NOlathe's Blog

1. Staff (defined as those below the County Manager) did their usual and professional jobs by delivering usable information for decision purposes to the County Commissioners.
2. The Offices of the County Manager and Clerk did their usual job of blocking transparency.
3. The purchase of the King Louie Building was an agenda of its own and had no meaningful purpose of replacing the existing museum or in default, a good longterm investment for the County.

Documents and witnesses have created this chronology of events:

• August 2011- County notified of reduced price and arranges Staff inspection.
• August 2011- Commissioner Lindstrom witnessed notifying Museum Director.
• September 2011- Museum Director releases plans for National Museum.
• October 2011- Licensed Engineering firms inspect building.
• November 2011- Staff and Museum Director present National Museum to Commissioners.
• December 2011- County purchases King Louie Building.
• February 2012- County refinances King Louie Building through September 2015.
• March 2012- Commissioners defend decision as good investment.

Investment Advisor Says…….

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1. 43,560 square feet per acre.
2. Purchase involved 5.66 acres or 246,549 square feet.
3. “We paid $7.90 per square foot.” 
4. “It was estimated to be worth $12.57 per square foot.”
5. “Comparable sites in the area are worth $13-$16 per square foot.”  (Median  is $14.50)

Commission Meeting of November 10 to discuss the Agenda Review for November 17 can be viewed here:  http://lims.jocogov.org/sirepub/mtgviewer.aspx?meetid=1153&doctype=AGENDA  Items #10 an #11 are identified below.  Clicking will provide all documents submitted to the Commissioners in support of discussion.

• Consider authorizing a real estate purchase contract with Western Development Corporation to purchase land and a building located at 8788 Metcalf Avenue in the amount of $2 million to be funded with General Fund reserves.
• Consider authorizing a capital project for repairs on property located at 8788 Metcalf Avenue in the amount of $1.6 million.
• The decision to continue both above considered as one topic in this 17 second video-

$3,600,000 proceeds as one.

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Commission Meeting of November 17 can be viewed here:  http://lims.jocogov.org/sirepub/mtgviewer.aspx?meetid=1124&doctype=SUMMARY   Items #10 an #11 are identified below. Clicking will provide all documents submitted to the Commissioners in support of discussion.

• Consider authorizing a real estate purchase contract with Western Development Co., Inc. to purchase land and a building located at 8788 Metcalf Avenue in the amount of $2 million to be financed by either the issuance of debt or from the use of General Fund reserves. 
• This resolution document for the $2,000,000 purchase clearly identifies the $1,600,000 repairs must be approved as a condition of the purchase. Item7BriefingSheet11-17-2011
• Video of presentation, discussion and vote to approve purchase of Capital Asset-

1,642 seconds to approve $2,000,000

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• Consider authorizing a capital project for repairs at 8788 Metcalf Avenue in an amount not to exceed $1,600,000 to be funded with either the issuance of debt or from the use of 2012 General Fund reserves; and amending the 2012 CIP to include this capital project.
• Resolution approving $1,600,000 Capital Repairs  _07-2011-1117-BriefingSheet-BOC-Renovationsto8788Metcalf
• Video of presentation, discussion and vote to approve repairs to Capital Asset-  (Note: repairs equaled 80% of purchase price.)

239 seconds to approve $1,600,000

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The $2,000,000 purchase of a Capital Asset and the $1,600,000 for Capital Asset Repairs are two distinctively different accounting entries and had to be voted on and funded separately by law and commonly accepted accounting practices.  Throughout the video discussions, presentations and documents they were totally dependent on both being approved and considered as one in the same.  To take possession of the property would require funding of $3,600,000  just to place it in a condition to consider what to do with it later.

I concede that I am the “crazy guy” and certainly not a financial advisor like the Commission Chairman and former Mayor of Overland Park Eilert, but my old school math skills calculate that at $3,600,000 we paid $14.60 per square foot well above the estimated value of $12.57 and median value of $14.50 area properties.  Sadly this is not this first time we have documented Chairman Eilert altering and creating facts to fit his vision.

Below are the questions asked and documents received from a lawful Kansas Open Records Act (KORA) request.

• A cursory inspection by Structural Engineering Associates was conducted on October 3, 2011.  “Conclusion- The structure at 8788 Metcalf exhibits a number of structural deficiencies and repair needs.”  The entire 7 page report may be viewed  tem_01-2011-1010_8788metcalf-SEA-MetcalfStructuralReport
• A second and item specific inspection was conducted on October 17, 2011 by the same engineering company Item_01-2011-1101_8788metcalf-SEA-reviewglulambeams

• Apex Environmental Consultants, Inc inspected the King Louie Building for 3 days issuing a 72 page report on December 8, 2011. 208-APEXFormerKingLouieWestEnvironmentalInspectionReport  Recommendations for the asbestos, lead paint and other hazardous materials found inside the building are made on pages 12-14.

• Contained in same Apex report above.

• Document titled “87th Metcalf – Temporary Repairs / Weather Tightening”  Item_04-2011-0913-Roofreplacementcost  includes two cumulative costs for roof repairs at $610,748 and $75,616.
• This document also provides the known totals going forward of $20,104,068

• No infestation inspection was completed.

• By email Staff was notified on August 2, 2011 by Heise-Meyer LLC  ndKimMorrissey8-2-12withKingLouieonlyattachmentfromHeise

• Staff at no time indicated this purchase was justified as an investment.  All documents and discussions involved additional Capital Expenditures Budgeted starting with 2013.  It is deceitful and ridiculous to now justify this tax money as a good investment.  If our Commissioners want to play the real estate market or play financial advisor, oh wait, that argument won’t work because we have two of those playing commissioner, both from Overland Park.

• Property Damage policy for $3,943,213 with Factory Mutual Insurance Company dated February 2, 2012 can be viewed   Item_8PropInsCert-8788Metcalf

• Resolution to finance $3,600,000 passed December 1, 2011 Item9Resolution069-11 
• Resolution to finance $3,600,000 passed January 26, 2012  Item9Resolution009-12

• LEASE/PURCHASE AGREEMENT with UMB Bank February 9, 2012  Item_108788Metcalfleaseagreement
• Exhibit D (page 29 of 29) first scheduled payment September 1, 2012 of $274,576.67 ending with final payment September 1, 2015 of $2,917,400.  Total interest at term $137,976

The only criticism we have of Staff would be accepting this document Item_02&3-2011-1213-ATAbatementEstimate as an estimate to remove asbestos and other hazardous material from the King Louie Building.  As previously defined, Staff did their commendable job as they were instructed to do.  For Overland Park, King Louie was a problem looking for a solution.  Members of the Commission conspired (some unknowingly) to provide the solution at the County’s expense.  One can only hope that the museum’s future includes photos of the closed libraries and longer lines waiting for assistance (Mental Health as an example) to justify a new energy on Metcalf Corridor.

This form of political game disgusts me.

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