Archive for September, 2005

Fishing with No Bait

Friday, September 30th, 2005

In one of the finer “I %$&@ bigger than you” moments of the whole Arts Center saga, Mayor Wilder delivers the latest in a series of righteous beat-downs to the VAPAF’s Brad Armstrong and his current chief enabler, City Council President Manoli Loupassi (click here for the RTD’s .mp3 streaming audio clip). Wilder’s description of the Foundation’s lack of leverage at the bargaining table - “like fishing with no bait” - is a line for the (Richmond) history books.

For Brad’s part, the fresh paint over at 111 Virginia St must be getting to him. He seems to consider the City Auditor’s findings that his financial reports have misleadingly inflated fund-raising totals to the tune of 80%, and that he has billed the city for nearly $700,000 in unauthorized expenses, to be an affirmation. As mentioned in the audioclip, in a letter yesterday to the city, Brad actually tries to use the Auditor’s report as reason for the Mayor to release the rest of the $12 million phase I meals tax money to the Foundation.

Hizzoner is, of course, suffering none of it, and says that he won’t send another dime Brad’s way until a new city ordinance is in place - likely one that would transfer title of the Thalhimer’s block back to the city unless the VAPAF can raise the full cost of the project (currently pegged at $117 million) by December 31, 2006. Now that the City Auditor has “restated” the Foundation’s fundraising totals to just $17.7 million, it seems like a pretty safe bet by the Mayor. Only a cool hundred million more to go boys…Peddle faster!

Also from the Mayor’s audioclip (which, I gotta hand it to the RTD, is way cool) we learn that Councilman Loupassi has been much more active working behind the scenes for the VAPAF than previously thought. Apparently he’s been carrying the Foundation’s water for some time trying to get the Mayor to release the rest of the Phase I meals tax money. In at least one letter to Wilder, Loupassi testifies to the accuracy and thoroughness of the VAPAF’s financials. And in his press release yesterday, the Council President gushes that Brad & Jim, Inc. is “substantially in compliance.” Well, the next time I pay only 94% of my taxes, or get caught driving with a blood-alcohol content 106% of the legal limit, I’ll know which lawyer to call. And for those of us a little short on cash, like the Foundation, it’s good to know he accepts all major credit cards.

In the “Public Square”

Thursday, September 29th, 2005

What we learn from the “Public Square”? Consultants are everywhere!

The first speaker at last night’s debut installment of the Richmond Times-Dispatch’s “Public Square” was a consultant… or something — he went on and on, waving around papers and claiming to have a whole lot of experience and expertise. For one thing, he told the crowd, he’d worked on the Sixth Street Marketplace. And, you know what, he still believes in that project! The gentleman reported that he had seen the city auditor’s report of the VAPAF and could find no problem with the foundation’s performance so far. He had no idea why the mayor was so concerned about this venture. Full steam ahead…

Near the end of last night’s town hall meeting, another stood to speak in favor of the project. He was a NEW consultant for the Virginia Performing Arts Foundation and was proud to, y’know, speak up as a citizen about it — forget all that paid consulting stuff. Thanks for sharing!

In between these testimonials, the assembled throng got some very nice speeches on the ways that art can teach children, can enrich spirits, can intoxicate imaginations, can take us to better places, make us richer and more tolerant people.

No arguments here. But unfortunately the issue before us now is how a bankrupt Carpenter Center, a forsaken Landmark Theatre and a hole-in-the-ground that wants to be an unstudied, too-small music hall can help to foster good art. Or help the children. Or do anything at all.

There were tough questions and comments too. Many wondered about the financial viability of the venture. And we heard from actual Symphony musicians — one for, one against the project. Whatever you wanna say about the Times-Dispatch and their “Public Square” idea, this was a breakthrough. The arts center debate has long needed to hear from actual working artists involved with the complex.

(VAPAF FUN FACT: Did you know that the arts groups in the Alliance for the Performing Arts are normally forbidden from being critical about the foundation’s project. It’s in the APA bylaws!)

I’d tell you more about some of the views expressed — including Scott Burger’s fiery speech about the Times-Dispatch’s close relationship with the VAPAF— but supposedly the newspaper is turning all of this into a documentary or something.

Brad Armstrong didn’t speak. He left the foundation’s spinning to the always-genial Jim Ukrop, who took the audience back to the early days of the arts center — when propping up the expanded convention center was the concern, not “the children.” [Richard Serpa, the Richmond Symphony musician who was critical of the project, would reference Ukrop in his comments: "You heard him. This isn't about the arts, it's about downtown."]

