The Redevelopment Commission, Chaired by Jim Lienhoop whom the voters elected to City Council this year, by the way, voted to grant $865,000 to the shadow company CDI. Jim Lienhoop switched numerous times between calling CDI the City of Columbus and calling it a private or closed entity. As most of the public knows, CDI is a corporation created by the City according to state statues for the purpose of assisting in developing downtown Columbus by easing the bidding process. The difference between how CDI operates and how other development entities operate is secrecy. CDI is acting in secret.
CDI is closed to the public, but yet is the City of Columbus..... what?
As Mike Lovelace so eloquently submitted during the meeting, the financial books at CDI are bound in duct tape so as not to be accessible to the public. Obviously the books are not duct taped, but the effect is the same. The public is not welcome to see where their taxpayer dollars are going. We the people give CDI millions while they spend it on, literally, God (and possibly Ann DeVore, Valorie Chowning, etc), knows what. The State Board of Accounts even noted that CDI had broken 3 statues and standards when it comes to proper book keeping and accounting of their funds.
Now, let's look at the reality of why CDI even needs $865,000 48 hours before the change of power in City Hall.
A Little History
4 years ago, CDI accepted loans from various organizations, of which The Heritage Fund, where Commission member Matt Souza's wife Tracy Souza is currently Executive Director, was one. Apparently CDI has owed the money for quite some time, but the details of the loan state that it is to be paid back when the money is allocated to the by the City of Columbus.
It does not say the Redevelopment Commission. It says the City of Columbus. This, as Terry Coriden confirmed, could be done by the City Council.
Questions, and more questions
Several questions arise from this incident. Why did CDI take loans? They took loans to purchase the REMC property downtown and the Rhino Linings property for development reasons.
So why is this a liability of the Redevelopment Commission. If you ask Jim Lienhoop, he sees CDI as part of the City government. If you ask the people of Columbus, they see them as a secret corporation, a place for corruption. "Perception is reality" was a phrased used by many citizens and taxpayers at the meeting. If CDI were to go away, the City of Columbus would be forced to accept all assets and assume all liabilities. Apparently that extends to the present when CDI is not yet gone.
So why does the Redevelopment Commission not just pay off the debt? Why are they giving money to a closed book company in hopes they pay the debt? Lienhoop said they had considered that move, but had decided that they would not be able to get word from the loaners that the debt had been forgiven. Since the CDI is the one with the debt, could they not ask the Heritage Fund if the debt is forgiven?
Do they even have the power?
Could the City Council not give this money? Yes, they could. In fact, a question was raised about the legality and the authority behind the Redevelopment Commission appropriating funds without approval from City Council on amounts over $500,000
Any appropriation or expenditure of funds in excess of five hundred thousand dollars by the commission shall be subject to approval by the council..(Ord. 03-25 § 2, 2003)Terry Coriden, Redevelopment Commission contracted counsel, said that he had not read the statue and ordinance in a while, but believes the commission has the power to do it since it is an obligation.The Ordinance clearly reads appropriation. This would seem to be an appropriation, therefore the approval would fall to the City Council.
Was this an official meeting?
This meeting was also not in compliance with Open Door policies as dictated by State Statute 5-14-1.5-5 which states that notice of public meetings must also be published on the internet gateway (website) in conjunction with the notice to newpapers as required by law. The meeting was not on the calendar, there was no agenda published, and neither the Mayor's office, Judy Johns-Jackson, nor City Clerk Treasurer Brenda Sullivan replied to a request for the location and time of the meeting.
Perception is often times reality.
This may have been merely about paying off creditors. Since CDI was involved, this meeting was seen as a secretive, shifty move by Jim Lienhoop and the Commission. Since this meeting was called for 48 hours before the change of power takes place, it seems corrupt. Since questions of legality went unsatisfactorily unanswered, it seems illegal.
Is it shifty, corrupt, and illegal? Maybe, but the Commission did not give the many people there a good reason to trust them. The constant double talk and interchanging the entities "Redevelopment Commission" and "CDI," The abruptness and unprecedented haste to push this through makes everything look underhanded. What does Jim Lienhoop expect?
The people elected this man!
Remember, ladies and gentlemen, you elected Jim Lienhoop to City Council at Large. I hope you realize what kind of decision that was. These are the types of decisions he makes. Hopefully the rest of the Council can work around him.
0 comments:
Post a Comment
Please leave a comment on any topic in Bartholomew County. Be advised, the freedom of speech on this page is fully enjoyed by me, but limited to visitors. I reserve the right to delete your comment if it 1, is derogatory 2, is slanderous or libelous, and/or 3 is not productive.