partial loan guarantee - a risk that could be shared by the City, the
Park Foundation, the Minneapolis Foundation, and Unknown. Seems the
Loppet is $1.2 million short of funds needed to start construction.
Staff report at https://tinyurl.com/my5ns2u
Since 2012, the Loppet has spent a total of a total of $263,664 on
public officials' gifts and entertainment according to Loppet tax
returns - this was $100,000 in 2015 alone. These were amounts of $1,000
or more to the official and/or their family. Amounts of less than
$1,000 are not required to be reported. It's an election year - maybe
some enterprising reporter will find out what this deal is all about!
Loppet 990s at https://tinyurl.com/mnb3zcm
In 2013, the Loppet was granted a contract by the MPRB, a Memorandum of
Understanding, to raise $3.5 million for a new Silent Sports Center at
Wirth Park. In 2016, contracts granting the Loppet the right to
construct and lease the new building and to operate the MPRB's winter
recreation program.
So how did this project get so far along? Unlike the Phillips Swims
project, the Loppet was not required to appear before the Park Board
commissioners to provide fundraising updates. Why were final contracts
presented to the Board before funds were raised to complete the project?
MPRB staff reports that the Loppet has raised $9 million for the project
(& is still short). How did a $3.5 million building morph into $9
million? Shades of Fort Snelling Neiman! Where's the total project
budget?
Friends of Par 3 sent me some info over the weekend. It appears that
the MPRB share of the $9 million is up to $3,465,823. Can't locate this
budget at a Board meeting, maybe Commissioners will send pointers.
Whatever, the "donation" of a new building isn't coming cheap.
At the same time, the site plan is changed, building location moved.
https://tinyurl.com/k4n89b4 Where is the community engagement on this?
Board approval?
The Loppet can't get a $1.2 million loan, not only because it lacks
collateral, but it doesn't generate enough revenue to pay off a loan of
this size. Loppet operations lost money in 2012, 2013, and 2015.
Loppet has not released a 2016 tax return (fy end 9/30) but the
unaudited statement in it's annual report doesn't show any thing near $9
million or even $6 million in funds raised. Actually, their odd balance
sheet shows the Loppet operations were near broke and would likely need
to borrow to meet current obligations.
http://www.loppet.org/files/foundation/pdfs/2016/2016-Annual-Report.pdf
Between agreeing to accept a $2 million personal guarantee in lieu of a
performance bond and now, consideration of a loan guarantee on the
construction, and with no approved projected operating budget for the
MPRB-Loppet Wirth operation, the Park Board (so taxpayers) are risking
unknown millions on this project. It's happened before at Fort Snelling
Neiman. Commissioners, please vote no!
Shawne FitzGerald
Minneapolis Park Watch member