So, I have given some consideration to candidate Russ Jehl’s recent news release on the “profligate” spending of the Henry Administration “exemplified” by the parking lot at Citizen’s Square. He makes some good points, goes a bit strong on others and overlooks a few important details.

You may know the story, but in short here it is: the city paid $17 million for the new Citizens Square government center (and its remodeling): now, a few months later, leaders in the administration have announced the north parking lot “needs” to be reconstructed. The measure was presented to council a couple weeks back and sailed through with bi-partisan support. But, just recently, in a news release, Republican candidate Russ Jehl, voiced his election year outrage.

The administration sold the $300,000 project reconstruction project to council as a way to kill two birds with one stein: to creatively reconstruct the “decaying” lot, and to do so with a porous material that would help the city in its obligations to the federal government concerning our rain overflow problems. Additionally, the redo would yield a few more parking spaces. Problematically, the city decided to pay for the changes by dipping into economic development funds, as well as water rate payer dollars, rather than maintenance dollars or fund budgeted in the initial package.

So, Russ Jehl, a sharp young man running as a Republican against incumbent Democrat Karen Goldner in the rather Republican Second District, lashed out at the Henry Administration in a news release for reckless spending and mismanagement. Well….

From the administration’s perspective it was a good opportunity to do a number of positive things, so they found a way to “creatively” finance the project. After all, the administration has a mandate to create some twenty rain gardens as a part of the agreement with the federal government to clean up our rivers. The redo of the city’s parking lot creates one of those mandated twenty “rain gardens.” Using a porous concrete material allows water to seep through the parking surface rather than running quickly toward the rivers thus contributing to the solution of the very problem the Feds want us to correct.
Mr. Jehl, however, though, thinks it is excessively wasteful spending, and should not come from the sources chosen by the city to pay for the project.

Excessive spending? Perhaps. It costs $300,00 to redo the lot. That sounds very, very high and makes one wonder whether we could not have gotten another ten years out of the existing lot. Probably. It seems a high cost to pay until the benefits of reduced run off are factored in, until one considers it a step toward compliance with the CSO consent agreement, and that those few additional spaces that may someday be needed. But, it still seems an expense that might have been better spent a few years down the road in light of other needs. The condition of the lot did not present a threat to public safety, nor was it an eyesore.

Another reason the cost is high is that it is a demonstration project that is designed to show local business how they can redo their projects to the benefit of the community, as well as themselves. Fat chance many businesses will spring to the noble challenge unless the cost is much less than simply grading and laying three inches of tarmac. So, government does what it is often called on to do, show the way. We want less flooding. We expect government to come up with solutions. There is a factor of trial and error, there is learning curve and pioneers pay a higher price. The cost, I was informed, is about 50% higher than had the city simply resurfaced. Mr. Jehl complains the price is higher because drainage is being added when it is more like absorption.

But, Mr. Jehl makes a point: why was this expense not budgeted in with the overall project. One would think the parking lot was discussed, one would think that necessary repairs were considered, one would think there was a budget line anticipating future improvements. One would think. But, remember back to one night at council when the $14 million project became $17 million as a group of administration lawyers surprised council when they demanded an additional $3 million for their fees and a few other things. Councilman Tom Didier looked perturbed when he said: “why didn’t you just tell us? My customers want to know the bottom line,” they don’t like being surprised with new costs that were known all along. One would think the administration knew about the extra $3 million, one would think the administration had considered the various parking issues and the north lot was considered. Score Jehl one point for “mismanagement.”

And the source of the funds is questionable, as he notes. Why should the expense be paid from TIF dollars designated for economic development of the downtown area. The administration tells me infrastructure qualifies within the state law, including infrastructure belonging to the public. But, Tax Incremental Financing districts are designed to collect taxes and reinvest them within that same area to stimulate economic development. This application is a stretch and not the way to increase the tax rolls through judicious application of TIF revenues. But, the city saw a need for the redo, they saw a chance to do something beneficial, they saw a chance to lead the way in run off diversion and a questionable source of funds was found. Score a point for Mr. Jehl’s logic and give a demerit to the Henry Administration, TIF money should be used to help private sector development so that new businesses are added, in this case, downtown, and new tax dollars are generated, thereby making new tax dollars available for the city to undertake such parking lot revamp. Unfortunately, the Henry Administration felt the urge to get this done (not a bad thing), they saw multiple advantages to act quickly (not a bad thing), but proverbially killed the goose that lays the golden eggs.

So, Mr. Jehl, in my opinion, scores a fundamental point or two.

He loses a point or two when he strays a bit off target in his news release:

“The City has focused much of its attention on fixing its antagonistic posture against development…” Antagonistic is not the right word; cumbersome or bureaucratic, perhaps, but not antagonistic, and it is not just the city, by any means. He should be aware of that. The city hands out millions monthly in tax abatements to help business create jobs, hardly antagonistic and not the correct choice of words. City efforts might be better characterized as belatedly trimming a kudzo vine. Additionally, Mr. Jehl might have added that much of the problem with permits and regulations lies with the Republican-administered county and with regulations imposed by the state legislature. It is not black and white, it is not our side, their side.

So, I read the news release as an effort to score points in an election year, which it does. It poses a couple of valid questions, but it also poses questions about Mr. Jehl’s attitude and whether he wants to be constructive or divisive.

No related posts.

“Murky.”

That was how Tom Obergfell, council appointee to the Redevelopment Commission characterized one aspect of the new deal concerning the construction of the Harrison, that troubled condo-retail building that is to go on a slice of land just north of left field at Parkview Field. Convoluted would be another word to describe the deal and the robbing Peter to pay Paul arrangements that are yet to be reduced to un-murkey writing.

Embarrassed is how the mayor must feel that last March he hoisted, in Council Woman Liz Brown’s words, the “Mission Accomplished” banner only to see the deal fall apart before the promised groundbreaking at the first of last month.

Exhausted is how Tim Haffner, corporate council must feel this morning after Mrs. Brown politely, but surgically dissected the deal and showed how it is still based on wishful thinking, hope and a tangle of guarantees. Councilman Smith also asked pointed questions and the president pro-tem last night, Councilman John Shoaff, reminded the gathered city officials of his antipathy to the deal with a litany of criticisms, one of which is still at the heart of the matter.

