Hello list members,

After returning to Mpls from a great vacation in Glacier National Park, and
a quick review of over 400 accumulated emails, I must offer my belated
support and congratulations to MPRB Commissioner John Erwin for his posts to
the list regarding the MPRB HQ deal.

Commissioner Erwin's previous post documenting his reasoning for supporting
the project and his recent follow-up note describing why, upon further
review and analysis, he changed his mind and opposed the project, are
welcome commentary concerning the decision making process.  All decision
makers should welcome new information and be willing to incorporate such
data in an evolving thought process that results in the best decision, given
the data and information available.  I hope we see more, not less, similar
public reasoning and discussion at all levels of local government, including
all the independent boards.  Such discussion facilitates public involvement
in the political process and makes that process more transparent and
understandable to city residents, voters and taxpayers.

In my quick review of recent posts on the MPRB HQ subject, I read that new
numbers were presented to the MPRB concerning the deal, and I read several
pro and con arguments concerning the merits of the deal.  I also read
comments chastising the 'uninformed' views [about the deal], as shared by
list members on this public forum.  As with all uncensored public forums,
there is the good, the bad and the mediocre-- the proverbial wheat and
chaff.

I reviewed the initial staff financial analysis on the MPRB HQ deal and
found it lacking, as I posted here on July 23rd.  I have no preconceived
notion about the deal, but would hope that our elected leaders have the best
information available to make objective, well-informed decisions concerning
the expenditure of our tax dollars-- period.  Hopefully, the revised
numbers/analysis included a discounted cash flow, net present value analysis
with realistic O&M costs for the ownership option over time-- I haven't seen
the new numbers.  WAS THIS THE CASE?  anyone?

I also congratulate Mayor Rybak relative to his suggestions to the MPRB as
part of his veto of their proposal.  Specifically, his suggestions that a
comprehensive assessment of common real estate needs by all units of local
government is in order; his suggestion that there may be opportunities to
co-locate other neighborhood services in the one-stop-shop approach; the
lack of competitive bids associated with the HQ deal; and most importantly,
the Mayor's criticism of the now historically common practice of local
government, including the MPRB and the MLB, of pursuing capital projects
without including the ancillary O&M budgets that will be necessary to
operate and maintain the projects into the foreseeable future. This lack of
structurally balanced (capital and operating) budgeting is in large part the
cause of the current fiscal difficulty being experienced by all units of
local government.  Everyone needs more annual operating funds to adequately
maintain existing capital projects and facilities.

The Mayor's list went on to include other potential cost saving measures the
MPRB should consider, including consolidated policing, solid waste hauling,
and youth programming. All good ideas and worthy of consideration as cost
cutting and efficiency improvement measures-- ways for the city to provide
better service delivery at lower cost.

I applaud the Mayor and new City Council for taking this budget-bull by the
horns, and it is my hope that concerned city residents reinforce the point
in daily discourse, in the local newspapers and here on this electronic
forum.  And all elected officials should take heed.

Michael Hohmann
Linden Hills
www.mahohmannbizplans.com

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of
John Erwin
Sent: Thursday, August 15, 2002 3:40 AM
To: [EMAIL PROTECTED]
Subject: [Mpls] Re: Why I Changed My Vote - John Erwin - Commissioner
Perspective

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 Mississippi River.  As
many of you remember/know I have been supportive of this purchase in the
past.

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 Minneapolis and the Parks.  My rationale is/was simple:

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!

snip

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.

snip

Sincerely,

John Erwin
City-Wide Park Commissioner




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