numbers dont Lie? MAYOR WAYNE SEYBOLD PROBLEMS 1. Failed Michael An boutique hotel deal-cost $2.5 million- Mayor’s brother hired by contractor-debt rolled into $5 million dollar refunding bond 2. Failed Marion Land Development deal – now in bankruptcy -City responsible for $3 million bond anticipation note 3. Failed hockey arena project-City responsible for $3 million bond anticipation note 4. Failed Veriana business deal - City provided property for Veriana - Veriana defaulted on loan from Muncie - Muncie foreclosed and took over Marion property 5. Failed Earthbound RV deal- defaulted on $2 million loan guaranteed by the City - City had to roll debt into 25-year bond 6. City lost money on failed furniture manufacturing and sales business deal (YK Furniture) 7. In December 2013, the Marion Redevelopment Commission approved two revenue bonds totaling up to about $10.8 million. The bonds will be used pay off three existing revenue bond anticipation notes that total about $9.5 million and will then be repaid with TIF funds. In other words, this refinancing essentially added about $1.3 million in principal in 2013. Most of the projects associated with the three BANs — which the city took on in 2009, 2010 and 2011 — never got off the ground. 8. A Café Valley bakery official who helped solicit millions of dollars in bonds from Marion has been cited for millions of dollars in fraud by the federal government. Larry R. Polhill, who said he remains a principal partner and board member of Café Valley Inc., defrauded more than 485 investors out of about $160 million over a period of decades through another company, American Pacific Financial Corporation (APFC), according to a lawsuit the U.S. Securities and Exchange Commission filed against Polhill on Sept. 24. Marion City officials either did not know this or did not make it public before making the Café Valley deal. 9. City has overspent revenue every year since 2008. City had $13.3 surplus in 2008, now there is a deficit. 10. Mayor Seybold used $7,000 of tax money to buy full-page newspaper ads and radio ads to publicize that the City had a $2 million operating surplus at the end of 2013. Actually the City had over a $2 million deficit. City has borrowed $4.7 million for operational expenses ($3 million 5-year bank loan and $1.7 million loan from the City Utility). These loans are over and above the usual tax anticipation loans that are paid back when the City gets its property tax draw. 11. Increased property tax rate by 23% in 2013 12. Allowed head of City Building Department, Larry Oradat, to use City equipment and employees to demolish house on Oradat’s property 13. Fire Chief under Mayor Seybold pled guilty to seven counts of theft from City
Posted on: Wed, 12 Mar 2014 05:04:18 +0000