While I have not been enamoured of Elwyn Tinklenberg, at times you have to say, "Get Real," to groundless criticisms.
May 29, 2008 - Brodkorb does it again, all sizzle, no steak.
Inconsequential things blown out of proportion, as with Franken's business taxes, and now on a far, far less valid basis than with Franken, this time about Elwyn Tinklenberg's making a couple of property tax late payments.
Read and decide whether you agree with the few terse lead comments included below about the blog post text:
MDE EXCLUSIVE: TINKLENBERG’S TAX TROUBLES: PAYS PROPERTY TAXES LATE - TWICE; CAMPAIGN CITES “HECTIC” SCHEDULE FOR AS REASON FOR LATE PAYMENTS
By Michael B. Brodkorb | May 29, 2008
According to public records obtained by Minnesota Democrats Exposed and confirmed with a representative of his campaign, Elwyn Tinklenberg paid his property taxes late on two occasions, once in 1999 and again in 2005. In both instances, Tinklenberg paid a fine for his late payments.
I spoke with a very professional and polite John Wodele, who works for Tinklenberg’s campaign and he confirmed that the campaign knew about Tinklenberg’s tax problem. After speaking with Tinklenberg, Wodele cited a “hectic” schedule as a reason for Tinklenberg paying his property taxes later.
Please check back to Minnesota Democrats Exposed for more information on this developing story.***
17 Responses to “MDE EXCLUSIVE: TINKLENBERG’S TAX TROUBLES:
Andrew Says:
May 29th, 2008 at 3:23 pm
This is where you’re probably starting to reach a bit too far with uncovering people’s tax problems. He paid his late fee, whatever.
Andrew Says:
May 29th, 2008 at 3:23 pm
Lord knows we’ve all sent a bill in late once or twice.
Chuck Says:
May 29th, 2008 at 3:27 pm
Tinkleberg may or may not be a bum. But you are seriously overreaching if you think a couple of late property tax payments are the determining factor.
[...]
Back in October 2006 Brodkorb/MDE, here, posted documents ostensibly to discredit Jim Deal and Mike Hatch, because Hatch at one point had been a director of NAU Insurance, a closely held crop insurance business wherein Jim Deal is the principal executive, along with his son, since his founding the firm years ago (the item below being a separate thing unrelated to Hatch).
Now, above is a document relating to City of Ramsey's Highway 10 mapping and property purchases, where Jim Deal ended up with his NAU business moving into the Ramsey Town Center and Deal taking title to about 26 acres, off Highway 10 and the other side of the BNSF tracks (of which he sold 1.3 acres at $500,000+ per acre, right next to one of the busiest and noisiest railroad tracks in the nation, buyer being the taxpayers of Anoka County, i.e., the land was sold for the new morgue - which could have been sited anywhere, especially somewhere representing a less costly burden to taxpayers).
Bruce Nedegaard was personally in chain of title to one of the parcels Ramsey purchased on Highway 10, and his development operation, Ramsey Town Center, LLC, was in chain of title to the other (the former site of NAU, if I recall correctly, but I may be wrong on that detail).
Ramsey disbursed $2.5 million.
That was to purchase two parcels [I only think two, I have seen a "Lot 2, Block 1," and also a "Lot 3, Block 1," mentioned on papers along with two Hwy 10 addresses, so I believe only two parcels (not three or more) were involved and price was $1.7 for one and $1.8 for the other, with no additional funds if only the two parcels were involved].
Money was changing hands, with Bruce Nedegaard transferring title to one property at closing, according to the closing statement for that Lot 2, Block 1, parcel; but the money went to Jim Deal and not Nedegaard, "CASH TO SELLER 0.00" being what the bottom line said.
All this was with Tinklenberg Group quarterbacking things for a fee paid it by City of Ramsey.
So now, if Brodkorb/MDE holds any documents similar to the past ones about Hatch on the NAU board, but with it being Tinklenberg, then in view of the $2.5 million dealings, that would be interesting, as would be the case if Brodkorb/MDE could find any consulting fees paid by Deal or NAU to Tinklenberg Group.
If such documents exist, and Brodkorb holds copies and will publish them, two very big "ifs," then clearly, that would be news since an argument could be made about multiple arguably conflicting interests. I have no idea whether any such documents exist, or whether any business dealings were ever conducted involving Tinklenberg and Jim Deal (other than the roles each had on the Highway 10 property arrangements).
