Monthly Archives: September 2012

Heads-Up for the October 3, 2012 Park Board Meeting

HEADS-UP FOR THE OCTOBER 3, 2012 PARK BOARD MEETING

5:00 P.M. REGULAR BOARD MEETING. The meeting will be held in the boardroom at Park Board headquarters, 2117 West River Road, just north of Broadway Pizza.

5:30 P.M. OPEN TIME. Speakers can call 612-230-6400 before 3:00 p.m. the day of the meeting to sign up or they can sign up at the Board meeting prior to the start of “Open Time.”

Some agenda items of interest are:

–Photo Contest

–Relocation of Paradise Companies from Boom Island to Bohemian Flats

–Resolution Authorizing the Superintendent to Submit Theodore Wirth Regional Park, Central Mississippi Riverfront Regional Park, Nokomis-Hiawatha Regional Park and Minnehaha Regional Park to the Metropolitan Council for a Metro Regional Park Agency Request for the 2013 State Bonding Bill

The complete agenda, with staff reports, for the MPRB Board of Commissioners’ meeting on Wednesday, October 3, 2012 is at http://minneapolisparksmn.iqm2.com

Also of interest and now available to the commissioners and the public are the monthly reports that Superintendent Miller has initiated for construction permits and for Planning Department projects. The availability of these reports is one of the important changes instituted by Superintendent Miller. Look for the links to these reports under Petitions and Communications in the agenda for the first Regular Meeting of the month.

MPRB meetings are telecast live from 5-9 p.m. on the City of Minneapolis Government Meeting Channel 79 on Comcast cable and online at http://minneapolisparksmn.iqm2.com

The regular meetings are retelecast on Channel 79 at 1 p.m. Saturdays and 5 p.m. on the second and fourth Wednesdays of each month. Webcasts for the recent two months are posted two to five business days after the meeting and are available for viewing under “Webcast Archives” at http://minneapolisparksmn.iqm2.com

The Park Board’s website is http://www.minneapolisparks.org. The phone number is 612-230-6400.

Arlene Fried

Co-founder of Park Watch

The 201 Building in Review

THE 201 BUILDING IN REVIEW

Occasionally, there are still references to the unfortunate history of the MPRB’s 201 Building at Fort Snelling that the Park Board owned for nine years with no tenant or income.  Recently, there was a reference to the 201 Building at a Lake Nokomis CAC meeting; and at the last Park Board meeting on September 19, 2012 there again was a reference to the 201 Building.  During the September 19, 2012 Park Board meeting, Commissioner Liz Wielinski referred to the 201 Building and then Commissioner Bob Fine attempted to correct her.  However, both Commissioners Wielinski and Fine were correct in speaking of the unfortunate history of the 201 Building because there were TWO unfortunate incidents in the MPRB’s history of the 201 Building.

For the purpose of clarification, here is a brief review of those two incidents.

The 201 Building at Fort Snelling (also known as the Old Calvary Building) was acquired by the MPRB in 2001 with the intention of leasing it to the Wild Hockey team for practice sessions.  However, the Park Board’s Enterprise staff implemented the purchase of the building BEFORE the lease with the Wild was signed.  So when the deal with the Wild fell through, the Park Board was left with an empty building, no income, financial commitments–and no recourse.   Many blamed the Wild for walking, but the reality is that Park Board staff should have had the protection of a signed lease prior to making the significant commitment that it did.

Then, in July of 2002, Enterprise staff recommended that the Park Board enter into a lease for the 201 Building with The Fort, LLC, a company headed by Robert Naegele III, for an athletic facility, but the lease drawn up by the Enterprise staff failed to include a provision for a construction bond.   So when Naegele’s company abandoned the project before completion but after significant improvements were made, the Park Board again was left with an empty building, bonding payments and no income stream.  But this time there were also contractor lawsuits for $1.8M.  Again many blamed Naegele, but had there been a construction bond the Park Board would have been protected.

The 201 Building was eventually sold to the Boy Scouts in 2009 for $4,299,652.  After fees, the Park Board’s proceeds from the sale were $4,104,064.  According to Enterprise staff, the Park Board had a profit of $1,221,954; but, according to Park Watch’s figures, the profit was only $209,313.

