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Delaware North appears to have forgotten funding promise made 24 years ago

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Old
07-13-2017, 07:23 PM
  #1
Fenway
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Delaware North appears to have forgotten funding promise made 24 years ago



These teens found out something about TD Garden no one realized for 24 years

Quote:
Twenty-four years ago, the owner of the Boston Garden wanted a new arena, and local lawmakers wanted a stream of funding to help build and maintain the city’s recreational facilities, such as hockey rinks.

So they reached a deal: As part of winning state approval for a new $160 million facility, home to the Boston Celtics and the Boston Bruins, the owner of the Garden would host three fund-raisers a year to benefit the agency that oversees the city’s recreational facilities.

And then the fund-raising deal was forgotten. It was not until this past spring, when a group of teenagers from Hyde Square — eager to find funding for a new hockey rink in their neighborhood — began researching the old agreement that anyone realized the truth: The Garden had not held even one of those promised fund-raisers.

The discovery was the result of a painstaking search that involved a civics lesson in legislative sausage-making, the close eye of a neighborhood activist, and a bit of detective work by several determined teenagers.

Now, Garden executives, state officials, and the teenagers themselves are trying to answer one final question: What happens now as a result of their find?

In separate letters to the students, TD Garden — as it is now known — and state Department of Conservation and Recreation officials acknowledged the students’ findings. TD Garden president Amy Latimer referred the students to state officials, who told the students they are reviewing “strategies going forward.”

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07-13-2017, 07:45 PM
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Isnt there already a thread or talk of this somewhere here Fenway? Im sure Ive read about this before here on hf BOH, though not involving these HS Students & the accompanying story. So its not exactly "news" yet its framed as such, big revelation. That Jacobs hasnt complied with that requirement not exactly as revelatory as advertised in the piece.... Its still threadworthy, interesting.... what possible repercussions or sanctions if any can be levied against Jacobs I know not & really, what about the authorities, the Dept of Conservation & Recreation's fiduciary responsibilities as the public overseer & watchdog in keeping an eye on the hen house all these years to make sure Jacobs did comply? If they try to exact whatever out of him are they not then openly admitting to be derelict, negligent in their own duties & responsibilities in enforcing the requirements, that Jacobs keep his promise, and therefore they too equally guilty & responsible?

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07-13-2017, 10:22 PM
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Sound like something right out of Park and Rec. Jacobs is a cheapskate, but you got to wonder who was asleep at the wheel to let that happen? Or to be blunt, who got greased to look the other way? Nobody forget to demands four fund-raisers a year just out of the blue.

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07-13-2017, 10:56 PM
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Without fully understanding the legal details, my first impression is the "recreational agency"--whatever entity that is--was delinquent in demanding the Bruins fulfill the contractual terms.

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07-14-2017, 01:33 AM
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I don't understand what strategies are needed going forward. They just host the benefits, it's not like they're actually going to be sued.

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07-14-2017, 06:15 AM
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Quote:
Originally Posted by Brodie View Post
I don't understand what strategies are needed going forward. They just host the benefits, it's not like they're actually going to be sued.
My expectation would be that they will either settle or be sued.

Those fundraisers have a monetary value; 4 events a year for 24 years, let's assume each event only nets $100,000 (which I can tell you having been a development director for a community organization would be disastrously-low)...that's $9.6M that was not raised for cause of the Garden's owners being in breach of contract.

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07-14-2017, 06:31 AM
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Clearly somebody at the either state or city level screwed up with this. The way I read the agreement the money was supposed to go to the state controlled MDC to build something inside the city limits of Boston. The Department of Conservation and Recreation took over from the MDC in 2003.

The timeline fits perfectly to when Boston changed mayors. Ray Flynn was appointed to be Ambassador to the Vatican in 1993 and Tom Menino who was president of the city council took over. The Jacobs executive who most likely brokered the deal was Larry Moulter who Jacobs fired in 1996 for reasons never made public.

https://www.linkedin.com/in/larry-moulter-b47117/

This is further compounded that the old MDC rinks are now leased to private operators by the DCR. There is no disputing the lack of rinks in the City of Boston so it will be fascinating to see what happens.

