Slush fund, Architect and Developer: the three ring circus of public/private partnerships

The very first slide started with an oops, another oops, and another oops.

Up steps Steve Budd of CityWide Development (the slush fund) with a slide of the holdings of CityWide, Miami Valley Hospital and maybe even the University of Dayton between 35 and Wyoming Street along the Brown/Warren corridor. And, no, we won’t mention the words we used to call this development (Mid-Park) because we know it ticks off the people we’re talking to (South Park) about our little circus.

The map with the yellow line was showing “all the property we own” except for the little antique shop at Oak and Warren according to Mr. Budd. Except he quickly was asked if he owned Jimmie’s Ladder 11, Spin City- and oh yeah, the two houses that are left on the West side of Warren- where the powers that be haven’t made an offer with enough commas in it yet.

Aerial view of Warren Street

The “owned” area in yellow- the red, added by me, is the stuff that’s not owned by the developers including Spin City, Jimmie’s Ladder 11, the Antique Shop and the two houses on the west side of Warren

I’ve marked the known “not owned” in red- inside the yellow border of “owned” for clarification. No mention was made of the fact the city had “misdeeded” some of the real estate in question in a lot links deal- and someone may be holding out for another pretty paycheck.

Why they were talking to the neighborhood at all is a really good question. At no point have they come to us, the neighborhood, and actually asked what we want- just what we want to see as tenants in their grand building plans- you know, the norm- a grocery store, a hardware store, a book store…

The parcel in question came into their hands when DMHA/GDPM gave up on their “projects” off Warren which were part of the 60’s 70’s “urban renewal” programs- where they tore down perfectly good housing stock that had lost its luster and replaced it with crap construction of ugly buildings dropped out of the sky into our ‘hood. The promise then was that it was going to be “senior housing” – the only thing senior about it, “Cliburn Manor,”  when I moved into South Park in 1986 was it looked like it was near death.

So the slush fund has to make sure they have another success story in the portfolio of mismanaged tax-dollar aided projects, and is bequeathed the federal property to manage. They seek out a developer, who is willing to take a “great risk” building something in the city of Dayton- so they promise to make them whole, no matter how silly the project scope and scale is.

In this case, the developer is Oberer. The same people who did the funky deal on the Dille Farm, where they built a Costco in Centerville, but expect ambulances from Sugarcreek Township- as once again, government had inserted itself unnaturally in the middle of a real estate deal. They have hired, at considerable expense, some research firm to tell them that there is a market for the 200 plus units they’ve plotted and planned for the aforementioned area. Of course, they are going to do this deal with OPM (other people’s money) and are guaranteed by the taxpayer-funded slush fund that they won’t lose a dime- since we know we’ll make income tax go up while you build it- and who cares if anyone actually comes. They just have to “git ‘r done” and have something rise from the green space. Filling the space won’t even fall back on them. Look at how CityWide still hasn’t found a ground floor tenant for the old Elder Beerman/ReyReyTAC building downtown.

If you need an example of another project that was done like this, go study the history of One Arcade Tower/One Dayton Center/Fifth/Third Center– or whatever they call it at the corner of Third and Main. The one that wasn’t supposed to be built until 33% of it was leased- but, we ignored it and built it anyway…. and lost our butts.

In our third ring of the circus, we have the architect. While an equal player at this point- he’s really going to end up the ringmaster later, once construction begins, but for now, he’s just another part of the distraction engine that’s trying to divert attention from the fact that Dayton is looking at these new construction projects like the Cleveland Browns do when playing the Patriots- let’s keep throwing Hail Mary passes because we’ve already lost 8 of 12 and aren’t going anywhere.

The architect, in this case, Jason Sheets of Moda 4, is a super talented guy who makes cheap look chic, and clean and classy. The only problem is, we’ve already got a few examples up Brown Street that make anything look like an improvement- namely the horribly ugly and dysfunctional “University Place” that Miller Valentine built at the corner of Stewart and Brown- which still isn’t full- years later- and almost every restaurant has taken a year to build out- because of poor planning by the “architects” – and then the other Miller Valentine embarrassment- the heinously ugly mishmash finish Caldwell Street housing that replaced the irreplaceable Frank Z building on Brown. His role in this is to keep billing while everyone else argues about the plan.

Moda 4 just completed the Goodwill Building across from Coco’s- the one with the expansive parking lot- and the stark cold exterior. Not exactly a good match for eclectic South Park- but, we’re trying here.

