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There’s no point in punishing a partner

Harrison developers have demonstrated their ‘good faith’

City Councilman John Shoaff’s recent criticism of Barry Real Estate and the Redevelopment Commission requires a response. I’m going to refer to Mr. Shoaff as John because he’s the first friend I made in Fort Wayne. This won’t be the first occasion that John and I have disagreed on something, only, unfortunately, the most public.

Before I address a number of inaccuracies in his comments, and points that he fails to mention, I want to cite a few obvious facts.

Harrison Square, even if The Harrison as currently envisioned is never built, is an astounding success. A state-of-the-art ball park, with attendance figures today already exceeding total attendance last year, plus a first-rate Marriott Hotel, not to mention an excellent new parking facility, all together represent a huge accomplishment for downtown. City Council, and both the present and immediate past city administrations, deserve all the credit for making this happen.

The Harrison will be built. It’s just a matter of time. When all the contracts for the Harrison Square project were signed four years ago, no one knew that we were heading into the worst economy and the tightest credit market in memory. But there are signs of progress, and I am convinced that The Harrison, or a similar project, will be built.

Some people hated the Harrison Square project when this city’s elected officials voted to approve it, and they hate it now. Some go to Parkview Field quite often and enjoy the games or other events there, but they still hate that it exists.

John Shoaff’s recent complaint centers on the fact that there is language in the city’s agreement with Hardball Capital that includes a $5,000-a-day penalty if The Harrison isn’t built by June 1, 2009. He’s right about this, and about the fact that the Redevelopment Commission and the administration have shown restraint in not imposing this sanction. A few more facts:

Barry Real Estate has continued to show good faith in attempting to get the project under way. If any of us felt that that was not the case, we would have pursued legal options.

This good faith effort has taken the form of some considerable effort and success in speaking with and securing tenants, as evidenced by an office user committing to the entire second floor and by the recent public announcement of the securing of a letter of intent with Scotty’s Brewhouse. Efforts are ongoing to secure additional quality retail tenants.

Barry Real Estate has already invested more than $800,000 in The Harrison in design fees, marketing expense, physical infrastructure connected to the ballpark and other fees. If this doesn’t represent “good faith” effort, what does?

Imposing sanctions on a business partner, especially for a governmental entity, always entails risks. What will all of our other partners, potential and actual, in the business community think if we appear to be punishing a partner in tough times? What’s the risk that they will think twice about doing business with the city in the future?

John, quite unaccountably, stated that it doesn’t matter that a countrywide financial downturn is the reason for The Harrison’s not being built as yet. He says the contract doesn’t provide for any such contingency, so why should the city hesitate to demand its $5,000 a day? This is the language not of reason, but of revenge.

John also insists that the Redevelopment Commission could have collected $1 million so far from Barry. He needs to have his lawyer look at the contract. The total collectible is capped at $450,000, since the penalty only applies for 90 days.

John, I know you oppose Harrison Square. You have a litany of reasons why it was always a bad idea, and you recited it again Tuesday night. Maybe you’re right. Your points are debatable, but hardly self-evident, and, even worse, far from constructive when everyone involved is trying to make progress on The Harrison. But, three great facilities, plus enormous, growing, community-wide delight in the ballpark, are indisputable facts.

Isn’t it time, John, to join the winning team?

Christopher Guerin is president of the Fort Wayne Redevelopment Commission. He wrote this for The Journal Gazette.