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07-14-2017, 06:36 AM
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Quote:
Originally Posted by Killion View Post
Isnt there already a thread or talk of this somewhere here Fenway? Im sure Ive read about this before here on hf BOH, though not involving these HS Students & the accompanying story. So its not exactly "news" yet its framed as such, big revelation. That Jacobs hasnt complied with that requirement not exactly as revelatory as advertised in the piece.... Its still threadworthy, interesting.... what possible repercussions or sanctions if any can be levied against Jacobs I know not & really, what about the authorities, the Dept of Conservation & Recreation's fiduciary responsibilities as the public overseer & watchdog in keeping an eye on the hen house all these years to make sure Jacobs did comply? If they try to exact whatever out of him are they not then openly admitting to be derelict, negligent in their own duties & responsibilities in enforcing the requirements, that Jacobs keep his promise, and therefore they too equally guilty & responsible?
Killion this is brand new and the Globe has it on the front-page this morning and now the 5 local TV stations are all running with it.


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07-14-2017, 07:47 AM
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There is a legal concept called laches which may or may not apply here.

Basically, it means that if you wait too long to act upon a claim it could be denied.

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07-14-2017, 07:53 AM
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Quote:
Originally Posted by Chan790 View Post
My expectation would be that they will either settle or be sued.

Those fundraisers have a monetary value; 4 events a year for 24 years, let's assume each event only nets $100,000 (which I can tell you having been a development director for a community organization would be disastrously-low)...that's $9.6M that was not raised for cause of the Garden's owners being in breach of contract.
The distinction I'm interested in is whether Delaware North was expected to organize and operate these fundraisers themselves? Or was MDC responsible for running the fundraiser while Delaware North's role was to make the Garden facilities available for MDC to do so?

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07-14-2017, 11:22 AM
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Quote:
Originally Posted by Fenway View Post
Killion this is brand new and the Globe has it on the front-page this morning and now the 5 local TV stations are all running with it.
Huh.... I distinctly recall reading about this sometime ago so to me at least its "not new". These details are new but I was aware of this simmering problem, issue. Cant recall where I saw it but it was reported somewhere.... either that or it came to me by way of the spacetime continuum, because when I read your op, deja vu and now amnesia in being unable to recollect where & when I read it.... Spooky.... Yer freakin me out Man.

Quote:
Originally Posted by mouser View Post
The distinction I'm interested in is whether Delaware North was expected to organize and operate these fundraisers themselves? Or was MDC responsible for running the fundraiser while Delaware North's role was to make the Garden facilities available for MDC to do so?
Yes good point. Rather like the situation in Glendale whereby the City had/has the option to stage 'X' number of not for profit events at GRA. In fact I seem to recall the number being up to 3 per annum as well though Im unaware of whether or not theyve ever exercised that option. And thats on them to get it, put it together.

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07-14-2017, 06:44 PM
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That's Hall of Fame inductee Jeremy Jacobs folks.

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07-14-2017, 07:03 PM
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Quote:
Originally Posted by mouser View Post
The distinction I'm interested in is whether Delaware North was expected to organize and operate these fundraisers themselves? Or was MDC responsible for running the fundraiser while Delaware North's role was to make the Garden facilities available for MDC to do so?
This is a fine point to bring. Because if it all on the MDC to plan and organize the events then there no story here, beside the usual local gov incompetence.

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07-14-2017, 10:49 PM
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Quote:
Originally Posted by King_Stannis View Post
There is a legal concept called laches which may or may not apply here.

Basically, it means that if you wait too long to act upon a claim it could be denied.
Purely guessing, but: it may and probably will negatively effect on any speculative damages claim for any potential unrealized proceeds from the 24 years' time which they have spent sleeping on the contract, but the contract itself hasn't stopped being enforceable on that count as the future is concerned.

I'd say kiddos are in for some fundraisers.

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07-15-2017, 12:35 PM
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It all depends on how the contractual clauses were worded. If the contract says that Arena shall host at least 3 charity events a year, then the onus is on the Arena. If the contract says that it must allow at least 3 charity events a year, then it gets murkier.

Without more details, I don't think laches would apply because it sounds like nobody knew of the breach until now. Laches is for claims known, but unacted upon. Statute of Limitations won't apply because this is an ongoing breach.

What'll most likely happen is that ownership will build an arena or two in Boston to settle the matter.

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07-15-2017, 02:16 PM
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From the article:

Quote:
Reiskind shared his recollections with Ken Tangvik, director of organizing and engagement for the Hyde Square Task Force, during an April meeting on the development site.

