Tuesday, December 13, 2011

National Park Service - Noble Cause Corruption with "The Case of the Indian Trader"

"Americans have grown accustomed to hearing about scandal and corruption in government. But few people are aware that such problems exist within the National Park Service." -- Paul Berkowitz, Retired Criminal Investigator, National Park Service

Overview
In April 2011, the University of New Mexico Press published Paul D. Berkowitz's new book, "The Case of the Indian Trader: Billy Malone and the National Park Service Investigation at Hubbell Trading Post."

This is the story of Billy Malone and the end of an era. Mr. Malone lived almost his entire life on the Navajo Reservation working as an Indian trader in Arizona; the last real Indian trader to operate the historic Hubbell Trading Post. In 2004, the National Park Service (NPS) launched an investigation targeting Mr. Malone, alleging a long list of crimes that seemed similar to Al Capone's criminal capers. In 2005, Federal agent Paul Berkowitz was assigned to take over the year-and-a-half-old case. Mr. Berkowtiz's investigation uncovered serious problems with the original allegations made by the NPS, raising questions about the integrity of his NPS supervisors and colleagues as well as high-level NPS managers.  In an intriguing account of whistle-blowing, Mr. Berkowitz tells how he bypassed his chain-of-command and delivered his shocking findings directly to the Office of the Inspector General at the U.S. Department of the Interior.

Tuesday, November 15, 2011

National Park Service Also Erroneously Claimed in Federal Court Filings that the Long-Term Operating Agreement Between the National Park Service and the Independence Visitor Center Corporation Existed Five Months Before the Actual Agreement Was Executed

The Great Conundrum: Did the Long-Term Operating Agreement Exist Between the National Park Service and Independence Visitor Center Corporation as of November 23, 2009?

The answer is no! As of November 23, 2009, a Long-Term Cooperative Operating Agreement ("Operating Agreement") did not exist between the United States Department of the Interior - National Park Service ("NPS") and the Independence Visitor Center Corporation ("IVCC") regarding the operation of the Independence Visitor Center ("IVC") in Philadelphia. The NPS and the IVCC only entered into this Operating Agreement on April 26, 2010, "for the purposes of establishing roles and relating to the funding, operation, use and maintenance of the Independence Visitor Center..." (Operating Agreement, Page 1).

Monday, November 14, 2011

National Park Service Erroneously Claimed in Federal Court Filings that National Park Service Officials Have Never Served on the Board of Directors of the Independence Visitor Center Corporation, a Private Corporation

The Paper Trail and Money Trail Show That Senior National Park Service Managers Have Served in Their Official Capacities on the Board of Directors of the Independence Visitor Center Corporation

On November 23, 2009, Michael Levy, Margaret Hutchinson, and Viveca Parker, the United States Attorneys representing the National Park Service ("NPS") defendants in the lawsuit brought by The Constitutional Walking Tour of Philadelphia ("The Constitutional"), erroneously argued in the NPS's Motion to Dismiss filed in the U.S. District Court for the Eastern District of Pennsylvania that NPS officials do not serve, and moreover have never served, on the Independence Visitor Center Corporation's ("IVCC") Board of Directors,
"Mr. [Dennis] Reidenbach and Ms. [Cynthia] MacLeod are not IVCC board members, and never have been, but they attend board meetings as representatives of the [Independence National Historical] Park and NPS. See current IVCC Board of Directors, and page 1 of June 18, 2009 minutes of Board meeting, attached hereto." (Defs. Reply, p. 9) (emphasis added)

Wednesday, November 9, 2011

10th Anniversary of the National Park Service's Independence Visitor Center - Spotlight on Fact that Concessions Award Process is Followed in All Other National Parks Across the U.S., Except in Philadelphia

The Independence Visitor Center Corporation's (IVCC) Expenses Have Grown Substantially Over Time, The IVCC's Expenses Have Vastly Exceeded Congressional Budget Office Estimates, and The IVCC Has Failed Over a Prolonged Period of Time to Be Economically Self-Sufficient from Revenue Generating Activities

At the nearly 400 national parks across the country where commercial visitor services occur (i.e., Yellowstone, Yosemite), the concessions award process is followed - however, that is not the case in Philadelphia. As the National Park Service (“NPS”) and Independence Visitor Center Corporation mark the 10th anniversary of the Independence Visitor Center on November 10th, it is time for Congress and the Courts to ensure that all commercial contracts at Independence National Historical Park (“INHP”), including at the Federally owned and funded Independence Visitor Center, are issued fairly, subject to existing laws governing the NPS.

Monday, November 7, 2011

Media Alert - Summary of the Matter Pending in Front of the United States Court of Appeals for the Third Circuit: Oral Argument Scheduled for December 6, 2011

Media Alert
Who
The Constitutional Guided Walking Tours, LLC, Jonathan Bari and Leslie Bari (Plaintiffs-Appellants) vs. Independence Visitor Center Corporation, William W. Moore, National Park Service, Dennis Reidenbach, Cynthia MacLeod and Darla Sidles (Defendants-Appellees)

What
Lawsuit pending with the United States Court of Appeals for the Third Circuit (Case Documents can be found here)

When
December 6, 2011 - Oral Argument scheduled (time to be determined)

Where
Federal Court in Philadelphia, Pennsylvania with the literal and figurative backdrop of Independence National Historical Park (a unit of the NPS) featuring Independence Hall and the Liberty Bell – America’s Birthplace 

Why
This is a David v. Goliath fight between a small business - The Constitutional Walking Tour vs. the National Park Service and its agent, the Independence Visitor Center Corp. This story focuses on backroom deals, pay to play politics, crony capitalism, heavy hand of government, random and arbitrary government regulations, etc. At the nearly 400 national parks across the country where commercial visitor services occur (i.e., Yellowstone, Yosemite), the concessions award process is followed - however, that is not the case in Philadelphia.

Case Documents - In the Matter of The Constitutional Guided Walking Tours, LLC, Jonathan Bari and Leslie Bari (Plaintiffs) vs. Independence Visitor Center Corporation, William W. Moore, National Park Service, Dennis Reidenbach, Cynthia MacLeod and Darla Sidles (Defendants)

Following are the Case Documents in the Matter of The Constitutional Guided Walking Tours, LLC, Jonathan Bari and Leslie Bari (Plaintiffs) vs. Independence Visitor Center Corporation, William W. Moore, National Park Service, Dennis Reidenbach, Cynthia MacLeod and Darla Sidles (Defendants).