Tinklenberg and his group appear aware of "special" treatment involved in the Ramsey-Deal-Nedegaard-Ramsey Town Center, LLC, integrated dealings, see page 11 of the City Council's Jan. 29, 2008 Work Session Minutes. For a context, starting at p.6, "TH10/169 Corridor Coalition," excerpted minutes state:
Mayor Gamec explained that about five years ago cities like Anoka, Coon Rapids, and Ramsey began working together with the North Metro Mayors Association. He explained that eventually North Metro Mayors had too many projects and they decided to break down into a separate group and hire The Tinklenberg Group to head up the Highway 10 Coalition.[NOTE: 1] He explained that they have used them for three years. He explained that it has been helpful in coordinating many of the cities together and much has been accomplished.
Elwyn Tinklenberg and Jodi Ruehle of The Tinklenberg Group were present. Mr. Tinklenberg explained that there have been significant accomplishments including bringing in 2.6 million dollars of federal money to the corridor. He explained that 1.8 million dollars of federal appropriations were brought in. He explained that the Coalition was helpful in this by determining priorities and making decisions on how money was spent. He explained that another 800,000 dollars previously was dedicated to work on the intersections on Highway 1O in Ramsey. He explained it is important to work with the cities to continue the process. He explained there are key plans for 2008 and work to prepare for 2009.
Ms. Jodi Ruehle explained there is a work plan a communications plan and a membership plan. She reviewed that the Coalition involves cities and counties between Coon Rapids and Elk River. She referred to a list of Coalition members and contributing community members.[NOTE 2]
Ms. Ruehle stated they will work with MnDOT to minimize the impact to the traveling community and work to see how additional funding can be accessed. She explained that they will assist the State in using the money within the timeframe necessary which is three years. She stated that they will do research to see if Federal dollars are available. She explained that the Highway 10 project is a priority but there are several other projects for 2008.[NOTE 3]
Councilmember Jeffrey asked if there is a website where Coalition minutes are listed for the public or where cities could access information and be updated.
Ms Rhuele stated that they have not provided this but could consider it.
Ms Rhuele stated that the County is their biggest supporter. She explained that the State and Federal funding is the next area to review. She stated that the Coalition can work on this and work within the timelines as necessary. She explained that meeting with committees and providing updates makes more people informed so that awareness is raised in the community. She explained that they want to publicize the Coalition so that it expands and involves other cities. Mr. Tinklenberg explained that if a Rotary group or other such group would like an update of what is happening with transportation they would like an opportunity to make a presentation.
Mr. Tinklenberg explained that in 2009 the funding levels and policies plan will be set from 2010 to 2015 which will be amajor bill and a significant bill for Mr. Oberstar. He explained it will be a statement about this area of the country.
Mayor Gamec stated that a priority is to list goals and that individual goals are key to look at in the application process for funding. He explained that this is a great opportunity. He explained that in previous meetings they found it important to have a lot of communication about projects to raise awareness. He asked if the 22nd is a date to consider.
Mr. Tinklenberg stated that for the 2009 appropriations Mr. Oberstar has represented the Senate side and the goals will be due February 22nd.
Mr Tinklenberg stated that there was a lot of interest in the rail station and the cities impacted. He explained that businesses are impacted and the community benefits as a whole.
Mayor Gamec explained [aka speculated] that it would increase the tax base for the community.[NOTE 4]
City Administration Ulrich stated that they would discuss land and right of way acquisitions at Sunfish Lake Boulevard and along the Highway 10 corridor. He explained that they will review the larger picture of using money available from RALF and how to prioritize the improvements. He explained that a chart was developed by Staff. He reviewed that properties acquired to date are identified and properties to consider are listed.
Councilmember Dehen asked about the assessed value versus the appraised value. [discussion ensued]
Mayor Gamec stated that blighted areas of the City may be easy to acquire. Mayor Gamec stated that he would like to work on acquiring the blighted properties.
Ms. Frick [of the Coalition or of Tinklenberg Group??] explained that the prices paid have not been unfair. Ms. Frick stated that the Jim Deal properties that were purchased did not fit in on the list but they were motivated to move them to the Town Center Development that went in. She explained that they needed to be relocated. Ms. Frick stated that the Met Council has requested one appraisal now instead of two [as required when the Deal parcels were purchased] to consider the comparables. She explained that the property owner is given the option of choosing the appraiser.
