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Tuesday, April 7, 2009

But of course

The Paulson stadiums deal is to be a no-bid affair. The City of Portland formally announced this afternoon that no other firms need apply for the development contract. It's all for Moneybags Paulson and Little Lord Merritt:

The City proposes to enter into a Predevelopment Agreement with Peregrine to split organizational and predevelopment costs in regard to the renovations to the MLS Stadium and the development of the new Triple-A stadium. The City also proposes to enter into an Operating Agreement with Peregrine to operate both PGE Park and the new Triple-A Baseball Stadium.

The award of a Predevelopment Agreement to Peregrine should be exempted from competition requirements of state law and City Code on a sole-source basis because Peregrine is the only entity that holds both franchises, is the only entity that will renovate the MLS Stadium and construct the new Triple-A baseball stadium and is the only entity other than the City that will incur predevelopment costs. To the City’s knowledge, no other entity exists that is willing to split predevelopment costs with the City.

The award of an Operating Agreement to Peregrine should be exempted from competition requirements of state law and City Code on a sole-source basis because Peregrine is the only entity that holds both franchises. In addition, the current Operating Agreement is held by Shortstop LLC. Shortstop LLC and Peregrine operate under similar management and Shortstop is agreeable to a revision of the Operating Agreement and with the assumption of Peregrine in its place therefore making a smooth transition to Peregrine’s new management. In addition, Peregrine would not be interested in making a contribution toward renovation or public improvement costs if it could not also operate both stadiums. Thus, while there are potentially other companies that could operate both Stadiums, there is no other entity that will operate and also make a contribution toward construction costs at both Stadiums.

Meanwhile, the highly suspicious rush-rush nature of the deal churns on, with all sorts of big decisions and commitments being made over a period of a week or two. It's got all the makings of a classic Sam and Randy financial disaster -- Vera couldn't have done it better herself. Go by streetcar!

Comments (30)

"Shortstop is agreeable to a revision of the Operating Agreement and with the assumption of Peregrine in its place therefore making a smooth transition to Peregrine’s new management."

It's the same f**king people!

So we're sharing "predevelopment costs". These include the design phase: architecture and engineering. Substantial costs for projects of this scale.

Now who wants to bet that these predevelopment costs were not included in the total public obligation cited in the original deal?

Could this run afoul of any federal antitrust laws?

What's the over/under for the big date? You know, when they say we have some big surprise costs, but if we don't go forward the city could be sued, so we have to proceed and just learn from our mistakes so that this can never, ever happen again.
I'm going with May 3rd.

Mayor Creppy is servicing as many fat cats as possible in advance of his recall.

Bill, my understanding is we have to make all kinds of commitments by August(?). This summer anyway.

The stadiums won't even be designed and costed out by then, but we'll be obligating ourselves to pay for it.

So my guess is whenever the final plans with the final costs laid out hit the street, that's the "tough sh*t" moment.

it's well known that Adams and Leonard owe a lot of people a lot of favors. including each other.

in honor of the imminent end of Adams' "First 100 Days", i think i'll start a tote board of all the bizarre promises that Adams made to get elected, thoroughly convincing hipsters (and Storm Large) that he was a selfless, progress statesman kind of guy with no political baggage or backroom dealings.

then, I'll put an X next to those unfulfilled.

First on the list: giant 12-lane bridge. rumors has it it'll have a sign in the shape of a middle finger on the miniature "bike path".

I'll also be sure to track the ever-changing "updates" to the 100 Day Plan, no doubt due to "unforseen" economic forces (apparently, the world became completely different after he was elected).

it's gonna be a very long list.

and for a sense of the caliber of people Adams has "working" for him, see here:

I'm not sure, but I think she's wearing tap dancing shoes.

Since May 3rd came to me in a vision, can I change it to 2010?
I'm starting to see this in mystical terms as a symbolic tale for the entire economic collapse. This is bigger than your standard Portland scam - this is being written by other forces.
Remember Norman Mailer's book, "Why We Are In Vietnam"? It was all about some guys hunting in Alaska - Sarah would have loved it.
Maybe we're living in a novel about how America collapsed with the derivative fraud and bailout run in part by Henry Paulson.

History students generations from now could simply read about this to see how the right private-partnership scam can destroy a city. Then they'll know what happened to the country.

...what a f@*#ing rip we are surprised by this?
Boy, I would sure like to know how much everyone involved is taking in payoffs to the Caymans?!
I hope Sam and Beau will be happy in retierment together.
This just stinks!

I'm shocked. I don't see any mention about sustainabilty. :)

Peregrine -- isn't that a raptor? A bird of prey? How fitting . . .

I think this violates portland's MWESB policy. I don't think they can just give it to white guy without opening it up for others to get a shot at the dev agreement. How do they know there's nobody else interested in the work??

