[Mpls] $2.5 million in liens filed against Park Board

Chris Johnson issues at chaska.org
Fri Jun 18 11:32:21 CDT 2004


In my Park Board report from the past meeting, I noted that John Lloyd 
of Lloyd Construction appeared during the public comment period to 
inform the commissioners of the mechanic's liens which were being filed 
against them, and his intention to file a lawsuit, for work done on Park 
Board property for The Fort, LLC for which he was not paid.

In Thursday's (6/17) Star Tribune Metro Section, page B6,  an article by 
report Chao Xiong giving a lot more detail on this appeared.  
Unfortunately, this article does not appear in the online edition at the 
STrib's web site, so I can't point you to it.  Instead I will quote and 
paraphrase it liberally below.

  "At least four contractors have filed liens totaling more than $2.5 
million against the Minneapolis Park and Recreation Board for unpaid 
labor on a privately funded project on city land that failed because of 
financial troubles.

  The companies said they weren't fully paid for work on the The Fort, a 
multimillion-dollar attempt to build an indoor skate park, climbing gym 
and meeting facility in Fort Snelling's historic Drill Hall.  Phase Two 
of the project called for outdoor skate parks, two roller and ice-hockey 
rinks, and space for music events on the 6-acre site, according to the 
Web site for the Project's private developer, Fort Inc. [sic]"

The web site for this project and The Fort LLC can be found at:

    http://www.fortsports.com/

Work started on the building in September but stopped in January when 
contractors were not paid.  Work restarted a month later when more 
funding came through, but again financial problems caught up with it and 
all worked stopped for good in late April, according to Mark Dongoske, 
owner of Associated Construction, which filed a $1.7 million lien this 
past week.

"The Fort project was supposed to dovetail with the Park Board's  **** 
$14 MILLION **** Leonard Neiman Sports Complex completed just across the 
street in 2002, said Don Siggelkow, the board's assistant 
superintendent." [emphasis added -- and we wonder why the Park Board is 
so broke they can't mow the grass or open beaches?  Note also that the 
project was sold to the public as only costing $12 million in May, 2000.]

" 'We certainly aren't happy with the outcome, but there's nothing the 
board could have done to protect the contractors,' Siggelkow said."   
Nothing -- such as a performance bond, insurance or maybe doing due 
diligence on the financial viability of the proposed project before 
leasing the land, right?

The Park Board signed a lease with The Fort LLC in July 2002 agreeing to 
let them renovate and build on the site in return for 15% of the 
facility's monthly income as rent.

"Bob Naegele III, son of Minnesota Wild owner Bob Naegele Jr., initially 
invested several hundred thousand dollars in the project, Fort attorney 
Todd Duckson said."   That's quite the contrast.  The lead investor puts 
in several hundred thousand, but the contractors are out more than $2.5 
million in labor costs alone for a project that is not even close to 
complete.

"Aside from Naegele's investment, financial backing for the project was 
not secured when the lease was signed, Duckson said.  But the board was 
confident Fort Inc. would find the money before construction began, 
Siggelkow said."  How many private landlords out there do business like 
this, leasing out property before demonstrated ability to pay?

The Park Board terminated the lease with The Fort LLC on June 1 after 
learning of the situation in early March, according to Siggelkow. 


My opinion:  The Park Board cooked the books and deceived the public 
when they spent $14 on the Sports Complex at Ft. Snelling.  The Park 
Board cooked the books and deceived the public when they spent $6 
million their new HQ building.  The Park Board failed to do due 
diligence on The Fort project.  The Park Board complains that due to 
cuts in LGA from the state, they don't have enough money to man the 
beaches, fill the wading pools, run the fountains and mow the grass.  I 
think it's clear that the Park Board is focusing on giant, unnecessary 
"legacy" projects, which enrich a few people, at the expense of 
maintaining the park system that we have.  The Park Board has abrogated 
its obligations, both moral and legal, to the taxpayers of this city to 
run the park system as it was intended.

In my perfect world, Commissioners Bob Fine, Walt Dziedzic, Marie 
Hauser, and Jon Olson are forced to resign.  Commissioners Carol Kummer, 
Annie Young, Rochelle Berry Graves  and John Erwin continue until 
elections next year, when the public will decide.

Furthermore, the following Park Board employees and contractors are 
summarily dismissed for malfeasance, conflict of interest, lack of 
ethics, misappropriation, misrepresentation, deception, arrogance and 
incompetence:  "interim" superintendent Jon R. Gurban, assistant 
superintendent Judd Reitkerk and "counsel" and "lobbyist" Brian Rice.  
Assistant superintendents Don Siggelkow and Mike Schmidt are put on 
probation, and if strong evidence that they can straighten up and fly 
right is not seen in the next 6 months, they are likewise fired.  A 
thorough investigation of Park Board operations will be made, and any 
other corrupt, unethical or otherwise incompetent personnel will 
likewise be fired -- and I do not doubt there are at least some, but I 
just do not have their names, yet.

Furthermore, the possibility of filing lawsuits against former Park 
Board commissioners and executives for misuse of taxpayer funds, 
conflict of interest, illegal acceptance of favors from private lobbying 
organizations and unethical behavior in the performance other their 
duties, including in particular Scott Neiman and Mary Merrill Anderson.  
I'd include Ed Solomon, too, but he's unfortunately dead.  I'd probably 
even investigate people further back, like Patricia Hillmeyer, David 
Fisher, Tom Baker, Patricia Baker, George Puzak, and others.

I'd also investigate lawsuits against Jon R. Gurban and the Minnesota 
Recreation and Parks Association for illegal lobbying, illegal 
influencing of public officials, graft, corruption and bribery.

Line them all up and send them all to jail for stealing millions of 
dollars from the taxpayers over the past 10-plus years.  The corruption 
and unethical "tone" at the Park Board actually goes back quite a bit 
further than 10 years, but it's probably not worth the money necessary 
to track down the guilty parties who are still alive (it's funny, the 
more I research this disgusting, stinking history, the more people I 
find who are dead).

Have similar feelings?  Wonder what you can do?  Here are some ideas:
1.  Attend the Park Board meetings, usually the first and third 
Wednesday evenings of the month.  Tell others what you see and hear there.
2.  Demand satisfaction:  contact any and all commissioners to ask 
questions, express your opinion and demand action; contact Park Board 
staff to ask for public data, such as budget information.  File an FOIA 
action if necessary.  Don't take no for an answer.
3.  Support campaign efforts to vote the bad apples out of office.
4.  Demand that a good superintendent be hired, and the new 
superintendent clean house -- they get to appoint something like 15 
positions.
5.  Visit http://MplsParkWatch.org/, get informed and express your opinions.
6.  Have some good evidence of illegal activity?  Call the State 
Attorney General's office and ask them to investigate.
7.  Demand that Brian Rice's law firm be fired as both counsel and 
lobbyist.  He is the single largest contributor to commissioner election 
campaigns.  The conflict of interest is staggering.
8.  Keep the pressure on.  Take names, and mete out consequences.


Alternatively, do nothing, and continue to have your pocket book 
pilfered via property taxes and park fees to enrich and empower the 
corrupt individuals and their backroom pals.

"Mad as hell, and not going to take it anymore..."

Chris Johnson - Fulton



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