[Mpls] Snelling Neiman $2.5 million liability

[Shawne FitzGerald]

By July 2002, the MPRB formed a partnership with Bob Naegle III, Dan 
Peterson (project manager) and a silent partner dba The Fort LLC aka The 
Fort Inc.  The Fort LLC was given a 30 year lease on 7 acres including 
the 201 Building aka the Drill Hall at Ft Snelling. MPRB purchased this 
park area part of the original $14 million investment - so the 7 acres 
was worth roughly $2.1 million.

The Fort LLC (http://www.fortsports.com/) planned to build an indoor 
skateboard park and a rock climbing wall in the 27,000 sf Drill Hall as 
well as "a 75,000-square-foot outdoor skatepark, two outdoor in-line 
skating and ice hockey rinks, a food vendor and a retail store. The 
essence of a skatepark is a collection of ramps for skateboarders."    
See Scott D. Smith in the Business Journal for more details on this 
project 
http://twincities.bizjournals.com/twincities/stories/2002/11/04/story4.html?page=1.  
The project budget, $3-$4 million, was categorized as high for this type 
of project.  Financing was not secured before the MPRB entered into the 
partnership.  Within a year, this project budget apparently climbed to 
$6 million.   With the MPRB land - this would have been a capital cost 
of $8 million. 

By December 2003, Bob Naegle III as Athletica Chairman and Founder was 
involved in the POWERade Iceport, a similar project in Wisconsin.  
(http://www.poweradeiceport.com/site/content/news/story_ID_117.asp).

The Fort LLC failed to pay its contractors and by April 2004, all work 
ceased.  The MPRB canceled the lease.  At the September 1, 2004 MPRB 
meeting, staff reported that insurance might cover part of the $2.5 
million liability.  At the September 15, 2004 MPRB meeting, the Board 
authorized staff to negotiate with new unknown developers for an 
unspecified project at the 201 building

And, the MPRB remains on the hook for $2.5 million in liens on 201 building.
Why did the MPRB even want an $8 million skatepark at Ft. Snelling?  
Operated by a for-profit company!  How does this fit with the MPRB goal 
of using Ft Snelling to better serve our park kids?

Sincerely,
Shawne FitzGerald
Powderhorn
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