The Case Documents include those filed in the following Federal Courts:

  • United States District Court for the Eastern District of Pennsylvania - Case Number: 2-09-cv-03083 Note: Oral Argument in the United States Court of Appeals for the Third Circuit Court in Philadelphia is scheduled for December 6, 2011.
  • United States Court of Appeals for the Third Circuit Court- Case Number: 11-2146

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA
 
I. COMPLAINT
Original Complaint - The Constitutional Walking Tour
July 10, 2009
The Constitutional Guided Walking Tours, LLC, Jonathan Bari and Leslie Bari (Plaintiffs) vs. Independence Visitor Center Corporation, William W. Moore, National Park Service, Dennis Reidenbach, Cynthia MacLeod and Darla Sidles (Defendants); United States District Court for the Eastern District of Pennsylvania at No. 09-cv-03083; July 10, 2009.

Friday, September 16, 2011

Private Benefit and Inurement - Public Dollars Serving Private Interests: Independence Visitor Center Corporation ("IVCC") Appears to be Non-Compliant with Federal Regulations and Standards Governing a Non-Profit Corporation

National Park Service Senior Officials Have Overseen Non-Profit's Operations with Administrative, Operational and Financial Controls

On June 8, 2011, the Internal Revenue Service ("IRS") announced that approximately 275,000 organizations lost their tax-exempt status because they did not file legally required annual reports for three consecutive years. While the Independence Visitor Center Corporation ("IVCC") was not one of these 275,000 organizations, the IVCC's non-profit status should nonetheless be carefully scrutinized, investigated and audited because it appears that the IVCC has used charitable funds to make undisclosed lobbying expenditures, the IVCC has attempted to influence legislation without reporting it, and the IVCC has provided substantial private benefit to organizational insiders and other private companies doing business with the IVCC.

The IVCC has acted over a prolonged period in a manner that may call into question the legitimacy of its tax-exempt status. The IVCC appears to have submitted misleading information to the IRS that conceals the lobbying activities in which the IVCC has engaged. Furthermore, transactions and business relationships between the IVCC and other related parties suggest conflicts of interest and substantial private benefit and inurement. The IVCC’s lack of transparency also raises suspicion as to its tendency to work towards the public good. Not only does the IVCC seem to have engaged in a history of behavior to benefit private, for-profit parties over the public, but it appears that the IVCC has also used millions of dollars in public money to serve these private interests and to fight transparency.

It appears that the IVCC has been regularly engaging in activities that do not appear to meet the IRS standards set for tax-exempt educational organizations whereby there appear to be serious inconsistencies with its tax exempt purpose. From a Board of Directors which appears rife with conflicts of interest, perceived and/or real, to a business model that appears to substantially benefit private, for-profit enterprises, the IVCC appears to have betrayed its educational mission in the name of greater revenue and private gain over the public good. It also appears that there are numerous errors, omissions and/or misrepresentations by the IVCC with regard to its operations, disclosures and filings with the IRS and other government authorities. The IRS should investigate the IVCC and perform a critical assessment regarding the IVCC's compliance, or lack thereof, with the regulations governing non-profit organizations. To the extent that the IVCC is found to not be in compliance with IRS regulations governing non-profit companies, then the IRS should assess whether the IVCC can continue as a 501(c)(3) non-profit and determine what penalties, financial and/or otherwise, would be appropriate.

Friday, August 19, 2011

Independence Visitor Center Corporation ("IVCC") Appears to Have Engaged in Eight-Year Effort to Marginalize The Constitutional Walking Tour and Keep the Evidence Secret

The IVCC Has Spent at Least $515,626.00 on Legal Fees to Ballard Spahr over the Period from July 1, 2003 to June 30, 2010

Overview
On July 21, 2003, Bill Moore, President and CEO of the Independence Visitor Center Corporation ("IVCC"), sent a critical evaluation of The Constitutional Walking Tour of Philadelphia ("The Constitutional") to Pennsylvania Governor Ed Rendell allegedly in response to a request from the Office of the Governor ("2003 Memorandum"). The 2003 Memorandum was finally revealed by the Office of the Governor on July 26, 2011 after a lengthy legal battle spearheaded at least in part by the IVCC. In the 2003 Memorandum, Mr. Moore revealed his apparent dislike for The Constitutional since Mr. Moore appears to have perceived The Constitutional as a threat:
"My conclusions on this tour are as follows: ... Copycat idea - not unique to Philadelphia - difficult to separate the product from the Boston [Freedom Trail] experience ... would be confusing to customers ... Philadelphia is almost over-burdened with disjointed products that consumers find hard to understand and use." (emphasis added)
In stark contrast to Mr. Moore's conclusions, The New York Times published a supportive Travel Advisory article about The Constitutional Walking Tour on October 26, 2003 in which it stated:
"A new walking tour of Philadelphia [The Constitutional] helps visitors find their way to sites relating to the city's history and its key role in the creation of the United States.The self-guided, three-mile tour, the Constitutional, features more than 30 historical sites, including churches, museums, former taverns and old hospitals."

Friday, August 5, 2011

Wasted Pennsylvania Taxpayer Dollars: The Independence Visitor Center Corp. ("IVCC") is not a "Tourism Promotion Agency" ("TPA")

Millions of Taxpayer Dollars Spent by The IVCC May Have Violated Permitted Uses of TPA Funds Including For Patronage Pay To Politically Connected "Key Employee" Who Now Works for The IVCC

In an effort to reduce budget shortfalls, Pennsylvania Governor Tom Corbett released a proposed 2011-2012 budget that "includes a 70% reduction in state funding for tourism marketing and promotion." On May 27, 2011, the Philadelphia Business Journal reported,
"Facing a $1 billion budget shortfall, Corbett hopes to save $5.5 million by eliminating the so-called Tourism Promotion Assistance distributed through 49 regional tourism-promotion agencies statewide. The money is used for television-and-print advertising, digital communication and other marketing."
As sacrifices are being made across the board to adapt to reduced funds, hopefully the Commonwealth's limited tourism promotion resources are not being used to continue supporting the unjust actions undertaken by the Independence Visitor Center Corporation ("IVCC"), a taxpayer supported public charity which operates the Independence Visitor Center, a Federal facility.