______________________________________________

Here is a summary of the MPRB’s  sale of the 201 Building:

THE SALE OF THE 201 BUILDING–SUMMARIZED ON 12-22-09
 

The 201 Building at Fort Snelling, which the Park Board acquired in 2001, was intended to be a profit-making venture.  However, it never was occupied and it never made any money.  It turned out to be an expensive white elephant.  In June 2009, the Park Board completed the sale of the 201 Building and adjacent land to the North Star Council of the Boy Scouts of America.

According to the Park Board’s calculations, there was a profit of $1,221,954, but according to Park Watch’s calculations, there was a profit of only $209,313.

BACKGROUND

To understand the sale of the 201 Building, one needs some background information about the acquisition of the 201 Building and the Fort Snelling Athletic Complex, known also as Neiman Sports Complex.

The Neiman soccer fields were developed first.  The bulk of the land for the entire Neiman Complex is rented from the DNR and is not owned by the MPRB. Twenty-year bonds in the amount of $11,270,000 were issued on August 29, 2001, to pay for the project’s improvements.  Semi-annual payments for these bonds were allocated to both principal and interest.

The acquisition of the parcels comprising the 201 Building and adjacent land occurred during 2001 and was a separate transaction.  The 201 Building was acquired in anticipation of an agreement that General Manager Donald Siggelkow was negotiating with the Minnesota Wild hockey team.  It was the cash flow from the lease with the Wild that was to pay for the interest on the second bond offering.

Twenty-year bonds in the amount of $2,200,000 were issued for the acquisition of the 201 Building and adjacent land on July 11, 2002.  Payments for these bonds were for interest only with two balloon payments of $1M each for the principle due at the end of the bonding period in 2020 and 2021.

But the negotiations were never consummated and the deal with the Wild hockey team fell through, leaving the Park Board with an unleased building, $2,200,000 of bonds and no income to cover the yearly interest payments totaling $94,500.

Next chapter was the leasing of the 201 Building for the development of a skate park with no provision for a construction bond.  When the tenant abandoned the project mid-construction, the Park Board was left again with an unleased building, $2,200,000 of bonds and no income stream.  But this time there were also construction lawsuits for $1.8M.  The lawsuits were eventually settled and a lien for $945,000 was placed on the building.

THE PARK BOARD’S CALCULATIONS ACCORDING TO PUBLIC RECORD(1):

The selling price for the 201 Building and adjacent land was $4,299,652.  After the brokers’ fee and closing costs of $195,588 were deducted, the total sale proceeds were $4,104,064.

According to the staff study report presented to the Administration and Finance Committee on September 16, 2009, the total costs outlined for the 201 Building were $2,882,110.  After subtracting this figure from the total sale proceeds of $4,104,064, there was a profit of approximately $1,221,954.

201 Building Acquisition………………………………………$780,000

Land Acquisition ($5.73 * 97,789 SF)……………………..$560,970

Parking Lot Improvements(3) ($2,000 * 176 stalls)……$352,000

Building & Property Improvements(2) (Lien Payoff)…..$945,000

Legal Fees (201 Lien)…………………………………………$105,968

Legal Fees (Sale)………………………………………………$138,172

Total MPRB Costs……………………………………………$2,882,110

Net Proceeds for the Sale of the 201 Building…………………………….$4,104,064

Total costs for the 201 Building……………………………………………….$2,882,110

Net income or profit…………………………………………………………….$1,221,954

PARK WATCH’S CALCULATIONS BASED ON THE INFORMATION ACQUIRED FROM THE PARK BOARD:

However, Park Watch has been tracking the disposition of the 201 Building for the past three years.  Park Watch has been attending meetings and reviewing extensive data acquired through the Minnesota Government Data Practices Act.  The Park Board’s figure asserting a profit of $1,221,955 does not correspond with the figure that Park Watch arrived at.

The total costs according to Park Watch’s calculations are approximately $3,903,751.  And the resulting profit was only $200,313, considerably less than the Park Board’s figure of $1,221,954.

