10012014 - News Article - Valpo receives subpoena for University Promenade project

Valpo receives subpoena for University Promenade project
NWI Times
October 01, 2014
http://www.nwitimes.com/news/local/porter/valpo-receives-subpoena-for-university-promenade-project/article_23604651-6aeb-5947-91c3-c28b2d2c847b.html

VALPARAISO | The FBI delivered a subpoena to the city clerk's office Tuesday asking for documents related to the University Promenade project.

A statement issued by city Economic Development Director Patrick Lyp said the city is cooperating with the investigation by the U.S. Attorney's Office but that much of the material requested previously was presented to the federal authorities.

"Back in August, and without the need for a subpoena, the city's Redevelopment Commission voluntarily produced to the FBI a seven-page narrative of the entire Eastgate project dating back to 2006, including all relevant documents," Lyp said in the statement. 

"As part of that voluntary submission, it was agreed that any further document request would be handled between lawyers and without need for a subpoena.

"Although subsequent inquiries were made by the city to the FBI as to whether additional documents were needed, no response was received and no documents or information was ever requested. 

After the subpoena was served (Tuesday), it was discovered the agent who served the subpoena had not spoken to the original agent assigned to the matter and had not reviewed the file, which included the narrative and relevant documents, some of which were the same documents requested in the subpoena."

The city's statement concludes, "The city respects the difficult job undertaken by all law enforcement officials and recognizes that as part of any investigation, resolution will not be immediate. The city will stand by its commitment to operate in good faith and provide whatever information is requested in order to bring the city's involvement to a close."
Items requested Tuesday included "all contracts, purchase agreements, leases, redevelopment agreements associated with the sale of the property," "any and all records of advertising done by the city regarding the request for proposal associated with the property sale" and "meeting minutes of the Valparaiso Redevelopment Commission or any other relevant commission or board associated with the city ... wherein the sale of said property was discussed."

Lyp said many of the items requested were given to investigators in August when the FBI went to the Porter County Auditor's Office. The information from the auditor's office including aerial images of the site and sales disclosure on the six parcels involved with University Promenade. A copy of the check for the sale and a copy of the unsuccessful bid were among those items still to be provided by the city.

Although the request was made to the clerk-treasurer's office, Clerk-Treasurer Sharon Swihart said she was not in the office at the time the FBI appeared. No other subpoenas were delivered to any other offices or individuals. The subpoena covers the period between Jan. 1, 2008, and July 31, 2014.

The commission twice put the property up for sale. The first deal fell through when the recession hit, and the developer was unable to follow through with the agreement. The deadline for second agreement with Al Krygier had to be extended before it proceeded to completion.