Tourism Promotion Agency Funding to the IVCC
From 2002 to 2009, the IVCC has received approximately $2.9 million of state taxpayer dollars from Tourism Promotion Agency ("TPA") funds allocated under the Tourism Promotion Assistance Grant Program to the Philadelphia Convention and Visitors Bureau ("PCVB"). Disconcertingly, such redistribution of tax dollars to the IVCC may have violated the permitted uses of those TPA funds and could therefore have potentially constituted the illegitimate and wasteful appropriation of public money.

Guidelines from the Pennsylvania Department of Community & Economic Development
The Pennsylvania Department of Community & Economic Development (“DCED”) published detailed guidelines entitled "Pennsylvania Tourism Office Grant Programs for Destination Marketing Organizations" ("Grant Program Guidelines"). According to the March 2010 release of these Grant Program Guidelines, the Tourism Promotion Act “establishes two grant programs that focus on local and regional marketing – the Tourism Promotion Assistance Grant Program and the Regional Marketing Partnership Grant Program.”

As a Tourism Promotion Agency, PCVB likely receives funds from the Tourism Promotion Assistance Grant Program, while the Greater Philadelphia Tourism Marketing Corporation (“GPTMC”) appears to be the Philadelphia recipient of the Regional Marketing Partnership Grant Program.

Appendix F of the Grant Program Guidelines lists Eligible and Non-Eligible Expenses for the grant funds (pages 39-40). While the reallocation of grant funds is not expressly covered, the delineation of Eligible Expenses emphasizes marketing-related expenditures. The Grant Program Guidelines repeatedly stress this marketing focus for the Grant Program funds.

In the “Introduction,” the Grant Program Guidelines state, “While we face significant economic challenges in 2010 the grant programs for Destination Marketing Organizations [i.e., PCVB] will continue to invest in tourism marketing and product development.” In Section I, Point A: Purpose of the Tourism Promotion Act, the Grant Program Guidelines explicitly state, “The purpose of the Tourism Promotion Act (Appendix A) is to support local and regional Destination Marketing Organizations in their efforts to market and promote tourism.”

As per the Grant Program Guidelines, eligibility to receive TPA funds is limited such that “only designated TPA’s may receive grants under the Tourism Promotion Assistance Grant Program.” “Pennsylvania has 49 designated destination marketing organizations that are eligible to participate in the Tourism Promotion Assistance grant program.” PCVB is a designated TPA. However, the IVCC is not, and has never been, designated as a Tourism Promotion Agency!

Thursday, July 28, 2011

National Park Service Has Infringed on the Second Amendment in Philadelphia

The Secretary of the Interior and the National Park Service Have Abused Their Management Discretion at America’s Birthplace in Philadelphia – Home of Where the Second Amendment was Adopted in 1791

The Secretary of the Department of the Interior ("DOI"), acting through the National Park Service ("NPS"), has acted randomly and arbitrarily, and in turn has restricted various Constitutional rights, including those of the Second Amendment, at Independence National Historical Park ("INHP"), a unit of the NPS, in Philadelphia. Just two months after the Federal law governing possession of firearms inside a National Park changed on February 22, 2010, the Secretary of the Interior entered into a statutorily authorized, detailed and long-term Operating Agreement between the United States Department of the Interior - National Park Service and the Independence Visitor Center Corporation ("Operating Agreement") dated April 26, 2010.

This matter is a significant public policy issue for those concerned about Civil Rights, and as such various groups should take action including the National Rifle Association ("NRA") and the NRA's Institute for Legislative Action, especially since this is happening in the shadow of Independence Hall where the Second Amendment was adopted in 1791.

Overview
According to the Operating Agreement, the NPS has placed random and arbitrary limitations on the Second Amendment. Specifically, Section C.20 (page 16) of the Operating Agreement, "Marketing Partnerships and Commercial Activities Undertaken by Third-Parties," states,
"Further, the IVCC [Independence Visitor Center Corporation] agrees that it will not enter into a marketing partnership or agreement with any individual or entity who sells, distributes or trades in, or who is otherwise clearly associated with, alcohol, tobacco, firearms or pornographic material, nor will it enter into any marketing partnership or agreement requiring actions on federal property which may result in a violation of the Establishment Clause of the Constitution." (emphasis added)
It appears that the Secretary of the Interior, acting through the National Park Service's Northeast Regional Director Dennis Reidenbach, is now legislating through the NPS’s unfettered management discretion at INHP. To that end, it makes no sense that the NPS has placed these arbitrary restrictions on its "partner," the Independence Visitor Center Corporation. Instead of exercising the NPS's discretion to create new rules that violate clearly established Constitutional rights, the NPS should simply follow the laws already in place for the management and operation of National Parks, including those laws governing concessions and commercial operations at National Parks. For the record, the signatories on the Operating Agreement are Mr. Reidenbach acting on behalf of Interior Secretary Ken Salazar and James J. Cuorato, President and CEO of the Independence Visitor Center Corporation.

Independence National Historical Park Background
Independence National Historical Park ("INHP") is America’s Birthplace. "The park represents the founding ideals of the nation and is a national and international symbol of democracy and liberty." The Bill of Rights was adopted in 1791 in INHP, and Independence Park has a distinct and singular association with the right of assembly, the right of free speech, the right to petition the government and the right to keep and bear arms.

Thursday, July 14, 2011

The Independence Visitor Center Corporation ("IVCC") Appears to Peddle Influence by Offering to Sell a Seat on the IVCC’s Board of Directors to a For-Profit Company

For $125,000.00, “A Seat on the IVCC Board of Directors for a Commerce Bank Executive.”

From 2000 to the present, the Independence Visitor Center Corporation ("IVCC") has touted its Board of Directors, which has had an impressive array of powerful and connected individuals including the Director of the National Park Service ("NPS"), a Managing Director with the Pew Charitable Trusts, the President & CEO of the Center City District, a Deputy Vice Dean of The Wharton School of the University of Pennsylvania, the Mayor of Philadelphia, a representative for the Governor of Pennsylvania and the Governor of Pennsylvania's former Chief of Staff.

