Aquatic Center Groundbreaking: Does Lightning Strike Twice?

Today is apparently the groundbreaking ceremony for the Greensboro Aquatic Center.  The city proceeded with this project with ruthless efficiency, and is beginning work within 5 months of the approval granted by the city council.  We have Nancy Vaughan and Zack Matheny to thank for this project.

Long-term readers of this blog are familiar with the corrupt, dishonest manner in which this project was advanced.  I decided to try to do something about it, but understood that my chances of success were slim-to-none.

I learned that the state of North Carolina has a Local Government Commission that has some degree of responsibility over the process of municipalities using bonds.  It occurred to me that such a commission could possibly act as a check against corrupt municipalities like Greensboro that abuse the process.

I spoke with a fellow at that department named Tim Romocki.  He led me to believe that there were some gray areas in the law with respect to the manner in which Greensboro pulled its various maneuvers on the aquatic center.  He could not state with certainty that Greensboro's actions in this matter would be considered illegal, but did not entirely rule it out, either.  He maintained, however, that the Commission does not examine proposals such as this to determine their legality.  He said the issue of legality is vetted by the local bond counsel retained by the city. 

I sent a letter to his boss, Vance Holleman, and his response essentially echoed what I was told over the phone.

I decided to contact the local bond counsel.  I had to get their names from the city.  There were two identified-- one located in New York named Neil Kaplan; and the second who practices here in Greensboro.  His name is Steve Allen, and his law practice is located on Martin Luther King, Jr. Dr.

My gut feeling was that this would be a moot exercise.  These attorneys are retained by the city to act as its advocate.  It would seem unlikely they would find a problem with a project the city wanted desperately.

In spite of that, I sent a certified letter to each of these men.  The letter to Mr. Kaplan was received, but I never got a response.

It was interesting, however, what happened to the letter sent to Mr. Allen.  Even though it was sent certified with return receipt requested, I never received a notification from the Postal Service that the letter had been received.  The letter was initially mailed on January 27.  I visited the Postal Service, and they could not find any trace or record of the letter even though it had been sent certified.  It disappeared into thin air.  It was supposed to have been delivered by the Spring Valley branch in Greensboro.

The people at the Postal Service told me it is not unusual for recipients to refuse delivery of certified letters because they often mean trouble.  But they could not find any trace of the letter.

So I sent Mr. Allen another certified letter.  By this time, it was March 6.

I waited another month or so, and I never received the return receipt once again.  I called the Postal Service.  And once again, the letter was lost.  There was no trace of it anywhere, and they could not tell me what happened to it.  The manager at the Spring Valley branch insisted that they do everything correctly in their branch, so the problem must have been somewhere else in the system, according to his report.

Ordinarily, you can track certified letters on the postal service website, but there was no information on-line with respect to the fate of either letter sent to Mr. Allen.

This was highly unusual.  Lightning had struck twice.  Two certified letters were sent to the same individual, approximately six weeks apart, and the tracking for both was lost by the Postal Service.  Neither could be certified to have been delivered.

This curious set of circumstances finally led me to call Mr. Allen's office and ask for his fax number.  I faxed him the letter on April 14. 

I received the following letter in the mail within a couple of days:

Dear Dr. Guarino:

I am writing to acknowledge receipt of your letters regarding the 2008 bond referendum.  It appears that the concerns that you are raising should be addressed directly to the City of Greensboro.  My services as bond counsel for that particular bond are completed.  The investigation requested by you is outside the purview of the scope the (sic) services I was hired to perform.

I apologize for the delay in responding to your concerns.

Sincerely,

Steve Allen

Of course, by this time, it appeared that I was being given a bit of a run-around.  The state Local Government Commission told me to get with the local bond counsel; and the local bond counsel told me to get with the city.  And of course, contacting the city would be a waste of time.

I can't really know what happened with those two certified letters.  But the city is now building a more extensive aquatic center than what voters approved; at a type of location that is different than what voters approved; and under the auspices of an agency that is different than what voters approved.    Some of us scratch our heads and cannot help but feel that must be illegal-- or at best, unethical.  But the lack of ethics in our local government allowed this project to proceed posthaste.

It would require someone taking the matter to court to try to stop this project from proceeding.  And that has not happened thus far.  So Greensboro taxpayers are stuck with paying for a shiny new aquatic center even as the city contemplates laying off workers, closing lakes, halting leave collections, cutting school crossing guards, and any number of other possible budget reductions.  Go figure.

Comments

[Arch Stanton]

Did the Post Office refund the cost of the two certified letters that were lost? Inquiring minds want to know?

[Ken Hill]

Imagine an adult in a household noting that the rent and utilities payments are behind, but they choose to go buy a 52" TV instead of making the agreed payments for those more-essential items. Looks to me to be the same thought process. And we do know that some households work that way as well as units of government.

