The Grand Sakwa Affair

“Somebody’s lying.” 

Even some veteran city hall observers have unhappily come to that conclusion, after exhausting all other speculation, including the frequent suspicion that – even though nothing illegal is done – the details of some deals between city hall and developers are, understandably, resolved behind the scenes. 

There were conflicting statements during the 06 October CITCOM meeting, accompanied by a breakdown of civility and followed by press reports which further confused the debate over the proposed development at Thirteen Mile and Coolidge area. The desirability aside, of any development which might affect that area’s recreational facilities, the components of the ongoing debate are Timelines and Substance and Motivations.

About timelines, we have the complaint that some commissioners are pushing the matter too fast and the counter-complaint that “We have been at this for more than four months.” 

About substance, we have the charge that the developer has not provided enough information to permit CITCOM to make a decision, either about the planned development or about the price. The counter-argument is that the city has received two proposed purchasing agreements. 

About motivation, the speculation ranges from personal animosities, to political ambitions, to the desire for a millage increase. 

Through all of this, the Administration has performed erratically, both at The Table and in such matters as scheduling, canceling, rescheduling Closed Meetings. As I write this, yet another Hoover-recommended Closed Meeting has been cancelled, by Hoover. 

To the degree that I consider it helpful, and as long as seems necessary, I’ll provide and perhaps comment on input gathered from involved sources. -- 22 Oct 08

Where are these guys coming from?
There is a surge of residents' interest about the mindsets of elected and appointed officials as they address the ongoing Sakwa Affair. The surge reflects uneasiness and suspicion caused by the less-than-clear picture painted by the the zigzag nature of recent CITCOM deliberations. 

Their Day Jobs

Requests for information about the occupational backgrounds of the city commissioners and the mayor suggest concern or suspicion that their day job might influence where they come down on approving or opposing the Sakwa development.

Here's the picture.

Commissioner Mike Andrzejak
Currently an Insurance Broker for State Farm Insurance

Commissioner Terry Drinkwine
Retired
Royal Oak Police Officer and Entrepreneur

Mayor Jim Ellison
Architectural/Civil/Structural Cost Estimator for Barton-Malow

Commissioner Carlo Ginotti
Attorney, currently employed in the State Attorney’s Office 

Commissioner Gary Lelito
Information Technology Executive for
well-known national bank

Commissioner Stephen Miller
Retired Private Practice Accountant
Municipal Finance & Auditing background
Trust & Estate background

Commissioner Chuck Semchena
Attorney in Private Practice . Retired
Royal Oak City Attorney
-- 22 Oct 08

Who reports to whom?

The Sakwa Affair has budget implications. Addressing the issue calls forth conflicting preferences re tax base, millage, saving green space. So even highly praised Finance Director Don Johnson is coming under scrutiny in terms of where the deciding influences are in city hall. VersagiVoice asked City Attorney David W. Gillam to provide an official listing of the relevant city positions.

The City Commission appoints:

City Manager
City Clerk
City Treasurer
City Assessor
City Health Officer
City Attorney (Director of Law).

"While the Treasurer and Assessor are appointed by the Commission, those positions report to the Finance Director [Don Johnson]."

 
Answering a question about his own department, Gillam responds:

"The City Attorney could fire his/her assistants and/or clerical staff without specific City Commission approval.

"Assistant City Attorneys are at-will employees; the legal secretary is a member of the Professional & Technical Employees Association." -- 22 Oct 08

From the 20 Oct 08 CITCOM meeting
Fourteen of the 18 speakers during Public Comment oppose the proposed Grand Sakwa development at Coolidge and Thirteen Mile. There were a couple of out-of-the-box comments which went beyond the usual residents' sometimes emotional complaints about traffic and children's safety and noise, One fellow suggested adding a second story to the batting cage (or was it the driving range?); a woman suggested that a development in that now "peaceful" area would endanger mental health; two people sniffed that Royal Oak has enough grocery stores and retailers and that people can walk or drive the mile or so to existing locations after the Northwood Shopping Center dies.

One could come away from this meeting thinking the Sakwa development is already dead, but given the confusing actions and non-actions of CITCOM and the Administration, that's not certain.

About the Grand Sakwa Proposal
A Conversation with Commissioner Chuck Semchena 

Quickly it became obvious that Semchena considers the debate about the development, or not, of the Coolidge-Thirteen Mile area provides a case-study in government operations and of the behavior of elected and appointed officials.* 

I wanted to talk about timelines, substance, and motivations. Chuck, coming with a folder containing memos and minutes, was ready to talk about timelines, substance, and motivations. To use Bill O’Reilly’s term -- Semchena spoke pithily, to-the-point, about the Grand Sakwa issue and the city’s financial crisis. Semchena maintains that both issues are intertwined and need to be considered at the same time. 

We went immediately to timelines. “How can anyone say we are moving too fast? We received our first memo, describing a preliminary footprint, in May. We’ve had four months of closed sessions.” He maintains that one closed session would have been enough and that there was no need to keep appropriate information from the public. He said that the Administration “dawdled.” 

