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City still waiting on RTC funds
Published 11:15am Tuesday, March 20, 2012Fergus Falls City Council members and potential Regional Treatment Center developer Atul Wahi engaged in a verbal “chicken or egg” discussion on Monday night when Wahi spoke on the future of his RTC proposal at the council meeting.
At issue was the council’s request, made at the Feb. 21 meeting, that Wahi submit more detailed information about his finances as a developer and about his financial wherewithal to complete the proposed $100 million project. Also discussed was the request that developing entity Geitso Export Management come up with a deposit of $5 million in some form by the end of March, to function as security for the city in case the plan falls through.
In the case of the financial information, the council has asked for this information since the original request for proposal process began last fall.
Wahi originally planned on showing a PowerPoint presentation to the council, laying out more information about the project, additional information about his two companies (Geitso and Wisesoft), and addressing public record information obtained by the council and The Journal regarding his financial history.
However, since Wahi has not submitted any additional financial information to the city (or any evidence of the $5 million), the council did not want to hear more about the project.
“Until we get the requested information, I don’t know that there’s any need to discuss details of the future,” said Alderman Randy Synstelien.
He was echoed by Jay Cichosz, Stan Synstelien, Pat Connelly and Scott Rachels.
For his part, Wahi said it would be hard to guarantee the council the $5 million and a list of investors before the council agreed to move forward with the project in a non-binding way. The council, on the other hand, said it would be hard to move forward without those assurances already in place.
“If it accomplishes the same thing, it’s a win-win situation for everyone,” said Wahi of adjusting the timeline for him to fulfill the council’s requests.
Wahi and the council went back and forth for several minutes, with the exchange becoming quite blunt, particularly on the side of the council.
“That’s great if (the financing plan) is going to happen contemporaneously, but ahead of that happening, I have serious doubts that you have investors lined up without first the property in your name and some ability to get those tax credits, and I have serious doubts that you have the cash equity to back this thing should it fail,” Cichosz told Wahi. “We’re looking at protecting not only that property but all the taxpayers and the money that’s been set aside by the state.”
Wahi said he could not promise that he would have the money by the end of March, but he said he intends to submit the requested information by that time.
Wahi also spoke briefly on his financial history, saying that the eviction claims against Wisesoft were false (and due to be expunged, he added, although they are still on the Minnesota Courts website as of press time) and explaining that his non-payment of a traffic ticket was due to having switched addresses around the time of the violation. He also noted that he made the same statements to The Journal before the article on his history ran.
The Journal included his explanation of the eviction claims and the traffic ticket in its original story.
Though he primarily took issue with The Journal’s coverage of the information, he added that the council should have addressed him directly if they were concerned about his past.
“If (the city) had confronted me, we would have taken the same steps to address them in a satisfactory manner,” he said.
Though the council maintained its desire to see evidence of Geitso’s financial wherewithal before moving forward on a project, the matter was far from settled in many meeting attendees’ eyes. A group of Friends of the Kirkbride members crowded around Cichosz after the meeting to urge him not to approve the RTC’s destruction under any circumstances, and shortly before the meeting adjourned, local resident Anthony Hicks asked the council to hold out hope for the building and to give Wahi’s plan a greater chance for success.
“I think we’re asking a lot to be done in a very condensed period of time,” he said of the financial requests, noting that most of the council’s statements towards Wahi had been pessimistic, in his opinion.
“That’s one thing that Fergus Falls seems to be good at,” he added. “The one thing we excel in is negativity.”
I see that the Journal in its wisdom, is not commenting on the council stating that Mr. Wahi is banned from talking to the state representative, the mayor, or anyone else in public office. I am real curious to what happened to the freedom of speech amendment, and why are the ones that they all stating that they need to talk to KM or MS. They are not here to represent the city in any way. Then there was the performance that was put on by our city administrator. If there were anyone on the council who had a backbone, there would be a meeting regarding the dismissal of someone hired by the city, who put on such a disturbing display in a public setting, while representing the council. Any other employer would give a person the boot.
The City Council should be cautious when dealing with Mr Wahi – a person that cuts corners in his personal life will often do the same in his professional life.
Good to see that the council has developed a backbone in dealing with people making promises of grandeur and fame, while hedging on putting any of their own assets into the grand scheme. Good for the Journal for holding the feet of all the parties to the fire of skeptical public inquiry.
And now I see that there are a whole lot of people who admire the socialist state that the city has become. If you were up to speed, you would know that Mr. Wahi has been or is in the process of having all those expunged, because they are false accusation. Camilla its nice to see that you support your husband, as well as the red trade paper known as the Journal
Jean, you have no idea who my husband is, or what he does for a living, where he works, what connections or interests he has in the development or saving the RTC. Your insulting remark about my husband has no place in this discussion, yet seems to reflect the level of your personal character when you take the low road as you have done here. My husband has never posted a comment on this blog, nor written a letter to the editor here.
And, if you did follow the many posts I have made here and in letters to the editor, you would see that I often rebuke the Journal for many of its positions. But, when they get it right, as in this case, I give them their due credit.
Thanks Anthony, well stated.
Jean, well said. Holly munk, really again? Didnt my posting about sex offenders shine any light on you? You left the same comment pretty much the same as the last time. Camilla, to me it sounds like your sick of hearing about “false promises” and other things that the council has “found”. In my opinion maybe all of the council should resign due to short changing and making false alligations twards people. Better yet how about denying a person who has every right in the book to notify public officials and his right to “FREEDOM OF SPEECH”. This is our rights as americans, to me anyone who denies people of rights like this should be taken off the council. I know because i do sit on the city where i live.
Your nonsensical argument about sex offenders did nothing to change my opinion. The City Council is doing their due diligence. Mr Wahi does little but offer one excuse after another. All the Council is asking is “show us the money”. It’s too bad that the Kirkbride lovers do not have a more qualified developer to lend their support to.
I agree with Holly, regardless of Mr. Wahi’s past. This is a property transaction, and an earnest money deposit shouldn’t be out of the question, I believe it is fairly common. 5 million on a project of this size does not seem out of line. It is important that the council have the taxpayer’s backs on this to avoid the city getting stuck holding the bag. Mr. Wahi was the only proposal that was submitted and accepted by the council, so if this falls through it will be demolished. Sad, but that is how it goes.
Holly, i am glad that you are so judgemental on mistakes that some people have made. If i dig stuff that is in the past on the council members are you gonna spout off at them as well? I bet you won’t. Answer me this then seemings how you have the answers. Why is it that the council won’t give up the title to the property even with the $5 million dollars? Seems pretty fishy to me.
Maybe they won’t give up the title because they realize that the new owner could demolish the RTC’s less desirable buildings, sell the other buildings and land off piecemeal for 5 to 10 times the $5million, then walk away with a huge profit which could otherwise accrue, at least in part, to the city treasury, and directly benefit the taxpayers with the new found bounty.
Why are you so anxious for the city to literally give away a property which could exceed $100 million in value with the right development? Are you working for Wahi or Geitso?