8/16/13

On the hotel/motel tax switch by unelected executives at the "city" and the CVB, by fiat, the referendum, and "binding agreements"

Fiat

1: a command or act of will that creates something without or as if without further effort [as in without a vote by city council]

2: an authoritative determination : dictate [by Denise Turner Roth]

3: an authoritative or arbitrary order : decree [by Denise Turner Roth, the former lobbyist for the Greensboro Partnership, whose property is about to be purchased by the city]
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From the city late yesterday afternoon;


"Mr. Hartzman,

There are two hotel/motel taxes that provide funding for City capital improvements.

The CVB [Convention and Visitors Bureau], County and City [also approved by the Local Government Commission] had previously agreed [by vote] to use the City capital funds to fund $7 million in debt service on the Greensboro Aquatic Center. [which is being undone without a vote]
[The votes by the county and city have not been rescinded, therefore last night, Guilford County's Commissioners voted to allocate already legally allocated money to a different project without rescinding the prior vote on the same money.]

The City capital funds are a portion of the Guilford County hotel/motel tax revenues...

Those capital funds were previously set to be used for debt service on the Greensboro Aquatic Center. [by votes of elected officials, the CVB and the Local Government Commission]

However, in 2012, the CVB and the City discussed and agreed to using the City’s own hotel/motel tax revenue to service the debt for Greensboro Coliseum Complex capital improvements. [by fiat, without a vote by any of the above elected governmental bodies and the Local Government Commission, and without any votes rescinding the prior allocation.]
That agreement, confirmed this week by the CVB, [by fiat, via an unelected board, which has not been provided by the city] provides the opportunity for the City to use its capital funds from the Guilford County hotel/motel tax revenue to fund the GPAC with both CVB and Guilford County approval. [without a vote by city council, commissioners or the Local Government Board to rescind the prior allocation.]

And, as you are aware, on February 19, 2013, the City Council passed a resolution directing the City Manager and staff to begin discussions with Guilford County to allow the City to use the City capital account to finance construction of the GPAC. [without rescinding the prior votes of elected officials and the Local Government Commission]

Attached are the February 19, 2013 council minutes and resolution, highlighting the appropriate location."

Sincerely,

Public Information Desk
City of Greensboro

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The highlighted text the city sent, which doesn't say they were going to switch the accounts;


No mention of how the funds would accumulate, which would only be possible if the city switched where the money was supposed to come from.

No mention of the switch.

No mention of the referendum motion voted for by City Council, which is still in effect.
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My response to the email;

"Please provide the agreement and the city council vote to switch the funding by 5:30pm, when the county commissioner meeting begins. [didn't receive the agreement, and it appears there was no council vote to switch the funding]

...Looks like the "city" reallocated the funding without a council vote [by fiat], considering you didn't provide one."

George Hartzman
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I spoke with two City Council members who were unaware of the switch.

The chart presented by Denise Turner Roth at the Guilford County Commissioners meeting that shows the money set aside for the Aquatic Center on the left that says "additional capital outlay" is being switched to the account on the right without a council, commissioner or Local Governmental Commission vote, after it took all three and the CVB to make it happen in the first place;

The problem with the Greensboro Levy side is it's not allowed to be used for anything other than the Coliseum Complex, which is why they had to switch accounts;


From the resolution voted on by City Council on February 19, 2013;

"56-13 RESOLUTION CONCERNING THE PROPOSED GREENSBORO PERFORMING ARTS CENTER

...WHEREAS, the City of Greensboro is evaluating options for financing the construction of the GPAC, including the use of the City’s share of hotel-motel taxes collected by Guilford County that are restricted for City Capital projects and other facility-based fees [which they already allocated to Aquatic Center debt]; and

...NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GREENSBORO THAT:

1. The City Manager and City Staff are authorized to begin discussions with Guilford County to allow the City to access the City Capital account [which was already voted on and allocated to the Aquatic Center], derived from the County’s hotel-motel tax levy, to finance municipal financing instruments in the amount of $10,000,000.00 for construction of GPAC;

...3. However, the City Council will not permit any financing efforts to be completed for the $20,000,000.00 in municipal financing outlined above until the GPAC Task Force is able to confirm that they have obtained binding commitments for a minimum of $20,000,000.00 in private contributions for the GPAC.

(Signed) Zachery Matheny

Councilmember Matheny’s motion was adopted on the following roll call vote:

Ayes: Hoffmann, Johnson, Kee, Matheny, Vaughan and Perkins.

Noes: Abuzuaiter, Bellamy-Small and Wilkins."
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Has anyone seen the "binding" private donor agreements?

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