Lessons in how not to run a city
After months of waiting, the jaw-dropping costs to redevelop the McIntyre Building with partner Redgate Kane were just released: $74 million – $147 million. Even at this late stage in the game, the financial terms, which include the public contribution to the project and Redgate Kane’s profit, remain a secret. Keep in mind that the City has already paid Redgate Kane $2 million for unspecified costs related to their earlier McIntyre-related efforts.
We have a hunch, but nothing more, that the City is being played. Redgate Kane has said all along that the community plan is unbuildable. Well, here it is, the cost of building something previously labeled unbuildable. Take it or leave it, Portsmouth residents. And if that’s too expensive, Redgate Kane will build you something less expensive that it believes is more feasible.
The taxpayer should ask, “How is the City doing after rejecting the previous City Council’s effort to shut down the relationship with Redgate Kane and hold a new competitive bidding process?” That new process would have introduced competitive bidding into the equation to discourage these shocking prices and undisclosed terms.
Let’s turn the clock back to November 18, 2021, when the City Council had precisely this opportunity before them.
That is when Councilor Peter Whelan proposed a motion to immediately cancel the development agreement between the City of Portsmouth and Redgate/Kane. He stated, “It’s time to get a real partner”.
Tonight, the city is at a crossroads. Redgate Kane, two weeks before the election, restarted a lawsuit against the city of Portsmouth and its residents… [this is] totally political and meant to influence an election…
Councilor Peter Whelan
His motion also established a new Request for Proposal (RFP) which would have created the competitive bidding necessary for the City to receive the best terms at the lowest price for the community plan.
Councilor Huda seconded Councilor Whelan’s motion. Councilor Kennedy pointed out that they were giving the incoming city council, “a gift.” Councilor Trace added that they were providing the incoming Council with “a fresh start. “
The other four councilors ungraciously said, “no thanks” and struggled to find excuses to defeat the motion.
Councilor McEachern lamented that this motion was not getting the city closer to building a project “we all can celebrate” and, without offering other suggestions, moved to adjourn the meeting.
Councilor Lazenby argued to table the motion until the public could be heard. Councilors McEachern, Splaine and Tabor agreed.
…The subcommittee made up of 4 councilors has poured 2 years into this project negotiating in good faith in a professional manner…we need a good relationship with a trusted partner…
Councilor Peter Whelan
Holding to his commitment to allow residents to speak at every meeting, Mayor Becksted opened the meeting to public comment. Miraculously. despite the protests by the intransigent four that no one knew about the November 18 City Council meeting, 12 individuals came forward to voice their opinions.
Newly elected Councilors Blaylock and Cook were indignant — the nerve of the current Council to deal with a festering problem in their final days! Councilor-elect Richard Blaylock repeated the brilliant suggestion offered earlier of talking to at attorney, as if no one had thought of this.
Councilor-elect Kate Cook, already an expert on council meeting proceedings, lectured that they weren’t following the rules.
This is not another development project…the land and all the buildings will be owned by the residents of Portsmouth not Redgate Kane.
Councilor Peter Whelan
Councilor Lazenby jumped off the dais, dramatically ripped off his mask and proclaimed that this public comment was not real public comment – as Blaylock’s and Cook’s heads can be seen bobbing in approval over his shoulder.
Councilor Whelan’s motion passed 5-4. Neither of the two surviving Councilors, McEachern nor Tabor, voted “yes.”
In an interview with the Portsmouth Herald 2 days after the 2021 election, Michael Kane said: “The new City Council, which promises to be a more thoughtful, civil and professional council, can only bode well for the McIntyre project.”
On February 10, 2022, the new city council rescinded the November 18, 2021, termination of Redgate Kane. Less than two months later, the two parties agreed to drop the lawsuit and move forward with the development of the community plan. The City Council also agreed to reimburse Redgate Kane $2 million for prior project expenses.
Now it’s over a year later and the new City Council has little to show for progress on McIntyre. Some might say that the City is further behind where they were in November 2021 because all they have to show are exorbitant costs and empty hands. Redgate Kane holds all the cards, and the City Council has no options. But don’t worry! The taxpayers will bail out the City once again.
See part two in this series: https://portsmouthpulse.com/2023/01/06/mcintyre-morass-part-2/