Tangvik, who said the tip “was a gift,” then deployed his youth organizers to look up the Massachusetts laws enacted in 1993, and they found, “An act furthering the establishment of a multi-purpose arena and transportation center.” One section of the law stated, “The new Boston Garden Corporation . . . shall administer . . . no less than three charitable events per year . . . and shall pay the net proceeds . . . to said Metropolitan District Commission.”
"shall administer"

Unless of course the article omits something like "in accordance to the instructions by Metropolitan District Commission", and no one in MDC ever got around to make any such instructions.

The payer obviously has little incentive to remind anyone of any negligence on any other party's part. I, too, am perfectly willing and prepared to pay for my smartphone repairment from two years back just as I am legally obligated to, but I haven't yet got around to inform them that they never remembered to bill me.


Last edited by Lempo: 07-15-2017 at 02:27 PM.
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07-15-2017, 02:59 PM
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Quote:
Originally Posted by IME View Post
It all depends on how the contractual clauses were worded. If the contract says that Arena shall host at least 3 charity events a year, then the onus is on the Arena. If the contract says that it must allow at least 3 charity events a year, then it gets murkier.

Without more details, I don't think laches would apply because it sounds like nobody knew of the breach until now. Laches is for claims known, but unacted upon. Statute of Limitations won't apply because this is an ongoing breach.

What'll most likely happen is that ownership will build an arena or two in Boston to settle the matter.

This. The claim is ongoing because it's a continual breach.

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07-15-2017, 03:42 PM
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Oh, oh!

http://www.universalhub.com/2017/her...nded?nocache=1

Quote:
SECTION 7. In consideration of the property interests and easements authorized to be transferred by this act, the new Boston Garden Corporation shall administer, produce, promote and sponsor no less than three charitable events per year at the New Boston Garden while the new Boston Garden is in operation which events shall be in consultation with the metropolitan district commission, and shall pay the net proceeds, after the deduction of expenses of said events, which expenses shall not include any rental payment for the use of the new Boston Garden, to said metropolitan district commission.

Said proceeds shall be used for the construction, renovation, modernization and rehabilitation of facilities and land of the metropolitan district commission; provided, however, that said proceeds shall not provide for compensation of employees, including independent contractors and consultants other than those deemed necessary to meet the purposes of this section; provided, further, that said proceeds shall not be used for any purpose other than described herein.
Link to the Law: http://archives.lib.state.ma.us/bits...=1&isAllowed=y

Now who the puck are the metropolitan district commission who are supposed to be in consultation, get the dough and owns the facilities and land the said dough is to be used on?


Last edited by Lempo: 07-15-2017 at 03:50 PM.
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07-15-2017, 03:57 PM
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Originally Posted by madhi19 View Post
Sound like something right out of Park and Rec. Jacobs is a cheapskate, but you got to wonder who was asleep at the wheel to let that happen? Or to be blunt, who got greased to look the other way? Nobody forget to demands four fund-raisers a year just out of the blue.
You would think that the organization that stood to benefit from those fundraisers would have followed up with Delaware North. Seems odd that they would let it slide.

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07-15-2017, 09:58 PM
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Nobody forgot those fundraisers. It's Boston politics. They threw something in to make it sound better and then 'forgot about it'. The way everyone in the neighborhood 'forgets' the face of the guy who just did the mafia hit in the middle of the street in broad daylight.

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07-15-2017, 11:21 PM
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Doesn't laches only apply towards equitable remedies? As in, it wouldn't prevent damages from being collected but bar any equitable remedies if it would be inequitable to enforce them? Such as asking for all outstanding missed events to now be performed in the next short while would be conceivably be barred by laches is how I understood the concept.

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07-16-2017, 01:01 AM
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Originally Posted by Lempo View Post
Now who the puck are the metropolitan district commission who are supposed to be in consultation, get the dough and owns the facilities and land the said dough is to be used on?
It's weird that all the "metropolitan district commission" references in that link are in lower case. If "metropolitan district commission" has a defined meaning in the contract then it should be capitalized, or there should be some other section of the law/contract that defines who the term applies to.

From your link: http://archives.lib.state.ma.us/bits...=1&isAllowed=y

- Massachusetts Bay Transportation Authority
- New Boston Garden Corporation
- metropolitan district commission (lower case) -- who are they?

