IS IT TRUE? Part 2 September 13, 2011

13

John Kish

IS IT TRUE? Part 2 September 13, 2011

IS IT TRUE that Evansville’s former Whirlpool plant has landed a new tenant called GBT-USA that is a Netherlands owned start-up company in the USA that will be providing turbine blades for the wind power industry?…that the commitment at this time is to invest $3.5 Million to create 40 positions in what will essentially be a pilot manufacturing plant?…that if all goes well there is a possibility that an additional 400 jobs may be placed in Southern Indiana with a manufacturing based investment of $40 Million?…that it is quite impressive that this foreign owned company can create jobs for only $85,000 per job?…that in a country where the Obama stimulus plan has been called out for spending $278,000 to create each job that it claims to have created, GBT-USA is a bargain and a great opportunity for Evansville?…that the City County Observer congratulates the economic development team that worked to put together the $3.0 Million incentive package from the State of Indiana and the $647,500 of incentives from the City of Evansville to sweeten the pot?…that as we predicted earlier “The Future my friend is Spinning in the Wind”?

IS IT TRUE that one of the most interesting discussions at the Evansville City Council meeting last night revolved around the legal costs associated with the Arena Project?…that project manager John Kish in response to a question posed by City Councilman John Friend informed the entire council that he legal costs now total $1,663,453?…that when asked if this was typical and justified Mr. Kish responded with a resounding YES with a tone and demeanor that sent the message of “how could you even ask”?…that Mr. Kish supported that assertion by stating that the legal teams had produced 1,200 pages of work?…that a quick calculation results in a price of $1,386 per page?…that each IS IT TRUE that we write is about a 30 minute exercise and is about one page?…that by that metric each IS IT TRUE should result in a payment to the author of $2,772.42?…that one can only wish to be paid that much money per hour and to have someone think that it is a colossal bargain?…that if we are paying attorneys by the page or even paying for articles by the page that a rate of between $100 and $150 per page is much more typical of the going rate per page for authors and lawyers?

IS IT TRUE that the roster of law firms that were paid for doing work on the Ford Center project sounded like that list of contributors to the Weinzapfel for Mayor campaign?…that according to Mr. Kish that the lion’s share of the money went to the Indianapolis firms Bingham McHale ($1.4 Million) and Barnes and Thornburg ($115,000)?…that several well known Evansville firms were named as providers of legal services that were all under $25,000 each?…that we really wonder if there was any way that all of the legal fees could have been earned by Evansville firms?…that we wonder if this kind of bond expertise exists here?

IS IT TRUE that Mr. Kish also asserted that the target of 21% of contracts being awarded to Women and Minority businesses has been met and that a bonus has been earned was both applauded and met with skepticism?…that Councilman Dan Adams asked for a list of the businesses that are WBE’s and MBE’s and for a location of each business?…that Mr. Kish committed to supply this list to the City Council?…that we are absolutely riveted at the prospect of learning that WBE’s and MBE’s were successful bidders on $26.8 Million worth of the contracts let to build the Ford Center?

IS IT TRUE that Mr. Kish went through an example with respect to architects involved with the design of the Ford Center?…that Populous was the prime architectural contractor but that some local input was also hired?…that hiring local firms was alleged to have increased the cost?…that Kish sounded very concerned about stringing out payments so that all of the subcontractors are paid in a timely manner?…that we wish that Mr. Kish and the people that pull his strings were just as concerned for securing payment for Evansville based Klenck Construction?…that while he spoke of Bingham McHale (Indianapolis Law Firm) being paid about $500,000 to develop the RFP for the hotel as a sound investment a local business is now in a compromised position to receive payment for real work?…that this is profoundly disappointing?

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13 COMMENTS

  1. Which law firms received the lion’s share of the $1,663,453., and what in particular were they working on?

    • It is in the article. Kish said Bingham McHale got $1.4M and Barnes and Thornburg got $115k for work that had to do with the bond financing.

      • BINGHAM McHALE

        Indianapolis

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

        Construction

        For more than 40 years, the responsive attorneys at Bingham McHale LLP have been helping Indiana build and grow. Since 1965, Bingham McHale has played a prominent role in building the City of Indianapolis, serving as counsel to the Capital Improvement Board of Managers, which has been responsible for many of the Capitol City’s major buildings: Conseco Fieldhouse, Indianapolis Convention Center, Lucas Oil Stadium, RCA Dome and Victory Field.

        We know well that no two construction projects are alike. For that reason, no matter the location or size of the project, our team of perceptive attorneys works with the owners, general contractors, trade contractors and suppliers on each individual project to meet deadlines and resolve conflicts. Our Construction Team can effectively assist clients with a variety of legal needs including:

        * Structuring public and private projects;
        * Developing and negotiating design, construction and supply agreements;
        * Prosecuting and defending all types of claims including payment, delay, lost productivity, mechanic’s liens and bid disputes;
        * Handling labor and safety issues;
        * Procuring supplies and services for public entities;
        * Securing and negotiating financing; and
        * Addressing environmental matters.

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

        I wonder if Bingham McHale also wrote the legislation that cost taxpayers, statewide, $8. million a year in payments to the Indianapolis Capital Improvements Board for debt service on the Lucas Oil Stadium project?

        __

  2. If the City was the one who issued the “EMERGENCY ORDER” to Klenck to tear down the Executive Inn, how in good conscience (or even legally) can the same entity (City) who issued the order not have liability for the demolition ???? The City needs to do the right thing and pay Klenck. John Friend is doing the right thing by grilling Kish-Ka-Bob for spending too much, and the City tries to stiff a local contractor who was ORDERED to do the work to save money???

    • The work that Klenck is in danger of getting stiffed on was done before the emergency order was issued.

      • Ed,

        Can you clarify: was the Emergency Order for removal of the now famous ” twin piles of rubble” ? And was the work they are getting stiffed on the actual demo/which created the piles ? If that’s a “hell yes”, seems like it’s all the same.

        • The part in jeopardy is the demolition of the parking tower and part of the Executive Inn. The emergency order was for rubble removal. The rubble was there because of the work for which payment is up in the air. So yes we agree that the “emergency order” was to finish the job that was started under Woodruff.

          • The City will lose this in Court. When the City filed the Emergency Order, there was an expectation that Klenck would get paid for all of their work. In point of fact, the reaason Klenck walked off the job was because they feared they wouldn’t get paid. To give them an Order to return to work, and THEN tell them to go get laid re: payment , is an embarrasment to all citizens ! Kish and the Mayor need to publicly apologize. Otherwise, Klenck should file a suit, and Count 1 should be: ” these city guys are all named “Richard Head”.”

          • I have to agree with you beerguy, the city could have dispatched the BPW to clean up the mess since they own the property, but in that case they would still be working on the pile.

  3. Does anyone know if this televised Council Meeting will be replayed on WNIN later this week ?

  4. not sure why everyone is complaining about Bingham McHale charging $ 1,386 dollars per page for the 1,200 pages of work. ONB Insurance charged $ 33,333 per page ($ 100,000 analysis, 3 pages total). If ONB Insurance had produced those 1,200 pages at their rate, it would have cost the City $ 39,999,600. I want to personally thank the Mayor and Kish-Ka-Bob for saving us money on these legal expenses ! dollar, dollar Bill !

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