An interesting article in today’s Press about Mt. West Bank requiring collateral for a LCDC loan to work on Midtown. What many folks may not realize is that LCDC regularly buys up property to hold, off the tax roles, until they want to use it for some project. Many/most Urban Renewal Agencies around here don’t: Post Falls does not buy and hold property, and Hayden also avoids it. LDCD now owns almost two dozen properties.
The loans between Mt. West Bank and LCDC for six of the properties are where Charlie Nipp got himself into legal trouble with the Idaho Attorney General. Charlie, as then Chairman of the LCDC, did not disclose his business relationship and position on Mt. West’s Board (he is also an owner in the bank’s parent company. along with his business partner Steve Meyer), as Charlie signed all six loans as Chairman of the LCDC. Oops. He never apologized or admitted to any error. LCDC announced no plans to change their protocols or disclosures. (They just threw a big party for Charlie!)
Now Mt. West Bank must be nervous. There’s a case in the Idaho Supreme Court that may affect urban renewal all over the state. But don’t worry, the LCDC has given YOUR tax dollars to support the case on the side of urban renewal agencies’ power. They are trying to prove that LCDC and other urban renewal agencies are independent. So, if that’s found to be true, who will be able to supervise or be able to change urban renewal? Our tax dollars at work…against us.
Here’s the link to the Press article: http://www.cdapress.com/articles/2009/06/24/news/news05.txt
I attended the meeting in which this was discussed. Charlie excused himself and left the table.
Comment by Susie Snedaker — June 24, 2009 @ 6:20 pm
But did he ever suggest a change in their disclosure form or protocols, or apologize for his inadvertent (or not) error?
Comment by mary — June 24, 2009 @ 6:49 pm
Why is the LCDC borrowing $850K anyway? Are they cash poor or is this the most efficacious way to fund these programs? How much property do they own and how much of it is leveraged already? Is the LCDC debt heavy and at risk for financial trouble? We have seen where certain ‘shareholders’ have failed in their personal business decisions has there been similar failures inside the LCDC also? Criminy the LCDC salary and consulting debt load must be close to $200K annually. Considering who’s involved and all the hidden paperwork I think some serious investigations need to be done BEFORE we allow them to collateralize OUR property portfolio any further.
Comment by Wallypog — June 25, 2009 @ 9:50 am
For those who may wonder how the LCDC has the authority to put up public property as collateral for a loan, read Idaho Code Title 50, Section 2007 (f).
Comment by Bill — June 25, 2009 @ 12:31 pm
I made the comment simply to indicate that he excused himself and left the table.
Comment by Susie Snedaker — June 25, 2009 @ 2:00 pm
Wallypog, as I said in my original post, LCDC owns about 23 properties.
Susie, sorry to ask again but when Mr. Nipp excused himself did he say anything? Did he give a reason? Did he state he was recusing himself from discussion on the issue because he also sits on the Board of Mt. West Bank and is an owner in its parent company?
Comment by mary — June 25, 2009 @ 5:14 pm