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07-16-2017, 02:03 AM
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It's a legally mandated agency which possibly needs not to (and shouldn't) be defined in a contract beyond the mention of the name (because any contracting party doesn't have the legal competence for making such definition), but it's curious lack of capitals nevertheless.

Quote:
The Department of Conservation and Recreation (DCR) is a state agency of the Commonwealth of Massachusetts, situated in the Executive Office of Energy and Environmental Affairs. It is best known for its parks and parkways. As of December 9, 2015, the Commissioner of the DCR is Leo Roy.[2] The DCR's mission is "To protect, promote and enhance our common wealth of natural, cultural and recreational resources for the well-being of all."[3] The agency is the largest landowner in Massachusetts.[4]
Quote:
The Department of Conservation and Recreation was formed in 2003 under Governor Mitt Romney, when the former the Metropolitan District Commission (MDC) and the Department of Environmental Management (DEM) were merged to form the DCR.
https://en.m.wikipedia.org/wiki/Depa...and_Recreation

There must have been a Law back in 2003 facilitating the merger, and setting up how the DCR is to assume the role bestowed on MDC in preceding laws and contracts. Anything like properties and responsibilities getting legally lost in the shuffle shouldn't happen, but if the former proceeds to MDC weren't earmarked for the use of MDC "legacy" facilities and lands, it may just be that any net proceeds from charity in accordance to the Section 7 would be general parks&parkway money from 2003 onwards.

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07-16-2017, 03:29 AM
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Quote:
Originally Posted by mouser View Post
It's weird that all the "metropolitan district commission" references in that link are in lower case. If "metropolitan district commission" has a defined meaning in the contract then it should be capitalized, or there should be some other section of the law/contract that defines who the term applies to.

From your link: http://archives.lib.state.ma.us/bits...=1&isAllowed=y

- Massachusetts Bay Transportation Authority
- New Boston Garden Corporation
- metropolitan district commission (lower case) -- who are they?
Lifelong Bostonian so I will try to sort this out

Massachusetts Bay Transportation Authority ( aka MBTA ) is in charge of public transportation in Greater Boston - subway, buses, ferries and railroads. They took over the assets of the Boston & Maine railroad that owned North Station and the land where both the old Garden and new Garden were located.

New Boston Garden Corporation - It was formed in the 60's after Walter Brown died suddenly and the Adams family took control.

Metropolitan District Commission ( AKA MDC ) - Patronage heaven. Unlike most US cities, Boston never annexed nearby towns to increase the core population which is why Boston like San Francisco appears to have a small population. The MDC was formed to give the Commonwealth control of parkways, and land adjacent to rivers that touched multiple communities.

Notice how the Boston Pops had to deal with low budget MDC signage in 1976



The point person for Delaware North in those days was Larry Moulter and he was fired in 1996 for unknown reasons. What I do know is Jacobs was also supposed to build a new waiting room at North Station and that didn't happen until 2007.

http://media.delawarenorth.com/delaw...-expansion.htm

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07-16-2017, 04:09 PM
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A Boston Globe columnist wants Delaware North to make things right

http://www.bostonglobe.com/metro/201...nwO/story.html

Quote:
Current officials at Delaware North, the corporation that owns the Garden, say they simply never knew about the deal, not having been in place when it was negotiated. I believe them. The MDC, likewise, was transformed into the Department of Conservation and Recreation. There’s no indication that the state, under either entity, ever sought to hold any fund-raisers — which would be consistent with the legendary incompetence of the old MDC. Its abolition was a great moment for state government. Though I digress.

Anyway, the real question is what to do now.

The Hyde Square youth sought to meet with TD Garden president Amy Latimer, who wasn’t in the building when they arrived at her office unexpectedly. I hope Latimer meets with them — they’ve earned that much.

But, of course, that isn’t enough.

As I mentioned, the kids stumbled on this discovery while advocating for the construction of a skating and recreational facility in their neighborhood, a $21.5 million project. A neighborhood nonprofit, Urban Edge, has worked mightily for years to raise the money for the project. Helped by nearly $6 million from the state, they are $5 million short of what they need to break ground.

That is a ton of money for a neighborhood group — but maybe not for a conglomerate that operates stadiums around the world. This story deserves a happy ending.

Delaware North can make it happen.

Adrian Walker is a Globe columnist.

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