The Federal and state funded Independence Visitor Center Corporation operates the Independence Visitor Center ("IVC") at Independence National Historical Park ("INHP"), a unit of the NPS, in Philadelphia.   The IVC is owned and operated by the United States of America - National Park Service, which then sub-contracts with the IVCC, a taxpayer supported public charity, to manage the IVC.

In a 2004-2007 sponsorship proposal that the IVCC developed entitled, “Commerce Bank’s Partnership with the Independence Visitor Center Corporation,” the IVCC appears to have proposed a $125,000.00 three-year promotional sponsorship agreement to Commerce Bank, a for-profit company.

Given the clandestine nature of the IVCC, we do not know what was agreed upon between the IVCC and Commerce Bank, but suffice it to say that Commerce Bank has been one of the long-term paid-for sponsors of the IVCC as evidenced by its Commerce Bank branded ATM in the main entrance (now a TD Bank ATM, since TD Bank acquired Commerce in March 2008), Commerce Bank signage at the IVC, Commerce Bank promotions at the IVC and INHP, Commerce Bank logo and ad on the backs of IVC sold tickets, Commerce Bank logo on the IVC Web site, Commerce Bank promotion on the IVCC's Facebook page, etc. (all similar to what was outlined in the proposal entitled "Commerce Bank’s Partnership with the Independence Visitor Center Corporation").

Lack of Diversity on the Taxpayer Funded Independence Visitor Center Corporation's Board of Directors

Of the 18 Members of the Independence Visitor Center Corporation's ("IVCC") Board of Directors, the IVCC Appears to Have 16 White Directors, 2 Black Directors, and Zero Directors of Either Hispanic or Asian Origin

The Independence Visitor Center Corporation ("IVCC") operates the Independence Visitor Center ("IVC") at Independence National Historical Park ("INHP"), a unit of the National Park Service ("NPS"), in Philadelphia. The IVC is owned and operated by the United States of America - National Park Service, which then has sub-contracted with the IVCC, a taxpayer supported 501(c)(3) public charity, to manage the IVC. Some of the most important moments in American history transpired at INHP: the drafting and signing of the Declaration of Independence and the drafting, debating and signing of the Constitution of the United States.

The Independence Visitor Center itself is situated just across the street from the Liberty Bell Center, which houses the iconic Liberty Bell that has come to symbolize America's freedom for many different groups: the early patriots, the abolitionists, those fighting for women's suffrage, and many seeking freedom throughout the world. As the gateway to INHP -- the place where America's freedom was established and where this great melting pot of diversity was born -- the IVCC should be quite cognizant of maintaining a governing Board of Directors that represents the great diversity of Philadelphia and America as a whole. Unfortunately, the IVCC has instead created an insular and homogeneous Board of Directors that does not reflect the diverse constituent base which funds the IVCC and which the IVCC serves.

Thursday, June 9, 2011

Support Job Creators & Target Austerity Measures by Eliminating Federal Funding to the Independence Visitor Center Corporation

Save Almost $1.0 Million Per Year in Wasteful Federal Funding of the Independence Visitor Center Corporation in Philadelphia

On April 15, 2011, President Obama signed the Fiscal Year 2011 appropriations Continuing Resolution ("CR") (PL 112-10) that has kept the Federal government operational for the next six months, ending a long national dispute over Fiscal Year 2011 spending. The CR will reduce the budgets of the National Park Service ("NPS") by millions of dollars including NPS operations by $7.0 million, construction by $30.0 million and recreation and preservation by $10.0 million (source: National Park Service Hospitality Association). Hopefully, the NPS responds to this budget decrease with greater honesty than it displayed in the past when it came to previous rounds of budget cuts.

As both Democrats and Republicans negotiate spending priorities and identify wasteful pork to be cut, both now and in future budgets, the Federally funded Independence Visitor Center Corporation ("IVCC"), which operates the Independence Visitor Center ("IVC") at Independence National Historical Park ("INHP"), a unit of the NPS, in Philadelphia would be a sensible, prudent and symbolic target for austerity measures. The IVC is owned and operated by the United States of America - National Park Service, which then sub-contracts with the IVCC, a taxpayer supported public charity, to manage the IVC that is staffed by NPS rangers. From November 19, 2001 to April 26, 2010, the IVCC's operation of the Independence Visitor Center was governed by the NPS's Special Use Permit through which the IVCC managed the IVC "subject to the supervision of the [NPS's] Superintendent" and "consent of, the National Park Service." Further, NPS officials have served on the Board of Directors of the IVCC.

The IVCC and National Park Service ("NPS") have a long history of failure to adhere to Federally mandated concessions laws and of anti-business practices that have stifled competition and economic opportunity at INHP. These practices have driven The Constitutional Walking Tour--a small business that creates jobs for Philadelphia-area residents--out of the Independence Visitor Center ("IVC") and into a strained economic condition. Amidst efforts to improve the economy and to reduce unemployment, it is absolutely essential that job-creating, private sector enterprises like The Constitutional Walking Tour not be hampered by oppressive, anti-growth regulations, especially those which are enforced randomly and arbitrarily.

Since 2001, the NPS has given more than $8.25 million in Federal appropriations to the IVCC. On February 3, 2011, the NPS filed a Notice of Intent to Award another $850,000.00 in Federal funds to fund the “Operation, Use and Maintenance” of the IVCC.

This $850,000.00, which is designated for "project activities without full and open competition," should be withheld for numerous reasons given the anti-business practices at the NPS and IVCC, the parties' false and misleading statements about the nature of their relationship, and the willful non-compliance of the NPS and the IVCC with their statutorily authorized Operating Agreement ("Operating Agreement") dated April 26, 2010.

Business as Usual: The National Park Service Misled the Public and News Media

As new austerity measures take shape in terms of Federal budget cuts including for the National Park Service ("NPS"), it is instructive to review how the NPS previously acted in 2004 during previous rounds of budget cuts.