There was a whole lot for the foundation to spin. Or just neglect to talk about. Yesterday, the city auditor confirmed what critics have argued and members of city councils past and present have long denied: The Virginia Performing Arts Foundation has been improperly disclosing its finances to the City of Richmond; it has attempted to bill the city for salaries, social events and other non-pre-construction costs; and it has been improperly counting the fundraising pledges that it has received.

As for those “allowable” expenses — that 94% figure you’ll be hearing a lot about— the auditors admitted that there was a bit of a grey area there. For that, we can all thank… guess who?? The wonderful City Council that pushed through the meals tax hike in 2003 to greenlight this mess!

[Auditors] blamed some of the issues regarding the foundation’s expenses on the vague wording of the 2003 ordinance that committed $27.8 million to the arts center. The amount includes $12 million for “pre-construction” costs, which would include such expenses as architects’ fees and demolition.

The auditors said the ordinance leaves to interpretation whether certain expenses would qualify for reimbursement. The report said some expenses submitted appear to be “’soft costs’ that could be included in ‘pre-construction activity,’ but appear to be more administrative in nature.”

The auditors said some of the costs could be argued either way and they reported no evidence that the foundation intended to submit expenses that would be declared unacceptable.

Business as usual, the Sixth Street Marketplace dude might say. Just business as usual.

Whiffs of FEMA & Tyco

Wednesday, September 28th, 2005

Today, in a move eerily reminiscent of former FEMA Director Mike Brown’s descent into the unemployed, VAPAF Chairman Jim Ukrop gave CEO Brad Armstrong an incomprehensible “attaboy!” as the walls crumbled around 111 Virginia St. The Uke stole nearly word for word the immortal “Brownie, Yer doin’ a heckuva job” line last used by the current resident of 1600 Pennsylvania Ave. as mayhem broke out in New Orleans after Hurricane Katrina. And like the poor Big Easy, the Virginia Performing Arts Foundation may soon find itself out of commission.

Today’s Category 5 Hurricane for the Foundation came in the form of a rare twofer, as we heard from both the RTD and Style. The RTD covered the long-awaited and VAPAF-goaded review of the Foundation’s reimbursement requests and financial filings by the City Auditor. Well, be careful what you wish for, because the Honorable Lance J. Kronzer, CPA, found that:

1. In its monthly financial filings with the city (and by extension in its public pronouncements) the Foundation presents the amount of money it has raised in a misleading way. So many of its pledges have restrictions or contingencies that the VAPAF may never see much of the money it claims to have raised at all. The city auditor ruled that , under real accounting principles, many of these pledges should not be counted in the Foundation’s fund raising totals. To date, Kronzer found that the VAPAF only has $17.7 million in pledges that it can, with any confidence, count on. This is approximately 80% less than the $72.3 million they continually trumpet (except, I should note, in their IRS filings!). The action by Kronzer constitutes the first of what I fearlessly predict will be several more financial “restatements” by the Foundation. Paging Dennis Kozlowsky…

2. The Foundation submitted claims to the city for nearly $700,000 in unapproved expenses. This number includes certain salaries, overhead expenses, and $400,000 for an escrow deposit. I think I may start sending my wife’s visa bill to the City just in the off chance…

3. The Foundation did not comply with the city ordinance’s reporting requirements because it failed to include the project’s current cost estimates in its filings. For those of us that knew for quite some time that the recent bids would come in well above $100 million (current estimate is $117 million for both capital and operating), there are suspicions that this omission was not just an oversight.

From Style we learn that finally a few VAPAF board members are stirring, realizing the depths of the problems Brad & Jim, Inc. have caused, and are now registering their dissent by talking to the press - and calling for Brad’s resignation. For their part, Brad and Jim, as mentioned above, continue to practice the ever-timeless ostrich defense.

While we applaud this rogue board member, it’s well past time for this fellow, and several like him or her, to stand up and dissent in actual board meetings. This disease has metastasized to the point where merely throwing Brad under the bus won’t save the patient. That said, I think most of the Richmond metro area agrees with this shadowy, but on the mark, board member when he or she notes, “I think its time for [Brad] to go.”

The exciting news day doesn’t end here. Check back to see what our on-site correspondents have to say about the RTD’s Public Square discussion, currently in progress.

End run?

