside financing has failed and Freier is not making good on his promises and he is not compensating Fort Wayne for the losses we are suffering.
ATTENTION, Savannah! The next batch of folks you send up here on Hardball's dime…..ask to actually see the condos. Ask for a tour. Then grab a beer at JK's and put it on Tim Pape's tab. That's what I always do.
From another angle. I’m troubled that non-elected city officials are making policy. The decision not to enforce certain clauses of a contract are a policy-making decision. Listen to the words of those who are attacking Mr Shoaff, they tell the tale.
Thank you, Christopher, Greg Leatherman also noted that it was all coincidental that an editorial was followed by an op-ed piece and two radio rebuttals of Mr. Shoaff's call for Hardball to pay up and the city to hold Hardball to their promises.
The city has done what was asked of it by Hardball, why will Hardball not do all that they promised to do?
Can you shed a bit of light? I believe that if I defaulted on the provisions of my agreement with Tower Bank they would not be so lenient as the city has been.
Did you, by the way, know of the Hardball Savannah visit? Do you know who here met with the Savannah group?
Christopher, why do you seem to be advocating the Barry Realty-Hardball position. Should you, rather, be pushing them to redevelop what they promised to in the way they promised or to make good on their commitment?
Here's a link to John Shoaff's response to a recent op-ed attack in the Journal. http://www.journalgazette.net/article/20100909/ED…