Auditor to Investigate Transactions Monday, January 05, 2009 | 38° Mostly Cloudy and Windy Requested Exam of Financials at Warehouse Storing Vote Machines     January 9, 2007 - Dennis Gallagher has announced that he will look into financial transactions related to the Denver Election Commission Warehouse. In response to a request from Councilwoman Jeanne Faatz, the Auditor said the he will assign an auditor immediately to look into the transactions. “Councilwoman Faatz and I have had numerous conversations with regard to the transactions related to the warehouse and the loan that predicated the lease agreement. I am more than happy to immediately look into the concerns the Councilwoman has raised. As a vigilant watchdog for the Denver taxpayer, Jeanne and I are on the same page,” Gallagher said in response to the request. In a letter to the Auditor, Councilwoman Faatz noted some specific concerns she has with transactions involving the Mayor’s Office of Economic Development (MOED), the private developer, Industrial Plus, LLC, and the and loan related to the lease of the Election Commission warehouse. The warehouse is part of a development property at 38th and York, in Denver, that was being developed with funds from City loans. A loan to the developer was going into default in 2005 and the City orchestrated a lease agreement between the developer and the Denver Election Commission that basically used lease money paid by the City to the developer to offset payments from the developer to bring the loan into compliance. At the time, the Auditor was critical of the transaction and said that he thought the scheme was highly unusual and that it was a ‘rob Peter to pay Paul’ transaction. In her letter, Faatz poses three primary concerns: The way 2005 property taxes were paid to the city in 2006, particularly citing the possible use of Tax Increment Financing (TIF) money. She also us raising concern about the amount of money that MOED may have dipped into the ‘lockbox’ (Repayment account) for to pay Industrial Plus obligations. Faatz is also questioning the current status of the loan for another part of the property at 38th and York. The suitability of the warehouse to serve the needs of the Denver Election Commission became an issue in 2006 when a performance audit by Gallagher of the Commission cited serious problems with the warehouse as a storage facility for over $7 Million worth of electronic voting equipment. In closing her letter, Faatz says: “I recognize there are other issues concerning this loan and the use of the warehouse for Election Commission property. The questions I have asked are by no means the only ones I have. However, these require a deeper financial analysis than I can personally provide, and that is your agency’s area of expertise.” Prepared by Denis Berckefeldt, Communications Director, Auditor's Office Posted on Monday, January 08, 2007 Posted by AlanD  Contributed by AlanD Return

More News Denver Update:  Weekly News Summary Opera Colorado Founder Honored By City Mayor Appoints New Denver County Court Judge Smart Parking Meters Make Debut Innovative Transportation Plan Focuses On People

Announcements Recycle Your Tree After Holidays               View Video January 5-16: Denver Recycles' annual Treecycle program will be recycling thousands of Christmas trees into mulch again this holiday season. Treecycle helps Denver avoid using landfill space and paying disposal fees. Future of the Sloans Lake Marina and Boat House January 13: Denver Parks and Recreation invites all residents interested in attending an initial public meeting for the implementation of the Sloan's lake park master plan in the marina area. Rail Yard Returns Jan. 17 - Feb:  Join in on the excitement and energy of skiing and snowboarding in Denver at a one-of-its-kind venue, Ruby Hill Rail Yard, an urban snow/rail park. Citizen Emergency Response Training Jan. 24: What would YOU do if a disaster hit close to home or work?  We can’t always depend on professional responders to be immediately available. Learn how you can be prepared. Electronics Recycling Don’t Toss Out That Old TV in the Trash! Now Denver helps you learn where you can recycle so as not to release hazadous materials into our environment. Visit DenverRecycles Building a "Better Denver" The Better Denver Program is a comprehensive effort to invest in the ongoing maintenance and enhancement of city facilities as well as new construction. Residents can follow progress on neighborhood bond projects at the Better Denver website More Announcements      1