[Stormy]

Just a good local example of how our governmental process has descended in our country. Hugo Chavez would be envious of how our government at all levels has taken control of its citizens and their activities, and using our financial resources to do it.

[Bubba]

Is anyone really surprised to read the results of Joe's interaction with our Greater Greensboro Business As Usual (TM) brigade?

[Mick]

Joe,
I hate picking at scabs but we all do it I guess. We've definitely been over this before, but .....

The facility was always billed as a three pool, competitive swim center so it is not more extensive. Your statement in that regard is false.
The bonds are covering $12 million (just as advertised and voted on) so it is not more expensive to the tax payer. Though yes it is more expensive overall.
The bond is not at all site specific (though I get your point)
I am actually in agreement with you about Parks and Rec and regret they are no longer involved in the facility.

BTW, the groundbreaking was yesterday at 4:30 and was covered extensivly by local TeeVee outlets. Apparently the re-issue of the invitation type press release after the rain out had the right day and time but wrong date. For everybody, not just opponents :)

http://www.greensboro-nc.gov/citygovernment/parksbond.htm

Doesnt Mr Allen acknowledge the reciept of the two letters in his response to you?

[Stormy]

Mick, yes, Allen does seem to acknowledge Joe's two letters, which makes it even more curious as to why the two certified letters appeared to have been non-existent to the U.S.P.O. How do you explain that Allen got the letters, but our sterling postal service seems to have no record of them...at all. I've sent certified letters many times and never had any problems. So, why did two of them sent to the same individual go into a black hole before being received? Curious.

[Stormy]

Mick, as hard as you try to make this mess appear to be business as usual, it just doesn't pass the smell test of responsible governance, at least to those of us who regularly exercise critical thinking.

[Mick]

Stormy, are you suggesting the USPS is in on the conspiracy to dupe citizens? I dont know about the USPS end but the Atty in question apparently just disregared Joe's letters of inquiry which I find unfortunate.

[Joe Guarino]

Mick, I don't want to rehash the whole debate once again. I would just point out what the Rhino reported back in December. They reported that the aquatic center now being built is intended to be able to lure national and international events. The conception at the time of the bond was for a regional swim center. A center capable of hosting national/international events, according to the Rhino, requires more than what was previously being discussed.

The verbiage in Mr. Allen's letter, as Stormy suggests, might be saying that he had received the initial letters-- although it is not entirely clear. (The question would then be what happened to the return receipt.)

Arch, the Postal Service offered refunds, but my main concern was whether the letters had been received.

Ken, Bubba, Stormy-- indeed. And thanks.

And Stormy, this is the first time in my life I had ever had a problem with sending a certified letter. I just found it unusual that it happened in connection with this proposal-- twice.

[Mick]

Stormy,

Veiled insults aside, the bond language though typical of language through the years indeed caused far more trouble than it was worth. Do I wish "things" would have been done differantly.... yes. But as my link above shows, the information on what was being built was available and clear. The bond language wasnt all that un-clear either. I do not come here to re-start this debate as no minds will be changed and it doesnt matter anyway. But, some of Joe's info above is simply erroneous.

It was always to be a 3 pool competitive complex. The vote was for $12 million in bonds and $12 million in bonds is being spent. The bond language was not site specific. Do you agree with these statements or not?

I do not try to make anything into anything. This mess is enough of a mess without the spreading of false information.

[Mrs. Wormer]

Joe,

Thank you for your intensive and painstaking inquiry into this matter.

I can just imagine the degree frustration you must have felt in butting your head up against the invincible bureaucracy.

If Zack's pet project comes a cropper and hotel taxes don't materialize as projected, rest assured that the supporters will come back to the taxpayers for additional support.

[Mick]

"according to The Rhino" may be part of the problem, Joe. Ask Sam about The Rhino and their "Hammer facts".

[Don Moore]

Where was the Pulpit Forum protesting this lavish extravagance for white kids?

[Joe Guarino]

Don, I believe they were getting arrested on an unrelated matter.

[Joe Guarino]

Mick,, what that fellow Romocki told me is that one of the key considerations legally is whether the intended purpose of the facility had changed. Previously, the facility was not being conceived as one that could attract national and international meets. That requires more bells and whistles. Instead, it was previously to be a regional swim center under the P&R umbrella. When Perkins, Barber, and the coliseum people began working with the project, and manipulating things behind the scenes, the project's focus changed somewhat. One could argue that, at the coliseum complex instead of being under P&R auspices, it is less of a community recreation project, and more of an intended cash-generator/ entertainment venue. That seems unavoidable. The purpose changed. And more tax money was being spent-- the additional monies are just from somewhat of a different population.