Meanwhile, in a hotel room somewhere, Chris Schoen, the drawling leader of both Hard Ball Capital and Barry Realty, two companies joined at the hip through interlocking directorates, but confusingly separate for purposes of this deal, must be anxiously, nervously running his fingers through his hair and pacing his hotel room somewhere out there in the big world of maalox-driven investment schemes hoping this set of promises to Fort Wayne does not leave him with more egg on his face.

So, lets go back a few months to Mayor Henry’s announcement the Harrison deal was a go, that shovels would toss dirt on May 1st. It seems, given that Tim Haffner speaks in carefully constructed, densely-worded Alan-Greenspanese, that Chris Schoen, the dulcet-toned Atlantan, assured the mayor back then that the deal was all but done. He, it seems, and I emphasize “seems,” says he had received assurances from on high at PNC Bank, the lead lender, that they would finance the $14 million project. Apparently, again stressing the murkiness of the arrangements, the official at PNC sent the deal particulars, including the personal and business collateral offered by Schoen, to their underwriters, the internal “no” people, and they found enough flaws to bugger the deal. (Two notes here: we were told in 2007 or so that Mr. Schoen and the other Hardball/Barry principals would back the deal with their personal and substantial wealth if the banks demurred, that Mr. Shoaff then requested Schoen’s personal balance sheet to verify that guarantee but was rebuffed; and the banks have turned into old misers hoarding their (our) money. Remember how profligate they were? Note the excessive swing of the pendulum? Now, they are the drag on economic recovery.)

So, the bank all but told Herr Schoen he was not man enough to pull off the deal. He called Mr. Haffner or someone else in the building to deliver the bad news. Whoever had to tell the mayor to take down his “Mission Accomplished” sign must have gotten quite an earful.

PNC fatcats, sipping martinis in the Pittsburgh home office, don’t care about Fort Wayne a whit. As someone, perhaps Mr. Haffner, said: the days when local leaders went to Dick Doermer (hometown boy who built Summit Bank) or Paul Schaefer (Fort Wayne National’s amiably leader) to cut a deal, are over. As the deal has progressed it has become apparent that PNC holds the cards. We are reduced to begging.

So, were the Harrison chestnuts to be pulled from the fire it would have to be the local cavalry. Administration troops were dispatched searching for “more strength” to add to the deal. Lets call it equity, skin in the game. The mayor, using his good offices, sold the idea of partnering (adding “strength”) to Mark Hagerman and Simon Dragan, two of the most successful of local businessmen. They add considerable strength to the deal, enough, it seems (emphasis on “perhaps”) to get the PNC bosses to set their martinis and cigars aside long enough to initial a deal and send it down, again, to underwriting. (Oooops, Sylvia, look here! “Another i not dotted, and, looky there, another t not crossed. Rejected!)

There were a flurry of questions about the terms of the arrangement and again council was told that it is a private deal and not subject to public scrutiny. Mr. Haffner tilted his head and lamented how Mr. Schoen and other fine businessmen had to suffer public slings and arrows, to answer, god forbid, questions during the course of the project to which Mrs. Brown calmly and thoughtfully remarked that they, Schoen and the others, were asking for public dollars for their investment purposes so that sort of scrutiny comes with the deal. Touche, game, set, match.

It goes back to what Mr. Shoaff asked for and was denied, the personal balance sheets of those at the public treasury, to determine whether the Atlantans are partners to be trusted. I have no doubts about Mr. Hagerman and Mr. Dragan, none whatsoever.

So, here we go again. Off into the wild blue murkiness.

I fervently hope that the mayor can unfurl his “Mission Accomplished” banner again and stand the next time in front of the camera with silver shovel in hand, hardhat jauntily askew to the left and smile for the cameras. I do. I want to see this project successful, but it is time for the administration to invite Mrs. Brown and Mr. Shoaff to hear candidly from Mr. Haffner and our mayor. After all the murkiness, they owe those two and all the rest of us a bit more clarity.

I also fervently hope that the mayor is willing to walk away from the deal if it is not in the interests of the community, and that is a fundamental principle of real estate: don’t get emotionally involved, let the numbers provide the answers.

Bottom line: Mr. Obergfell promised he will vote for termination of the deal this fall if Mr. Scheon fails again and that means Mr. Haffner and his team have to pull a real rabbit out of the hat.

No related posts.

Simon Dragan is the epitome of the American dream. He came almost penniless to America in the late 1960s as a political refugee from Communist Romania and has, through hard work and a cautious business approach, risen to personal, financial and corporate success in Fort Wayne. Yesterday, he joined Mark Hagerman, himself a determined and generous business leader, in signing on to the mayor’s deal to build the Harrison, that troubled “last” piece of the ballpark-complex puzzle. As a long standing critic of the arrangements of the deal, but as a champion of more downtown development, Simon’s participation in this deal gives me a great deal of heart that it will be finished on time and without shenanigans.

I could go on and on about Simon’s business success and his personal integrity, but I will only add that I would trust him with my life, my treasure and the lives of my grandchildren. He is as good as they come in my book. Mark Hagerman, too, is a solid business leader and pillar of the community. From both men flow tens of thousands of dollars to local charities and causes, hours of their time and the commitment of their businesses to support in many other ways.

So yesterday, when I attended the Redevelopment Commission meeting at which another friend, City Corporate Council Tim Haffner, flanked by another friend, Drew Welborn, council to Mr. Dragan, both sitting next to Chris Schoen, the head of Hard Ball Capital, gave the presentations, I felt mixed emotions about the process.

We know how fraught it has been. We know of the promises, the sloppiness of the original deal and of the delays, delays, delays, all which have contributed to a sense as Shakespeare wrote that “something is rotten in the state of Denmark.” But, we also want the center of our city to be vibrant, on the tax rolls and a point of pride. I trust Simon and Mark also have that in mind. This is their city, as well, and both have long, long worked and given to make Fort Wayne better.

So, yesterday, a new agreement was presented to the Redevelopment Commission. Tonight a report will be made to City Council. Yesterday Councilman Tom Smith was there to watch and listen and try to understand. Marty Bender was there taking notes. Tom Didier stood eye to eye with Chris Schoen after the meeting and asked serious questions about the implications of the new agreement which should be on-line for all to see. Take a look. Much of what is was originally proposed is still within the revised agreement.

