FOIA FIGHT UPDATE

As many of you know, we have been embroiled in a legal battle with the City of Grand Rapids to compel the disclosure of public records which reveal conflicting valuations of the Boardwalk commercial-residential complex in the Monroe North district of downtown.

The City has one written statement from the Boardwalk's developers claiming that $31.5 million was invested into the project.  This high valuation was used to obtain three huge loans from local banks and meet the City's investment threshold to qualify the project for a $2.5 million taxpayer subsidy.  The developers got the loan, but did not get the subsidy when they refused to turn over to the City invoices for the project to prove that the investment had actually been made.

So the Boardwalk developers made a second written statement to the City claiming to have invested only $20 million into the project.  On that basis the City Assessor's Office slashed the Boardwalk's assessed value down to less than $20 million.  Thus, the developers still got their tax break with this low-ball assessment.  However, public records and the agreement the developers signed with their bankers plainly state that at least $31.5 million was put into the Boardwalk project.  Furthermore, the developers recently sold the Boardwalk after listing it for $38 million.

It is clear that the taxpayers and residents of Grand Rapids have been had.  The Boardwalk developers got a big political favor with this low-ball tax assessment, and it's a serious matter that two of the City officials involved in trying to win a tax subsidy for the project worked for law firms that represented the owners of the Boardwalk.  So the City Attorney's Office has refused to release either of these written statements, despite our lawful requests for them under the Freedom of Information Act.

The matter now lies with Judge Redford of the Kent County Circuit Court.  He was supposed to have a decision ready on Friday, March 3rd, but a criminal matter, which has priority on the court dock, intervened.  The judge has rescheduled the announcement of his final decision on Friday, March 17th.  Meanwhile, we have asked City Commissioners Rick Tormala and Rosalynn Bliss to look into the evidence we already have of the low-ball tax assessment.  Tormala has promised to act and has pressed City Manager Kurt Kimball to release the documents.

Nothing from Bliss so far.  Let's hope that's not a sign of her embracing the penchant Mayor Heartwell, her political mentor, has for secrecy.  That's problem with so-called progressives.  They are so sure they know what is best for us little folks, they don't think they need to be bothered to keep us in the loop.

Comments

[larry]

good moring-The boardwalk property has been sold to Rooks-Do u know the selling price?

[The Executive Director]

Hi, Larry.

I have not been able to get that information. However, if the City renewed the Boardwalk's Monroe North TIFA tax subsidy deal for Rooks, then he must prove an investment north of $25MM. That would be exclusive of the new residential buildings he is proposing, because it looks the City OK'ed an additional subsidy for those.

Regards, Bill