Confirmed - Plambeck Out at DMD

Today's IndyStar confirms in its general news sidebar, and now online in a story by Jon Murray, that Maury Plambeck is out as Director of DMD and being replaced by Adam Thies.  The item mentions that Thies' salary will be more than either Plambeck or the Mayor make, weighing in at $110,000.  No mention about the apparent conflict of interest in owning a company making money off contracts that you would now sign as head of DMD.

The piece also mentions that Plambeck will "direct the next round of RebuildIndy projects".  The LISC connection and the $100 million donation to that group from Rebuild Indy funds (aka profits from the sale of the water and sewer utilities) has not been confirmed as of yet by the Mayor's office.

From Murray's reporting:

Plambeck will direct the next round of RebuildIndy projects, the mayor said. Details of his new role -- including whether he will continue to work directly for the city -- are still being worked out, [Mayor's spokesman] Lotter said. 

An alert reader reminded me of the already sweet deal LISC got when $1.3 million of Rebuild Indy money went to refurbish the west wing of City Market so that LISC could set its office close by the City-County Building.  Not that they do any lobbying in that structure; for if they did they surely would have registered with the City as a lobbyist group.

I would also remind readers of the IBJ, that Bill Taft, Director of the  LISC chapter here in Indy, wrote a pro-TIF editorial for the paper back in August.  Looks like LISC is shaping up to be molded into an IDI-type lap dog, showing up on cue to speak in favor of anything the Mayor wants the group to speak in favor of in exchange for a little sugar.

Stay tuned.

? Plambeck Out At DMD ?

Rumors are circulating pretty hard in neighborhood circles that Maury Plambeck is out as Director of the Department of Metropolitan Development and that Adam Theis, a City contractor for planning, will be named to replace him.  Don't feel sad for Plambeck, though.  The rumor goes on that he will be named head of a new Local Initiatives Support Corporation (LISC) sub-group that will be funded with $100 million from the Rebuild Indy money (profit from the sale of the water and sewer utilities for those playing along at home).  LISC pays enormous salaries, so Plambeck should be fine.

Here's what I've been able to round up on the internet about the organizations involved.

Theis is currently President of Eden Collaborative, aka Eden Land and Design.  Their website lists a couple of local projects that they consulted on - two at Fort Benjamin Harrison, one for the superbowl legacy project at St. Clair Place, and one for 'transit oriented development' planning for the Metropolitan Planning Organization - part of DMD.  While the website seems to be saying they were a client of DMD for the St. Clair Place project, I could not locate the contract in the City's contract database.  I did, however, find two contracts between DMD and Eden Land and Design. 

Contract 7886 was for $29,040, signed in June, 2010, and expected to run between 6 months and one year.  Its purpose was to create a grant application for the Federal Sustainable Communities Planning Grant Program.

Contract 9009 was initially for $250,000, signed in May, 2011, and expected to run through December, 2012.  In May, 2012, this contract was extended to December, 2013, and had its contract limit increased to $450,000.  The purpose of this contract, in part, was to help determine a good location for an IndyGo transit hub and to aid in planning for transit station locations in various parts of Indy.

LISC is a national not for profit organization that, according to its IRS filings, has as its mission to "assist community residents throughout urban and rural areas of the United States to transform distressed neighborhoods into healthy and sustainable communities".  Their 2010 tax filing listed revenues of $101.7 million and expenses of $110.9 million.  They had an increase in assets of $52.1 million for a total of $443.5 million.  They provided grants to a number of Indianapolis organizations in 2010 - by my total $1.3 million.  While almost all recipients were CDCs, there were two exceptions.   The Children's Museum got $45,000 and, my favorite neighborhood organization (oh the irony) Indianapolis Downtown Inc got $43,875.

LISC lists several pages of key personnel who receive over $100,000 in compensation.  Those listed range from a stunning take home of $599,460 for Joseph Hagan, Senior Vice President, to only $443,442 for Michael Rubinger, President.  The lowest salary of the copious number of Vice Presidents was listed at $136,451 for Kenneth Patrick Maher.  I guess Maher needs to step it up.

Although they list Indiana as a State in which they lobby, there is no listing in the City's lobbyist database for LISC.

The City's budget figures show the Rebuild Indy fund with a June 30, 2012, cash balance of $188,732,284 and an expected December 31, 2012, fund balance of $88,006,647 - or $100 million spent in the last half of 2012.

Stay tuned.

City Bought Parking Garage - In July !

I must have been snoozing, but, back on July 19, 2010, the City of Indianapolis purchased the parking garage at 101 N. New Jersey Street. This from records on the County Assessor's website.

The reason this is important, is because this garage factored heavily in a really bad deal proposed by the Ballard Administration and Tadd Miller Enterprises, that was passed by the MDC over a year ago. (see "Dramatic Week for 450 E. Market Street (Bad) Deal" from October 9, 2009). The crux of that deal was to purchase the parking garage from Tadd Miller Enterprises for $18 million after that company purchased the parking garage and an entire city block across the street for that same amount, give the company a sweet deal to operate and use parking spaces for free, and abate Tadd Miller Enterprises and funnel that money into repayment of the bonds the city would use to purchase the garage.

The Assessor's records show that the garage (101 N. New Jersey Street), had a 2009 gross assessed value of $10.5 m, and a 2010 gross assessed value of $12 m. The owner is listed as "INDPLS, CITY OF DEPARTMENT OF METROPOLITAN DEVELOPMENT" and to have been the owner since July 19, 2010. I looked online for past Metropolitan Development Commission agendas to see when they approved this purchase, but only December's agenda is posted at this point. I have requested the resolution and any appraisals substantiating the purchase price. I will post an update once those records are provided.

The Assessor's records also show that the block across the street (450 E. Market Street), was purchased on exactly the same day, by Market Square Garage Ops Partners, LLC. The 2009 and 2010 gross assessed value of that property is shown as $3 m.

What surprises me the most is that I asked frequently for a copy of the final agreement between the City and Tadd Miller Enterprises and have been consistently told that 'the deal has not been finalize'. As coincidence happens, I actually last asked Maury Plambeck, Director of the Department of Metropolitan Development on July 29, 2010, "Has the deal with TM Miller Enterprises concerning 450 E. Market Street been finalized? If so, could I please get a copy of the agreement?" Plambeck's response that same day was "Pat, The deal has not been finalized. I'll remember that you want a copy, if and when an agreement is reached. Maury". Trusting Plambeck as I did, I stopped requesting the information.

It hasn't only been me who has been inquiring as to the status of the deal. I know that some reporters have tried to stay on top of it. I either snoozed through their articles on the City's purchase, or they, too, have missed this important development.

And, last but certainly not least, is that during the presentation on the proposed North of South deal to the Metropolitan Development Commission's, Economic Development committee, Commissioner Jim Curtis specifically asked how that deal was coming. He was told that there were still ongoing negotiations.

This is yet another example of Mayor Ballard's brand of "transparency". A bad deal gets morphed into a deal that is entirely invisible to the public.