There are matters, however, that John Shoaff, another good friend and hawk on this matter will find questionable. Consider section 6, the TIF District Allocation. TIF is an acronym for a Tax Incremental Financing District. It is a creative method of using tax revenues from one source to reinvest in that source to spur growth. Move down to line (a) which reads: Any incremental taxes actually collected from the Harrison Site for the first ten (10) years after the granting of the Certificates of Occupancy may be used to offset certain costs of construction pursuant to the terms of the Definitive Agreements and I.C. 36-7-14.” Huh? I would like to hear someone explain that. What is the implication of the word, “actually?” What are the “Definitive Agreements?” In business-friendly Indiana I am always skeptical of favorable business laws at the expense of the little guy and the taxpayer. There are other lines in the agreement that seem to guarantee builders and bankers and partners, need we add lawyers, a profit. I would guess, if these well worded phrases are guarantees, they would come at my expense if this effort fails.

Go back to what was mentioned yesterday, that this is the “last” piece of the puzzle. When the project was sold to me and to you this complex of garage and ball park, condos and hotel were known as Phase One. Mayor Graham Richard, another old friend, and others told us they would naturally lead to phases two and three to the south of the ball park. Official memories can be short.

One comment the official media missed last night at 10 was a comment by Mr. Haffner, as I remember, that converting the project from condos to rentals would mean an increase in certain tax revenues, not a bad thing when you consider much of the center of Fort Wayne is non-profit or governmental and, thus, off the tax rolls. You may also remember that argument as Mayor Henry and Tim Haffner pushed for purchase of the new city hall, Drywall Square, that it would consolidate government in two buildings and free the county to sell dozens of buildings downtown so that they might be put back into productive, tax-generating use.

As for “on-time,” well that depends on “monetizing” tax credits and Mr. Schoen emphasized that they are well along in that process with an attorney skilled in such convolutions. So the schedule is to show final drawings before August 1st of this year, the first ground broken before the coming Thanksgiving and to have a certificate of occupancy by March 1, 2013. “Damn the torpedoes, full speed ahead.”

Again, I have every faith that Simon and Mark are in this not only for personal business interests, which is just and appropriate, but also because they genuinely care about our bullheaded little town and hope to build a better future.

Again, I suggest you go to the city web site, search for and review, mark up and question the deal with your mayor and your city council members, especially Mr. Shoaff, Mr. Smith, Mr. Didier and council president Mitch Harper, all who care deeply about Fort Wayne and wish only the best for our friendly, if a bit stodgy, little metropolis. All deals have flaws, as we have seen from the beginning of this Odyssean saga. Help Mr. Shoaff and the others identify them so the deal might be all that better, for us all.

No related posts.

A few of them jumped out at me.

• The Courtyard by Marriott hotel, a key component of Harrison Square, requiring vision to bring together a team of local and regional banks to make it happen;
• The near realization of The Harrison, the residential and retail element of Harrison Square, and the final piece of this catalytic downtown development
• The successful merger of Fort Wayne and Allen County 911 communications services
• Significant progress on the Long Term Control Plan to clean our three rivers, removing one billion gallons of sewer overflow annually
• A trail system that has tripled in size over the last six years

These are all accomplishments for certain, someone’s, but are they really things Tom can pat himself on the back for?

Comments please.

No related posts.

It is what is missing that should be noted.

Yesterday’s jubilant announcement that the Harrison complex will finally, we hope, be built, should be tempered by the silence on Phase Two and Phase Three of Graham Richard’s massive project.

First, give credit to Greg Leatherman, the city redevelopment director, for nursing this wounded bird over the finish line. On many occasions the project looked all but dead. In fact, Barry Realty, at times was on the verge of going belly up. So, that the building, in a modified form, will be constructed, that sufficient leases have been signed and a bank has signed on to underwrite the project, are all a credit to Mr. Leatherman’s determination, thick skin and choice of Scotch. He should take his lovely wife to Barbados for the week to gather his strength in order to carry the project through to completion.

But, he needs to be back by early April when shovels may turn the first bit of sod, or gravel, in “Leatherman Park” to the flash and whir of reporters’ cameras.

And, the champagne has been ordered for the christening in 2012, about a year after the silver shovels are autographed and distributed to the major players in the project.

It is, however, what was missing in the announcements yesterday that should be of note. To quote the mayor,

“The Harrison is the final piece of Harrison Square, the signature private-public initiative, announced late in 2006.”

It seems the ballpark-Harrison-hotel-parking garage were just Phase One of three phases of development touted by the Richard Administration in that year. Phase One now seems well on the road to completion. What about Phase Two and Phase Three, both to be mixed use developments south of the ballpark along Baker Street?

Ask the que?stion and you will not get a straight answer. There are a number of reasons. The ongoing economic malaise is the primary reason. You will remember that in 2006, Wall Street, the fat bankers and many of the rest of us were involved in calculating our profits or admiring our leaps in home equity value. Remember?!

Secondly, as mentioned above, the first phase has been a slog. There were obituaries written, the city contemplated their other options, and discussions were held about how to make better use of that sliver of ground. Las Vegas would not have given very good odds on the Harrison’s success. But, give Mr. Leatherman and the members of the Redevelopment Commission and the mayor credit for bringing the project forward and beating the odds, or winning with a bad hand they dealt themselves.

Third, emphasis has changed. Phases Two and Three may someday be built, but the city has lately focused on courting a company from Baltimore, developers with very long lists of successes in their portfolio, to scout Fort Wayne for another “public-private partnership.” There recently was a day of meetings, there were many others before, and there will be more in the future. The firm, Cordish Companies, has an interesting web site, which includes a casino near Shelbyville. The Cordish rendering of the casino is gorgeous, the website for the casino has the glamor of a fish-fry.

So, Phases Two and Three will more likely be left, for the time, to the market to develop. Cordish has some success building along rivers, and a signature project is the remarkable Fourth Street Live in Louisville.

With that in mind, yesterday was a big, big win for the administration and will benefit the community. The Harrison will compliment the Grand Wayne, the ballpark, the Embassy and the library, not to mention the Fire Fighters Museum, West Central and the rest of the center. Planners these days tout mass as a route to success; people go to where other people are. More people equals more business and investment. Increased downtown investment may mean that Cordish will see a ground-floor opportunity to redo, say, the river banks, and that someday Phases Two and Three of Graham Richard’s dream are built.

No related posts.

Mitch Harper was on time, in plenty of time, but is still getting his sea-legs.

Marty Bender was mercifully silent.

Sampson and Udris were stellar.

Mrs. Brown had her attack collar on again.

Mr. Howard clarified with a smile.

Mrs. McGauley went on and on and on.

And the smell or a rat was detected.