In 2004, the National Park Service ("NPS") engaged in a pattern of misrepresentation, deception, and obfuscation strikingly similar to the activities in which NPS now engages. The efforts at deception were most evident in the NPS Northeast Region, which includes Independence National Historical Park, a unit of the National Park Service, in which repeated violations of Congressional mandates, fair business practices, and Constitutional rights have occurred.

On February 20, 2004, Chrysandra Walter, NPS Deputy Director of the Northeast Region (Dennis Reidenbach, former Superintendent of Independence National Historical Park, would later become Regional Director for the NPS Northeast Region), sent a memo to NPS Superintendents in the NE region regarding budget cuts which advised them with guidance from Randy Jones, NPS Deputy Director:
"If you think that some of your specific plans will cause a public or political controversy, Marie [Rust, NPS Regional Director NE] and I need to know which ones are likely to end up in the media or result in a congressional inquiry…Randy [Jones, NPS Deputy Director] felt that the issuance of a press release was the most problematic… He suggested that if you feel you must inform the public… not to directly indicate that ‘this is a cut’ in comparison to last year’s operation… We all agreed to use the terminology of ‘service level adjustment’ due to fiscal restraints as a means of describing what action we are taking.” (emphasis added)
This NPS memo for the Northeast Region showed that NPS personnel had actively attempted to spin and mask National Park budget cuts in a way that prevented the public and the media from realizing the truth. The evident effort to deceive the public became more pronounced when comparing the NPS Northeast Region memo to the one directed towards the NPS Midwest Region. In the NPS Midwest Region memo, the focus was on trying to streamline budgets so as "to collectively use the 'cards dealt to us [NPS]' for the best overall advantage in preserving and protecting the resources of the National Park System." The goal of the Midwest memo was clear:
"In these tough times, building a solid, reasonable, and defensible rationale for what we choose not to do allows us to direct our limited resources to our core mission of protecting park resources and providing for visitor understanding and enjoyment."
Unlike the memo from the NPS Northeast Region, the NPS Midwest Region memo did not attempt to mislead the public or media, or to engage in political posturing and gamesmanship.

Thursday, June 2, 2011

Disparate Treatment by the Independence Visitor Center Corporation and National Park Service Has Unfairly Deprived The Constitutional Walking Tour of Economic Impact from Twenty Million Visitors

Overview
On May 26, 2011, the Independence Visitor Center Corporation ("IVCC") at Independence National Historical Park in Philadelphia celebrated the twenty millionth visitor to the Independence Visitor Center ("IVC"). In its 2010 Annual Report, the IVCC touts its economic impact:
"In 2010, the IVCC influenced approximately $42 million in additional tourism spending--at attractions, restaurants, shops and more--and the positive impressions and memories generated have immeasurable benefits for years to come."

"22% of visitors report that they spend more in Philadelphia because of their visit to the Visitor Center. The average increase in expenditures was $155."

"As a result of their visit to the Independence Visitor Center, participants added an average of 2.3 attractions to their itinerary (average of 2008, 2009 and 2010)." (emphasis found in original quotation)
Unfortunately, The Constitutional Walking Tour ("The Constitutional") had no access to the vast majority of the twenty million visitors and resulting economic impact therefrom, because of the disparate treatment that The Constitutional had received at the hands of the IVCC and the National Park Service ("NPS").  In turn, these regulations which were applied randomly and arbitrarily had a pronounced detrimental effect on The Constitutional's business, ultimately driving The Constitutional from the Independence Visitor Center.

On February 20, 2008, Bill Moore, President and CEO of the IVCC, testified to Philadelphia City Council, "One of the hallmarks of a visit to any historic city is a great tour." The Constitutional Walking Tour agrees that a great tour can illuminate the incredible past of a historic city, especially Philadelphia which is America's Birthplace. Unfortunately, Mr. Moore, other IVCC officials, and the NPS have negotiated back-room deals and arbitrarily dictated which tours visitors should take, thereby suppressing consumer choice and the free market in the pursuit of random and unfair regulation.

Friday, May 6, 2011

National Park Service and Independence Visitor Center Corporation Obfuscated Issues and Misled Congress

Overview
In December 2006, Senator Arlen Specter reached out to Dennis Reidenbach, Superintendent, Independence National Historical Park ("INHP"), and suggested a proposal to have INHP offer walking tour companies comparable accessibility and visibility to riding tour companies for visitors at the taxpayer funded Independence Visitor Center ("IVC"). Just days after Mr. Reidenbach received Senator Specter's proposal, Mr. Reidenbach appears to have summarily dismissed the proposal, even though he represented to Senator Specter that he "carefully reviewed" his proposal. Further, the Independence Visitor Center Corporation ("IVCC") adamantly lobbied the NPS in support of Mr. Reidenbach's rejection: "If we move an inch on this issue chaos will be the result" and we must "not offer or open the door an inch." In his rejection of Senator Specter's proposal which obfuscated the issues, Mr. Reidenbach said that he was "committed to working equally with all commercial tour operators", but that he was "not willing to open more space in the IVC to solicitation and ticket sales." That statement was untrue.  Just six months after Mr. Reidenbach outrightly rejected Senator Specter's proposal to not open up any more space for ticket sales inside of the Independence Visitor Center, Philadelphia Trolley Works and Big Bus Company debuted a brand new ticket sales concessions booth inside the Independence Visitor Center. However, The Constitutional Walking Tour was not offered the same commercial opportunities and concessions contracts made available by the NPS and IVCC to The Constitutional's competitors.

Thursday, May 5, 2011

National Park Service ("NPS") and the Independence Visitor Center Corp. ("IVCC") Enforced Censorship At Independence Park - The IVCC and NPS Retaliated Against The Constitutional Walking Tour & Damaged Relationship with "Where Philadelphia" Magazine

Overview
Through policies that changed so frequently, randomly and arbitrarily as to preclude the existence of any true standard policy, the National Park Service ("NPS") and Independence Visitor Center Corporation ("IVCC") enforced censorship at Independence National Historical Park ("INHP"), a unit of the NPS in Philadelphia. Furthermore, the IVCC, with the complicit oversight of NPS, retaliated against The Constitutional Walking Tour ("The Constitutional") for challenging these random and arbitrary acts of censorship. Such retaliation by the IVCC, with the approval of NPS, irreparably damaged a critical business relationship between The Constitutional and Where Magazine.

