IS IT TRUE FEBRUARY 1, 2016

45

IS IT TRUE in Sundays Courier and Press writer Tom Langhorn quoted DMD Director Kelly Coures that he thinks that Cheryl Musgrave was the one who sicced Federal Auditors on them last year? …if Mr. Langhorn wants to know the real truth who sicced the Feds on DMD all he has to do is contact George Lumley or Fred Thompson?

IS IT TRUE we hear the individuals that came here to look at the spending of DMD TARP funds  are not Accountants but are Special Agents?  …could the real truth be that they were sent here to do a  Federal Investigation of the spending of DMD TARP funds?  …this investigation is being  conducted by Special Agents of the Investigations Division of the Office of the Special Inspector General For The Troubled Asset Relief Program?  … it’s our understanding that the Feds have been investigating the spending of Federal TARP funds by DMD for about 7 months?

IS IT TRUE we wonder how many past and present elected or appointed city officials now have legal counsel because of this Federal Investigation?  …we hear the city may be paying for legal counsel to represent some of the above individuals?  … if the city feels the way DMD spent the TARP funds were proper and within Federal Guidelines why are they encouraging people to lawyer up?

IS IT TRUE we also understand that Special Agents of the Investigations Division of the Office of the Special Inspector General For The Troubled Asset Relief Program have conducted many interviews with past and present elected and appointed officials over the last several months?  …we hear that some past and present city official declined to talk with the Special Agents from Washington, D C?

IS IT TRUE we wonder why the DMD Director Kelly Coures feels that Evansville Brownfield Corp is an independent organization and is exempt from “Sunshine and Open Meeting” laws?  . … Evansville Brownfield Corp principal officer (secretary and treasurer) is an employee of the DMD?  … Evansville Brownfields Corp is located in the DMD offices at the Civic Center?  …all the files of Evansville Brownfields Corp are stored at the DMD offices at the Civic Center?  … the office space and utilities  for Evansville Brownfields Corp are paid by the taxpayers?  …all the funding for the operations of Evansville Brownfields Corp are from the Federal, State, County or City tax monies?

IS IT TRUE the INTERNAL REVENUE SERVICE  has the authority to levy penalties on non-profit organization at $20 per day for late filing of the annual income tax returns form 990?

IS IT TRUE  after three years for not filing 990 tax return the organizations non-profit status could be terminated by the INTERNAL REVENUE SERVICE?

IS IT TRUE if the not-for-profit Evansville Brownfields Corp. hasn’t filled their 990 tax returns for 7 years is correct (2005 through 2011) it could cost them  $52,000 in late filing penalties? …long term DMD employee Carolyn Rusk is listed on the 2004, 2012 and 2013 990 tax form for the not-for-profit Evansville Brownfields Corp?

IS IT TRUE  just because an organization has non-profit status it does not exempt that organization from possible Unrelated Business Income subject to a 35% income tax to the IRS and 6% to the Indiana Department of Revenue?

IS IT TRUE the City of Evansville doesn’t have an ordinance requiring not-for profits organizations to provide proof of form 990 filings before any public money is granted them?

IS IT TRUE todays “READERS POLL; “Do you feel its time for the books of the Evansville Brownfield Corp to be audited?

IS IT TRUE starting next week IS IT TRUE articles shall be posted on Mondays, Wednesdays and Fridays unless we have unexpected breaking news?

Copyright 2015 City County Observer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

RELATED ARTICLESMORE FROM AUTHOR

45 COMMENTS

  2. Good job, CCO! Thanks for clarifying the non-facts presented in the”hit piece” in the Sunday C&P on Cheryl Musgrave by Tom Langhorne. There is a big difference in an audit and an investigation.

    • My sources indicate that these Special Agents are former Secret Service Special Agents one actually assigned to the Presidential Detail. So, were in the hell is the CP coming up with this accountant BS. Special Agents of the IRS = Criminal Activity Special Agents of the FBI = Criminal Activity . . thus Special Agents of the Special Inspector General of the Treasury = Criminal Activity. So, any moron knows why those public officials have lawyered up.

      • SS-UP……These type of “GUESSES” you are making – criminality found, people “lawyering up”…..are to score political points.
        Get that SS-UP.

        But do yourself, and everyone else trying to look more closely at what, indeed, may be happening….if it indeed is true there are federal law-enforcement agents doing the audit….and present your conclusions BASED ON SOME SEMBLANCE OF FACT. Jeeeez.

  3. I volunteered to help with remediation of Evansville’s blighted home problem when I read Sue Ellspermann’s press release: http://www.in.gov/ihcda/files/BEP_Announcement_2.3.14.pdf . She claimed this was her program but I could not get any response from her when I question the efficiency and effectiveness of the plan. IHCDA said they could do whatever they wanted with the money. I am anxious to see how this plays out. Can the government really take money appropriated for helping neighborhoods and give it to a car dealership. Like they really needed this extra few hundred thousand on top of the millions already given to them.