The meeting gaveled down perfectly on time with seven, not nine members present. Two Democrats, Mr. Pape and Mr. Shoaff, were both absent. Mr. Pape eventually arrived. Housekeeping was quickly taken care of and Glynn Hines, sixth district councilman, moved two bills through with perfect diction and decorum. Hines gave President Harper exactly the sort of civil and unembellished committee leadership Mr. Harper has been looking for. Hines needed five minutes at the very most. Polite and efficient. City Utilities Committee yielded to Finance and the meeting began to bog down like the German Army at Stalingrad.

Tom Smith’s committee was all about infrastructure last night. City Engineer David Ross came to the table to explain an Auburn Road project. Widening, sidewalks, new signals, all to aid traffic flow. Ross went on about the cost, some 80% of which will come from other sources, not your property taxes. Ross referred repeatedly to a digest sheet he had provided to council in their two-inch thick packets of materials for the night’s meeting.

Two city employees then came to the table to explain a sewer design project. One of the two witnesses was very, very nervous and was treated with kid gloves by everyone at the table, especially the normally acerbic Councilwoman Liz Brown. The young woman had trouble explaining the project and then learned from a councilman that an important sheet had been left out of the packet and the vote would have to be tabled. They were mildly chided. The two employees went on to explain they were trying to save the city money and time by conducting the study in 2011 for projects scheduled for 2022 and 2025. Because the project proposed is very large creating the design now will show other area projects where not to dig in the coming years so that costly relocation of utilities will not have to be redone in ten years. Very smart. Very nervous. One piece of paper missing.

The Lake Avenue Road Diet was next up and the discussion and the reminiscences and the personal stories of young councilmen daring to pass on the unusually narrow stretch of Lake from Anthony to Coliseum. Council members just could not keep from telling stories or near misses, all except Marty Bender who uttered not one sound all night, mercifully, except “here” and “aye.” The traffic engineer explained that Lake will emulate Rudisill’s configuration without the bike lanes. Two travel lanes and a center turn lane will reduce travel time and the number of accidents, he said. It made sense and council members generally agreed. Again, most of the money will come from federal and state sources, not local property taxes. They smiled at that. Progress on someone else’s dime.

Next, a bill to add a travel lane to Dupont. Again mostly federal dollars at work. The $10 million project will cost we local taxpayers $1.2 million. After much discussion leading to the vote Tim Pape quipped that everybody sure wants to cut federal spending, unless it is for their project. It passed unanimously.

Then, the stars of the evening, John Sampson and Andi Udris had their turns at the table. Sampson, whose leg bobbed up and down like he was working an old sewing machine explained his organization, the Northeast Indiana Regional Marketing Partnership, a non-profit construct of local government and business, to council. He was blunt, to the point, clear spoken and passionate about his work. They are, essentially, outside sales for Fort Wayne. They call on companies and “site selectors” to get leads or make first contact with companies that may wish to relocate to Fort Wayne. Mr. Harper, it seems a past critic of Sampson, lauded the presentation, to Mr. Sampson’s obvious surprise and relief. Mr. Harper delivered the praise in such a way that Sampson was leaning back in his chair preparing for a verbal blow when, instead, the doggie biscuit was presented. Council approved Mr. Sampson’s request for funds.

Andi Udris, our big Latvian director of the Alliance, another non-profit economic development “engine,” then took the seat. The Alliance, he explained to a council that already knew, are the “closers” for Fort Wayne. Once Samspon finds and qualifies a lead Udris and his team then close the deal by helping the relocating company through the various permitting and other processes needed to start a business here.

Sampson and Udris were both given the funding from council they requested and some council members suggested, Tim Pape, in particular, that they should get more because the jobs they do are so critical to the community.

A story was told about a contest, literally a contest between Fort Wayne and Kansas City for a manufacturing planning to expand. Came down to a meeting in KC where the company explained to the mayor about a million dollar problem in the way of moving to Kansas City. The mayor, it was retold, excused himself and came back in only a few minutes with a commitment to allocate the needed $1 million.

Udris and Sampson both painted a picture in which cities fight one another today to lure companies to their industrial parks. Companies with jobs in this recession are king and they go where cities chip in the most…

They both suggested that a large chunk of the I&M lease money be spent on economic development tools to help them bring more jobs to Fort Wayne. Their presentations were sobering and very informative. If it wasn’t clear before it should be now that Louisville or Aachen or Tsingxang would love to lure ITT or any other local industry away from Fort Wayne, and they are happy to pay whatever the price. And, with the ease of moving capital, the speed of equipment obsolescence and the increasing computerization of everything, almost any company can move…quickly.

There followed a humorous discourse between President Harper, Clerk Sandy Kennedy, Councilwoman Brown and Councilwoman Goldner over a proposal by Mr. Harper to make council records more easily “searchable” on the city web site. I recommend you watch on City TV the exchanges where Mr. Harper would explain city policy and Mrs. Kennedy would say it wasn’t so. Mrs. Brown and Ms. Goldner both go into the semantics mess.

Among the shortest lines on the agenda last night and the biggest drain of time was a Special Ordinance establishing new Economic Development Target Areas. Elyssa McGauley ably runs that program for the city that ties many abatement and incentive programs together to benefit existing local businesses wishing to expand or improve their systems. Council members had received her comprehensive packet with a neat description of each newly proposed zone well before the meeting. To illustrate, she displayed a large map with each new and existing zone colored and outlined. She then proceeded to read what was before each council member, as if a witness at a congressional inquiry with a dozen lawyers following line by line. It was unnecessary and long, long, long. Council members love economic development, but they, too, tired of hearing what they had already studied. When Mrs. McGauley finally left the table she looked completely drained of energy and emotion.

Mr. Harper, with his promise to move meetings along more efficiently, could suggest to administration witnesses to be brief and not go over material included in council packets.

Finally….the matter of garbage cans and their financing. You may remember last week Tim Pape put on hold the question of financing the recycling carts. An Arizona firm and a Pennsylvania company with offices in Fort Wayne, PNC Bank, were the finalists. $33k was the difference in favor of the Arizona bankers. Mr. Pape questioned whether the deal would fall within Buy Indiana parameters, thus giving “points” to PNC because of their “local presence.” The tabled discussion resumed. Val Ahr, the deputy controller, came to the table and was almost immediately under attack by Mrs. Brown. Ahr said she “shopped” the deal between Arizona and PA to see if they could come down on their prices. Both made adjustments. The cost to the rate payers dropped and the difference between PNC and Arizona narrowed to $17,000, still favoring the Arizona company. But, “under the bus” for political considerations. Jim Howard, purchasing director, then quickly came to the table, sorted things out, gave reasoned and clear advice and the matter passed with two votes opposed, Brown and Mr. Harper.

