Check-writing rights reveal panel strains

New C.P. Development Corp. makeup strips city appointees of power

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CROWN POINT | The first act of the new power bloc on the five-member Crown Point Development Corp. was to strip members Rob Gardiner and Eric Hammond of their power to sign checks on the corporation's behalf.

Each check now must be signed by two of three people: Gayle Van Sessen, Allan Katz or Kent Jeffirs.

With the appointment of Jeffirs to replace Kevin Keough, whose position on the corporation was contested, Van Sessen and Katz secured a majority.

Gardiner, who also is Crown Point Redevelopment Commission President, resisted requests for financial information on New York-based Plasmatronics from Katz, Van Sessen and Jeffirs. The Development Corp. granted a $500,000 loan to the company earlier this year without support from Van Sessen and Katz.

The two battled for access to income statements, a balance sheet or due diligence study from Plasmatronics before the July vote, but were denied.

Hammond, who is also the city's economic development director, did not show up Thursday. But he has said he is waiting on the corporation's law firm, Barnes and Thornburg, for guidance on providing the information.

Indiana Public Access Counselor Heather Willis Neal ruled last week that Hammond violated public access law by refusing to give the information.

It is the second time this year Neal found the corporation illegally denied public access. The state agency ruled against the development agency in August for barring The Times from its July 11 meeting. The vote later was redone in public July 25.

Van Sessen, who is executive director of the Crown Point chamber, said a lack of trust and transparency impaired coordination among members. All they wanted was enough information to make an intelligent decision on the loan, she said.

"If that had been done, we wouldn't be sitting here now," Van Sessen said.

Katz said the other members weren't being informed when Plasmatronics drew funds. Through last week, Crown Point has paid $379,746 to the corporation to transfer to Plasmatronics, city records show.

The corporation also created a fact-finding committee made up of Van Sessen, Katz and Jeffirs to get information on Plasmatronics. Jeffirs said he has no ax to grind and doesn't want to nix the deal with Plasmatronics.

"The thing that concerns me is there seems to be a bit of a problem following the rules," he said, citing the corporation's recent public access violations.

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