    • Dear George, the issue with these TARP funds are that they are not Federal Grants not subject to audit by the SBOA under the governmental standards of auditing (Yellow Book A-133 Standards) Thus, could and have been an area of extreme abuse. As you are probable aware, under Federal Grant procedures, every grant has a grant number assigned which designates which Federal Department the grant originates and the exact provisions are indicated in the documentation. So be assured this non-grant approach has been riddled with abuse and criminal activity.

      • You do not, and will not, hear me calling it a grant. It is a “program”. One has to learn to speak the new language. Union busting is now called “Right to Work”, subsidized housing is now called “affordable housing” and yes, now we have the government granting large sums of money that are programs with “loans” and then the “loans are “forgiven” I differ with you on being subject to Yellow Book standards. In Indiana, with the politically driven SBOA, federal standards recognition has been lagging for decades and IMHO questionable.

  4. https://www.facebook.com/evansvilletransparency/videos/1708800782723185/?pnref=story

    This is a good link. This project “area 55” is what led to the US Inspector General letter to Secretary of Treasury (presidential cabinet position) Jacob J Lew about demo of lived in residences: “this would leave less TARP funds to demolish the abandoned properties Treasury intended, uproot people from their homes in poor neighborhoods, and in worst case scenarios, could open up Tarp to manipulation, abuse, or criminal conduct”. Where? That’s right – Evansville Indiana.

    • Mr. Lumley, did you have anything to do with the investigation of the D-Pat relocation? If you did you should be thanked.
      Who is Fred Thompson? I think he used to post on CCO.

      • I am not an investigator. I just volunteer. I would like to thank people like Al Lindsey and Cheryl Musgrave that are in the public eye and willing to speak out when something is wrong rather than just taking the easy road of reelection by going along with the establishment’s plot. The Election is always “coming up”.

  5. Apologies for the redundancy of these questions, as I’m assuming it may have been answered before:
    “Can someone provide a link to the Evansville Brownfields Corp tax returns for the past 5-7 years?”
    and
    “The CCO is representing here that the EBC has not filed a Form 990 for 7 years. This seems unbelievable to me…astounding. Can someone provide a link that discusses – and shows – this failure to file? ”

    Great job today Editor.

  6. Second request:
    The EBC has been behaving like a land bank to eliminate blighted structures saddled with debts and liens that strips the viability of those properties to ever return to the tax rolls as high value properties, i.e., they’ll sit there forever cause no one wants to touch them and be saddled with the debts.
    Ok. Got that. I may not have expressed that 100% accurately, but that’s the idea behind all city’s “Land Banks.”

    To that end and as part of that process…..Evansville has about 2000 properties scheduled for demolition as part of this land bank initiative…”to get these things demolished so you can start the process of building something newer and more valuable on that property.”
    QUESTION:
    These properties – 2000 of them – they all contain “very old lumber” and “items that could be preserved in an architectural salvage process”…..in other words, the lumber and fixtures (fireplaces, stairways, flooring, old-growth timber floor joists, old growth support beams – Reclaimed Lumber and Fixtures)…..IS THE DEMOLITION CONTRACT A SIMPLE “RIP AND TEAR AND DUMP IT ALL IN THE LANDFILL?”…..or is there an allowance of time for those high value items to be removed prior to the rip and tear demolition?
    (Acknowledging, many of the Excavators and Demo Contractors have no patience for this “remove the valuable items and lumber first”…..cause they perceive “You are in our way. Smash it. Dump it. I don’t want to deal with this.” And some people do this on the side, illegally perhaps, but I am not asking about that. I am asking if the City mandates to allow Deconstruction Contractors an opportunity to save some of this stuff.)
    So…the question again……Are there city-mandated processes and procedures in the City to allow reclamation of lumber and fixtures in those 2000 homes before they are smashed and dumped? Anyone know this?

    • There is a huge demand for the kind of architectural salvage that many of these homes contain, but removing them is very labor intensive. Most excavating contravtors don’t bother with doing much of it. It seems that someone in DMD is surely seeing that some salvaging is done. I wonder if you just found another can of worms.

    • Thats some out of the box thinking Becker, finding value where it might be overlooked. Many of these homes used popular with full size dimensions which might be remilled and recycled for other projects. It’s at least is worth investigating if one who meets the DMB’s high standards of qualifications can be found.

      • Years ago we were in the demolition business because I was such a lover of architectural salvage. There is always a big problem with people breaking into vacant houses and stealing mantles and the like, but vandals would just tear things up for fun. We only bid jobs that had valuable salvage in them.

        • I didn’t know that. Had to be interesting work. Most of it is going to be junk, but some must have value. I remember watching a show on old growth lumber and they said the reason stairways sound different in old home is often because they were constructed from old growth lumber which was harder. I was recently in Indy buying some heaters for my shop from a demolition business, ran by a 30ish or 40 year old woman. She showed us some of the wood they scavenged from old buildings and said they had a big market for it. There’s money in it somewhere or Brownfields would not be hiding behind closed doors.