A nasty end to an unnecessarily long meeting. Mrs. Brown, who had been gentle with witnesses most of the evening took an unnecessary shot at the Alliance in the form of a condescending barb about their website, and then growled at Mrs. Ahr who had reopened bidding and saved the city considerable money.

The rat? One has to wonder why PNC was given special treatment. These things come and go at the table with dizzying speed. So, why should PNC get a “second look?” Perhaps it is less about garbage can financing, less about Buy Indiana legislation and more about a pending downtown development.

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Cue the triumphal music.

Cue the dazzling visual graphics.

Cue the montage of us out there being well coiffed reporters.

Cut to the announcer on the plexiglass set.

“I’am Biff Vacuous. Good news and bad news today about Harrison Square.

Let’s go to a snow pile near the hole that is Leatherman Park. Are you there Brian?

Yes, Biff, I am standing next to the hole, precariously close to the hole, with news that the City of Fort Wayne is itself precariously close to announcing the deal that will make the four-story 30,000 square foot Harrison a reality and cover Leatherman Park.

Today was to be the day that Greg Leatherman, Director of the Redevelopment Commission and himself always well-coiffed, was to announce the deal. He was to show the contract, introduce the bankers and the retailers and have happy things to say about the future of Fort Wayne.

Not to be. Delayed. Commission staff today found two scribner errors, an “I” that was undotted and a “T” that was uncrossed. Staff will work overnight to correct the errors and should have that paperwork ready when today’s rescheduled meeting occurs in two short weeks.

Leatherman, who eyed his park, his little pied d’terre, his memorial, with wistful sadness, said the lead banker, the key element in the deal, has signed…or sort of signed and may fully sign in just a short few days, but if they don’t they will reschedule this fateful moment again hoping then that they may have finally and for all signed.

The hole in the ground, Leatherman Park, is soon to be no more. Photograph it now, history buffs. Push back the snow to get a view of real Indiana clay mixed with gravel and shot, cameras, that is.

Leatherman promises more details later, but for now, back to you, Biff.

Bryan, that’s great news sort of. I guess it will also silence some of Leatherman’s vocal detractors.

Well, Biff, I spoke with a witch doctor employed by three members of council who is afraid he will now be thrown on the roles of the unemployed and casting doubt on the efficacy of the Obama stimulus plans.

He told me that he will try all out in the next few days to show his worth through special incantations, potions on the soil here in front of me and a life size doll of Leatherman in which he can thrust poison tent stakes until exhaustion. He thinks that may slow up the process so that curmudgeons around the community can rally to his side.

Bryan, what about Scribner.

Biff, his mistake has angered many people in the administration, so next we’ll drive to his house to interview some picketers.

Back to you.

Thanks, Bryan.

There you have it. Exclusive from Leatherman Park. An AWB Scoop.

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Wednesday, the Fort Wayne Redevelop Commission will meet. Top on the agenda will be the Harrison, the source of great frustration for the administration, its Redevelopment director Greg Leatherman, the volunteers and staff who are the RD Commission, nearly every member of city council, pundits, sages and a few thousand interested citizens. Perhaps I should add to that list of hand-wringers the principles of Hardball Capital and Barry Realty. Everybody is frustrated, angry and befuddled by this project, fingers have been pointed, blame assigned and plenty of citizens have made recommendations, some civil, as to what to do with “that hole.”

Truth is, more than anything else, the market is to blame. Wall Street, Goldman Sachs, Phil Gramm, everyone who cheated on a mortgage application, Freddie, Fannie, sleazy get-rich-quick brokers, six camels in Kuwait and me. I accept full blame. Time to move on.

But to where?

Well, the contract says that Barry Realty/Hardball has to start paying damages due to their failure to deliver, if, they are to retain the option to build. That will probably be part of the announcement. I guess that Barry still sees this as a good deal, still wants to invest here, still has drawings on the table, especially with the unexpected (by many) galloping success of the adjacent ball park. And, I guess that the City still wants to work with Barry for a variety of reasons, mostly under the heading of not changing horse in mid-stream and partially because there is no other horse at the moment to climb upon. Splash. Perhaps the extended Barry/City deal will involve the $5,000 per day damages payment from Barry/Hardball to the City as stipulated. Perhaps not. We shall see. I think the City, Mr. Leatherman and the Redevelopment Commission (even City Council) want the building much more than the $5k per day in damages, and see the ongoing relationship with Barry yielding substantially more than the fines ever could.

Here is the key question: what do we as a community want?

If we want to bitch and moan and continue to point fingers then by all means have at. I doubt, however, that we really want to waste the work that has gone into the project to date.

I want the building in the air and active. I want a vibrant downtown with busy people scurrying about doing business and making money. I want more attractions, fewer parking lots and a night life. I want a downtown that is active past 5:15pm, one in which new buildings are on the tax rolls and old ones are fetching higher prices. I want restaurants that are packed, events that sell out and surrounding neighborhoods where houses are cheerily maintained by the owners who work in the buildings downtown.

That’s my vision. Blink.

So, I want the Harrison and the two promised developments south of the ball park near the old train station to be built.

I am willing to wait longer for that result. Patience, Little Grasshopper.

A year ago a dear friend of mine at Tower Bank encouraged me to apply for a refinance of my home loan. I did. Hither-to-fore, I was courted by bankers, but he, upon seeking my paperwork turned me down. My 800 credit score, my unblemished record of payment, my steady income and plentiful assets no longer mattered. Any flag other than bright white was grounds for denial. Most people or businesses met the same fate. I laughed with my friend, went home and contemplated the effect on the community. The Harrison has suffered, more than anything else, from that market in which bankers who could sit on money and make more on the spread than through community investing, in which new regulations demanded a great capital reserve and in which trust had evaporated.

Things are actually looking up. Really. Seriously. The stock market, for those of you who do not hold shares, is rapidly coming back, investors are peeking out of their bomb shelters and fat-cat capital is beginning to loosen. The Great Recession thwarted the Harrison, the Sluggish Recovery is about to carefully invest in the Harrison. Here’s to a brewpub, even if Scotty can’t get it together. (Maybe I should reapply for the loan.)