Monday, September 26th, 2005

I guess we know why things have been so quiet. VAPAF, unable to raise private funds for its flailing vision of an arts center, and stymied by a mayor who refuses to give the foundation any more city money, has asked one of its many reliable friends on city council, Kathy Graziano, to exempt the Carpenter Center from “real and personal property taxation” while the center is controlled by VAPAF.

VAPAF isn’t a public body when Richmond residents request its bank statements, but I guess it would like to be one when tax time rolls around.

But wait! That’s not all! City councilman Bill Pantele, a member of VAPAF’s executive board, is about to be named to the Capital Region Arts and Cultural Funding Consortium. There he’ll join other friends of VAPAF such as the Arts Council of Richmond, Elegba Folklore Society, the Richmond Jazz Society, the Richmond Symphony, the Richmond Ballet, and the Virginia Opera in…wait for it…distributing arts funds to, ahem, projects the members deem worthy of such largesse. It’s all run under the auspicies of Arts Council director Stephanie Micas, who…also serves on VAPAF’s executive board!

Now, I’m sure this is just an innocent coincidence–it’s almost unthinkable that VAPAF would try to sneak one past the mayor, but given city council’s commitment to transparency and open government, perhaps it ought to kick this one back and appoint a councilmember independent of any of these organizations, just to, you know, avoid the appearance of such a snaky move. You never know what “irresponsible bloggers” might make of that.

Meanwhile the stoogery continues

Sunday, September 25th, 2005

If anyone needs me, I’m going to be poring over the city charter trying to figure out how to get a recall petition going.

To be “considered” at tomorrow’s council meeting:

Ord. No. 2005-194 (Patron: Mrs. Graziano) ? To exempt, ***, the Carpenter Center, from real and personal property taxation, ***, contingent on the continued use of the property by the Virginia Performing Arts Foundation, ***, etc.

37. Res. No. 2005-R188 (Patron: President Loupassi) To appoint Eugene A. Mason, Jr. as a director of the Capital Region Arts and Cultural Funding Consortium.

38. Res. No. 2005-R189 (Patron: President Loupassi) To appoint William J. Pantele as a director of the Capital Region Arts and Cultural Funding Consortium.

Thoughts on the looming symposium

Saturday, September 24th, 2005

I can’t go to the Times-Dispatch’s conference on the performing arts center because I have to be in New York that day, but I seriously doubt I’d go even if I were here. I know, I know, I really shouldn’t deprive myself of seeing Brad’s opening statement:

My name is Brad Armstrong, and I live in our city. I’d like to ask everyone who supports this project to stand.

Then the same 100 people who always turn out in support of the arts center will rise, and there will be some crazy speeches from critics during which they’ll all murmur and roll their eyes, and maybe Jim Ukrop will speak, adjusting the half-glasses that make him look like a kindly old cobbler, and maybe they’ll get a kid to stand up and deliver a cornball line like “I should be home doing my homework” and….

Oh wait, that was the last council meeting when VAPAF petitioned for more time to raise money. Which brings me to why this meeting is completely pointless:

VAPAF will never ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever ever raise enough money to build this arts center.

That’s because the people running it couldn’t, as my wife says, organize a piss-up in a brewery. They never tried in earnest to raise private funds (writing letters to rich people DOES NOT COUNT); they merely hoped for enough tax increases to get over the line.

Well, they couldn’t do it. And they can blame the negative publicity that’s dogged them for two years on “irresponsible bloggers” and “website whining” and “tabloid journalism.” If a private board with millions of dollars at its disposal, many of which have been spent fruitlessly on public relations, can’t get its message out over the din of a website such as this one (less than $200 spent on the project so far) or an alt-weekly, it is staffed by incompetents.

The Times-Dispatch editorial board is firmly in favor of the arts center, and I have to assume that its writers think that somehow they can talk this project into being. I think that hope is as unfounded as the idea that the T-D editorial page might evolve into something less than a complete joke in my lifetime.

By all means, dear readers, go to the event next Wednesday. But if you expect anything from this except more of the same, well, you haven’t been paying attention.

It’s quiet…too quiet

Friday, September 23rd, 2005

Not a lot of news on the arts-center front lately. What on earth could they be up to? Guys, any theories?

Cool place to park

Thursday, September 22nd, 2005

Many of you have written wondering which of our beloved local rock personalities I saw breaking bread with Brad yesterday. It was not this guy–as we know, Brad has already said that GWAR is the only group that will never be allowed to play at his fantasy arts center, “because they have a history of trashing venues.”