Censorship at America's Birthplace
On May 25, 2007, Bill Moore, former President and CEO of the IVCC, gave his staff instructions at the Independence Visitor Center's ("IVC") Main Information & Sales Desk to inform The Constitutional that it would no longer be allowed to distribute its new 2007 marketing brochure, The Independent, inside of the Federally owned Independence Visitor Center, despite the fact that the same content had previously been deemed acceptable in The Constitutional’s prior brochures and in turn distributed at the IVC. Copies of The Independent at the Independence Visitor Center were confiscated and removed by the IVCC's management from all display racks at the Independence Visitor Center, including at the IVC's Main Information & Sales Desk.

On information and belief, Mr. Moore did not like The Independent since he viewed it as competitive with the "Historic Philadelphia Gazette" (also just referred to as "The Gazette"), another news pamphlet/brochure distributed by the Independence Visitor Center. NPS and Historic Philadelphia, Inc. ("HPI"), have officially collaborated for many years on publishing The Gazette which is taxpayer funded and which serves as the official news pamphlet/brochure of INHP; "the Gazette is a joint venture of HPI and the National Park Service."  Additionally, according to Mr. Moore, the IVCC has “regular discussions with the staff that publishes the Historic Philadelphia Gazette regarding content and information.”

Wednesday, April 20, 2011

The Independence Visitor Center Corporation and National Park Service Sought to Suppress Constitutional Rights with Confidentiality Agreement

Overview
At Independence National Historical Park ("INHP"), the First Continental Congress, "justly alarmed at [the] arbitrary proceeding of parliament and administration," began their formal protests against King George III with a Declaration of Rights & Grievances, leading to The Declaration of Independence and the Constitution of the United States. Independence National Historical Park is America’s Birthplace. The Bill of Rights was adopted in 1791 at what is now INHP, giving INHP a particularly strong association with the right of freedom of speech and the right to petition the government. It is ironic that the National Park Service and the Federally-funded Independence Visitor Center Corporation ("IVCC") have worked in concert with one another to silence their critics through pretextual confidentiality agreements. Moreover, trying to silence The Constitutional shocked the conscience since the NPS's and IVCC's actions represented a very high level of abuse of power in which the NPS and its agent, the IVCC, acted randomly and arbitrarily, against The Constitutional.

The Constitutional Walking Tour's recent termination of its business operations at the Independence Visitor Center ("IVC") was the unfortunate consequence of years of failed good faith efforts by The Constitutional to have equitable visibility and accessibility both inside and outside the Independence Visitor Center ("IVC") due to the mismanagement and egregious behavior of the Independence Visitor Center Corporation and the National Park Service.

Background
Since 2005, The Constitutional has requested to license for a fee a dedicated ticket sales concession booth from the National Park Service and the IVCC on fair, reasonable and non-discriminatory terms commensurate with Ride the Ducks and Philadelphia Trolley Works, for example. Additionally, since 2005, The Constitutional has requested to also license/secure written permissions (i.e. commercial use authorizations, special use permit, memorandum of understanding, etc.) from the National Park Service and the IVCC on fair, reasonable and non-discriminatory terms commensurate with other third parties including Ride the Ducks, Philadelphia Trolley Works and Lights of Liberty, for example. However, each request by The Constitutional was either ignored or rebuffed by the NPS and the IVCC.

On May 31, 2008, The Constitutional again approached the Independence Visitor Center Corporation and the National Park Service to license a dedicated ticket sales booth inside the IVC, along the lines of the ticket sales booths operated by Ride the Ducks and Philadelphia Trolley Works. For the first time in approximately fifteen separate requests, the IVCC responded affirmatively and indicated that a ticket concession booth license agreement ("License Agreement") would be sent to The Constitutional.

On or about June 10, 2008, substantive discussions and negotiations commenced between The Constitutional (through Jonathan and Leslie Bari) and IVCC (through Christine Keates, IVCC's General Manager, at the request of William Moore, IVCC's former President and CEO) over licensing a ticket sales concession booth inside of the Independence Visitor Center, with the IVCC and its agents representing their desire to reach such a concession agreement. On June 14, 2008, Mr. Moore approved the location of said ticket sales booth for The Constitutional that was agreed upon in meetings and discussions between the Baris and the Ms. Keates.

On June 27, 2008, the IVCC’s legal counsel at Ballard Spahr sent a 26-page draft short-term License Agreement to The Constitutional for a dedicated ticket sales booth that would run from July 1, 2008 to February 29, 2009. IVCC’s counsel curiously asked that The Constitutional propose what it would like to pay for the "License Fee, the Percentage Payment and the Percentage Payment Trigger Amount." This request for The Constitutional to name its own price demonstrated that no standard policy existed at the IVCC and NPS regarding License Agreements for concessions, since if any standards existed, the IVCC and NPS would have simply stated the price (franchise fee) required to lease a kiosk, like any reasonable landlord would do when leasing commercial space.

Curiously though, the IVCC at one point seemed to consider establishing a system that would have been standardized and equitable. On April 19, 2005, Mr. Moore wrote to Scott Lewis, General Manager of Ride the Ducks Philadelphia,
"There is the high likelihood that each of the tour operators are going to want the same type space [ticket sales booth] in the [Independence] Visitor Center when your group moves in the building . We are planning on a large area with equal spaces so we don’t have to deal with the equality issues between operators."
However, as the so-called "standard policy" evolved by the NPS and IVCC, Mr. Moore wrote to the NPS’s Dennis Reidenbach and Steve Sitarski on July 5, 2007: "The installation of booths is not a one size fits all plan." (emphasis added)

Despite the lack of equitable and standardized processes, The Constitutional continued to attempt to work with the IVCC and NPS. On July 11, 2008, The Constitutional emailed its detailed comments, questions and proposals on the draft License Agreement to the IVCC’s counsel and to the IVCC's senior management; The Constitutional requested a conference call or meeting the following week so that the parties could work quickly to finalize the License Agreement for the remaining portion of the Summer 2008 tourist season. To this day, no response has been received from the IVCC and/or the NPS to The Constitutional's written comments, questions and proposals sent back on July 11, 2008.

