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Friday, July 20, 2007

Ind. Decisions - Potential Legal Snag for Fort Wayne's Harrison Square?

An interesting story today from Fort Wayne's Channel 15-WANE:

The definitive agreements for the Harrison Square developers are done and waiting for final approval, but the deal for the baseball stadium management is causing a stir.

The city agreed to have Hardball Capital, which owns the Wizards, manage the city-owned baseball stadium. But state law says, "any public-private agreement ... must require the governmental body to request proposals ... before entering into the public-private agreement."

Some critics of the project say making an agreement with Hardball to manage the stadium without first having an open bid process is illegal, but city attorneys disagree.

"We've been working with the understanding the [stadium] is not a government public service and therefore not subject to that statute," City Attorney Tim Manges said.

The issue was brought to the forefront after the Indiana Court of Appeals ruled the Fort Wayne State Developmental Center broke the law when it didn't have a bidding process for its private management.

"With this new case, which we are all trying to digest, we want to make sure that it doesn't put a twist in this obligation," Manges said. * * *

Fort Wayne resident John Kalb wrote the commission a letter asking them not to give it the OK.

In his letter, Kalb said, "The entire Harrison Square project has aroused much public suspicion and any premature and illegal action on your part at this time will only add to the public cynicism."

Kalb continued to say if the commission approves the management agreement with Hardball without a public bid first, he will file a law suit "challenging and enjoining" its actions.

But Manges said while the baseball stadium is public property and a public amenity, it is not a public service.

Indiana Code defines a public facility as "a facility located on... real property owned or leased by a governmental body and upon which a public service is or may be provided." The law defines public service as "any service customarily provided by a governmental body."

"What they are doing is operating a ball team and managing a ball park. That is not a service within typical government functions," Manges said.

City Councilman Don Schmidt wants to make sure everything is above board after the appeals court ruling.

"In light of this new information, it seems to me we should make certain we are legal in not putting it out for bid, and it seems to me we ought to do that," Schmidt said. "If Kalb is serious and takes it to court, we don't need that. I bet few other people bid on it other than Hardball. Hardball makes sense, but do it right the first time."

Manges said several city attorneys are reviewing the court ruling and state law to double check if the stadium agreement is legal, and they should have a final review of the situation this weekend.

"We want to give the Redevelopment Commission and City Council the confidence that the way we're going is the right way to go," Manges said.

The commission is holding a special session Monday to vote on the final developer agreements and city council will discuss the project Tuesday.

Fort Wayne Observed has more of this in an entry from July 18th, including a link to a copy of the Kalb letter.

Posted by Marcia Oddi on July 20, 2007 03:10 PM
Posted to Ind. App.Ct. Decisions