Yesterday, I posted documents showing City employees structuring a deal for IRG [1]so UPS could get out of a long-term lease for a very valuable building that sits on city property.
IRG stands to put a few million in their pocket right off the bat, with the city asking for a couple of years of escrowed lease payments. Then IRG can take the assets of the building- strip what they want, and later walk away.
Why can’t the city just take a one-time payment from UPS to get out of the deal- and hand the building over to the taxpayers, who then can contract with any developer who is willing to pay the city?
Or, use the building as an incubator – instead of building more buildings in Tech Town?
Maybe, it’s because the people who structure deals for the city don’t know how to structure deals at all? Remember the Wayne Avenue Kroger fiasco?
The City Commission should put this vote on hold until they have time to study this deal carefully.
Something smells pretty bad about the deal as presented.
David, keep up the great work of keeping the public informed to the City of Dayton nefarious dealing. It is no wonder that the City does not want you to be on the City Commission, as you would be pulling the covers off the villainous corrupt bumbling leaders.
David, well stated. Keep the pressure on. Hopefully your message can reach enough people to make a difference. The citizens of Dayton need to wise up to the reasons their city looks like a ghost town with buisness fleeing away leaving an industrial wasteland behind. Narrow-minded and self serving fat cats on the city council could care less as long as they can cut thier short range deals. They have no vision, no passion, and no care for the future state of the city and it’s people. How many deals have they cut with groups like IRG? How many renovated commercial Business parks, buildings do we need when you have no prosperous business growth in the city of Dayton?
Stay on watch, give them their notice.
And here the paper even writes- the city risks $3 million to do this deal:
http://www.daytondailynews.com/business/city-risks-3m-to-end-ups-lease-hopes-new-group-will-bring-jobs-1145868.html
Why not just take the money from UPS direct- then pay IRG fess for renting the place- anything in excess of what they got from UPS?
There is ZERO reason to take a $3 million hit on this- unless someone is getting paid off.
IRG has only done local shell game moves with their other local “investments” moving MedWorks to the old Delphi site- and now to move Kramer Graphics to the GM truck plant.
Show us a real deal please.
Mr. Esrati, you left out the good parts of the DDN article…
Again, I’ll ask – what experience does he have with solar and industrial development? Maybe it’s there, I just don’t know, but no one has demonstrated it publicly yet.
Instead of taking shots at IRG, tell us what he brings to the table other than a vague amount of “experience” as a developer and a lot of lawsuits in the county records.
Sometimes “no” is a valid answer. Tell us why Dayton should say yes to Mr. Harries.
@CSAPT- I’m sorry, you do know the story of Fred Smith- who got a “C” on his business plan- the one that went on to become FedEx?
The point is- of course UPS prefers IRG- and has no interest in Mr. Herres plan- because it doesn’t let them off the hook for the property. It doesn’t involve a one time payoff to IRG, so they can get out of the 9 years remaining on their lease. CSAPT are you that frakkin stupid?
I don’t give a flying kite about Mr. Herres’s business plan in this deal- what I care about is the City offering to write off $3 million dollars of guaranteed income based on handing a piece of real estate over to vultures who have ZERO dollars in this deal.
Why doesn’t the City just offer the same deal to UPS and keep all $5.75 million? Please answer that question you smug idiot. (and yes- I’d 5am and I’m calling you names because you obviously are intentionally missing the main point here).
“We have a large proven developer with personal guarantees” is the key phrase in the DDN article this morning foretelling the rip-off of Dayton.
I will personally guarantee Mr. Riordan a gaggle of unicorns.
Lynn Sullivan is a partisan, corporate hack.
@somedude- I believe you mean “Lucas Sullivan” from the DDn.
As to the “Large proven developer with personal guarantees” should be read as “IRG has personally guaranteed to pay some people off”- since they have offered ZERO of their own money- and have not created a single “new job” on any project in Dayton other than $ for themselves.
Riordan and Dickstein have already proved themselves incompetent to work with developers- all one has to do is look at the “Kroger deal” at Wayne and Wyoming.
Thanks for the correction. Sullivan took a partisan shot at the guy in his story by giving him scant mention of “someone who has owned landscaping businesses.”
Sound like a familiar propaganda trick?
The spin in favor of power in the DDN is astonishing.
@CSAPT:
Do you see any problem at all with the message this sends to local entreprenours? It seems pretty clear to me. You have a creative idea that might make you some money and do the city some good, you convince big corporation X to go along with it. Lots of spec work developing the plan, negotiating with UPS, etc.