Instead, on July 25, 2008, IVCC’s counsel sent The Constitutional an overly broad and onerous draft Confidentiality Agreement that would bind The Constitutional to not disclose an almost unbounded range of information in perpetuity even if no License Agreement was ever executed.

Wednesday, April 13, 2011

The Constitutional Walking Tour Terminated at the Independence Visitor Center ("IVC"); IVC CEO Refused to "Diginfy" The Constitutional's Operational Concerns and Deemed Such Concerns "Nonsense"

April is the official start of The Constitutional Walking Tour's public tour operations for 2011, and The Constitutional Walking Tour will not be operating from the Independence Visitor Center. In fact, due to threatening comments posed by the Independence Visitor Center Corporation ("IVCC") and a prolonged and inflexible refusal by the Independence Visitor Center Corporation and National Park Service ("NPS") to compromise, to act in good faith and to not act in a random and arbitrary manner, The Constitutional Walking Tour no longer has any business relations with the Independence Visitor Center Corporation.

Issues negatively affecting the working relationship between The Constitutional, the IVCC and the National Park Service arose more than five years ago. Since the Spring of 2006, The Constitutional has made repeated efforts to facilitate an agreement and resolution amenable to all parties. The IVCC and NPS have repeatedly rebuffed The Constitutional's attempts. In July 2009, following an established pattern of improper treatment by NPS and the IVCC, The Constitutional filed litigation as a last resort. Even after the litigation was filed, The Constitutional used good faith efforts to negotiate a settlement for past damages and for a means of operating at the Independence Visitor Center ("IVC") in a fair and equal way going forward.

One such effort by The Constitutional to amicably resolve operational issues at the IVC occurred on July 8, 2010, when The Constitutional reached out via email to Jim Cuorato, President and CEO of the IVCC. Due to the lack of visibility and accessibility imposed by random and arbitrary treatment by the IVCC and NPS, The Constitutional had experienced poor sales over the July 4th holiday weekend, and these disappointing figures were caused by the actions of the IVCC and NPS. In light of these operational challenges, The Constitutional contacted Mr. Cuorato seeking a way to avoid such issues in the future.

Instead of seriously regarding The Constitutional's concerns and engaging in a dialogue that would lead to better results for all involved parties, Mr. Cuorato tersely and dismissively replied to The Constitutional on July 9, 2010.   Mr. Cuorato dismissively refused to "dignify" The Constitutional's feedback with a "specific response" since Mr. Cuorato deemed it "un-partner-like behavior" and "nonsense."  Mr. Cuorato wrote, "I find it interesting, but not surprising, that you chose to write this nonsense. I will not dignify your letter below with a specific response." Mr. Cuorato concluded with a thinly veiled threat:
"Your antics have stretched my patience. So if you are not happy with either ticket sales or promotional events that we undertake in our building, I would be happy to stop selling your tickets and end our relationship (and am seriously considering doing so in any event)."
The prolonged and unchecked actions of the IVCC and the NPS have now caused The Constitutional Walking Tour to stop doing business once and for all at the IVC as of November 30, 2010.  With The Constitutional no longer operating at the IVC, it appears that Mr. Cuorato's plan has reached fruition. In light of the continued refusal of the IVCC and NPS to seriously and meaningfully discuss ways in which to address The Constitutional's concerns, The Constitutional is pressing forward with the lawsuit against the Independence Visitor Center Corporation and National Park Service. The Constitutional Walking Tour is seeking compensatory and punitive damages, including for lost profits, damaged reputation, loss of goodwill, legal fees and costs, whereby The Constitutional may realize some of the value that it could have realized in the creation, operation and potential sale of its business, but for the egregious actions of the IVCC and NPS.

Friday, January 28, 2011

Several Tour Operators Have Reported Operational Challenges at the Independence Visitor Center Due to Unfair, Random and Arbitrary Treatment

While this blog includes commentary regarding The Constitutional Walking Tour's operational challenges in Independence National Historical Park, a unit of the National Park Service, including at the Independence Visitor Center, The Constitutional is certainly not alone in its complaints of the unfair random and arbitrary treatment that it receives from the Independence Visitor Center Corporation ("IVCC") and National Park Service.

Other tour operators have remarked on the inequitable playing field that has been enabled by the actions of the Independence Visitor Center Corporation and National Park Service at Independence National Historical Park; these complaints have persisted at the Independence Visitor Center ("IVC") and date back to at least 2005.

On January 26, 2005, Scott Lewis, then General Manager of Ride the Ducks Philadelphia, wrote to Brian Abernathy, then Legislative Assistant to Philadelphia City Councilman Frank DiCicco, and to Fran Dougherty, then Assistant Managing Director of Philadelphia. Mr. Lewis emphasized problems that would arise by moving Ride the Ducks' operations to the Independence Visitor Center:
"We [Ride the Ducks] require a high pedestrian traffic area in order to run a successful operation [...] Placing all operators side by side would cause confusion and would be a disservice to Philadelphia visitors [...] We would have no ability to sell our own products or distribute our information at the [Independence] Visitor Center location [...] If the Visitor Center sells our tickets, we lose a substantial amount of revenue to commissions [...] The Visitor Center staff would not fairly represent our products."
By mentioning the importance of high-traffic areas and the ability to distinguish between tour operators, Mr. Lewis appeared to acknowledge the need for a tour company to have accessibility to customers and visibility for prospective customers to identify the tour attraction. Mr. Lewis expressed concerns about the possibility of the IVCC staff unfairly representing a tour and lost revenue resulting from a "partnership" with the IVC.

On June 28, 2010, Stephen Earnest, Vice President and General Counsel for Herschend Family Entertainment (which owns Ride the Ducks International (RTDI)), wrote to Dennis Reidenbach, Northeast Regional Director of the National Park Service (NPS). Mr. Earnest described as "arbitrary and capricious" (emphasis added) the NPS's decision not to extend three of the four Commercial Use Authorizations issued to Ride the Ducks by Independence Historical Park. Mr. Earnest also said, "NPS is discriminating against RTDI without any reasonable basis for doing so" (emphasis added).