Nice shirt, btw, Brad. You really should undo the second button on that bad boy when hanging with “creative types,” though.

Page six

Wednesday, September 21st, 2005

What Richmond rock institution was seen supping with Brad Armstrong at Shockoe hotboîte Café Gutenberg this afternoon? And does this mean the dream of Sir Paul McCartney opening the performing arts center’s inaugural 2035 season has gone the way of Ringo’s solo efforts? More to the point, is VAPAF finally doing what it expressed no interest in doing two years ago–reaching out to what one in-touch board member refers to as “street musicians“?

Yet another arts expert

Wednesday, September 21st, 2005

Thomas F. Farrell II, whose qualifications include a Roman numeral at the end of his name, has joined the board of the Virginia Performing Arts Foundation. We applaud the foundation’s continued efforts to stretch its arms in welcome to the entirety of Richmond’s rich social environs, and are certain the addition of Mr. Farrell will bring much-needed diversity to its ranks.

Try these on for sighs

Thursday, September 15th, 2005

Hard to say what’s more astonishing in today’s announcement that Brad Armstrong is “voluntarily” taking a pay cut:

  • Now they’re only gonna pay him $200,000 a year to fail miserably
  • He can’t spell the word lightning
  • The article fails to mention that AMS, the consulting firm that analyzed Brad’s salary and found it “average,” is VAPAF’s lead consultant and has been paid over $1 million by the foundation already

Pay as You Can’t

Wednesday, September 14th, 2005

By endorsing the status quo at their anuual meeting yesterday, the Virginia Performing Arts Foundation’s board of directors squandered perhaps the last, best chance to right their sinking vessel. If they had prudently changed course to focus solely on bringing the Carpenter Center back on line as quickly as possible perhaps some face could have been saved, and “the little children” they so often talk about might have actually been able to experience a usable arts facility sometime before being packed off to college (likely never to return.)

I have a theory as to why Brad & Jim, Inc. did not make the courageous choice to return the Carpenter Center to operation as expeditiously as possible. Though it could be sheer hubris that keeps them from seeing their bloated plans neutered, I think there is a more basic reason for why they don’t want to focus soley on fixing this formerly wondrous downtown landmark:

They simply don’t have the money to fix it.

I figure, if the plans were changed to immediately direct the speedy $21 million rehabilitation and expansion of the Carpenter Center (as promised by the Foundation), the public, the mayor, and perhaps even the press would expect work to begin forthwith. Many eyes would be watching to see that construction progressed smoothly; delays and double-talk would not be suffered well.

As the Foundation’s situation exists today, nearly broke, it is far far easier for them to hide their ineptitude amongst the confusing bramble of the current mega project. The uninformed observer may find it understandable that the Foundation cannot complete a $117 million dollar behemoth. That same observer may not be so tolerant with the group if they cannot even push through the $21 million renovation of a dear old friend. For they have claimed to have raised so much ($71.2 million!) that it would be difficult to explain why they couldn’t pay for something, by comparison, so little.

As an exercise, we will start with the total amount they claim to have raised ($71.2 million), and will subtract money that they either have spent, or will likely never receive. We will try to arrive at a figure that will approximate the actual funds they may have available to them in the future. The math is not kind:

$71.2 million (total amount VAPAF claims to have raised in cash, pledges and in-kind gifts)
- 22.5 million (money already spent)
- $4.4 million (balance of part I of meals tax - Wilder says he will not disburse)
- $15.8 million (part II of meals tax - Wilder says they have disqualified themselves)
- $4.9 million (historic tax credits - VAPAF must complete renovations of Carp Ctr to obtain)
—————————————————————————————————————
total $23.6 million

The remaining $23.6 million is also fraught with restrictions and contingencies. The Commonwealth’s $8.5 million ante is structured as a dollar for dollar match. To date the Foundation has only been able to match slightly more than $1 million - if they have so much money, why the delay? The $5 million Robins Foundation gift (meted out over several years) is restricted to building the new music hall and cannot be used for the Carpenter Center on a stand-alone basis. $250,000 of the Bank of America gift is contingent on raising 90% of the total project cost, now$117 million and a distant dream. And on and on…

This is why the Foundation’s audited financials differ so greatly from their executives’ public pronouncements - and may also be why the Foundation cannot make the sensible decision to just fix the Carpenter Center.