TDA spends half its money on itself

[patric]

An audit finds the Tulsa Development Authority spends more than half it's budget on it's own salaries:
http://www.fox23.com/news/local/story.aspx?content_id=a21a5005-148b-4551-be92-37fb6ec59037

[Wrinkle]

What'd you expect?

We need to get TDA out of the control of local development and put them where they were intended, a Federal/State operation to fund and recommend blighted area redevelopment.

TDA is NOT "Tulsa's Real Estate Development Arm" as quoted by the Tulsa World. It's a State entity, funded by both State and Federal funds.

...and, did I mention, they're not obligated to our City's ethics ordinance, and appear to have no intent of complying?

[Townsend]

So does this mean that the TDA is busted or does it mean that because of the TDA the city of Tulsa is busted?

Is this a step forward to improving the situation or are we about to see trouble?

[carltonplace]

Well the TDA certainly has inadvertently turned a spotlight on themselves due to their recent decisions. Maybe this will lead to an overhaul, but I doubt it.

[inteller]

The TDA needs to go away.  it just provided a convienent way for the city to escape liability but we can see with the 7.1 mill krazy kathy payoff that wasn't the case.

[Wrinkle]

TDA is a State agency, not City.

The city needs to rediscover its own EDC, who is supposed to be our real estate development 'arm'.

TDA is suppose to recommend and fund, not dictate and initiate.

Too much power given to the wrong entity.

[cannon_fodder]

Well, something is wrong.

I guess if the State is running Tulsa's development it gives us some good excuses and segways nicely into our "OKC runs the State and gets all the benefits" rants.

[patric]

Councilors are concerned the Authority is more of an impediment rather than a catalyst...

http://www.fox23.com/news/local/story.aspx?content_id=04ab5703-a5b0-4031-9387-3fc0428e7693

More fallout tonight over $1.5 million misused by a city department, according to an audit.  The city council now wants answers from the Tulsa Development Authority about business decisions that left taxpayers holding the bag.

[carltonplace]

Yep, the TDA is not in a good place right now.

From the Tulsa World




The city must repay $1.5 million in inappropriately expended federal grant funds, and one city councilor wants those responsible held accountable.

"Somebody's head should fall for this," Councilor Bill Christiansen said Tuesday during a committee meeting.

The inspector general for the U.S. Department of Housing and Urban Development has found that the Tulsa Development Authority inappropriately expended Community Development Block Grants in its land acquisition, clearance and relocation activities from October 2005 through September 2007

[Conan71]

My prediction-

City writes a check and those responsible for the **** up will walk away without a blemish, just like Dick Stupidity on the Great Plains deal.

[inteller]

quote:Originally posted by carltonplace

Yep, the TDA is not in a good place right now.

From the Tulsa World






The city must repay $1.5 million in inappropriately expended federal grant funds, and one city councilor wants those responsible held accountable.

"Somebody's head should fall for this," Councilor Bill Christiansen said Tuesday during a committee meeting.

The inspector general for the U.S. Department of Housing and Urban Development has found that the Tulsa Development Authority inappropriately expended Community Development Block Grants in its land acquisition, clearance and relocation activities from October 2005 through September 2007

well step 1, don't reappoint Shahadi.

step 2, pressure the mayor to fire that loser Midget.  that guy is a louse on the tax payer dole.  This is the same loser who said that there is no neighborhood to save along Cherry Street, so let bumgarner and the boys do whatever they want.  Get rid of this yes man.

heads need to roll.

What is our payout count up to now?  not counting the smaller tort claims against the city, I'd say we are sunk 8.6 million dollars.

[carltonplace]

Am I wrong for thinking it should work this way:

1. TDA recognizes and identifies blight
2. TDA purchases blighted area
3. TDA puts forth blight to developers for RFP
4. TDA accepts RFP and sells or leases blighted area to developer for marginal or handsome profit
5. Area is no longer blighted
6. TDA uses sale to go back to step 1.

Am I way off base? Did I read their mission statement incorrectly?

I think step 1 and 2 are occurring, step 3 sometimes and step 4, 5 and 6 seldom never.

[TheLofts@120]

Carltonplace...you're close.  Number 1 (blight) is actually identified by the City as part of an 'urban renewal area' that also incorporates an 'urban renewal plan' according to State Statutes.  Once identified, the urban renewal authority (TDA) can then move to acquire, remediate and dispose of the property for redevelopment.  

In most cases, the TDA must sell the property for fair market value (established by appraisal), especially is using CDBG funds.  Only if the property is to be redeveloped for low or moderate income purposes can the TDA sell the property below the established fair market value.  If they sell for fair market and there is a positive difference between what they purchased it for with CDBG funds and what they sell it to the redeveloper for, the TDA can utilize those revenues for their own operational expenses once the CDBG monies have been repayed back to the fund.

[patric]

quote:Originally posted by TheLofts@120

In most cases, the TDA must sell the property for fair market value (established by appraisal), especially is using CDBG funds.

Strike...

FOX23 uncovered records showing the Tulsa Housing Authority paid half a million dollars more for the land than it was worth.  Now opponents want to know who may have profited.  THA officials call the notion of improprieties "unsupported".

Records show that in January of 2008, an arm of the Tulsa Housing Authority bought land at the corner of Yale & Admiral for $800,000.  But in 2007, the land was appraised at only $225,000.  The seller is listed simply as C&W 9600 LLC, but it's unclear who is behind that entity.

"Who did profit from the sale?" asks project opponent Julie Hall.  "That has been almost impossible to trace and that does raise a lot of red flags."

Officials at the Housing Authority say the seller has no ties to the project.

"The land purchase was the result of negotiations with an unrelated seller who demolished an existing building and graded the land prior to sale," says THA Commissioner Scott Zarrow.  "No one associated with the Mental Health Association of Tulsa, the Tulsa Housing Authority, or this project has any connection to the sale or will profit from that sale or will profit from this project at all."

Because of a possible lawsuit from project opponents, THA officials declined to comment on who the seller was or with what funds the land was bought.  But project opponents feel they deserve to have all the answers.

"This is a public authority and we deserve, as members of the public, to know that what they're doing is above-board," says Hall.

THA officials also said today they've been in open communication with Housing and Urban Development about this project.  But opponent Julie Hall says when she spoke to a HUD official, she was told that hud had no paperwork related to the project.  

[carltonplace]

The TDA and the THA are the same organization or they are two branches of the same entity?