The following figures are based on information acquired from the Park Board:

201 Building Acquisition (same as above)………………………………$780,000

Land Acquisition of “GSA” property, based on
Don’s August 2006 figures………………………………………………………………………..$1,100,000

Parking lot and moving the road(3), based on
Don’s August 2006 figures…………………………………………………………………………..$250,000

Lien payoff(2), based on Don’s
August 2006 figures………………….$945,000

Total, based on Don’s August 2006 figures……………………………$3,075,000

Approximate bond interest(4)………………………………………………$575,611

Legal fees (Lien), based on the September 2009
staff report……………………………………………………………………………$105,968

Legal fees (Sale), based on the September 2009
staff report……………………………………………………………………………$138,172

Total costs for the 201 Building and Land………………………………$3,894,751

Net proceeds for the sale of the 201 Building…………………………………………$4,104,064

Net income or profit…………………………………………………………………………..$209,313

CONCLUSION

The Park Board’s calculations do not take into account the annual interest payments on the $2,200,000 bond issue, which was the issue for the 201 Building and adjacent land; these annual interest payments total approximately $575,611.  It appears that there was some rearranging of figures to create the impression that the project made more money than it did.  For instance, the two separate bond offerings were merged to create the impression of just one bond offering, which obfuscates the issue of bond interest.

And nowhere is there any line item for the countless hours of staff time expended planning, developing, negotiating, etc. this unsuccessful project.

___________________________________________________________________
 
Footnotes:

(1) Park Board Committee Study Report, Property Sales Analysis, dated and presented on 9/16/2009, to the Administration and Finance Committee of the MPRB

(2) Line Payoff, based on MPRB Meeting Handout 8/2006, from Don Siggelkow

(3) Note difference from one MPRB report in 2006 to the MPRB Report in 2009

(4) Refer to document obtained from the MPRB, Schedule of Interest Paid on 201 Building and Land Bonds

 

Arlene Fried

Co-founder of Park Watch

Crown Hydro Continues Efforts to Avoid License Termination

The following item was published in the Mill City Times on-line publication on September 17, 2012:

CROWN HYDRO UPDATE: PROPOSED HYDROELECTRIC PLANT DEVELOPERS CONTINUING EFFORTS TO AVOID TERMINATION OF FEDERAL LICENSE

By Doug Verdier

On Sept. 5, Crown Hydro’s legal counsel in Washington, D.C. filed a progress report to the Federal Energy Regulatory Commission (FERC) outlining “further engineering and concept analysis of the development of the project within the current licensed project boundaries, and in a location owned by the federal government under the control of the U.S. Army Corps of Engineers, St. Paul District Office.” These efforts are intended to determine “if there were any fatal flaws in the project concept in the new location.”

The primary engineering issues address the feasibility of using the existing tailrace and whether a tailrace tunnel could be constructed from a location under the parking lot next to the lock headwall to a shaft to be constructed with a new outlet below the Stone Arch Bridge. According to the filing, Crown Hydro claims that the Stone Arch bridge footings “are spread footings excavated into the sandstone and may be avoided during the construction.” This statement is intended to address concerns that construction could endanger the structural integrity of the Stone Arch Bridge. Crown’s proposed design called for a new tunnel to be drilled underground between two of the bridge arch supports.

The filing states that Crown is obtaining estimates from contractors for tunnel work and masonry and intends to prepare an Environmental Assessment Worksheet for the proposed location. Their intent is to apply for another amendment to the license issued by FERC in 1999, which has been amended several times as the proposed location of the project has shifted.

Crown Hydro’s developers were notified on June 14, 2012 that FERC intended to initiate proceedings to terminate the license for the project “because over 13 years have passed since issuance of the license, the licensee has failed to complete construction of the project as licensed, and its previous filings have failed to show that it can do so in the near future.”

The St. Paul District Corps of Engineers, which controls the lock and dam and area where the new hydro plant powerhouse would be built, noted in March 15, 2012 that “the new alignment [of the project] raises additional concerns” in addition to those previously expressed that need to be addressed.

PUBLIC INVITED TO WEIGH IN ON VISION FOR NORTH LAKE CALHOUN & SOUTH LAKE OF THE ISLES

The following invitation was circulated by the MPRB:

PUBLIC INVITED TO WEIGH IN ON VISION FOR NORTH LAKE CALHOUN & SOUTH LAKE OF THE ISLES

The Minneapolis Park and Recreation Board (MPRB) is taking a fresh look at the landscape between Lake Calhoun and Lake of the Isles. Popular destinations in the area have led in recent years to steadily increasing congestion with accompanying safety concerns. The MPRB will lead a preliminary park design study, organized as a multi-day community design event, or charrette, to engage the public in envisioning the future of the area.

