Any Ethics Left in This Town? Would be developer worked for arena before MSA was created Posted: Sunday, June 15, 2014 12:00 am By Karla Bowsher kbowsher@chronicle-tribune At least one member of the Marion Sports Authority, which took the first steps toward dissolving earlier this month, had been involved in the efforts to bring an arena to Ind. 18 and I-69 since before the organization was even created, according to city records. The people Marion Sports Authority Inc. was incorporated on Feb. 7, 2011, as a private nonprofit for public benefit, according to state corporation records. MSA’s articles of incorporation state it was established to promote both recreation and economic development through “athletic and cultural events,” “quality youth sports programs” and a “sports and recreational venue.” The organization is comprised of community leaders like city officials, business people and sports enthusiasts. At the first meeting Feb. 17, 2011, Mayor Wayne Seybold, a former Olympic skater, called the meeting to order, and officers were elected: President Jim Brunner, a Republican Marion City Council member who works as WBAT’s sports director; Vice Presidents Seybold and Val Belmonte, principal partner of Game 7 Seven; secretary Neal Ronquist, then-publisher of the Chronicle-Tribune; and treasurer Craig Persinger, attorney with the Craig Persinger Law Office in Marion. Game 7 Seven, based in the Chicago area, develops and manages sports and entertainment facilities, according to the company’s website. Members also voted to make board member Sue Beelsey, a partner in the Indianapolis office of regional law firm Bingham Greenebaum Doll, the “general counsel” for MSA. Beesley had incorporated MSA. Attorney Herb Spitzer, a part-time city employee, served as registered agent, though Beesley took over as registered agent a few weeks after the organization formed, according to state corporation records. About two years prior, in 2009, Beesley represented Marion Land Development when that company first came to the city to request funding for a project at I-69 and Ind. 18, which also failed to get off the ground. The city also hired Beesley last year to serve as bond counsel when officials refinanced their $3 million BAN for MSA along with a $3 million tax-backed BAN issued for Marion Land Development’s project in 2009, both of which faced default. During a Feb. 25, 2011, meeting, MSA board members voted to revise some of their officer assignments “to avoid any conflict-of-interest issues,” minutes state. Belmonte and Seybold became ex-officio members of the board and all its committees. Persinger took over as vice president, and Ronquist became secretary/treasurer. Belmonte and Ronquist have since left MSA and moved out of the area. Non-financial records from the city show at least some MSA board members were appointed by Seybold. Certificates of appointment dated Feb. 17, 2011, state, for example, that Seybold appointed then-City Development Director Darren Reese and longtime Indiana Republican Rep. Eric Turner as ex-oficio, nonvoting board members. Reese, who left the city for another job in early 2013, said Thursday that he believed all members were appointed by Seybold but could not recall for certain. Marion Sports Authority’s role in a sports and entertainment arena complex at Interstate 69 and Ind. 18 precedes the authority’s official formation, records show. MSA board members voted at their Feb. 25, 2011, meeting to approve the $3 million bond anticipation note for “the purchase of 12 acres of land” and the “Phase 1 project funding budget,” minutes state. This phase was to consist of “infrastructure work,” and an “agreement” with a construction company called Ledcor as general contractor was “to be acted upon by (MSA’s) executive committee.” An Oct. 25, 2010, memorandum of understanding between JLG Architects as architects to Game 7 Seven as developer describes the project in detail, including sections about “ownership” of the arena, the “scope of services,” and the “schedule” for and “cost of construction” — just over $20 million. The “compensation” for JLG Architects was up to $1.06 million. The memorandum also includes a four-paragraph section titled “project risk.” A letter of intent bearing Game 7 Seven’s letterhead and dated Oct. 26, 2010, was written from Belmonte to a preconstruction manager at Ledcor. The letter states that Ledcor would serve as the project contractor “on behalf of the city of Marion,” while Game 7 Seven would serve as the project developer. MSA would become owner of the arena once complete, using proceeds to fulfill its mission of furthering recreational opportunities in Marion. The $3 million bond anticipation note closed March 16, 2011, and financial records show at least part of the proceeds were used to fund initial site work by companies like Ledcor and the regional firm JLG Architects. “The target date to start moving dirt is May 1,” according to minutes from the board’s April 15, 2011, meeting. On May 17, 2011, Marion City Council members voted unanimously to authorize issuing up to $30 million in bonds for the project. Council members were told, as unrelated records show they’ve heard prior to other bond votes, that taxpayers had nothing to lose. “This is an ambitious project,” Persinger said during the meeting. “With ambition comes risk, but the risk is insulated from the taxpayers of Marion.” The $30 million in bonds failed to sell by the Jan. 1, 2013, deadline, so the proceeds never materialized and progress on the arena project stalled before construction started. Multiple MSA board members said during their June 6 meeting that they too were told there would be no risk in the project, while others said they felt in hindsight that they weren’t given all the facts about the project from the beginning. Like
Posted on: Mon, 16 Jun 2014 04:04:57 +0000