Legacy Developments

Judge Salter cuts through the BS

I have joked you could move this trial to Iceland and a jury would still find evidence of guilt;

But Salter said it was too early in the litigation to consider moving the trials. The cases are in their infancy and there wasn’t a record to validate Legacy’s argument.

“At this stage, I’m not considering the motion any further,” Salter said, leaving open the opportunity for Legacy to file a new motion to change the venue later in the case.

Dan Fritz, a lawyer representing Emily Fodness, who was trapped in the collapse, and Vince Roche, who represents the family of Ethan McMahon, the worker who died in the collapse, objected to the change of venue motion.

Fritz said that his case would include witnesses, such as fire personnel and Fodness’ treating doctors, who would have to drive three hours each way if the case were tried in Aberdeen.

“That prejudices my client, unrightfully,” he said. “There is no good reason for that.”

Roche argued that it would be impossible to determine the impact of social media posts on a county of 200,000 people. And he argued that media coverage of the Copper Lounge collapse was equally available to residents of Aberdeen, given the internet and the nature of media coverage in South Dakota.

“It’s going to be the same regardless of where we are,” he said.

The facts are the facts, no matter who sits on the jury. Salter did the right thing. It’s just to bad our city council can’t figure it out. Maybe we should have Aberdeen’s city council voting on our public/private partnerships in Sioux Falls instead.

Who isn’t suing Legacy?

The hits keep coming;

In the lawsuit, IJK, LLC, a limited liability company managed by Kant, alleges that he was forced out of Eastwold in violation of the terms of the lease. The lease agreement that Kant signed with CLP Investments, the company that bought the Copper Lounge, allowed the building owner to terminate the lease in the event Eastwold was damaged, but only if 75 percent of the premises was untenantable.

I wondered when this suit was coming. As I understand it there was little damage to the Eastwold building after the collapse. The Eastwold building is actually a separate building from the building that collapsed.

The news coverage of Legacy has been ‘Negative and Inaccurate’?

Wow, it doesn’t get more RICH than this;

“Despite these facts, the media coverage gave the public a false impression that Legacy owned the property, hired the contractor, was culpable in the collapse and at fault for the death and injuries that followed, and should be punished for the same.”

Really? Legacy owned the property right up until the building collapse;

Minnehaha County records show that an entity called Boomerang Investments bought the Copper Lounge from CLP Investments. The transfer fee was recorded one day before the building collapsed.

Both entities share addresses at 101 S. Main Ave., Suite 400 in Sioux Falls, which is the same address of Legacy Development. Both also listed Norm Drake as their sole manager and president. Drake is also Legacy’s CEO.

Hultgren Construction, which was remodeling the Copper Lounge at the time of the collapse, was run by Aaron Hultgren. He was Legacy’s director of development and operations.

If I were a judge, I would MAKE SURE the trial was held in Sioux Falls. There are false allegations, and than there are facts. It seems the ‘facts’ in this case are pretty clear. And if so many ‘false allegations’ were made, why didn’t Legacy sue for libel?

If it Smells Bad and Looks Bad, it is probably Bad.

This is exactly what I told the city council last week in reference to doing business with Legacy Development for the Downtown Parking Ramp PPP.

Today it was announced that the piling on continues;

A lawsuit was filed on behalf of Emily, Mike and Chris Fodness on Tuesday.  The defendants named in the court filing include Legacy Development & Consulting Company, LLC; Aaron Hultgren; Hultgren Construction, LLC.; Boomerang Investments, LLC; CLP Investments, LLC; Olympia Real Estate Holdings, LLC; and RISE Structural Associates, Inc.

Besides the McMahon and Fodness families suing, the Federal Government and OSHA are still investigating, those charges could be coming very soon.

Many in the public continue to ask the question; Why would a majority of the council support this project? What do they know? Many feel there is some kind of underlying corruption going on. Makes you wonder, and if there is what could it be?

Let’s look at what we know for sure;

We know that for some strange reason the city agreed to pay for ALL of the foundation costs which basically doubled the price of the parking ramp.

We also know that the hotel got one heck of a deal on the lease without a proper appraisal.

So what would happen if the bonds (around $21 million) are taken out in April and the deal with Legacy or Lamont falls through before a shovel goes in the ground? This means the city would have this money sitting in an account to use for almost anything. Why? Because the bonds will be taken out with the 2nd Penny as collateral. Like the $9.1 million mortgage payment on the Denty per year and the $1.1 million mortgage we pay on the administration building we would have to pay an additional $1 million out of this fund, which is supposed to be for road repair.

When this deal was struck many directors and councilors claimed that we would never have to worry about that because the parking department’s enterprise fund produces enough revenue to make the mortgage payment. No way. The revenue basically covers wages and maintenance now, and not much left over for bond payments. Those fees will have to be raised significantly to cover that payment. Let’s face it, it was no accident that the 2nd penny was used as collateral, because it will have to make this payment. No getting around it.

So is this just a scam to get our hands on $21 million for something else? Not sure. But the whole deal stinks really, really bad. I guess we will have to wait, once again, on the courts to open the books.