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Carmel council axes funding for redevelopment commission boss

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Carmel City Council members exerted their influence over redevelopment commission expenses Monday night, denying a $60,000 contract extension for longtime Executive Director Les Olds despite Mayor Jim Brainard’s pleas to keep him on the job.

“I need him there doing the things he does very, very well,” Brainard said of Olds, an architect who has led the Carmel Redevelopment Commission as it essentially rebuilt the suburban city’s downtown.

Rejecting the contract extension “effectively shuts down the CRC,” he said after the resolution failed by a 3-4 vote.

Council President Rick Sharp, who sided with the majority, disagrees.

“I don’t think the situation is really as dire as it’s being portrayed,” he told IBJ.

The CRC paid Olds $116,000 in 2012, Councilor Luci Snyder said, but his compensation was cut along with the agency’s budget when the city agreed to refinance $184 million in redevelopment-related debt late last year. As part of the deal, council members passed a pair of ordinances giving them control of future debt and certain expenses, including large professional services contracts.

Redevelopment operations were transferred to a city department, and Olds in January signed a consulting contract that called for him to be paid $60,000 in 2013, plus a $120-per-month cell phone allowance. No hourly rate was specified, but Olds' invoices listed a $100-per-hour rate.

Attached to that contract was a 10-item list of services Olds was to perform—tasks such as overseeing development of Carmel City Center, coordinating master planning of the city’s blighted and underused sites, and working with assorted architectural and engineering consultants. LS/Olds Consulting LLC was not to do anything to run up the bill without written consent from the city.

At $100 an hour, costs accumulated quickly. Olds’ January invoice amounted to nearly $10,000, for example.

So in June,  with the $60,000 spent, members of the CRC quietly (and unanimously) approved another $60,000 deal to pay Olds for the rest of the year, asking councilors to OK the expenditure along with three other professional service contracts. The council must approve agreements that exceed $25,000.

Snyder, who chairs the council Finance Committee, balked at the $495,000 total request—presented without any supporting documents—and asked to review the actual contracts. Only financial consultant Umbaugh & Associates provided the requested information in time for the committee’s July 24 meeting.

Monday night, the council considered each contract separately. Members approved a $95,000 deal for Umbaugh with no discussion or dissent, then OK’d $40,000 for engineering firm American Structurepoint before having a lively discussion about a $300,000 contract with legal adviser Wallack Somers & Haas. Council members ultimately voted to allow the expense, which was included in the CRC’s 2013 budget.

But Snyder flagged the Olds contract as questionable, given the drastic reduction in redevelopment activities in the wake of the CRC debt restructuring. Why, she asked, should the executive director be paid more to do less?

She also criticized Olds’ job performance, saying the organization got into financial trouble under his watch. And the CRC failed to maintain proper records, Snyder said, citing project agreements with pages omitted, sales contracts without required signatures and an array of missing original documents.

“This was a mess,” she said, addressing Olds. “I don’t think you’ve done your job … and I will not vote for your contract.”

Council members Carol Schleif and Eric Seidensticker joined Snyder and Sharp in denying the request.

Olds, who declined to comment after the vote, acknowledged to the council that the CRC’s recordkeeping was “not perfect” in the past, but he said it’s improving.

“We’re going to get better,” he said. “We’re going to get smarter.”

Brainard said what Olds lacks in recordkeeping skills he more than makes up for in other areas such as architectural expertise. Olds’ years of experience—in the industry and in Carmel—have saved the city money on redevelopment projects, the mayor said.

“He has paid for his salary many times over because he knows how to do these things,” Brainard said.

Responding to a question from councilor Kevin “Woody” Rider, commission member David Bowers said Olds is a “vital part” of CRC’s ongoing operations.

The commission is working on redeveloping the former Party Time Rental site on Range Line Road, for example, and needs to find a new user for the City Center building that formerly housed Shapiro’s Deli.

Rider and council colleagues Ron Carter and Sue Finkam voted in favor of the contract extension, citing concerns about the consequences of leaving the redevelopment commission leaderless.

“I don’t want to see the commission go without an executive director,” Finkam said, suggesting the council OK the new contract and establish performance standards for Olds.

At times contentious, the debate continued even after the vote.