The charrette will open with a public visioning session on Tuesday, October 9 from 7:00 to 9:00 p.m. at MoZaic, 1350 Lagoon Ave. The design team will share its community analysis and hear from the community about ideas, values and issues that should be considered in design concepts. On Saturday, October 13, between 9:00 and 11:30 a.m., also at MoZaic, the community will have the opportunity to review and comment on preliminary design options prepared by the design team over the intervening three days. Those planning to attend the visioning session and / or open house are encouraged to visit the study area prior to the meetings. Please note the walking tour of the study area, tentatively planned for Saturday, October 6, will not take place.

For further information, see the current news release: http://www.minneapolisparks.org/default.asp?PageID=52&prid=1875 and visit the project page on the MPRB website: http://www.minneapolisparks.org/default.asp?PageID=1398

Search for Deputy Superintendent is Underway

NEWS FROM THE PARK BOARD: SEARCH FOR DEPUTY SUPERINTENDENT IS UNDERWAY

A new leadership structure for the Park Board has been developed by the cross-departmental Leadership Structure Project Team. One of several key elements of the new leadership structure was the creation of a Deputy Superintendent position. That position description has been developed and a search is currently underway.

The Deputy Superintendent will be responsible for the day-to-day management and functioning of the MPRB. Superintendent Jayne Miller will continue to provide leadership and direction for the entire Park Board, while the Deputy will be responsible for implementation and coordination of that direction.

Superintendent Miller will continue to focus on external relations and provide the necessary support to the Board of Commissioners. It is expected that candidates will be selected for interviews in early October. Interviews, tours and a meet and greet are tentatively scheduled for late October.

Park Board Looks at Changes to Calhoun-Isles Connection

The following article by Nick Halter was published in the September 17, 2012 issue of the Southwest Journal:

PARK BOARD LOOKS AT CHANGES TO CALHOUN-ISLES CONNECTION

The area in between Lake Calhoun and Lake of the Isles is jumbled, says Bruce Chamberlain, the Minneapolis Park Board’s assistant superintendent of planning.

Weaved trails have bicyclists and pedestrians crossing paths. Boats launch right next to Tin Fish, where customers line up for fish tacos. The Calhoun Yacht Club has over grown its small building. Plus, the two lakes have very little interaction.

“If you’re standing at one lake, you have no idea another lake is a short distance away,” Chamberlain said.

The Park Board is planning a design charrette for October in order to get feedback from the community on how the Park Board should redesign the area.

One large topic for the charrette, Chamberlain said, will be what to do with the land just east of the Calhoun Beach Club. That property is currently being used for a constructing staging ground for a new sewer line, but developers have shown interest in building housing there. Chamberlain said it would be wise for the Park Board to get out ahead of future development, so that any project will also celebrate parkland.

Chamberlain said it would likely be a few years before any work would begin. The Park Board has budgeted $700,000 in 2015 and $3 million in 2016 for the Chain of Lakes.

The Park Board will hold a site walk on Oct. 6.

A visioning session will be held the evening of Oct. 9 and an open house will take place on the morning of Oct. 13. Exact times and places have yet to be determined. Check the next issue of the Southwest Journal for more information. You can also visit http://www.minneapolisparks.org for information on events.

Sixth District Dog Park Update

The following item has been circulated by the Park Board:

SIXTH PARK DISTRICT DOG PARK – UPDATE
 

Dear Friend of the 6th Park District Dog Park

We have a few updates for you regarding the dog park.

1)East Harriet Farmstead Neighborhood Association Letter and Meeting:
 
The East Harriet Farmstead Neighborhood Association (EHFNA) has sent the attached letter [see below] regarding the parking for the project. Staff will be attending the EHFNA meeting on September 24, 2012 at 7:00 pm to provide more details about the proposed parking change. The meeting will be held at the Walker Methodist Health Center, 3737 Bryant Ave S.

August 22, 2012 Information Meeting:
 
Thank you to those who attended the information meeting on August 22 for the dog park. We had a good turn-out and were able to visit the site of the future park. The changes we reviewed were the surface material, location of the parking, and the fence line of the dog park. The proposed changes assist with stormwater concerns, reduce conflicts with MPRB vehicles, and allow the city to service the stormwater pond. The changes will not alter the overall size of the park. The image we shared at the meeting has been placed on the web-site [see attached file]. It has been enhanced with color to make it easier to read.

