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Hello
Everyone, I
wanted to take a moment to explain the rationale for changing my vote related
to the New Park Board Headquarters on the Recent
changes in the financial numbers as well as public input changed my opinion on
this issue. The new numbers were presented to the Board last week. I had significant concerns. I voiced those at the meeting last week –
but in the end supported the purchase. After more thought and looking at the
numbers, I could no longer support the purchase. Obviously, the majority could. Although this may seem like a reversal
to some, it's simply an informed decision based on continuously changing
numbers. Those numbers have been changing
weekly! My decision is based solely
on the benefits to the citizens of 1) When City Council essentially did not
approve the Park Board's effort to bond the purchase through the city about two
weeks ago it forced the Park Board to seek external funding to complete the purchase.
This occurred. Two things occurred
with respect to financing - the interest rate on the loan increased and the
term of the loan decreased. The result was a significant increase in the monthly
payment (approx. $150,000). In
previous financial breakdowns, potential rental space would have resulted in a
net profit to the park system.
Under the current financing, all the rental monies will likely go into
making the payments. The previous
numbers resulted in a revenue stream to the system beyond the loan payment. I
do support finding a permanent home for the Park Board and it simply makes
sense to purchase a place rather than paying rent for another 125 years! However, because we are looking at
significant cuts in services and a potential reduction in staff due to budget
cuts through recent actions of the economy, City Council, and Mayor, I could no
longer justify the purchase at this time.
Remember that the original numbers showed the purchase was revenue
neutral with an income stream via rent that would have helped offset the recent
cuts! In addition, the state's,
city's and park board's financial pictures have steadily been getting worse! 2) As a City-Wide (At-Large) Commissioner,
my focus is the entire Minneapolis Park System. In my estimation, the Park System needs
a city-wide referendum. There has
simply been a slow erosion of the maintenance of our facilities and reduction
in staff. Staff and facilities are
stretched to the limit! I
was/am concerned that this issue (Headquarters Purchase) would erode the
support of the citizens for such a referendum - thus jeopardizing the health of
the entire system! That is more
important to me (and the citizens) than a single building! Plus,
I have always been concerned with the lack of public involvement in this entire
process! The culture on the Board
has been to purchase and then ask the public - in my estimation this is
backwards. I
hope this is helpful to some of you in understanding the basis for my past
votes and recent vote on the purchase of this building and property. Your opinions have been and are always
valued. Sincerely, John
Erwin |