Then the city comes along and undercuts you in an effort that provides corporate welfare for two large corporations–neither of which have any significant investment in the City of Dayton.
The message here is clear–please don’t bother trying to invest in our city, unless you know the right people. In my short time here, I’ve heard that story again and again. It’s absolutely stunning that you don’t see how toxic this is.
Personal guarantee, Mr Riordan ? Will it be a money-back guarantee ? :-)
What we are seeing with this deal, and others like it that litter the landscape in America, is the same old story of the power class taking advantage of the reigns.
The power class in Dayton know that Dayton is dead. What we are seeing is those who are left picking at the bones of its remaining wealth, attempting to sap whatever nutrition remains.
They are part of the same systematic kleptocracy that has robbed and pillaged America and the world.
They are our local version of what Rolling Stone’s Matt Taibbi referred to as a “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
If you see them on the street, pelt them with rotten cabbage.
What some dude said. Give the man a prize because he hit the bulls eye.
Read why the Mayor voted no- http://daytonmayor.blogspot.com/2011/04/trials-and-tribulations.html
And start to wonder why the other 4 voted yes.
Stuart Lichter is a master gambler- he gets to play high stakes poker with no money down- give the man some credit.
The City and Citywide development are presented “creative” ideas almost on a daily basis. (One of my favorites was the citizen who wanted a grant, not a loan, to convert the arcade into a water park.) Many of these self proclaimed developer/entepreneurs lack the financial wherewithal, experience or network to follow through with their idea. CSAPT’s reference to lack of experience and county records makes it much easier why the City decided to go another direction.
IRG should produce letters of intentand all related coorrespondence from prospective tenants that are not currently in the region before the City agrees to this release for UPS. If they can not, or the tenants are local, the City needs to slow this deal down. Time is on the side of the City.
@Bobby- time was on the side of the city- until they handed the check over to IRG this morning. Only the Mayor stood up and said no. http://daytonmayor.blogspot.com/2011/04/trials-and-tribulations.html
How does Stuart Lichter get to sit down to play poker without putting any cash on the table?
Payoffs is the only answer- unless we have total idiots running this city.
“Payoffs is the only answer-unless we have total idiots running this city”
I’m not sure about the former, but could agree with the latter.
David, If the bank that Joey Williams works for held the land lease on this building, do you think they would have accepted this deal? Me thinks not. That is why Lichter gets into these deals with no equity and cash at closing. He negotiates with politicians and bureaucrats who are spending OPM. Smart guy.
I know why ! ’cause they want to remain in office !! Sadly, if things like this continue, I don’t foresee Gary running for a 2nd term. He can’t do a lot or make much progress when votes are 4-1 too often…
The Business Journal has a brief summary of this deal- including my choice quote: http://www.bizjournals.com/dayton/news/2011/04/27/irg-inks-lease-to-develop-former-ups.html
Why would IRG be able to “ask for a significant decrease in lease payments based on the land’s depreciation” if they are only leasing the land?
The airport, though City of Dayton property, sits in Vandalia and Tipp City. If this really works out (slim chance), it might make up for Dayton chasing off the Trapshoot and the millions of dollars they spent in the surrounding communities each year. The Trapshoot grounds, which the airprot claimed they needed for expansion years ago, sits empty and run-down today. Maybe Nan will get around to tearing down the eye sore.
@Allison: The airport’s website claims it was annexed into the City of Dayton in the 1980s:
Ohio law allows for cities to annex international airports they own, even if the property is not contiguous to the rest of the city. See Ohio Code – 709.19. Payments to compensate township for lost tax revenues; authority to annex international airport.
Fortunately for Dayton, its airport still had international flights when it decided to annex it.
Isn’t IRG after the Moraine GM Plant building, too? Look out Moraine! David, good presentation at the City Commission meeting yesterday! However, I don’t think the Commissioners nor Miss Lavendar heard a word you said. ;-( Maybe you should wear your mask next time!
The two IRG gays, I mean guys, reminded me of Fannie Mae and Freddy Mac without their makeup on, ha ha.
Why has no one mentioned the fact that the city was previously hamstrung by the FAA condition of 100% Aviation use- and yet, now IRG gets to only meet a 10% requirement? Uh, you don’t think that makes marketing the building a wee bit easier?
UPS just wanted out of the lease- and got an easy payoff- why the city didn’t take the money directly is a mystery.
@Why doesn’t the City just offer the same deal to UPS and keep all $5.75 million? Please answer that question you smug idiot.