There is a time factor in the discussion of substance, too. Watchers came away from that 06 October CITCOM meeting with the impression that some commissioners were unaware that the developer had already proposed a purchase price (Three non-commission sources have told me that two tentative purchase agreements had been submitted by Grand Sakwa in the months before the 06 October meeting. – FJV) “There were preliminary negotiations during the summer,” including input provided by City Manager Tom Hoover and City Attorney Dave Gillam. "Updates were provided to the commission on a regular basis."

The truth could not be determined by anyone who only listened to Commissioner Ginotti`s comments at this meeting or who read the city manager's comments in the newspapers, Semchena says.

During those negotiations, he maintains, really substantive matters were discussed, like the appropriateness, or not, of seeking other bids for the purchase of the city property. “Grand Sakwa owns the lease on the property. In legal terms, that is now ‘encumbered property’ on which no other bids can be sought.” About the $2.1 million offer he says, “Consider the value of other proposed Grand Sakwa actions, like paying the cost of all environmental cleanup of this old landfill, of relocating the recreational facilities, of providing the environmentally friendly water hole on the golf course, which is consistent with a Planned Unit Development (PUD) because it provides a public benefit.” Chuck describes a PUD as “zoning by contract.”  The final contract is not entered until the end of the PUD process that includes several public hearings designed to gather public input. This usually takes several months. If the developer does not address all issues raised, the city can decide to stop the project.

“It is unfortunate that the questions raised by many concerned citizens will never be answered. It is apparent that this project has been killed by delays and that the PUD process and public hearings will not occur. We will never have the chance to see if the concerns can be resolved. If they were resolved, the city would have the benefit of the purchase price, tax revenue, and public benefit improvements. Several of us on the commission had proposed that the sale proceeds be endowed and use the earnings to continue the funding of recreational programs and programs at the senior center. Currently, all of these programs are at risk due to the financial crisis”. 

Turning to the motivation for why some of his colleagues are slowing down or attempting to kill “this substantial buildup of the city’s taxable base,” Semchena suggests two possibilities, which may be interrelated: First, the intention eventually to put a millage on the ballot.” We must remember that at a recent special city commission meeting, Ginotti authored an initiative that requires the city administration to size a millage proposal. The millage proposal is scheduled to be presented at the December 1st City commission meeting. Second, several City Commissioners may be considering running for Mayor in 2009. It is obvious that Commissioner Ginotti has already begun his campaign from the Commission table”. The interrelation, as Chuck sees it, is that “In order to avoid accountability, Ginotti needs to postpone placing a millage on the ballot until after the November 2009 municipal election.” 

Will the overall Grand Sakwa project be approved?
"Building our tax base is important to the future survival of the city. Recently, a Planning Commission meeting was canceled because no new applications for projects were submitted to the city. Economic activity levels are at an all time low. Oakland County estimates that Property values are decreasing at an estimated 11% in the next 2 years. The Grand Sakwa project may have been the only viable proposal that would have significantly increased our tax base in the near future. I believe that the project is now dead due to the delays in providing any legitimate response to the developer. 

"Unfortunately, but not surprisingly, the only remaining remedy for the City’s financial crisis that is currently on the table is Ginotti`s initiative to size the millage increase.** As Ginotti stated at the September 13th special Commission meeting when urging his fellow commissioners to support his initiative 'Its time to stop sitting on your thumbs.' It will now be interesting to see if the same urgency is emphasized when the millage numbers are presented in December. Or will Ginotti attempt to avoid accountability or delay a millage until after the next municipal election with the same vigor and misinformation he used to delay the Grand Sakwa proposal?" -- 29 Oct 08

 * The four CITCOM members who charged that matters were being rushed have not responded to VersagiVoice's invitation to suggest a spokesman for a conversation.

** I have been told it will take a 4 to 6 mil increase to return to optimum city services and a balanced budget.

§ Frank, I think it is important for you to check the records of the past City Commission meetings.
If you look back correctly, in my last year in office, when Commissioner Ginotti did want to vote to sell Normandy Oaks, I gave him my idea, which he introduced at the Commission table...to look at proposals to sell the exact piece of land at 13 and Coolidge that he now opposes.  Ginotti is gunning for a major tax increase, one that the voters of Royal Oak will most certainly turn down. -- Andy Prentice
-- 03 Nov 08

§ Frank, I just read everything on this weeks "plate" and the points made about the Sakwa proposal are right on.
I was the Commissioner who was having Johnson provide the details as to how much money could be raised annually if we took the Sakwa sale proceeds and peeled out $200,000.00 each, one for Recreational activities and the second for Senior programs then use the remainder of the sale proceeds to additionally fund the retiree health care costs. 

Of the two, $200,000.00 annuities I wanted to have 60% of each's annual income spent on the two programs and have the remaining 40% stay invested, with the principal. The two funds ($200,000.00 each) would continue to grow, at the end of about 7 or 8 years the fund balances of these two annuities could supply a significant amount of money to these two important programs. -- Stephen Miller -- 03 Nov 08

 

On or From This Page

Chuck Semchena

Public Comment

Where are these guys coming from?
Commissioners' Day Jobs . . . Who reports to whom?

"Somebody is lying."