Why Gerald Henricks Was Terminated

This morning, pursuant to Minnesota Statutes 13.43, the City of Byron released to the public the information that lead to the termination of our City Administrator on 4/13/09. The original document, signed by all members of the City Council and the Mayor last night, reads as follows:

FINAL DISPOSITION OF DISCIPLINARY ACTION AND SPECIFIC REASONS FOR CITY COUNCIL ACTION

The City Council of the City of Byron met in closed session on April 8, 2009, to consider allegations of misconduct against Gerald Henricks, City Administrator. After its preliminary consideration of the allegations of misconduct, the City Council voted unanimously to terminate the employment of Gerald Henricks as City Administrator for the City of Byron effective Monday, April 13, 2009.

The specific reasons for the termination of Mr. Henricks’ employment are as follows:

(1) Mr. Henricks had a conflict of interest involving the Crown Pointe project which is proposed to be built in the City of Byron. Additionally, Mr. Henricks failed to disclose to the City Council his full relationship with the developers and investors in the Crown Pointe project.

(2) Mr. Henricks violated the Byron Personnel Policy as it relates to engaging in outside employment or business which might hinder an employee’s impartial or objective performance of his or her public duties or impair his or her efficiency on the job.

During the closed City Council meeting on April 8, 2009, the following information came to light. Gerald Henricks has an ownership interest in four lots upon which houses have been constructed on or very near to the golf course in Wanamingo, Minnesota. The developers of the Wanamingo golf course have proposed to construct a clubhouse and restaurant at the golf course. The construction of the clubhouse and restaurant could enhance the value of Gerald Henricks’ four homes adjacent to the golf course.

The proposed Crown Pointe project in the City of Byron involves, among other things, the proposed construction of a sports facility including indoor domed softball fields. Several of the developers of the proposed Crown Pointe project are also developers of or investors in the Wanamingo golf course and clubhouse.

The financing for the construction of the clubhouse and restaurant in Wanamingo is conditioned upon the successful closing of the Crown Pointe project in the City of Byron. Until April 8, 2009, the City Council of the City of Byron was unaware that the projects were linked financially.

Gerald Henricks could benefit financially if the Crown Pointe project and the Wanamingo golf clubhouse project are ultimately built. Alternatively, Gerald Henricks could suffer a financial detriment if the projects failed. The Byron City Council was unaware of Mr. Henricks’ potential conflict of interest until the matter was reviewed with him on April 8, 2009.

As late as January of 2009, Gerald Henricks had an arrangement with one of the investors in the Wanamingo golf course under the terms of which Mr. Henricks was to secure investors for the Wanamingo golf course project and, in return, Mr. Henricks would receive an ownership share in the Wanamingo project. The City Council was unaware of this potential conflict of interest until April 8, 2009.

Gerald Henricks engaged in business which was unrelated to his job as City Administrator while on the job for the City of Byron. Additionally, Gerald Henricks engaged in business activities relative to the Wanamingo golf course which hindered his impartial or objective performance of his duties and which impaired his efficiency on the job. Engaging in these outside business activities violates Section 181.3, Subd. 4 of the Byron Employment Policy.

Disclaimer: Articles posted on ByronMNBlog.com are the opinions of Councilman Alan De Keyrel only and do not reflect the opinion of the Byron City Council or the City of Byron. The information provided is for educational purposes only and should not be deemed accurate until verified.

Was this information forwarded to you by a friend? Subscribe Here

Breaking News- City Administrator Terminated

At 4:00pm today, an emergency meeting was called by the Byron City Council. At the meeting, Mayor Diercks read the following statement:

"Per the unanimous direction of the Mayor and City Council, the Personnel Committee took the action of terminating Gerald Henricks due to employee misconduct."

No other business was discussed and the Council Meeting was closed at 4:04pm. This is the only information available at this time. However, should more information about the termination be released to the public, I will post an update at ByronMNBlog.com.



Disclaimer: Articles posted on ByronMNBlog.com are the opinions of Councilman Alan De Keyrel only and do not reflect the opinion of the Byron City Council or the City of Byron. The information provided is for educational purposes only and should not be deemed accurate until verified.