[Stormy]

Mick, I was not suggesting anything. I believe that I asked you how you would explain that Allen got the letters, but our sterling postal service seems to have no record of them...at all. It seems curious, doesn't it?

Did you see a veiled insult? My observation was that the practice of critical thinking doesn't lead one to accept this deal as totally aboveboard. I know you desperately want the thing, but surely you see that some corners were cut on this.

[Taxed Out]

This was sold to the city council by Matt Brown as "2 pool complex not 3". Review the council meeting. This exchange is recorded on video. $12 million bond and additional $7+ million is being spent because it was approved with a contract that had a deadline. There are bonds out there that were approved 10 years ago.

Why are these projects less important?

The Aquatic Center is going to cost the taxpayers money and we all know it.

[Jon A Firebaugh]

Mick,
The project is costing more than 12 million as pointed out by TAXED OUT above. The sleight of hand used by the council is that they are using revenues from the hotel tax to come up with the shortfall in the cost since the bonds don't cover the cost. The taxpayers are still paying because they are diverting revenues that could have been used elsewhere. Remember that this was a lame duck council dumping on the new council who felt they had limited options. I won't comment on the efficacy of the project, as I'm sure it will actually be an asset if fully utilized. It's a major blunder to put this under Matt Brown's authority.
Maybe we should start circulating a petition for an ordinance that would require an additional referendum when a project exceeds more than 125% of the estimated cost as set forth in the bond proposal, and prohibits redirecting other funds for capital projects.

[bubba]

"Veiled insults"!

He deserves unveiled, as well we remember from the way he supported this unsupportable monstrosity.

[Mick]

Stormy, I believe I answered that I have no idea what happened on the USPS end. I dont really think some route grunt purposely lost 2 pieces of paperwork concerning an umknown (to him or her) topic from an unknown person. How would that even work? We know that Mr Allen did receive the letters as he says so himself. That is my anti-theory anyway what is your theory? Anything remotely plausible come to mind?

Taxed out: The link provided clearly states three pools no matter what Matt Brown did or didnt say to Council at various meetings throughout the process. The public voted on the bond I linked above. No one I know of ever said the GAC would make money on the facilities bottom line. If facilities of this nature made money there would be plenty of places to swim competitively. They dont and there arent! But just like with the CVM complex as a whole monies come into the City coffers via other avenues (sales tax, etc) and The GAC will have some economic impact as well for local businesses, etc. You are asking the wrong guy for an answer on City priorities. I sympathize with those left on the sidelines this time around. I really do.

Jon,
I NEVER said it was costing $12 million. I said the bond voted on was for $12 million and that is how much bond money/Guilford County property tax money is being used. The second council wss given the option to stop or delay the project. They did not. That is the first Ive heard of "limited options". The opponents simply couldnt muster the votes.

Personally, I would still like to see P&R running the public programs, etc.

Now If you will excuse me I have $250,000 in donations to help solicit.

Would I have liked to have seen this handled differantly in some respects... absolutely. Im not 100% happy with what is going on to date.

[Mick]

BTW... Joe the ACC Hall of Fame groundbreaking was today.

[Don Moore]

I saw Matt Brown on WXII talking about the ACC Hall of Chumps.. It's not a Hall of Fame. It's just a few of the under-used rooms of the Special Events Center. Matt talked about the crowds of people that will visit it next March. After that, who knows who might visit it. Based on what I have seen, you can do the same with a Facebook Fan Page, at a slightly lower price.

Matt also talked about the Pool. 13 hours a day of local swimmers. That should up his parking lot revenues considerably.

[bubba]

And still no professional ice hockey........

[Joe Guarino]

Taxed Out, I appreciate the information you provided.

Jon, I think you had some great ideas in your last paragraph. Let's do it.

Mick, I remember the good old days when it was being represented that the aquatic center would be an economic golden goose, generating all kinds of jobs for locals, and revenues for hotels and restaurants and even retail stores.

Don, we need not worry. Matt Brown has it all under control.

[Vivi]

Thanks for all your hard work on this one, Joe.

[Mick]

Joe, The bottom line of the pool has nothing to do with economic impact of the facility. they are indeed quite separate. But, I know you know that.

Hundreds of families and thousands of swimmers, divers, etc will stay, eat and buy in Gso over the course of a year due to The GAC. I have never wholly subscribed to the CVB numbers ($12-15 million I think). But I am not smart enough to fully understand or subscribe to the art/science/voodoo of economic impact studies.

We are building it and they will come. We can project all we want but the reality will be apparent in the near future. It will take some time to get The GAC up to it's full potential. But when fully rolling it will bring folks and their moola to town.

Gotta go. Daughter off to Charlotte for a three day swim meet along with a few hundred other kids.