Bankers, not the mayor, not Greg Leatherman, not Hardball, not Barry, not those five camels in Kuwait, are responsible for the project remaining a gapping hole. Bankers may finally be lined up like Jupiter and Mars.

I believe on Wednesday Mr. Leatherman will have better news, if not good news, to offer and will announce steps that lead toward completion of the project. Tea leaves seem to suggest it. It is in our best interest for this building to be built and join the tax rolls, better than more finger pointing, more than more jokes about what to do with the hole. This is about a better Fort Wayne, so I am pulling for the Redevelopment Commission’s success in finalizing this deal.

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Central Atlanta Progress, in partnership with Commercial Real Estate Women (CREW) of Atlanta, has set the line ups for the breakout panels at CAP’s Eighth Annual 2010 Downtown Development Day, which will take place Nov. 4 at AmericasMart Building 2 WestWing.

Experts from Cousins Properties, Forest City Enterprises, Bank of America Merrill Lynch, Atlanta Development Authority and other esteemed companies will offer their knowledge and insight into what’s happening in Downtown. The panels will run concurrently from 10:45 a.m.-12 noon.

Panel 1 will discuss how to attract retail and residential development to Downtown.

Panelists include Jim Borders, CEO, Novare Group; Michael I. Cohn, executive vice president retail investments, leasing and asset management, Cousins Properties; Sarah Kirsch, senior principal, RCLCO; and Harvey Rudy, senior director of development, Barry Real Estate Cos. The panel will be moderated by Herman H. Howard, vice president – Atlanta regional practice leader, HOK.

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The W Atlanta-Downtown hotel and condos project went back to its lender this week. The Atlanta Journal-Constitution reported that the hotel tower, which was developed by Barry Real Estate Cos. was foreclosed upon by the senior lender, a joint venture between the FDIC and Square Mile Capital Management. Barry Real Estate had ceded its ownership stake to Capri Capital Partners, the hotel’s mezzanine lender, in order to avoid foreclosure.

Barry walked away from it’s ownership in April. Makes you wonder when they’ll walk away from Fort Wayne.

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Budget time again, that annual process of setting priorities and stretching pennies, has begun, Councilman Tom Smith in charge.

The administration, in the person of the chief financial officer, the controller, presented a slide show to preface the discussions and debates. It was a overview of revenues and expenses and how they have changed over the past ten to twenty years. In short, most of the city’s expenses are in personnel costs, (78%) and most of the revenue still comes (74%) from property taxes, although, as Controller Pat Roller bragged, the city over the years has developed new streams of revenue to “diversify” government resources, unlike other cities that are in much worse financial shape than Fort Wayne. She introduced a budget that is essentially flat for a city, she noted, that is physically some 38% larger than ten years ago and has 35% more roads to pave and repave and repave than years past. The number of city employees is down and costs are contained, she smiled.

Ominously, on the horizon, not far away, comes the budget crunch when the lower property values of the recession finally show up in tax revenues. Property values are down significantly, tax revenues will soon take a dive and council will be faced with deep, deep cuts, elimination of services or layoffs. And, she said, the circuit breaker is kicking in. Tim Pape pointed out the circuit breaker, a part of the state cap on property taxes, in effect, reduces taxes on those with homes valued over $200,000 and shifts taxes to those with homes under that level. His evaluation seemed to slowly sink in at the table and was mentioned twice later. Ah, uncork the proseco in Aboite.

So, the city is also proposing a tax increase to take advantage of a use-it-or-lose-it state provision. With my circuit breaker protected house I may end up paying nothing additionally while others in smaller places, in less expensive neighborhoods, the unwashed masses, the middle class, will see $15 to $50 more on their tax bills.

Discussion on the process followed, Smith asking for thoughts and hearing from council steps they felt would make the cutting process easier. Will they cut the lifeline to the Public Service Academy now begging $500,000 in emergency funds and not turning in the self-sufficient performance promised to council during the Richard Administration? Will council cut police and firefighters? Probably not. That seems to be the final line of defense. Karen Goldner suggested taking money from the cable fund and ridiculed what is done with those dollars: provide video production education in schools throughout Fort Wayne. Given there are few contractors or consultants to protect the kids she may well siphon off more dollars from a fund that was set up to fund public access to the cable system, to give you a voice, and now pays for all sorts of government expenses wholly unrelated. Karen is picking on the lame and the halt again.

Members will not review the budget. Next Tuesday more questions will be asked of department heads. Liz Brown, it should be added, was angry again last night over council’s final vote to give city union members a 1.5% raise. For whatever set of reasons she was the lone voice opposing the raises. She hissed that it was $800,000 the community could not afford, while other members of council felt it was reward for employees who have saved taxpayers millions through creativity and innovation. The truth, of course, lies in the middle, but eight other council members disagreed with Mrs. Brown.

She was the lone voice on another matter: the North Side Neighborhood Association brought forth an ordinance to down-zone a 53-acre portion of their neighborhood association, effectively making it impossible in the future to cut up a home into a duplex or triplex. Mrs. Brown rued the burden this would place on landlords and property rights. The neighborhood countered with less traffic, better neighbors, less housing deterioration, fewer police runs, etc. They were right, she was wrong. She left that argument the lone vote against, again. As a landlord with many properties, I regularly restore duplexes to single family homes; they are simply easier and less costly to manage, easier on the neighborhood, less expensive to maintain and usually attract families, rather than transients. North Side is trying to protect their property values and had hundreds of signatures on the required petitions to prove widespread support.

At the end of the meeting John Shoaff and Tom Smith chose to continue their comments concerning Harrison Square that were abruptly curtailed, unusually curtailed, last week by Council President Marty Bender. Shoaff called into question contradictions in the testimony of a city official and the corporate lawyer to the city. He cited lines from the contract to refute what they had told council. Smith added that his concerns about the condo/retail building as too expensive for Fort Wayne tastes and needs. Their comments accumulated a few supportive nods from other members of council. Unlike the recent past, there was hardly a challenge to their comments. Tim Pape, the administration’s point man on Harrison Square, did challenge Shoaff’s numbers, but Shoaff responded, with permission from President Bender, with a clear explanation that silenced Mr. Pape. The cost, Mr. Pape, is principle, interest, and insurance, not just principle.

