National Park Service

Tuesday, October 12, 2010

What Do Gambling and Secrecy Have to Do with a Public Charity that Operates on Federal Land?

On September 23, 2010, the Pennsylvania Gaming Control Board (PGCB) granted SugarHouse Casino - Philadelphia's first and only casino - its official authorization to operate slots and table games.

On October 10, 2010, Paul Davies, Deputy Editorial Page Editor of The Philadelphia Inquirer wrote,

"Casinos prey on those desperate for a miracle...It will be Rendell's legacy that the city he helped save as mayor will now see many lives destroyed by all the social ills that are sure to follow gambling in Philadelphia."

While the purpose of this blog entry is not to weigh in on the casino debate in Philadelphia, it is nonetheless important to learn what back room deals may have been made in Harrisburg to leverage casino operations to fund the Independence Visitor Center Corporation, a public taxpayer supported charity, that runs the Independence Visitor Center. (The land on which the Independence Visitor Center (IVC) is built, as well as the building itself, are owned by the federal government and administered by Independence National Historical Park, a unit of the National Park Service.)

William W. Moore, former President and CEO of the Independence Visitor Center Corporation (IVCC), wrote to Governor Edward Rendell about the IVCC and legalized gambling and casino operators. In the July 9, 2004 letter, Mr. Moore wrote the following,

"Congratulations on the historic legislation allowing slot machine installation in Pennsylvania. That was a long and difficult battle, but in the end residents and visitors to the Commonwealth all come out as winners. You may recall in a meeting in late 2003 discussing ways that we could leverage casino operations to help support the Independence Visitor Center operations. With the legislation successfully passed, I would like to renew those discussions...To secure our long-term future and provide sustainable, consistent funding I would like you to consider taking a renewed look at how we might achieve financial support for the Visitor Center operations either directly or indirectly from the licensing, permitting or operations of our new casino operators."

Casino operations are predicated upon having winners and losers, and as such, Mr. Moore's argument that "in the end residents and visitors to the Commonwealth all come out as winners" is absurd.

Continue Reading...

Friday, August 20, 2010

Statement on the DRPA and Independence Visitor Center Corp.

We applaud Governor Rendell, Governor Christie, John Estey, Chairman of the Delaware River Port Authority (DRPA), and the rest of the members of the Board of Commissioners of the DRPA in adopting resolutions for improvement, including abiding by both the Sunshine Act and Pennsylvania Right to Know Law.

Reform is a journey and not a destination. As such, reform has to continue going forward, and reform must include changes to the culture of the DRPA. The DRPA must prove to the taxpayers that the reforms adopted are not merely superficial concessions designed to quell a brief media uproar, enabling self-serving business interests to permeate its operations. Moreover, similar changes must occur at other taxpayer supported public trusts with commonalities to the DRPA.

For example, if Mr. Estey believes that the DRPA should adopt the Sunshine Act, abide by the Pennsylvania Right to Know Law, and conduct business in a transparent and fair manner, then the Independence Visitor Center Corporation (IVCC) should as well.

The Boards of Directors of DRPA and IVCC are both chaired by John Estey, Esq., senior partner at Ballard Spahr and Governor Rendell's former chief of staff. Both the DRPA and IVCC use Ballard Spahr as outside counsel; Ballard has billed DRPA almost $3.1 million in legal fees from 2000-2010.

Both DRPA and IVCC operate essential public facilities. Both the DRPA and IVCC have an insular culture that does the public’s business in private. Both the DRPA and IVCC are taxpayer supported public trusts that are rife with patronage. Both the DRPA and IVCC are stuck in a time warp because both the DRPA and IVCC have been quite clandestine in terms of their operations and corporate governance. Both the DRPA and IVCC are heavily influenced by Governor Rendell (Rendell personally appointed most of the Pennsylvania commissioners to DRPA and he appointed the "Governor's Representative" to the IVCC).

On information and belief, the DRPA gave the IVCC $1.8 million in 2010 in an economic development grant, although there is no information available as to the details of those funds from either the DRPA and IVCC.

Nonetheless, as reported in The Philadelphia Inquirer on August 20, 2010, Mr. Estey claims, "It's [IVCC] not a public entity [...]"

To the contrary, the IVCC is absolutely a public entity given the massive public funding which the IVCC receives, the federal land on which the Visitor Center stands, the federal employees stationed within, and the federal legislation that authorized its creation.

Both the DRPA and IVCC maintain a sense of entitlement, an attitude that they can do no wrong, that they answer to no one and are certainly in no way accountable to the public which funds them. Unless Mr. Estey and Governor Rendell (Mayor Nutter also serves on the Board of Directors of the Independence Visitor Center Corporation), extend the resolutions for the DRPA to other secretive public organizations, like the IVCC, the proposals for change will be exposed as political smoke screens, enabling business as usual to continue without restriction or public oversight.