So… you are suggesting that Dayton should control more property and take a bigger stake in the real estate market? I seem to remember some ideas that indicated otherwise…
@The city has been in the business of buying up real estate for too long.
@ We should be trying to sell our trash-collecting (or cargo hub?) systems to suburbs, offering them package deals- including taking over their road crews, water delivery, trash collection etc.
@ What if there were zero incentives for new construction, instead, only offering incentives on projects that either reuse and adapt (like a cargo hub?), or increase population density?
@Tax abatements will be offered only for covering costs of creative re-use of existing infrastructure– to aid historic preservation, to cut down demolition waste and to incentivize a “no-sprawl” policy. (post entitled “The Esrati Plan”)
And my favorite….
@Also, before you ask for any kind of break, show us a viable business plan- or don’t ask us to invest. You have to have one if you’ve already got other investors as you claim.
PS. I’ll ignore the late night name calling. It’s all in good fun. That’s why I keep coming back!
Bet the City gets stuck paying for the insurance on the building, then gets stuck demolishing it–a lose / lose situation! What is IRG’s plan for the building? How will they create jobs there, start another Emery Air Freight?
CSAPT, Your pettiness is showing. Thanks for not posting on taxpayer’s time.
What the hell does “civil servant” mean? I get a fat pension for not doing much and acting like I’m a servant? Bullshit. That term may have meant something years ago, but it’s insulting to taxpayers today. If you’re going to spout off while acting like you’re a “servant”, I’ve got two words for you: shut the frack up.
Thank you for proving my point. There is no respect for government anymore. Do you really think you’re helping anyone with a comment like that?
Yes, we are servants. I truly believe that. For every bad apple in the bunch, there are a thousand more working hard to help our communities across the country. They are working damn hard.
What exactly do you think has changed from “years ago”? Do you believe that government work has gotten easier since the recession? Do you think we enjoy pay cuts and furloughs? Is it fun to be short-staffed and go years without a raise? No.
I know a lot of people in the private sector are in the same unfortunate boat, but that doesn’t make it any easier for anyone. Why would you want to tear people down instead of lifting them up? We rise and fall together.
PS… That so-called “Fat Pension” still takes a big chunk out of my paycheck, just like anybody with a 401k or 403b. The difference is that I have to dedicate 30 years of my life to my community in order to get it. I think that’s worth something.
@CSAPT in reference to your comment trying to make me a hypocrite- yep, I agree the city shouldn’t be owning property. But, that doesn’t mean turning over property that we do own for nothing, to someone we hand selected, wrote the contract for and got some people paid off to do the deal.
Ah, and lets go back in history- did the taxpayers pay for the building in the first place? How many abatements and deals did we give Emery?
And- there is also my position that the airport should be a bargaining chip toward regionalization- we should have handed it over to the region in exchange for say- a simple, single point of contact income tax system
As to the viable business plan- IRG wasn’t forced to show anything- yet got the deal. Herres was. Read the Mayor’s reason for voting no.
There is no respect for government anymore..(CSAPT)
…..you’re welcome……
There is no respect for government anymore..(CSAPT)
…..you’re welcome…… – Ice Bandit
And government does not respect the citizenry.
Breaking from the Dayton Business Journal- IRG’s one announced tenant for the Moraine truck plant pulls out: http://www.bizjournals.com/dayton/news/2011/05/09/former-general-motors-site-loses-tenant.html?ed=2011-05-09&s=article_du&ana=e_du_pub
Kramer graphics was going to move around the corner and take more “economic development” money with them- but not now.
If IRG was smart, they’d move the conveyor belts from their other big abandoned building at the airport and put them in the Moraine facility … Why would Kramer Graphics want to move in such a big hollow box anyway, wanting 60,000 square feet of a 4.4 million square feet building as GM’s?
Besides, I’ll bet the County of Montgomery wouldn’t give Moraine a penny anyway for economic development–politics as usual! And why have the Montgomery County Commissioners switched seats anyway–referring to the man who was once the chief spokesman replaced by the wine lady, I cannot think of their names right off hand? (deb lieberman?) If you follow the County’s meetings, too, you’d see what I mean–what a joke!
Here’s some more bad news for Dayton: Click here: BAE Systems to cut 200 jobs
GOOD NEWS FOR DAYTON:
Click here: AF Museum Recieves $10M From Lockheed Martin – News Story – WHIO Dayton
Click here: Dayton company announces acquisition