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 Jaguar 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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