We’ve already got a CityWide case study up in Fairgrounds- where the Genesis Project built a whole bunch of funky houses and row houses for “DINCS” and hospital employees and UD Profs- that was promised never to become student housing (they lied). Where roofs are leaking less than 10 years out, taxes are kicking in at the same time, and what was supposed to be full of homeowners- is now in flux.

As the homeowners filed out, wondering if what they’d been shown was anything like what will be built, one after another in the Goodwill parking lot- looked across the street at Marvin Gardens, which is owned by St. Mary Development Corp.- and thought- why can’t they build something that looks like that?

Marvin Garden Apartments on Warren Street

Marvin Gardens Apartments as seen from Goodwill parking lot

So as neighbors sat and looked at the presentation, with mouths agape, wondering what planet these people were from, they were serving their ultimate, yet, unrevealed role they will be used for in the future.

As the project sputters and spurts, the three-ring acts will be able to point at the neighbors and blame them for the delays, mistakes and failures that are to come, as the city shirks its responsibility to do what it’s supposed to- mainly sweep and repair streets, provide public services and safety forces and keep the lights on.

The only question that really needs to be answered is why the property wasn’t just sold off to the highest bidder and let them do as they please?
In the end, the results will probably be about the same.


Transparency of government, and why we can’t depend on the Dayton Daily News

Almost universally, the Dayton Daily News is hated by our elected leaders. You hear things like “they can’t get it right” or “the paper is biased” or “they misquoted me.”

The paper is also incredibly apt at being negative, name calling and of writing for the lowest common denominator. Maybe that’s why they advertise the coupons instead of the content they generate.

But, through the wizardry of the web and social media, the politicians’ excuses are running thin. If you don’t like what they say about you- feel free to publish your version on the web. So far, the only one to do this is Dayton Mayor Gary Leitzell– but, his posts have been rare.

Recently, my posts about the Dayton Development Coalition compensation recommendations were based on what has been declared- “wrong numbers” as published by the DDN. I’ve also been led to believe that Teradata was handed $500K retention money by the county ED/GE fund– which also seems to be false (I quoted the Dayton Business Journal).
So I sent an email to Joe Tuss, the Deputy County Administrator and Economic Development Director. I asked:

Is there a web location where all ED/GE grant requests and awards are listed?
I spent some time with Bruce Langos yesterday at Teradata-
He says Teradata got $500k the first time they moved- but he handed it back to the state?
And- they didn’t ask for anything to move to the new RG Properties location?

Did Oberer apply for money to keep them- and build an addition?
Was money granted to either RG Properties- or to Oberer? Or Teradata?

I have a feeling the news got some of this wrong.

Thanks in advance.

Around midnight- same day, I got the following response:

Let me try to answer your questions one at a time.

1. There is not a web location where all ED/GE grant requests and awards are listed.

2. I was not involved in the details of the Teradata decision to build at the Exchange when Teradata was spun off from NCR, so I would not know whether Teradata got $500,000 from the State or not. If Bruce says he gave State incentive funding back, I believe him.

3. Teradata did not receive any incentives to move to the new RG Properties location that I am aware of. It was a private sector transaction between Teradata and RG Properties.

4. Miami Twp applied for ED/GE funding to assist Oberer Development in late 2009 to retain Teradata at the Exchange. The project scope was to build an additional 20,000+/- SF building, providing expansion space to consolidate employees here and not in Georgia. $500,000 was allocated to the project in December 2009. The project at the Exchange did not go forward, Teradata chose to build a new, larger building at Austin Landing, and the funds were returned to the ED/GE program.

I hope this answers your questions.

It would seem much easier if the County ED/GE fund, posted all of its applications online, along with status of the decisions- and the terms of the grants, so the public can follow up on them. Additionally, each should have progress reports filed on a regular basis to evaluate the effectiveness of the grants.

If it’s transparent, it’s trusted. If it’s not- we end up with a lot more confusion- in addition to dealing with news reports with numbers we can’t trust.

Social Media is a great way to cut the paper out of the info flow- or at least make sure your side of the story gets out.

I’m not sure we have the whole story on the county’s involvement at Austin Road- but, at least the Teradata part is coming into focus.

Just remember when the County Commission tried to hike the hotel tax to the max last minute to fund a hockey stadium there? This is why we need transparency and journalists both.