[Stormy]

Too bad that Greensboro taxpayers have to pony-up about $20 million on faith and wait a couple of years to see if Mick is right. What kind of odds would Vegas place on this boondoggle producing an acceptable return to Greensboro? Like so many things that government does, they place a bet using OPM, hoping that they come up with a winner. If it isn't, they just walk away, like always.

Mick, sometimes when you build it, they do not come. By the way, Mick, what Ray heard was "Build it, and he will come.".

[Mick]

$12 million.

And I know what Ray heard. You see it was sort of a play on words, Not a quote which is why there were no " "'s. See how that works.

Depends on how you define "acceptable return" and "Greensboro" now doesnt it?

I realize we will always differ on quality of life values, public good, etc in this regard. It's cool.

[Taxed Out]

Mick,

You stated "The link provided clearly states three pools no matter what Matt Brown did or didn't say to Council at various meetings throughout the process." I find it very interesting that you think it is ok that Matt Brown presented an inaccurate version of the project to the city council. That was the meeting where the project management was moved from P&R to the coliseum. The directors from P&R were there and were none too happy.

So,now you tell us that it doesn't matter that he didn't tell the truth.

Again, we are waiting on the positive impact that the coliseum and soon to be aquatic center are making in our economy. High Point Road should be the first area to reflect this influx of money, but it has not happened.

The taxpayers should not be responsible for maintaining a swim and dive complex for a select segment of the population.

What about all the other bonds that have been passed over the years? We are still waiting on parks, libraries, etc to be built.

This bond was delivered and accepted with a contract that had a deadline and that is what makes it binding.

This should have never happened.

[Bubba]

"So,now you tell us that it doesn't matter that he didn't tell the truth."

No big surprise, given what we know about Mick.

[Abner Doon]

"Are Matt Brown, the City Budget Director and the City Manager cooking the Coliseum’s books?"

http://triadwatch.blogspot.com/2010/04/are-matt-brown-city-budget-director-and.html

Looks like Matt Brown wrote one thing to City Council and another to everyone else.

Cool how he moved expenses off balance sheet to show a smaller deficit.

[Mick]

Taxed Out, The public voted on what I linked. Period. No it doesnt matter what the earliest versions were. The Council approved what went on the bonds. The voters voted and The Council then twice approved to proceed. I already commented on other bonds. Same answer.

You dont know squat about me Bubba. Go back to the kiddy table.

[buzzman]

In the current and foreseeable economy, the Aquatic Center will never be anything but a "drain" on the taxpayers and will eventually be just an empty structure with no activity and no water.
Unless something drastically changes with the economic direction of this country, even those who are currently afluent will not be able to afford to send their kids to swim.

[Taxed Out]

Mick,

That is right. The taxpayers voted on a $12 million bond, NOT $19+ million. Matt Brown told the City Council and the taxpayers in attendance of the meeting and the taxpayers watching on TV/Internet that this complex "2 pools" would be built for $12 million. Now the price is $19+ million and that does not include operating expenses.

The taxpayers never had the opportunity to vote on $19+ million swim and dive complex.

The proposed hotel/motel tax will not make up the difference, the taxpayers will.

[Bubba]

"You dont know squat about me Bubba."

Your contribution to this execrable example of business as usual is public record, and tells us pretty much everything we need to know about your lack of character.

[Joe Guarino]

We need to remember, Taxed Out, that there will also be additional interest payments on the bonds to be borne by taxpayers. It will cost more in the long run than advertised because of that.

[Theresa Yon]

FYI, there will be a special on Monday night on channel 2 (TW cable 9) regarding the Charlotte Swimming Center, similar to ours and advertised as "drowning in debt". "2 wants to know" is enquiring if we are about to be in the same...uh....boat so to speak. Interesting that they waited until the day after the groundbreaking to announce this.
On a different but entirely related note, check out the IBD article about Muni-Bond debt. It will be the next shoe to drop & it will effect everything from how much/how fast bondholders are paid back to whether or not state retirement health plans have to take huge cuts in restructuring. The money is gone. Period. there is nothing left to borrow, and no one from whom to borrow it. Read the article, and understand what is coming to cities across the country, and sooner than oen might think. Here is the link
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=531813

[Joe Guarino]

Theresa, thanks for your excellent comments. It is interesting to see WFMY suddenly develop some skepticism regarding a Melderec-advocated project-- especially since it sits on the Greensboro Partnership Board of Directors. And of course, it is too late now. The project is nearly a done deal.

And thanks also for providing the link to the IBD article. Our state and local governments have been operating under the assumption that they can accumulate ever-increasing amounts of debt and unfunded obligations. Crazy spending projects like the aquatic center continue to get pushed. Let's hope we don't end up like Greece.

I hope we can elect more common-sense conservatives like you to the state legislature.