With the City-Run EMS on everyone’s mind, Madjax has been put on the back burner. Here is the full court document and you will be appalled at what has come to light. Plenty of reading to do, folks. Lots of question to ask this administration and Muncie City Council members.
ENTRY OF JUDGMENT
THEREFORE, it is ORDERED, ADJUDGED and DECREED that
A. The Defendants acted in excess of statutory jurisdiction, authority or
limitations and without observance of procedure required by law and the
Court hereby GRANTS judgment in favor of Thomas Bracken, sets aside
Defendants actions to enter into the Lease, and thereby declares the
Lease NULL and VOID;
B. The Council’s decision to approve Resolution 26-17 was unsupported by
substantial evidence and the Court hereby GRANTS judgment in favor of
Thomas Bracken, sets aside the Council’s actions relating to Resolution
26-17, and thereby declares Resolution 26-17 NULL and VOID.
C. The Council’s decisions to approve Ordinance 33-17 and Resolution 26-17
were arbitrary and capricious and unsupported by substantial evidence
and the Court hereby GRANTS judgment in favor of Thomas Bracken,
sets aside the Council’s actions relating to Ordinance 33-17 and
Resolution 26-17, and thereby declares Ordinance 33-17 and Resolution
26-17 NULL and VOID.
Sometimes the best way to see the future is to dig up the past.
Larry Riley predicted the outcome of Gearbox now Madjax. His column appeared in the local paper on January 30, 2016. One community member claimed Riley was biased in this column, although Riley did provide compelling arguments.
the organization has no revenue stream, no signed tenants, no record of accomplishment Source: Gearbox vs Greenspace Muncie Star Press 1-30-16
Sustainable Muncie hasn’t been around as an organization long enough yet to file its first required annual financial report, having been organized only in December of 2014. Source: Gearbox vs Greenspace Muncie Star Press 1-30-16
Another minus to Gearbox is the cost: $1 million, now guaranteed by the city (if Sustainable Muncie can’t make existing or future loan payments this year, then the city’s money kicks in, but the organization is to pay back the city by the end of this year … how?) Source: Gearbox vs Greenspace Muncie Star Press 1-30-16
So involved was Mayor Dennis Tyler no other ideas could be considered. In fact, he was silent about another proposal, Tom Bracken’s greenspace. Which makes one wonder why he dismissed other ideas and put Gearbox to the feasibility test. Or Bracken’s proposal for that matter. Mayor Tyler brought only one idea to the public.
And that’s the end of that.
Let’s look at what has transpired since Riley’s column. At the time, City council passed an ordinance backing $1 million to be paid back by the end of 2016.
Tyler told The Star Press he wanted to loan $1 million in EDIT revenue to the group rather than just give it to Sustainable Muncie to create an obligation to be repaid. The loan is supposed to be repaid by the end of 2016.
We know for a fact the money was not paid back.
“The city has not issued any money as it related to this line of credit,” officials replied through city human resources director Sarah Beach last week. Donati, who is also a Sustainable Muncie board member, told TheStar Press that the board was “trying to decide what direction we want to go with” the funding for Madjax, including the original $1 million line of credit. “Eventually, something will have to be done with it. … It’s totally Sustainable Muncie’s responsibility to pay that back and they’re looking at how to get that done.” Source: Star Press June 6, 2017
Two months after this article appeared in the paper, the citizens of Muncie were looking at a $4.5 million dollar bond. The bond was passed with the promise of no property taxes and a training program. But, in June, Donati and Tyler were already considering bonding for this project, we just didn’t know about it.
Interesting to note: The City Council had little financial information in 2016 and just a smidgeon more in 2017 yet, they still voted a big fat YES in both instances.
- January 2016 Muncie City Council voted to loan Gearbox $1 million with no financial information
- December 2016 Loan not paid
- June 2017 Donati said it was Sustainable Muncie’s responsibility to pay back the money
- August 2017 Notice for public hearing on $4.5 million bond published
- August 2017 Muncie City Council learned of Sustainable Muncie’s debt
- August 2017 Donati said $200,000 has been set aside by Muncie Redevelopment Commission & others for $348,000 annual bond debt repayment (Muncie Redevelopment Commission & others)
- August 2017 Muncie City Council voted to introduce the ordinance
- September 2017 Public Hearing for Madjax – Sustainable Muncie
- September 2017 Muncie City Council voted to approve the bond
Madjax was not able to pay the interest-free loan in 2016 or make any payments in 2017. Muncie Redevelopment has set aside $200,000 to guarantee the 2018 bond payment.
This is the transparent government of Mayor Dennis Tyler. But I digress…
Three quotes from the newspaper best explain the public’s complaint against the Muncie Redevelopment Commission and the City of Muncie’s request for $4.5 million dollars in financial support of Madjax.
“These much-needed revenues, which should be used for essential city services, will be diverted to subsidize this project that is not for the public utility and benefit.” Tom Bracken (remonstrance)
Gregory said this week that the project was “a non-profit that has too little history to make it viable for the 23 years of the bond’s life.”
Ridenour said that Tyler is “within his scope” to use EDIT funds for the building. “The project has some merit but I would prefer to see it occur over time so that it is self-supporting.” Remonstrance, question Muncie Star Press 9-8-17
Indeed, our tax dollars should go to provide essential city services. The city is at the highest tax levy we have ever seen. Mayor Tyler and Muncie City Council passed LOIT and increased EDIT tax in 2015 at the highest percentages. Currently, the city is paying attorney fees and we have no idea of the financial cost. Yet, according to a previous article, Madjax will use a portion of this bond to pay off their debt liabilities.
According to a previous article, Madjax will use a portion of the bond to pay off their debt liabilities. Should Madjax fail to have enough revenue, then city tax dollars will pick up the shortage. Certainly, this is not a financially sound move for the city tax payers.
Nora Powell resigned from the board because it is a conflict of interest. Last we heard, Todd Donati sits on the board of Sustainable Muncie and is the Economic Development Director. Would this not be a conflict of interest?
A remonstrance has been filed
Nora Powell Muncie City Council resigned from Madjax board citing conflict of interest
Linda Gregory Muncie City Council cited lack of requested information
Madjax assets $2.4 million (includes building at $2.4 million)
Madjax debt $1.7 million
Revenue for 2017 $168,817
In 2016 the City of Muncie earmarked a loan for $1 million for what then was known as Gearbox. Tyler told The Star Press he wanted to loan $1 million in EDIT revenue to the group rather than just give it to Sustainable Muncie to create an obligation to be repaid. The loan is supposed to be repaid by the end of 2016. City council split on Gearbox loan
When Madjax first came on the scene it sounded pretty cool. This was before board members resigned, and the city offered to support with tax dollars.
Just a reminder, the City of Muncie passed an increase in taxes EDIT and LOIT in 2015, effective January 1, 2016.
Stop gambling with our money.
Muncie City Council Meeting
Muncie City Hall
Monday September 11th