I didn't think Sam could out-Vera Vera. I was wrong and no one is stopping them.

And of course, we could NEVER be as foolish as those rubes in this NYT story here, right? Right??

I'm shocked. I don't see any mention about sustainabilty.

Stay tuned. all new construction will be first touted as attempting to pursue LEED certification.

then, after a while, that will be quietly dropped for a list of "green features".

then, that list will be quietly whittled away by the construction company and "financial realities."

finally, upon completion, Adams and Leonard will tout the project's "green credibility" and its "solid example of public-private partnership"--and SustainLane will award Portland another "greenest city" award.

You don't even need to write a script for this play--it's already been performed all over town.

How do they know there's nobody else interested in the work??

Thats irrelevant. Its all about who greases palms and who owes who what.

And sure, it might "run afoul" of some federal laws...but it will never even be investigated.

If nothing else I wish we could pin Randy and Sam down on some fixed costs for this thing so that when it inevitably costs 2x as much we can point to their earlier estimates and call it for the b.s. that we all know it is.

But, no, like the tram they will overcommit themselves and the city, pay 2x-3x what they are telling people they'll pay, and, worst of all, not get called on it.

It's gonna make my favorite quote about projects very fitting:

There are two phases to any project:
Phase 1 - It's too early to tell.
Phase 2 - It's too late to stop.

Now I heard on channel 12 this morning that they are pushing the whole convention hotel thing with this too. And they want to build space for shops, a 2500 seat concert venue, all kinds of crap.

Given the track record around here if there were ever anything certain it is convention center hotel.
And it will probably get back on the table and approved just slightly ahead of the recall effort kicking off.

What is sustainable about tearing down the Trailblazer office buildings, commercial spaces, plaza next to the Rose Garden that is only a decade old? What is sustainable about tearing down a Rose Garden parking garage only a decade old, then replacing it with another? What is sustainable about tearing down the Memorial Coliseum that is in fine shape except for maintenance needs.

Leonard, Sam, and Saltzman are hypocrites.

What is the equivalent of recall on this thing? Can we sign petitions to stop a city council decision?

Explained here.

Isn't anybody with a voice in the media paying any attention to the questionable morality and legality of this unholy alliance?

If they are, I hope they find their voice soon . . . as in IMMEDIATELY.

Twice in the past week, when I have logged on to, a large banner has appeared near the top which said: Portland Timbers Season Tickets, click here.

So, don't wait for The O to say anything. It needs those advertising dollars.

The franchise fee is not a part of what Paulson has to make money on--PERIOD.

Because if he makes money on the REST OF IT, the franchise value GOES UP.

This has been capitalism 101.

SGC - This is NOT capitalism 101. This is highway robbery, fascism, almost mercantilism in that the Royalty grant a monopoly on a deal.

Having spent a lot of my career in large commercial construction, I can assure everyone that this is not normal practice. If this were Intel or Nike or Microsoft investing in a facility, you can bet that everything would be going to bid and every penny scrutinized.

I think it's commonly referred to as "crony capitalism."

An immoral people cannot remain free.

None of this makes any sense.

First off, is this stadium fiasco going to be multi-use for both baseball and soccer, and if so, why? I lived for several years within walking distance to PGE and it NEVER sold out, with the exception of when Team USA came to town, or if some international star or team came to play, and the Beavers did no better.

So does Sam seem to think that if they only build a bigger place, that will solve the problem with attendance and revenue? If this is the case, that alone is grounds for a recall vote, as it's obvious he's mentally incapable of running his own life, let alone the business of a city, for God's sake.

If this stadium fiasco isn't going to be multi-use, then they plan on building two stadiums? While I have so far, and will continue to, refuse to take part in this "recession", the economy in Portland particular and Oregon in general dictate that this is a ludicrous and imbecilic move in fiscal terms.

That being said, it's obvious that Sam has his sights set on surpassing Vera in at least one aspect: the outright theft of money from the pockets of the citizenry of Portland. She did it time after time with the myriad MAX lines that were voted down time and again, yet still they were built in the red and still the city taxed it's people into near poverty, and now Sammy boy has his sights set on even more outright theft and even higher sums of red ink.

It's stories like this that make me glad I made the correct and logical decision to leave not only Portland itself, but the entire State of Oregon, period. I just got tired of being repeatedly raped for money when one or another of the many scams of Queen Vera perpetrated upon her "subjects" failed miserably - and they always did - $60 million for a single car tram anyone, or the outlying MAX lines where getting a ticket, let alone just getting home in one piece, is a toss up.

The citizens of Portland need to recall this insolent child of a Mayor and quick. If not, then I fear that Portland will lead Oregon down the same road of total bankruptcy that California now finds itself on.

Pathetically sad, but so very, very true...


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