Bidding Process:
 
We continue to move forward with the bidding process and will be bidding the parking as an alternate.
 

EastHarriet_Letter+to+Park+Board.pdf
Harriet_Dog_Park_Illust1.pdf

Minnesota Orchestra's Lake Harriet Concert

THE MINNESOTA ORCHESTRA’S LAKE HARRIET CONCERT

Last Sunday on September 16, 2012 the Minnesota Orchestra played its first concert at Lake Harriet since 2008 when the orchestra lost its funding for the Lake Harriet concerts. Last Sunday’s concert played to a capacity–and appreciative–crowd. Currently, the Orchestra is in contract negotiations and a petition supporting the Orchestra’s musicians was circulated. With the weather so beautiful (not too hot and no rain), it was a wonderful way to conclude Lake Harriet’s summer music season. Here is the link to a concert video: http://www.minnesotaorchestramusicians.org/?p=2500

Arlene Fried

Co-founder of Park Watch

Washburn Fair Oaks Master Plan Meeting

The following item was distributed by the MPRB:

WASHBURN FAIR OAKS MASTER PLAN MEETING

On Wednesday, September 26, the Minneapolis Park and Recreation Board will hold the first in a series of community meetings to discuss Washburn Fair Oaks Park, from 6:00 to 8:00 pm in the gymnasium of the City of Lakes Waldorf School, 2344 Nicollet Ave. The goal is to work with community members to establish a vision for the park that will include physical improvements as well as events programming. Park users, neighbors, and others interested in the park are encouraged to participate.

For further information, visit the project page: http://www.minneapolisparks.org/default.asp?PageID=1350 on the MPRB website.

Provide comments here: https://www.surveymonkey.com/s/WFO2012comment

Heads-Up for the September 19, 2012 Park Board Meeting

HEADS-UP FOR THE SEPTEMBER 19, 2012 PARK BOARD MEETING

Please note that the September 19 meeting will not be broadcasted live on the City of Minneapolis Government Meeting Channel 79 or online due to a Minneapolis City Council meeting scheduled during the same time. Those interested in viewing the MPRB meeting are encouraged to attend at MPRB headquarters, located at 2117 West River Road, Minneapolis, MN 55411, or view during a rebroadcast on Channel 79 on dates following the meeting.

5:00 P.M. REGULAR BOARD MEETING. The meeting will be held in the boardroom at Park Board headquarters, 2117 West River Road, just north of Broadway Pizza.

5:30 P.M. OPEN TIME. Speakers can call 612-230-6400 before 3:00 p.m. the day of the meeting to sign up or they can sign up at the Board meeting prior to the start of “Open Time.”

6:30 P.M. PUBLIC HEARING: Marshall Terrace Park Proposed Play Equipment

Some agenda items of interest are:

–Commissioner’s 2013 Budget Priorities Discussion

–Resolution Amending the Current Fee Structure Adding a Snowmobile Permit Fee of $1000 Per Day at Wirth Park in Accordance with MPRB Existing Ordinances and Policies

–Resolution Approving a Proposal for Athletic Field Renovations at Farview Park and North Commons Park

The complete agenda, with staff reports, for the MPRB Board of Commissioners’ meeting on Wednesday, September 19, 2012 is at http://minneapolisparksmn.iqm2.com

Also of interest and now available to the commissioners and the public are the monthly reports that Superintendent Miller has initiated for construction permits and for Planning Department projects. The availability of these reports is one of the important changes instituted by Superintendent Miller. Look for the links to these reports under Petitions and Communications in the agenda for the first Regular Meeting of the month.

MPRB meetings are telecast live from 5-9 p.m. on the City of Minneapolis Government Meeting Channel 79 on Comcast cable and online at http://minneapolisparksmn.iqm2.com

The regular meetings are retelecast on Channel 79 at 1 p.m. Saturdays and 5 p.m. on the second and fourth Wednesdays of each month. Webcasts for the recent two months are posted two to five business days after the meeting and are available for viewing under “Webcast Archives” at http://minneapolisparksmn.iqm2.com

The Park Board’s website is http://www.minneapolisparks.org. The phone number is 612-230-6400.

Arlene Fried

Co-founder of Park Watch