Where were the guarantees of performance that should have of been in place for the Wayne Avenue Kroger and the “Ballpark Village” “development” debacles?
Before investing our tax dollars the city should have some kind of guarantee in place that the developer actually has to follow through or make the city whole after it does the developer’s bidding. Apparently, Miller-Valentine doesn’t think it’s worth it to put up its money before asking for a handout from taxpayers for its proposal to commercially develop about 150 acres of the 527 acres of land at the city’s Dayton-Wright Brothers Airport:
In a letter last week, the city told Miller-Valentine Partners Ltd. II that the proposal was rejected because it failed to meet Dayton’s requirement that any development proposals be accompanied by a $1.5 million letter of credit as a guarantee of performance for obtaining a land lease with the city for the development.
Under the city’s terms when it requested proposals from development companies, any developer selected ultimately could lose the $1.5 million if the company failed to initially develop at least 20 of the 150 acres to generate land-lease payments to Dayton within three years.
Of course, the cozy relationships developers have had with politicians were a lot easier to pull off when the politicians were fat with cash.
Maybe Miller-Valentine would have had the money to put up if it hadn’t had their former president Michael Grietzer got off-book with his little side deal for himself, using info that he gained as a development partner with the City of Franklin.
It’s time that any private business that asks for tax dollars or special deals start putting up performance bonds so that the taxpayers don’t end up with nothing after “investing” in future jobs, development or pipe dreams and promises not worth the paper they’re written on.