Victor Lenivov

Is Keeping an Eye on What is Going On
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Note: Comments as of 2008

The 2006-2007 CAFR shows that the Unreserved Fund balance for the TDDA is now $10,074,500. This surplus is just waiting for a new project instead of being returned to the taxing authorities as the state statute stipulates. But then, as long as the officials that can do something about this look the other way or see this as leveraging taxes from other taxing authorities, it won't happen. The TDDA is not the only DDA doing this. But they will continue to do so since no one is holding them accountable. I have tried but without any support from the elected officials of these legislative bodies both at the city and county level, I have decided to hang it up. Below is a history of what I had done to correct the problem to no avail.
 
I first raised questions before the Troy City Council concerning the Troy Downtown Development Authority (TDDA) back in 1998. I called my comments "Fact or Fiction" (read comments 18 KB PDF). I made additional comments at later council meetings and in October 1999, councilman John Stephens suggested I put my questions in a letter. I did and submitted it to the city council, the TDDA and sent a copy to my state representative Bob Gosselin (read letter 12 KB PDF).
 
As usual, no one would provide any supporting documentation to counter my claims. They would state that the TDDA is not breaking the law but never provided any documentation to back up their claim by discrediting mine.
 
I contacted the three taxing jurisdictions that the TDDA was diverting tax dollars from to pay for their activities, The City of Troy I discussed above. I discussed the issue in person with my county commissioner, John Garfield (later state representative) and with county commissioner Chuck Palmer (now retired). Mr. Palmer did get the county treasurer to call me but all he said was that something like this would take time and it is best not to bother. In March of 2000, I contacted Mr. Clarence E Brantley, Vice Chancellor for Administration Services for Oakland Community College (read letter 13 KB PDF). Mr. Brantley never responded to my letter.
 
After a few years, getting nowhere at the local level, I sent a letter to the State Tax Commission in February of 2004 (read letter 14 KB PDF). They didn't even acknowledge receipt of the letter. I made other presentations before city council concerning how the TDDA was taking more TIF revenues (read comments 25 KB PDF) than they were entitled to and why I felt there needed to be an investigation (read comments 20 KB PDF)
 
In January of 2005, I emailed to various state senators and representatives, some media people and the State Attorney General (read email intro 9 KB PDF letter 49 KB PDF and attachments 1.02MB PDF)  to elicit their assistance in getting the State Tax Commission to address my concerns. State Representative Bob Gosselin called me and we had a discussion on the issue. He said he would try to get some answers for me and what at the minimum would I like answered. At his direction, I emailed his staff member a letter (read email intro 18 KB PDF and letter 10 KB PDF) with three simple questions to be answered. I received a response from the deputy State Treasurer (read page 1 108KB JPEG and page 2 50 KB JPEG).
 
In July of 2007, I sent emails to 23 of the 25 Oakland County Commissioners that listed contact emails on the Oakland County Web Site. I provided them with the opportunity to look at this web page and said if they didn't care whether the TDDA was violating the law and taking Oakland County Tax Revenues that they were not entitled to take not to respond. Only 2 commissioners responded. 21 of them didn't care that Oakland County tax dollars were being missappropriated by the TDDA, even when the county is facing a fiscal crisis. Not one of the county commissioners that had Troy as part of their district responded. I talked to Commissioner Tim Burns and he told me he wasn't concerned with the TDDA. He was only concerned with the other DDA's. That's like saying I don't care if the law is being broken by some one in my front or back yard, I am only concerned if the law is being broken on the other side of the street.
 
I didn't give up. I sent a letter (read letter 28 KB) to the firm that audited the City of Troy and the TDDA for the fiscal year ending June 30, 2007. I did not hold my breath since after reading their engagement letter in which they stated: "We have advised the city of the limitations of our audit regarding the detection of fraud and the possible effect on the financial statements (including misappropriation of cash or other assets) not withstanding our obligations per the Single Audit Amendments of 1996 and OMB Circular A-133. We can, as separate engagements, perform extended procedures specifically designed to detect fraud. The City has not engaged us to do so at this time." and they didn't.
 
Why hasn't anyone provided documentation to counter my claims. I have laid out my points. I have heard local officials say that the TDDA is doing nothing wrong but fail to counter the points I raised. They say that since the State has not initiated any action against the TDDA is proof that the TDDA has not violated the law. That is like saying that driving 100 MPH on I-75 through Troy is not breaking the law if you are not issued a ticket.
 
I could continue with the good fight, but with the four so called Tax Fighters on city council today sitting on their hands, why should I.