Jon Bari
The Constitutional Walking Tour of Philadelphia

Exhibits
*Article published in The Philadelphia Inquirer: "Now, [John] Estey should get the Visitor Center to open up," 8/20/2010

*Letter from John Estey to Governors Christie and Rendell discussing proposed changes at the DRPA, 8/4/2010

*Letter from Jon Bari to Mayor Michael Nutter calling for transparency at the IVCC, 8/13/2010

*Letter from Jon Bari to Governor Rendell calling for transparency at the IVCC, 8/17/2010

Monday, July 19, 2010

National Park Service Concessions - Independence National Historical Park

The above video outlines the main challenges The Constitutional encounters at Independence National Historical Park due to the unfair regulatory practices in place there. The Constitutional is seeking equitable treatment from the National Park Service and Independence Visitor Center in Philadelphia, in terms of visibility and accessibility for the operations of its guided historical tour business, as compared with other tour operators.

---------------

The exhibits below illustrate the landscape and floor plan of the Independence Visitor Center in Philadelphia, both inside and outside, and how the Independence Visitor Center Corporation and National Park Service have forced The Constitutional Walking Tour to be completely marginalized both and inside and outside of this 50,000+ square foot complex.

EXTERIOR:

INTERIOR:

Ride the Ducks Photo Concessions on National Park Service Property

The above video clearly shows concession sales occurring on sidewalks around the Independence Visitor Center, on National Park Service property. Despite awareness by involved parties, despite the fact that the opportunity to sell concessions has been denied to The Constitutional, Ride the Ducks regularly violates their Commercial Use Authorizations and engages in these prohibited activities with no consequences. This demonstrates the inconsistent, random and arbitrary standards in place at Independence National Historical Park.

What is Mayor Michael Nutter Hiding?

Mayor Nutter serves on the Board of Directors of the Independence Visitor Center Corporation, a private company, which runs the visitor centers at Independence Park, City Hall and Fairmount Park.

Under the Pennsylvania Right to Know Law, The Constitutional Walking Tour requested records regarding Mayor Nutter's role on the Board of Directors of the Independence Visitor Center.

The City of Philadelphia denied the release of the records.

The Constitutional appealed, and the PA Office of Open Records issued a legally binding Final Determination for the City to release the records stating, "If a public official [Mayor Nutter] serves on a private board in an official capacity, the public has a right to know the extent of that service and see records associated with it."

The City refused to release any records! Instead, the City is spending taxpayer dollars to sue The Constitutional to block the release of public documents despite the City hemorrhaging cash, raising taxes and cutting services.

The City is requiring my small business to allocate our scarce resources to fight the appeal. Mayor Nutter promised that transparency and accountability would govern his Administration. Now it looks like Mayor Nutter has something to hide.

-------

Exhibit:
PA Office of Open Records, Final Determination, Jonathan Bari and The Constitutional Walking Tour vs. City of Philadelphia, Docket No.: AP 2010-0157, 4/7/10;
"Minutes of a non profit organization on which the mayor sits in his official capacity as the mayor, record of the agency"

Rendell's Pork-Laden Politics at the Independence Visitor Center

In response to the Harrisburg Patriot-News July 13, 2010, editorial titled, "Pork barrel rolls right to Philadelphia":

Governor Rendell's new Pennsylvania State budget is packed with so much pork for Rendell's pet appropriations under the guise of the Redevelopment Assistance Capital Program. For example, when Pennsylvania is hemorrhaging cash, raising taxes and cutting services, Rendell has appropriated $5 million for the Independence Visitor Center in Philadelphia. This appropriation seems particularly bizarre given that this building, which is federally owned and funded, just opened in 2001.

Cronyism is commonplace with the Independence Visitor Center Corporation (IVCC), which operates the Independence Visitor Center in a clandestine manner better suited to the CIA than to a visitor center. In addition to the IVCC Board being chaired by Rendell’s former chief of staff, Rendell appoints a “Governor’s Representative” to the IVCC Board. However, the Governor’s office has denied Right to Know Law requests for further information on Rendell's role with the IVCC's Board. Additionally, Philadelphia’s Mayor Nutter himself serves on the IVCC’s Board. The City of Philadelphia has denied similar record requests for Mayor Nutter's involvement with the IVCC Board, and now both the City and IVCC have actually sued to block the release of information as ordered in a legally binding Final Determination by the Pennsylvania Office of Open Records.

Governor Rendell must insist that in exchange for $5 million to the Independence Visitor Center, the IVCC's Board must change to abide by both the Sunshine Act and the Right to Know Law. Alternatively, Rendell should compel his representative's resignation from the IVCC Board and yank the $5 million in funding.

Friday, May 8, 2009

Seeking Congressional Oversight on The National Park Service

It should not take four years and a team of lawyers for a small business to be able to compete on a level playing field in dealings with the National Park Service (NPS) at Independence National Historical Park and the Independence Visitor Center in Philadelphia, Pennsylvania. However, that is exactly the case for The Constitutional Walking Tour of Philadelphia. To that end, in this economic crisis when many companies in diverse industries are seeking a federal bailout, The Constitutional is simply seeking a federal breakthrough to ensure that it receives equitable treatment from the National Park Service and Independence Visitor Center in terms of visibility and accessibility for the operations of its guided historical tour business, as compared with other tour operators.

