Senator Theatre RFP: Kiefaber defies hush clause. Joins FOTS in “BDC is rife with fraud & collusion”

Fraud, Collusion, Deceit

Former Senator Theatre owner Tom Kiefaber defies City Hall’s hush clause

Joins Friends of The Senator to declare BDC is rife with fraud and collusion

FOR IMMEDIATE RELEASE

Baltimore, MD
July 16th, 2010

Friends of The Senator (FOTS) announced today that the 2100+ member advocacy group has denounced the Baltimore Development Corporation’s (BDC) manipulation of The Senator Theatre’s acquisition at auction on behalf of the City, and its subsequent RFP plan for the Senator Theatre, as a corrupt process rife throughout with collusion, fraud, and deceit.

The advocacy group has repeatedly implored Mayor Rawlings-Blake to investigate the allegations, based on the results of the FOTS investigative research, provided to her and her staff…

Complete text at http://www.thepeoplestheatre.us/news.html

BDC practices attract some scrutiny

For those who aren’t familiar, the Baltimore Development Corporation (also known as the BDC), has been given the job by Baltimore City government to handle the Request For Proposals (RFP) process in the case of The Senator Theatre.
That is, once the city’s winning bid – from their own foreclosure auction – has been ratified. This is expected to happen this coming Friday, September 18, 2009 (barring any objections filed over the auction’s validity).

Apparently, BDC actions (recent and past) have some folks questioning their operations.

• Baltimore’s Shadow Government- The Baltimore Development Corporation – Examiner.com
  Citizens respond in the Comments section below the article (start from the bottom & read upwards).
  

  Proposed Slots Parlor Site

• City OKs Gateway land for slots parlor – Baltimore sun
  

“Had we known the City planned to make this land available to any bidder, this would clearly and dramatically affect our appraisal of the location, as it would have for other potential bidders.” [John Cordish of Cordish Co.]

When the city awards land to a private developer it usually goes through a competitive bid process. Frank, the deputy mayor, acknowledged that this deal was “unusual.”

The deal included a payout of at least $3 million from BCEG to Cormony as an incentive for the development firm to bow out of its project [a $250 million “sportsplex”], according to a person familiar with the negotiations.

• City Gave No-Bid Contract For Slots Site Work – WJZ TV
  Instead of advertising the work, the [BDC] approached a handful of companies and asked them to provide prices to knock down the Maryland Chemical Building on Russell Street…
  [To] pave the way for a proposed $212 million casino near M&T Bank Stadium.

• City awarded demolition contract at proposed slots site without public bidding – Baltimore Sun
  City Comptroller Joan M. Pratt, who sits on the five-member Board of Estimates panel that approves city contracts, says she believes… “An open process allows for more competitiveness and allows for the City of Baltimore to get better service at the best price.”

  Arnold Jolivet, the managing director of the Maryland Minority Contractors Association, criticized the process – even though the… demolition was awarded to an African-American owned firm that he called “well qualified.”
  

• BDC cancels demolition contract – Baltimore Sun
  [M. J. “Jay”]Brodie said he consulted with some of his BDC colleagues who believed that the quasi-governmental agency had the authority to go outside the regular city bidding process with demolition contracts, as it does for other types of contracts. “I didn’t question that,” he said. “I don’t know to what degree they checked.”

  Baltimore Mayor Sheila Dixon announced Tuesday that BDC would no longer award demolition contracts.

Those concerned for the future well-being of The Senator Theatre may well consider these reasons to pay extra attention to the BDC’s handling of theatre’s situation.

Auction Countdown: 11 Days… Where are We?

That’s right. Just a little over week until First Mariner slams the gavel down and control of The Senator Theatre is handed over to… God know who. And, to whatever end suits them. Sure, the CHAP landmark designation to the exterior means the outside can’t be changed without approval and apparently they still plan to do the same to the inside… We (and Astrogirl) have covered that questionable move already.

So were are “we”?