    • I found it amazing the kind of salvage that sells online. Yes little pieces of molding and such is shipped to buyers around the world. One particular business here in Evansville claims to be shut out of the process. If you know “someone” the right “one” I understand you can get access to all the stonework etc.

      Don, As far as the need for the land bank being needed to clear the back taxes and liens – HOG WASH. It there was any truth in the need for a land bank for the reasons being claimed in Evansville I would like to see someone stand up and defend their claim.

      • I’m guessing the group you mentioned that is “shut out of the process”….is because the Excavation/Demo contractors with a relationship with the city…….get city officials to create standards and demands upon those seeking to reclaim and reuse those materials (and amazingly, the City would benefit from the sunshine of “environmentally sustainability objectives)……and make it prohibitively costly and onerous.

        “Throw it in the trash. In the landfill.”
        Who’s the group suffering being shut out?

        RE: Land Banks….I was not advocating. I was explaining it’s ostensible objective: Clear liens, environmental liability, etc, in order to bring a property back on the tax rolls.

        • I do not know of a “group” being shut out. I was thinking of a particular business and don’t know the details. I did engage in a conversation with a couple of re-modelers complaining about the process of getting access and insurance requirements. I was surprised to see a clip on the news that showed the Cities selected salvager and it appeared his kids were helping him do the salvaging. Their age? The Blight Elimination Program agreement has some specific language about the salvage materials that you would find interesting. You should ask the city to make the proposal public. This is an ongoing program. The Dpat group was just the starting point.

  7. Whoever got the ball rolling on the investigation should get a parade in their honor
    If it is George or Fred or somebody else they did a good deed. Whoever heard of getting a lawyer for a audit? The people who have nothing to hide don’t need one. If Coures and Winnecke needed lawyers what are they hiding?

    • I would think it took more than one or two to get the ball rolling. It is a given that Kelly Coures and his staff should be given the credit for fueling the momentum. Nothing like “in your face responses” and “its our money we answer to no one” along with “isn’t it great we were able to take this money targeted for neighborhoods and do something worthwhile with it” to get outsiders thinking things are out of control in Evansville Indiana.

  8. “IS IT TRUE the City of Evansville doesn’t have an ordinance requiring not-for profits organizations to provide proof of form 990 filings before any public money is granted them?” (CCO)

    * * * * * * * * * * * * * * * *

    That is not a big issue when the city is the one creating these limited liability corporations. Normally they would just have a crony front the entity, as we have seen time and time again. Who ever was advising Weinzapfel, back when they set this up, did a piss poor job. The taxpayers probably got to pay his legal fees, just to add insult to injury.

  11. It is PAST time for the citizens of this community to pen their signatures to a petition asking that the Indiana legislature pass, and the Governor sign into law statute that states:

    That all cities in the State of Indiana with a population of 100,000 or more citizens shall publish Comprehensive Annual Financial Reports (CAFR) using Generally Accepted Accounting Principals (GAAP).

    Lets get this done this year!!!!!!!!!!!!

    • The attorney who’s “opinion” was quoted in this letter was also the attorney representing the Evansville Department of Metropolitan Development, and was the attorney representing the DMD during all of the Evansville Redevelopment Commission public meetings.

      Apparently the Indiana Public Access Counselor investigated no farther than to ask Mr. Salmon for his “opinion” on the matter. Realistically speaking, what did she expect him to say?

    • From the letter: “Here, the Corporation indicates that it has contractually agreed to be subjected to
      audit by the SBOA. Contractual obligation to an SBOA audit, though, is not the same as
      an audit required by statute, rule, or regulation. ” By contractually agreeing to and SBOA audit, then the corporation itself is indicating that it comes under the oversight of the SBOA which would mean the corporation also recognizes that it is conducting the public’s business. Maybe I should request that my private corporation agree to SBOA audits. Would the SBOA agree to it? If not, why not? Because I am not conducting public business? Then wouldn’t logic say the agreement to audit Brownfields is because they are conducting public business?

    • I-E:
      I have to say…….the manipulation via this Brownfields thing DOES NOT SOUND KOSHER.
      And I am an establishment, honest hard work guy, so to speak.
      I am not prone to following the conspiracy things.
      But this is VERY smelly.
      Trust…..appears to be….being taken for granted….way to far.

      • I think the plan is that the stink from Brownfields will cover the stink from the slue. As our friend Joe says, “snegal.”

    • Indianaenoch

      We took it down because a few paragraphs were missing. We shall put up the corrected one tomorrow.

      Thanks for reading the CCO.
      Editor

  14. * Put it.
    We really need an edit button. Or maybe you can correct that one for me.

Comments are closed.