The zinger came from Mitch Harper. He noted that last week John Wernet, council to the Redevelopment Commission, was absent during testimony concerning the Harrison, his place taken at council table, instead, by Tim Haffner, corporate council to the city, a completely different set of duties. Mr. Harper looked straight ahead and noted that Mr. Wernet, a lawyer at the firm Carson, Boxberger, should have been there in his official capacity. He tossed in the name of the law firm because it is the same law firm where Councilman Pape practices law and is the managing partner. It was a thinly veiled suggestion that conflicts of interest should be avoided. Mr. Pape dropped his head to his chest.

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Monday afternoon the Redevelopment Commission voted to start the clock ticking. A draft of a letter to Barry Real Estate and another to Hardball announce the city’s holds Barry in default of its agreement with the city of Fort Wayne concerning Harrison Square, namely construction of the Harrison, a mix residential/retail building along Jefferson Boulevard.

After a few “scribner’s errors” are corrected the letter will wing its way to Atlanta and once delivered will set the clock in motion as described in the 2007 agreement with Barry. (I hope the commission remembers to request a receipt.)

To wit: there will be an initial 90-day cure period after which Barry may request a second 90-day cure period, if they are willing to pay $5,000 per day in liquidated damages. Barry, however, could simply throw their hands in the air and turn the whole mess back over to the Redevelopment Commission, (RC) leaving open the question of the lease on the stadium and keeping a gaggle of lawyers off the bread lines. Obviously, there is more to it than that, but that is the nutshell version. Ninety days, the first cure period, carries us to about New Years, where the second cure period would carry to the beginning of April and the start of ball season.

Attorney John Wernet, Esquire, council to the Redevelopment Commission, and a member of the same law firm as Tim Pape, a member of city council and the staunchest supporter of Harrison Square and the RC position on the matter, and the only council member to meet with the stealth Hardball tour group a month ago, said that it is too early to talk about other “remedies.” One can only speculate what he meant because he was rather taciturn, but given he is a lawyer and court is the favored venue of lawyers to settle disputes and redress grievances it must be read between his few, very few lines. Ah, the stuff of dreams for lawyers. “Jeeves, powder my wig!”

Christopher Guerin, the president of the RC, said the commission staff will now be free to talk with other developers and developers will be free to approach the city. Apparently, he is not in close contact with staff. I understand they have already chatted with developers to gauge options and let it quietly be known that the project soon may be officially on the market.

Interestingly, Judi Wire, a member of the commission, asked if the written response expected from Barry would be made public. The lawyers said maybe. She was not pleased, nor was Greg Leatherman, the RC executive director. He felt it important to keep the public informed. So did Mrs. Wire, but the lawyers, Mr. Wernet, Esq., in particular, cited of caveats of confidentiality, exactly what got us in this mess.

To close, Mr. Leatherman added that he has spoken with one prospective tenant, a retailer, for the building, and heard from a little bird that another is exploring the possibility. Parking issues seem to be at the fore. And, Mr. Leatherman said that Barry continues to say they are working hard to secure additional leases, Scotty’s Brewpub once more cited as the white knight. The fact remains, it would be a very expensive building in which to live or work.

The other fact remains that the city has left itself with limited options. Failure to require a performance bond is among the more grievous errors.

Again, when the contract was written we were in the go-go days of the economic boom where property values seemed to increase daily and it was easy, very, very easy, to obtain a loan. Everybody wanted into the building boom, so corners were cut. This is one of those corners. If the economy were to have continued to grow at a similar pace to 2006 then there would be cranes all over the downtown skyline; as it is, construction companies are scrounging for projects and the errors of this project would have paled in comparison to the brilliant successes. As it now unfortunately is the failures stand naked in the lights, center stage.

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Bingo.

Saturday, in the News-Sentinel Kevin Leininger pretty much nailed the issue of Harrison Square. It is worth the $.50 at a news stand near you to read what he has to say. Buy the paper. It keeps a smart voice in business.

Mr. Leininger’s point is that the city has failed in its responsibilities to you and to me. He reminds us he said it before years ago, that they, the City, refused during the lead up to the vote on Harrison Square, to make Barry Realty finances public, then failed to demand a performance bond and are currently failing to keep track of income and expenditures at the stadium. In other words, they are doing and long have done a pathetic job of stewarding your funds.

During the initial debate, council members John Shoaff, Tom Smith and Don Schmidt asked to see, to verify, the status of Barry finances. They were patted on the head and told that the city had checked and all was in order. Council need not worry. Later we learn that City Controller Pat Roller and project consultant Steve Brody were the only ones who eyeballed the balance sheet of Barry. They both worked for the team that wanted the deal to fly.

Now, it comes to light that the city is not even bothering to obtain an accounting of the income and expenses Hardball/Barry is incurring at the stadium, numbers that affect the amount Hardball is to pay to the city. Numbers that might come in handy should this discussion we are having end up in court. They are not even checking. “We trust them,” remains the vapid mantra to this day.

Perhaps the administration and Redevelopment Commission should begin representing the community and stop defending, protecting Barry.

What now? Reading the Redevelopment resolution governing the deal a letter is to be sent to Barry now that the city has deemed Barry/Hardball are/is in default on their obligations, which they clearly are/is. Fifteen months ago the condos were to have been completed, indeed a long gestation period. Of course they couldn’t sell their condos locally, those small units were priced at levels New York bon vivants, and Russian oligarchs could afford, not Fort Wayne at prices. Ah, overlooking the stunning Jefferson Boulevard and Downtown Public Library for only $300,000. The completion of the condos was to usher in the next phase of downtown development to be followed by a third phase altogether amounting to some $44 million in downtown revitalization. A tempting morsel, that. Apparently, too tempting to allow for clear thinking and tough negotiating. Two administrations became partners with Barry…

Now, the condos are in serious doubt. Barry, upon receipt of the dun letter, will have 90 days to cure, the Initial Cure Period, if they are ‘showing good faith.” They could beg another 90 days, during which Hardball must continue to work “in good faith,” must show they could not cure in the initial 90 days and, pays the city $5k a day in liquidated damages “until the breech is fully cured.” This could go on for six months, right to the beginning of ball season. Barry could just bail and just may well do that, earlier than later. Their card is the team and the stadium: imagine the fear on the 9th floor of seeing the Tincaps leave town like the Colts left Baltimore. Barry can just walk away from the deal and what do they lose?

Envision the ruckus an empty stadium next to an hole in the ground downtown would raise. Envision Tom Henry a one-term mayor.