Was this information forwarded to you by a friend? Subscribe Here

The Sports Dome

By now, you've probably heard about "The Dome" in Byron. Several weeks ago, City Council approved preliminary approval for the Sports Dome Project. This means that Council was interested enough in the project to authorize up to $2,000 to be spent in order to prepare a feasibility study and find answers to the remaining questions.

However, it is worth noting that approval came only after nearly an hour of intense questioning by nearly all members of the City Council. We had many questions and concerns for Mr. Colby, the developer proposing the project.

What is the Dome?

The dome is very large, consisting of enough space that two softball fields would be contained inside. The field could be modified to accommodate other sports, but the primary source of revenue (as proposed) would be softball leagues and tournaments. Attached to the dome (on one side) would be 2 restaurants to serve tournament players and their families. Imagine a two-story wall of glass on one side of the dome with restaurant seating over-looking the fields.

In addition to the dome and 2 restaurants, the project also consists of a year-round driving range and golf club assembly shop. They also plan to build a sports hostel (small rooms with bunk beds and common shower areas) to accommodate traveling teams. A larger hotel is planned for a future phase of the project.

Why did you vote for it?

First, let me stress that my vote was only for preliminary approval. The developer still needs to come back to City Council with answers to my questions in order to receive final approval on the project. Originally, this was scheduled to be on the agenda for 3/25/09, but I've heard they are not ready to present. The agenda for next week's meeting should be posted here sometime tomorrow (Friday).

As you probably know, I'm an entrepreneur. I enjoy taking calculated risks to grow if/when the opportunity makes sense. When presented with the dome opportunity, I was intrigued enough to at least have the rest of my questions answered to see how viable the project may be.

If successful, a project like this would bring additional jobs to our area. In addition, the steady flow of visitors to our town (for weekend tournaments) would bring an influx of revenue and eventually the need for a hotel. With Somerby hosting weddings almost every weekend during the summer, a hotel would definitely be an added benefit to the people who visit our town. A hotel creates additional jobs and additional tax revenue.

Additional revenue through this complex adds to our tax base. A larger tax base means we can spread the costs of much needed projects over a larger tax base. For me, that was worth spending some time to research the potential viability of the project before taking a negative position on the project.

What don't you like about it?

I've heard from many residents over the past two weeks and nearly every one of them has said the same thing.

It's Too Risky.

True, there is enormous risk in a project like this. After all, they are requesting that the city issue an appropriations bond for the construction of the dome. While the figures presented to Council show that the dome would have sufficient cash flow to cover the bond payments, it's still a risk. I understand that. If the dome doesn't bring in sufficient revenue to cover the costs (as projected, see Pages 34 & 35), we have to be able to cover the bond payments.

To be fair, keep in mind that the developer also has $6.5 million of his own money involved with the project (restaurants, roads, etc). They have a vested interest in the success of the dome, because without the teams playing in the dome there won't be patrons eating at his restaurants.

I can also assure you that I've made many phone calls trying to verify the revenue assumptions with highly educated people "in the know" about a dome such as this. All seemed to think it was "do-able" with the right management team in place. However, I have additional concerns on the expenditure side. Frankly, I don't think it's realistic to heat/cool a dome of this magnitude for only $25,000 per year. I would need written proof from the dome manufacturer and People's Coop before I'd feel comfortable with this figure.

So what happens now?

The Colby Group will need to come back before City Council and ask for final approval to begin the project. Based on the answers they provide, they may or may not receive enough votes to continue. With the amount of public outcry against this project, I'm not sure the community is ready to take on a project of this magnitude. Nor am I sure that the city should. As you know, I'm a pro-business guy, but I tend to draw the line when you start asking for government assistance. Generally speaking, if something is a really great idea you can usually find lots of people who are willing to fund your project (for a cut of the profits, of course).

Personally, Mr. Colby will have a hard time convincing me that this project will cash flow enough to cover the bond payments. Even if I feel comfortable that it will cash flow, there is still the underlying question of whether or not city should even be involved with it.

Your Thoughts?

I'm interested to hear your thoughts on this project, both positive and negative. Please leave your comment below. Alternatively, you can contact one of your City Council Members directly.



Disclaimer: Articles posted on ByronMNBlog.com are the opinions of Councilman Alan De Keyrel only and do not reflect the opinion of the Byron City Council or the City of Byron. The information provided is for educational purposes only and should not be deemed accurate until verified.

Was this information forwarded to you by a friend? Subscribe Here