Tag Archives: Regional Development Authority

Violation of Public Trust-Gary Deeds Beach to Redevelopment

18 Dec

by Ken Davidson

The City of Gary has put up to 90 acres of Marquette Park at risk. At a recent meeting of the Baord of Public Works, the City deeded approximately 90 acres of prime beach land to the Department of Redevelopment. The transfer went unnoticed until it was brought to the attention of the press and the Board by activist Jim Nowacki. The Board and the Department assured all involved that the transaction was a mistake and would be remedied. Today corporation counsel Niquelle Allen flatly denied that the transfer was an error. According to Nowacki, he asked Ms. Allen pointedly why the property was not transferred back to the City. “I asked three times” Nowacki said. Her response was clear and to the point, it was not a mistake. The transfer was what the City intended.

    What is at stake:

 
The property in question includes more than 2500 feet of beach frontage. It also includes a large portion of Marquette Park, which the Regional Development Authority just spent millions to renovate. Although the transfer does not include the pavillion, it does include lands adjacent to the pavilion. The property is described in the GIS system as:

5600-6400 Indian Boundary Appr. Gary: ALL N. TEN MILE LINE & w. OF RIV. S. 31 T. 37
R. 7 90.031 ACRES

The land in question begins at the old US Marine Corps reserve center and runs east to the edge of the Marquette Park parking lot. The understanding of most was that the area west of Lake Street, approximately 4 acres, was to be set aside for redevelopment. One activist stated “you don’t violate the public trust for strangers” implying that there was some plan to transfer the property to a political insider. The transfer apparently leaves the entire parcel open for development.

Calls to Mr. Van Dyk, director of the Department of Redevelopment and to Niquelle Allen, Corporation Counsel had not been returned at the time of this writing.

Gary Airport Authority Fails to Comply with Davis-Bacon; Other Legal Requirements

21 Nov

by Ken Davidson

The Indiana State Board of Accounts has issued a comprehensive report indicating that the Gary Chicago Airport Authority (GCIA) failed to comply with the Davis-Bacon Act which requires prevailing wages be paid on public works projects. The stunning finding was just one of many findings by the Board. In so finding the Board stated:

Davis-Bacon Act

Airport Management relies upon paid consultants to ensure compliance with the Davis-Bacon Act
(payment of prevailing wages).

1. The contractors submitted payment applications to the Project Engineers. Before the Project
Engineers approved the payment, the Project Engineers must receive the certified weekly
payrolls from the Contractor. The Project Engineers stated that they ensured the wages paid
equal or exceed the applicable prevailing wage rates. However, no indication was made on
the copies of the certified payrolls or other forms of documentation maintained as evidence
that such reviews were conducted.

2. A system of controls to ensure all certified payrolls were received did not exist.

3. The management of the Airport Authority did not receive any correspondence from the paid
consultants to ensure compliance with the Davis-Bacon Act.

Additionally, the Board pointed out that the GCIA was required to repay nearly $10 million to the Regional Development Authority because it failed to properly account for the money. It appears that this finding may result in an additional $10 million in Federal and State grants requiring repayment. The Board found that the Authority billed invoices to the RDA, the US Department of Transportation and the Indiana Department of Transportation and received reimbursement from each. The system was supposed to provide a total of $9,917,559.93. Instead the GCIA received that amount from both Federal and RDA coffers.

The Board also found that the GCIA awarded change orders totalling over 20% of the bid price. The law states that change orders cannot exceed 20% of the total bid price.

The report goes on and on, reporting a litany of violations. This report covers the time period before the current board took over. You will recall that the Gazette has reported that Nathaniel Williams was President of the GCIA Board at this time. Nathaniel Williams was also in charge of maintaining the records at the Gary Housing Authority when they lost hundreds of properties to tax sale, failed to make repairs with grants that had been awarded and failed to utilize insurance proceeds to repair burned out properties. Mayor Karen Freeman-Wilson appointed Williams to the Airport position after many of the issues at GHA were discovered.