Given the widely reported problems involving Nedegaard and his LLC, involuntary Chapter 7 bankruptcy filed days after the November 2006 elections and Swiss bank account diversions in six-figure amounts, federal tax and postal search warrants of Community National Bank headquarters and the Nedegaard business location in Columbia Heights, subsequent bank insider indictments, and such, a sham title company involving Nedegaard and bank officials, and skimming of paid sums away from a prior encumbrance to pay down a subsequent loan involving bank insiders, along with the suicide death of one appraiser involved in the Highway 10 Deal property dealings, J. Scott Renne who was reportedly involved in an appraisal fee kickback scheme with Ross Sandison of the bank, one of the indicted officials; given all of these unique factors, the above pictured document concerning a security interest is most interesting.
One normally wants steadfast security protection in all instances. Given what has surfaced, security protection among such active individuals would be an even sounder aim.
The circumstances were anything but normal and normally to avoid imperilling a security interest a mortgage is routinely recorded as part of a closing of a loan. It routinely does NOT go unrecorded for half a year or more as the one between Nedegaard and Deal shown above appears, from its text, to have been handled (the encumbrance which attached March 29, 2005 was not recorded uitil October 28, 2005, so that a risk of an intervening bona fide recording without notice taking priority existed while the position apparently was held in the hands of a sophisticated investor, Jim Deal, over that timeframe with Deal for some reason declining to protect his interest by recording it).
Besides risk to a security interest, third parties might have been misled into thinking Nedegaard's fiscal health during that half year was greater than it actually was, if reviewing county records and seeing the recorded title to a Highway 10 parcel without any accompanying encumbrance of record. Presuming, of course, that the change of title was duly recorded and excise taxes paid, when title went from Deal to Nedegaard; and that this was contemporaneous with the mortgage lien attaching, as is the normal course of events. Possibly some unusual escrow may have been arranged, (hopefully not through the bogus title company federal investigations uncovered).
Lenders, perhaps, might have been misled if Nedegaard had not fully disclosed the actual status. Since he is dead, what he did or did not disclose is hard to determine; but others are alive and well. Jim Deal, John Feges who was cognizant of some aspects of the Highway 10 property dealings, and Tinklenberg and his group members exist along with bank personnel such as Curt Martinson, (former employee of Community National Bank), are all alive to clarify things, if anyone asks.
There seem to be many loose threads, and the City was using Tinklenberg Group to monitor things and protect city interests. A candidate for Congress normally would want to explain how he was distanced from any irregularities or potential misdeeds in such an unusually strange set of circumstances. It is likely that, so far, no questions have been asked of the candidate - yet still, anticipation and disarming worry would be expected from a prudent person, and that is the kind we should want in Congress.Finally, still concerning Town Center but turning away from interrelated matters in the Highway 10 buy-outs --- for more nostalgia about the great expectations some had or at least expressed for Ramsey Town Center, there is this from March 2006, Midwest Home Magazine [online], touting two Nedegaard failures, Grand Central Lofts and Ramsey Town Center:
Urban Living: Lofts and Condos
Association maintained living communities are part of a growing housing trend in Minnesota and across the country, influencing some of the state’s top builders and developers to invest in this market. Whether in the form of condos, lofts, single family, townhomes, or golf course communities, people are trading in their “traditional” living spaces for the newest version of modern living.
Loft and condos are the essence of urban living. These developments are often located in areas with easy access to shopping, dining and transportation systems that can take you to some of the city’s best arts and entertainment. From downtown lofts to condos on the lake, these owners will have “everything taken care of” in the style of association maintained living.
“Everybody’s lifestyle seems to get busier everyday, and [association maintained living] really frees you from the time consuming tasks of mowing lawns and painting houses,” says Mark Bartikoski of Bartikoski Partners. “You write a check every month [for association dues] and everything’s taken care of. Then you can spend time doing what you like to do. It’s also attractive if you travel a lot for your job.”
Bartikoski Partners represents several Cornerstone Group developments, including The Mist on Lake Minnetonka and the Great Northern Lofts.
