A Lincoln businessman has been making trouble for the developers in charge of bringing shops and a hotel to the area around Lincoln's planned arena.
The Lincoln firm WRK (headed by Will and Robert Scott) and Woodbury Corp. of Utah are the chief players on a development team that called itself Lincoln Traction Partners while vying for the arena gig.
But the name "Lincoln Traction Partners" was not registered with the Secretary of State. So Mike Grieger, president of Ace Financial Services Co., registered the trade name in the fall of 2008 and has since sparred with WRK and city officials over their use of it.
Grieger said he bought the trade name because he knew the developers hadn't -- even though it's a misdemeanor "to make up a name and use it without registering it" in Nebraska.
People are also reading…
"I knew that they didn't do their homework," he said.
Grieger sent a cease-and-desist letter to WRK and the city. WRK has since removed references to Lincoln Traction from its website, but the city has refused.
In a letter to the city attorney, Grieger's attorney accused the city of infringing on the trade name and asked the city to remove it from news releases, publications and websites.
City Attorney Rod Confer's position is that it wasn't the city who was using the name, but the developers, so complaints should be directed toward them, not the city.
"The owner of a trade name may have a legal remedy against a competitor who uses the name in violation of the law, but that doesn't mean that others are violating the law if they refer to the competitor by that name," Confer said via e-mail.
Grieger's attorney's letter said it was inconceivable city officials didn't conduct "due diligence searches on all of the parties participating in the redevelopment proposal prior to making a decision about awarding the contracts."
Will Scott said Grieger's company has yet to provide any information about their use of the trade name, and his team could protest their use of the name but has so far chosen not to do so.
"We feel that such procedures would only cost us money and legitimize his inappropriate actions on this matter," Scott said via e-mail. "Mr. Grieger has a long history of bankruptcies and creating conflict that has lead (sic) to costly litigations and numerous judgments filed against him. It is our position that any contact with him would be completely unproductive."
Instead, the developers have registered the name Traction Development Partners, although Scott said they reserve the right to go to the attorney general with a claim that Grieger's company is conducting deceptive trade practices.
Incidentally, Grieger also bought the trade name Lincoln Sawmill Partners, the name WRK used for its redevelopment agreement with the city on the Sawmill building in the Haymarket.
"How can the city enter an agreement with a company that didn't exist?" Grieger said.
Who might run for mayor?
The events of the past few weeks have some speculating about who might be interested in running for mayor of Lincoln next year.
State Auditor Mike Foley's perceived aggressiveness in auditing the Antelope Valley Project and now proposing to audit the city's arena project has some wondering if he's gunning for the mayor's job, which is up for grabs next year.
However, Foley pooh-poohed that, saying, "I have no interest in running for mayor."
Another name that has been mentioned a few times is Coby Mach, a radio talk show host and head of the Lincoln Independent Business Association. But Mach has been very adamant to me that he's not running.
Another name I've heard: Councilman John Spatz. He would not comment, however.
And there's always speculation that Councilman Jon Camp -- who has been interested in running for mayor several times, but deferred to former Councilman Ken Svoboda in 2007 -- will run.
When asked whether he might run, Camp said, "I don't know."
"I think there's a focus on getting through the budget right now," he said.
New jobs at city hall to do arena work
During the second meeting of the board overseeing the arena project, a budget was approved that includes three new city jobs: an assistant city controller, assistant city attorney and assistant purchasing agent.
Among the other things budgeted were $23,200 for a project manager (for June 11 through Aug. 31), $20,000 for legal consulting and $15,500 for furniture for the three new city positions. A total of nearly $152,000 in operating expenses was budgeted, which will be paid for with the $50 million credit line the city will be taking out to cover expenses until the first general obligation bonds are issued this summer.
The arena board also was presented with a $340 million capital budget.
City Councilman Jon Camp has questioned the 20 percent of construction costs budgeted for design and engineering -- which he said was a "substantial amount." For example, nearly $1.1 million in engineering, design, inflation and contingency is budgeted for $2.3 million worth of electronic signage to point people in the direction of the arena -- which Camp said is 50 percent more than the base estimate.
"These are big numbers and need to be managed and scrutinized," Camp wrote to his representative on the arena board, Councilwoman Jayne Snyder.
During the last arena board meeting, City Finance Director Don Herz said the city's contractors felt 20 percent in soft costs was appropriate and should be "more than adequate." The city has tried to be conservative with its cost estimates, he said.
Camp also asked for more details about the contract with former Councilman Dan Marvin, who has served as project manager.
$5 million insurance protection for arena decisions?
How would you like to serve on a committee for which you'd need $5 million worth of insurance for the decisions you make?
That's how much insurance is being taken out for the three-member board overseeing construction and finance of Lincoln's $340 million arena project. Bill Kostner, risk manager for the city, recommended the board get $5 million in liability insurance because it "protects your decision-making" if claims are made against the board.
The arena board agreed to get quotes from companies, which are expected within a month.
Reach Deena Winter at 402-473-2642 or dwinter@journalstar.com.