Background on The Constitutional’s disputes with the NPS and Independence Visitor Center

The Constitutional Walking Tour of Philadelphia (“The Constitutional”) offers guided walking tours of the Independence National Historical Park area by providing a primary overview of Independence Park and visiting more than 20 of Independence Park’s most historic sites including the Liberty Bell, Independence Hall, Carpenters’ Hall, Declaration House, etc.

From 2005 to 2010, the Independence Visitor Center Corporation sold tickets for The Constitutional’s various tours only at the IVC’s main information and sales desk. The IVCC has received a 20.0% (twenty percent) sales commission on each ticket that it has sold for The Constitutional (ranging on average in gross price from $12.50 to $17.50). Since 2005, The Constitutional has requested to also license a dedicated ticket sales booth from the National Park Service and 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 marketing opportunities and commercial use authorizations from the National Park Service and IVCC on fair, reasonable and non-discriminatory terms.

The Independence Visitor Center (“IVC”) is owned and operated by the United States of America - National Park Service (“NPS”), which then sub-contracts with the Independence Visitor Center Corporation (“IVCC”), a taxpayer supported public charity, to manage the IVC.

The IVCC and NPS have preferenced third parties including Ride the Ducks and Philadelphia Trolley Works, and the IVCC and NPS have discriminated against The Constitutional Walking Tour. The National Park Service has enabled the creation of this unfair business environment. The National Park Service and the IVCC have ignored and circumvented Federal management and concessions laws for the sale of goods and services at Independence National Historical Park that require open, transparent, competitive and appealable processes awarding concessions contracts for the sale of goods and services including tours.

To facilitate the administration of the National Park Service System, the Secretary of the Department of the Interior, acting through the NPS, is authorized under the National Park Service Organic Act (“Organic Act”) to carry out twelve categories of activities, none of which include transferring administrative responsibility to a private party [i.e., IVCC] or engaging in cooperative administration with a private party [i.e., IVCC]. 16 U.S.C. § 1a-2(a)–(l). Rather than grant the NPS discretion in its dealings with park concessioners, Congress established “carefully controlled safeguards against unregulated and indiscriminate use” of the parks in the National Parks Omnibus Management Act of 1998 (“Management Act”), which governs all national park public accommodations, facilities, and services. 16 U.S.C. § 5951 et seq.; see also 36 C.F.R. Part 51.2 (“policy underlying concessions contracts”). The safeguards are not limited to nationwide policy: Congress also manages the parks with significant visitor traffic on a park-by-park basis. See, e.g., 16 U.S.C. §§ 21–40c (Yellowstone), §§ 91–110d (Mount Rainier), §§ 212–218a (Abraham Lincoln’s Birthplace), and §§ 410z–410z-5 (Boston National). One of the dozens of national parks managed by specific statutes is Independence National Historical Park (“INHP”). 16 U.S.C. §407m–407s. As such, compliance here going forward would require the NPS, first, to reassume from the private IVCC the NPS’s duties “to administer, operate, manage, lease, and maintain” properties at INHP pursuant to 16 U.S.C. § 407s; second, to award “all proposed concessions contracts … through a competitive selection process” pursuant to 16 U.S.C. § 5952; and, third, to issue commercial use authorizations in a rational manner pursuant to a reasonable interpretation of 16 U.S.C. § 5966(c).

The IVCC and NPS have arbitrarily and randomly selected business partners in a non-competitive and clandestine manner; as such, the actions of the NPS and IVCC have from an economics perspective stifled competition, innovation and consumer choice. Ultimately the IVCC’s actions have enabled prices to increase for its preferred vendors to strengthen the for-profits’ financial performance. Visitors to Philadelphia will be better served when the IVCC’s management, manners and methods are fundamentally changed. This would include having the National Park Service abide by Federal concessions management laws. Specifically, this will entail only having the NPS award concessions sales contracts and not having the IVCC involved in any of the selecting, awarding, contracting and managing of Independence Park’s third party concessions, including inside the Independence Visitor Center. This is the model that is practiced in virtually every other of the 390 (three hundred ninety) National Park Service units across the United States (in 49 states) including at Yosemite, Yellowstone, Statue of Liberty, etc. Additionally, visitors and all stakeholders will be better served once the operation of the taxpayer funded IVCC is totally transparent and accountable. While part of the issue centers on a publicly funded charity competing against the private sector (i.e., by offering guided tours and services), it more so has to do with the manner in which the IVCC and NPS operate and discriminate against third party concessionaires, tour operators and vendors in a random and arbitrary fashion (i.e., with the licensing and leasing ticket sales kiosks by the IVCC to third party companies, for example).