Grand Central Lofts, for example, is located along Central Avenue, 10 minutes from downtown Minneapolis and along major bus corridors.
“The location of Grand Central Lofts is the first of many redevelopment sites for the city,” says Tim White of Nedegaard Construction Company. “It’s not only association maintained, but it allows the people to move into something new with all of today’s amenities.”
Grand Central Lofts have numerous features, including underground heated parking, and a community center and patio with waterfalls and ponds for birthday parties or business meetings.
Association maintained single family homes and townhomes are located in some of Minnesota’s most beautiful communities. They are diverse in style, size, location, demographics, amenities and price. With so many options available, young professionals, families and active adults can choose the perfect maintenance-free community in which to reside.
In addition to the maintenance and beautification of AML [association maintained living] areas, these communities may also include stores and services.
Ramsey Town Center, a 320-acre site built along the Highway 10 corridor, is a master-plan community, essentially an entire “association maintained city.”
Some of the 2,400 housing units are already being occupied, and several businesses are open. The community should be substantially completed by 2008.
“Ramsey Town Center will be an authentic, genuine downtown, characterized by a mix of goods and services that meet the needs of local residents and promote Ramsey as a regional destination. Not just a main street or outdoor shopping mall, but instead a compact district of streets and blocks lined with houses, stores, offices, restaurants, cinema and many other uses.”
“We’re creating a lifestyle so people can really live right within the neighborhood,” says Tim White of Nedegaard Construction Company.
Ramsey Town Center will include row houses, townhouses, vertical housing (lofts and condos) and narrow lot single family homes. Additionally, shopping centers, a city hall and civic center, business offices and recreational areas will be included.
It will look like a traditional neighborhood, and will reflect a “cross section” of the demographics of Minnesota citizens.
The housing developments will begin at $150,000, and higher-end options, including the penthouse area of lofts and condos, will be available.
The Ramsey Town Center project is reflective of housing trends across America.
“It is similar to the patterns in Europe called lifecycle housing,” says John Feges, president of Landmark Community Builder Collaborative Inc. “These communities are balanced, and complement lifestyle changes. Because of the explosive growth in the U.S. during WWII, towns sprung up around railroad corridors to pick up services and goods. Now the Baby Boomer population is aging, and they’re looking for alternative housing options.
“Generation Y, those typically about 25-years-old and younger, are now coming into their earning years, and aren’t embracing the same lifestyle as their parents or grandparents,” Feges says. “They, too, are looking for more alternative lifestyles.”
Ramsey Town Center is located near Highway10, one of the fastest-growing corridors in the metro area.
“By 2008, we’re hoping that this community will be on the Northstar Line,” Feges says. “Ramsey Town Center is being telegraphed across the country as a more favorable way of developing land.”
Ah, nostalgia, the hype and rose color of the viewing glasses, before the bubble burst and reality put a drabber hue to things, and the Feges "telegraph" lines went silent while the beauty of the entire idea went into a foreclosure where the acreage left has proven hard for the bank to move.
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NOTE 1: For 2006 alone, the State Auditor's Local Government Lobbying Services report indicated, p.19, that the "North Metro Highway 10 Coalition" spent $30,000; 99.3% of which [$29,790] was for lobbying services. And Gamec said that Tinklenberg was hired by the coalition during a three-year timeframe including that year. If all that cash went to Tinklenberg Group, $30,000 per year is not bad lobbying money on top of all the other lobbying and "services" Tinklenberg Group was selling since say, his first contract with City of Ramsey [a separate cash flow from that he had from the Highway 10 Coalition] in 2003.
NOTE 2: No listing of members was included in minutes. No explanation was given how $2.6 million of federal dollars could be solicited without federal lobbying, but Tinklenberg is on record saying he has not been a lobbyist on the federal level.
NOTE 3: Tinklenberg Group has repeatedly represented differing municipal clients wishing to attain federal funding, with conflicting interests for conflicting projects between clients.
NOTE 4: If privately funded and not subject to TIF delays there would be an immediate tax base increase for any station built. A publicly owned structure would not contribute one additional penny to tax income. Additional payment to BNSF to acquire track rights for another Northstar station likely would drain and not enhance tax monies. At some level, unless privately funded, tax money would have to be paid to acquire such additional rights from the railroad. There is no indication BNSF would waive or compromise any property rights without compensation.