Monday, January 10, 2011

Third Party Master Plan Acknowledges Challenges at the Independence Visitor Center

"IVC & NPS Relationship: The IVC and National Park Service share the Visitors [sic] Center, but they often seem to be in competition with each other. There is a clear divide in the building and the information desk and visitors can feel the apparent tension between the two entities. This can be confusing and awkward for a first time user." -- ex;it (consulting and design firm)

Overview
The Philadelphia Inquirer recently reported that the "DRPA [Delaware River Port Authority] funneled more than $13 million to groups, some with ties to board." As previously discussed on this blog, these funds were outrageously going to the Independence Visitor Center Corporation ("IVCC"), a taxpayer supported public charity, which is chaired by John Estey (who also chairs the DRPA), even though the IVCC has nothing to do with the bridges that the DRPA operates.

Part of the $1.0 Million dollars allocated from the DRPA to the Independence Visitor Center ("IVC") is intended for a "New Wayfinding System." In the IVCC's proposal for the grant funding, the Independence Visitor Center Corporation stated:
"Due to the Visitor Center's long and narrow configuration, the use of the south end of the building for NPS exhibits, and the location of the concierge desk about half way back, the current system of directional signage and pedestrian circulation is ineffective. IVCC has retained exit, a local firm specializing in wayfinding and improving the pedestrian experience in challenging environments. The results of their research will lead to a program of improvements in and around the building which will enhance the visitor experience, improve pedestrian flow and circulation, and make the building more user-friendly and easier to navigate. We will look to implement these improvements in late 2010" (emphasis added).
The "local firm specializing in wayfinding" is "ex;it", and the firm created a "draft preliminary" plan dated September 3, 2010, and titled, "Independence Visitor Center: Visitor Experience Assessment & Touchpointing Master Plan." Ex;it identified five main priorities for the IVC: increase revenue, increase number of visitors, improve visitor experience, increase utilization of services, and increase staff efficiencies. Through its analysis, ex;it also identified some of the challenges facing tour operators at the IVC. Elements of ex;it's analysis are presented below and in the Exhibits. Details about the specific problems facing The Constitutional Walking Tour in terms of visibility and accessibility are presented in this post and in this video.

Problems for Walking Tour Operators
The observations and conclusions in the Master Plan highlight some of the major obstacles challenging walking tour operators at the IVC:
  • The assessment includes an image of the North End of the IVC labeled "EMPTY" with the caption, "The North Entrance is usually empty and disorienting. Occasionally a tour meets here and clogs the entrance, but there is often only empty tables to welcome visitors."
  • "Observations show the location of the cafĂ© is a visual block in the space."
  • "The Playmotion screen currently resides in the North end and lacks clear identification. It takes away possible seating and generally visitors did not find the screen enjoyable. It is not centered around Philadelphia history nor does it have a clear focus."
  • "These [concierge] interactions are not typically tailored to the individual, nor do they promote the smaller, lesser known attractions."
  • "Vendors: There are multiple vendors that serve visitors out of the Visitor Center. Visitors may choose to bypass the Concierge Desk and approach the tour vendor directly. These experiences are often more focused and 'retail oriented.'" These vendors include Ride the Ducks, Philadelphia Trolley Works, Franklin's Footsteps, City of Philadelphia Mural Arts Tours, Max and Me Catering, etc.
  • "Currently the IVC directs many visitors to use the tourist-centered transportation such as the Phlash bus, taxis or the Big Bus tour. Public transit, like Septa, is difficult to give instructions for, so most visitors are directed to use other transportation." (emphasis added)
Walking tours such as The Constitutional Walking Tour are relegated to a remote, "empty" area of the IVC where they are overshadowed by a large media system (playmotion) that is unfocused and not enjoyable. The cafe further obstructs the visual space that may encourage visitors to head towards the walking tour staging location. According to ex;it's findings, the IVCC's concierge staff does not ameliorate this problem as they appear to promote large companies such as Big Bus tours instead of smaller businesses with less accessibility and visibility to visitors. Furthermore, the lack of a designated space or sales kiosk (which The Constitutional has tried to attain from the NPS and IVCC through a license for comparable space on fair, reasonable and non-discriminatory terms) precludes The Constitutional Walking Tour, for example, from delivering the more direct and focused retail experiences that other vendors can.

Tuesday, January 4, 2011

$1.0 Million in Public Funding from the Delaware River Port Authority ("DRPA") to the Independence Visitor Center Corporation (IVCC)

Private Benefit and Inurement - Public Dollars Serving Private Interests: Independence Visitor Center Corporation ("IVCC") Is Not A "Small, Emerging and New Business" as per DRPA's Grant Requirements; DRPA's and IVCC's Corporate Governance - Conflicts of Interest with Funding when John Estey Chairs Both DRPA and IVCC

On November 19, 2010, the Philadelphia Inquirer reported that the "DRPA funneled more than $13 million to groups, some with ties to board,"
"DRPA [Delaware River Port Authority] officials repeatedly have said in the last two years that they were out of the economic-development business... That followed the DRPA's pledge in July 2008, during public hearings for bridge toll increases, to end its spending on such projects."
On November 15, 2010, the Philadelphia Inquirer Editorial Board published the following,
"The Delaware River Port Authority has finally proven the existence of an alternate universe in which it must be located. In an era of dire government budgets and municipal bankruptcies, it's somehow sitting on a gigantic pile of spending money.

Despite the temptation to keep found cash, many people actually try to return it to whomever it belongs. One might even be so starry-eyed as to hope the DRPA would give its extra money back to the public - a notion likely to make one of its officials laugh so hard as to choke on his toll-funded wasabi-and-panko-crusted ahi tuna steak at the Palm."
On August 9, 2010, the Philadelphia Industrial Development Corporation ("PIDC") reached an agreement ("Funding Agreement") with the Independence Visitor Center Corporation ("IVCC") whereby PIDC would funnel $1.0 Million in economic development funds from the Delaware River Port Authority ("DRPA") to the IVCC.

The details of this Funding Agreement reveal the inherent conflict of interest that has emerged through the entangled web of allegiance and responsibility between two agencies designed to serve the public--DRPA and IVCC.

John Estey is the Chairman of the Board of of Directors of both the DRPA and the IVCC. His law firm, Ballard Spahr, has represented both of these organizations for years. The PIDC Funding Agreement appears to show the ways in which public funds may have been used for the personal gain of those involved in these organizations.