Sharp doesn’t weigh in during council deliberations, given his role as president, but he makes it a policy to explain controversial decisions afterward. He said he has “great respect” for Olds, but resents the CRC’s apparent disregard for the council’s expense-approval process.

“To just be handed it as a fait accompli—‘Oops, we spent it all and now we need another $60,000,’—that’s the kind of stuff that got us in trouble in the first place,” he said.

Brainard, who is an attorney, questioned the legality of the council-approval requirement, saying state lawmakers have given redevelopment commissions the right to use revenue as they see fit. He said he signed the ordinance to get the CRC refinancing done, but had reservations then.

“This is a direct grab of power from the state Legislature,” Brainard said.

Monday’s vote will kill the CRC, the mayor predicted—something he said council leaders promised wouldn’t happen.

“Is that really the council’s will?” he asked. “Just to stop redeveloping the Arts & Design District and City Center?”

Sharp said he doubts Monday's decision will have such drastic results.

“These things are rarely settled with one vote,” he said.

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  • Hey Joe
    Everyone is welcome in Carmel, but name callers can stay home. It costs no money to hang out at Main & the Monon.
  • Others
    In the past three weeks I've been to several small cities in the USA that are much nicer than Carmel. To call Carmel a world class city is delusional and is buying into the Mayor's PR. Their debt is certainly world-class, something around a total approaching $1,000,000,000.00 for a city of 80,000.
  • The Good Mayor
    Say what you will, Mayor Brainard has turned Carmel into a world class city. Downtown Carmel is simply amazing and the roundabouts are ingenious. When Meridian Street goes under construction, Carmel would be a grid lock if Keystone didn't happen first. The arts district is fantastic. Lower crime and property taxes than Indy, it's difficult to say anything negative about Carmel. And no, I don't live there or give money to it.
  • Way to go Carmel City Council!
    Mayor Brainard's response is absolutely hilarious because it is so pathetic. A power grab from the State Legislature?!?! Mayor Brainard has been the biggest Power Grabber on the face of the earth!!! He has done an end-around to spend money on projects that he does not have the authority to spend. It's about time that Mayor Brainard and his yes men get their comeuppance.
  • What?
    A living Norman Rockwell picture? That's about right. The way the finances in Carmel have been messed up and all of the debt that has been accumulated for all of the shiny new stuff, it is a fantasy land. BTW, the Norman Rockwell thing is a typical comment that has been made many times by one of the Mayor's biggest political supporters. I find it interesting that Carmel is striving for a "Norman Rockwell existence." These days that's really a misguided view, a view of a past non-realistic romantic existence, not the present nor the future.
  • In reply to Mike
    Agree with virtually everything you said Mike, I think development in City Center area needs to be done. Problem is, the CRC and the council got in bed with developers outside that area, and there are projects not finished. They have run out of money on the Illinois project, and can't finish it. Now that may not affect folks in the other areas of Carmel, but it is shortly going to change our lives west of Meridian. The developments forced upon us along Springmill, are going to substitute Springmill for 31. Its not going to be pretty. And, talk about a waste of money, what about them already rebuilding the roundabout at Springmill and 116th! I guess to the council, rebuilding few year old roundabouts is fiscally responsible.
  • It's called "accountability."
    The argument that "some things he does well and other things he does not" is asinine to try and convince you to pay him another $60,000. How about you pay someone who can do the job right? You did not shut down all the projects in the city, Les Olds shot himself in the foot for half-assing what he was paid to do. It's called accountability, Brainard. Look it up. Obviously you still don't have a grasp on the concept.
  • Keep Carmel Moving Forward
    Just hang out near Main & the Monon on weekends or in the evening and you will witness a living Norman Rockwell picture (i.e people of all ages, shapes and sizes, strollers, training wheels and wheelchairs, dogs and bikes of every description, bands & the occasional street performer, etc). The family atmosphere makes me proud to call Carmel home. My hat goes off to all who made that possible including the the mayor, City Council and CRC, and I look forward to the planned development south of that intersection. This is why people move here and choose to stay here. Politics aside, I suggest we move forward with development and sooner is better.

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    1. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

    2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

    3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

    4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

    5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

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