So, I suggest to my councilman, Tim Pape, who has been the chief cheerleader for the administration at council, who strongly supported the construction (as did I) of Harrison Square and whose law firm represents the Redevelopment Commission, that he begin to work with the critics of this mess to find a way out of the mess he and the previous administration have created and this administration has allowed to fester. I suggest that tact also to Glynn Hines who backs the administration, I suggest that to Karen Goldner who labors at the table to paint the rosiest of administration pictures, I suggest that also to Marty Bender who works for the mayor and seldom sees that as a conflict of interest when voting on myriad administration (read: his bosses’) proposals. It is time now for the administration to work with the critics, Shoaff, Smith and Harper, to chart a course out of this mess.

A friend told me once about real estate that you make your profit when you buy, not when you sell. It applies to this situation, too. We bought a pig in a poke with the encouragement of men and women we trusted and entrusted.

Scores of millions in downtown development were so alluring that the Redevelopment Commission and my friend, Mayor Graham Richard, were willing to trust Hardball and to defend them from prying eyes in order to get their deal. They bought into a disaster in the making that will take sharp negotiating and creative thinking to avert.

Given the current administration’s willingness to play ball with Hardball/Barry, offer up one pass after another it only makes sense now to appoint Shoaff, Smith or Harper and two from the administration, perhaps deputy mayor Beth Malloy and a colleague, to figure out what to do to bring the Barry/Hardball project to fruition… or to find another ball team and different developers.

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Greg Leatherman gave quite a performance last night at council. The head of Fort Wayne Redevelopment spoke powerfully and without hesitation. He recounted a short history of the Harrison Square project and how it has come, mostly, to fruition. Leatherman, flanked to his left by Fort Wayne Corporate Attorney Tim Haffner, said that four-fifths of the massive project has produced jobs, tax revenue, new activity downtown, jobs again and a spirit of community. He lamented the failure of developers Barry Realty/Hardball, BHB, to complete the condo-retail portion of the project, but said his office, Redevelopment, has constantly monitored their efforts and progress, and feels they are making a good faith effort. He was a veritable bundle of good news and optimism.

Then, he and Mr. Haffner explained that a letter would depart Fort Wayne next week for Atlanta addressed to the BHB leadership, informing them of the decision last week to put BHB on notice that they have failed to fulfill contractual agreements, namely, the Harrison, the multi-story condo-retail building, the fifth leg of the stool, is still a hole in the ground well over a year after it should have been completed.

Councilman Tom Smith was the first to confront Mr. Leatherman and Mr. Haffner. He reminded the government officials that they had denied council a review of BHB finances before the watershed vote citing confidentiality. Smith demanded that current information be shown to council and made publicly available. The officials did not answer him directly. He repeated his demand. Again they sidestepped. He repeated a third time his expectation that the financial strength of BHB would become part of the public record. Smith was very, very forceful in his demand. Later, John Shoaff, during his line of questioning, would remind Leatherman and Haffner that council had been politely patted on the head and told the city had done its “due diligence” and council needn’t worry. It turned out, during Liz Brown’s inquiries, that two people had reviewed BHB’s books, Controller Pat Roller, and project coordinator Steve Brody. Eyebrows raised around the table.

John Shoaff asked if the city would conduct an audit of the books concerning income and expenses at Parkview Field. He was told that was not necessary because the other side was “extremely honest.” Shoaff retorted angrily that the citizens had a right to know about the return on their investment. Silence from Mr. Haffner and Mr. Leatherman.

Karen Goldner then, as if a defense council in a packed courtroom, rose to protect the administration team by tossing up a series of sweetheart, fluff ball questions concerning the deal and participants. She offered them ample opportunity to pat themselves on the back and shine before cameras. She was especially supportive of Steve Brody, who had been a leader at Lincoln National before his retirement and before he was asked by Mayor Graham Richard to lead the effort on Harrison Square. She did not ask probing questions, as a representative of the people might be expected, she did not delve deeper into the matter, she did not add clarity, but rather pandered to the administration’s position.

Marty Bender then took the unusual step of limiting discussion. Typically, council members are given a second chance to ask questions, round one, round two. It is rare when discussion is cut off as it was last night. Councilman Bender, who works for the administration, however, choked off Smith, Shoaff and the others who obviously had more questions to pose concerning this controversial matter.

Tom Didier asked, perhaps the most important question: “now what?” Mr. Haffner ran through the forthcoming steps, but that did not satisfy Mr. Didier. Mr. Didier asked what if BHB failed to build. Mr. Haffner suggested time will tell, a “remedy is to be fashioned.” Mr. Didier was not pleased.

Smith and Shoaff have asked the hard questions, the city has deflected their questions or painted them as testy old women in the hopes they would go away. Neither Shoaff nor Smith, and two, perhaps three others on council, are going away. They are increasingly determined to push the matter on behalf of the community. They feel lied to, condescended to, sidelined, and do not trust city government to represent the citizens in this matter. Time for the city to work with council to lay out what their intentions will be and what steps they will take and keep council fully informed and included at every subsequent step.

Most of the rest of the evening was spent on budget matters. It is that time again.

City attorney Carol Taylor and others came to the table to explain their proposed 1.5% wage increases to city unions. Council, again, asked many questions led by Councilwoman Liz Brown, with Marty Bender coming to the defense of the administration. Tim Pape, again played the administration cheerleader explaining in glowing terms how excellent, wonderful, significant, great, win-win and superb the administration’s actions should be seen. One has to wonder whether Tim represents his district or the ninth floor.

Mrs. Brown asked a series of probing questions about the structures of the deals, some a bit on the nit-picky side, but all worthy of an answer. Ms. Taylor and another representative danced around her questions and she repeated them, finally saying, you did not answer my question. Kumar Menon, the director of City Utilities, finally responded “I do not have an answer.? Council passed all of the city salary ordinances. Controller Roller summed up the city’s perspective when she said that employees had done their very best to find savings for citizens at every opportunity. She reminded members of council that unlike so many other cities Fort Wayne has not had layoffs, has not furloughed, has not cut services (although it has) and city budgets are in good shape. She praised city employees for doing more with less. If you feel that balancing budgets is one of your strengths, check out accounting degrees
online.

The night ended with a slide show from Mitch Harper, Councilman from the west side. He offered a chart from a recent Wall Street Journal article which showed how serious, deep and long the current recession has been and suggested the more adverse effects of the recession have yet to hit Fort Wayne treasuries. His somber message could serve as preamble to the intense budget discussions that will ensue early next month.

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