• The city’s Senator Theatre Strategy Group (formerly known as the “steering committee”) presented Deputy Mayor Andy Frank with their final recommendation back on March 31…
  No news from them or the Mayor’s Office since that time.
• The Senator Community Trust has updated their site this week to give a more focused view of what they are aiming to do, but at least on the surface, it appears things didn’t come together fast enough. I hope I’m wrong, because I’ve always favored the community-based non-profit vision.
• The Senator Theatre Memorabilia Sale is in full swing with additional items being dusted off and seeing the light of day after long storage.
  I’ve been fighting the idea that this is a “going out of business” sale or even a wake…
  Tom Kiefaber has said that this should instead be viewed as celebration of the theatre’s nearly 70 years as part of the community, but this cannot be an easy thing to witness* for a man who has fought 20 years to keep the theatre from going dark.

I understand an “informational” meeting with The Senator management and The Senator Community Trust is planned for this evening and I plan to be there to see if they can offer a new hope.

*NOTES: Regarding the Baltimore Brew blog article

1. The Memorabilia Sale is NOT intended to forestall the April 20 auction.
   Proceeds from the sale are simply to help keep the lights on (hard to have a sale in the dark), programming running and help loyal staff, for whom there is no longer a payroll (they are basically volunteering their time to keep things happening at the theatre) for as long as it is possible!
2. The theatre has never received a grant/bailout money.
   Monies offered by the state and city governments were in the form of loans.

City’s Strategy Group Recommendations Letter

Andrew Frank - Deputy Mayor, Neighborhood and Economic Development

Those interested can now read the Senator Theatre Strategy Group’s letter to Deputy Mayor Andrew Frank for themselves.

The unedited letter details their findings and suggested options regarding the future of the historic movie palace.

I’m sure these will be further discussed with Mayor Dixon.

However, if the city is to go forward with the group’s primary option (foreclosing before 1st Mariner, then paying off 1st Mariner to become the owner, then either reselling or committing a qualified operator to a long-term lease), they’ll have to act quickly… The 1st Mariner auction is scheduled to take place in only 16 days.

At that point, the future of our nationally recognized, historic theatre lies with the highest bidder.

Related articles:

Baltimore Sun
“City to the rescue – Our View: Its control of The Senator Theatre would ensure viability as movie house” – April 3, 2009

“A tearful atmosphere at Senator Theatre memorabilia sale” – April 3, 2009

WJZ-TV
“Senator Theatre Memorabilia Up for Sale“

City’s “Strategy Group” decides non-profit will not work

Today’s “Midday with Dan Rodericks” has brought to light that a letter to Deputy Mayor Andrew Frank, dated March 31, 2009, in which the Strategy Group (formerly referred to as ‘steering committee’) state:

• The Senator could not survive as a non-profit organization without an annual government subsidy.
  
  My question to Deputy Mayor Frank was, how is it that The Patterson’s Creative Alliance can? Unfortunately, he left the show before the question was pulled.
  Ref: Balto. Sun, A theatre is a part of the city worth saving

  Councilman Bill Henry, a member of the Strategy Group, e-mailed in to say that the Creative Alliance received “millions” from the federal government for capital improvements, which The Senator cannot expect.
  

• Option 1: Baltimore City purchase the theatre by foreclosing on their loan, paying off 1st Mariner and then finding a management organization to run the theatre, still as a 1st run movie house.
• Option 2: Allow 1st Mariner’s foreclosure to proceed and plan to “work closely” with whomever wins the bid.
  Even they admit that they’d have limited say with this option.

Tom Kiefaber restated that he is “ready to move on”, but insists the community needs the theatre to remain open.

He also reiterated that the multipurpose entertainment model (rather than first run movie) programming is the way to go, for whomever ends up running the theatre.

Sean Brescia of Clearpath Management said that all options are still on the table, including the possibility of filing for Chapter 11 bankruptcy.

Watch WYPR’s podcast page for a recording of the show.

Updates:

Baltimore City’s Strategy Group Letter (added Apr. 4, 2009)

Baltimore Sun: Task force recommends city buy Senator Theatre