Florida Baseball Lawsuit Challenges Secret Dealing Behind Economic Development Deal

The lawsuit stalling a $31 million renovation of Ed Smith Stadium in Sarasota, Florida, alleges that local government officials violated Florida's Sunshine Law by failing to conduct business in the open.

The lawsuit is a signature case regarding taxpayer-funded economic development deals that are negotiated in secret.

Read more about the lawsuit here.

Wisconsin Court: Economic Development Records Public

Economic development groups must abide by Wisconsin's open meetings and records laws if they closely resemble government bodies, the state Supreme Court held Friday in one of two rulings dealing with public information.

In another case, the court said officials must hand over information from closed government meetings as evidence in lawsuits.

The decisions' impact is twofold: Quasi-governmental groups brokering multimillion-dollar business deals are open to as much public scrutiny as any other government body, and closed meetings about government workers' performances or other sensitive matters aren't completely secret.

"Absolute victories for the citizens of this state," said Peter Fox, executive director of the Wisconsin Newspaper Association, which filed briefs in both cases. "It's really about citizens and ... the ability of local governments to operate fully in public view."

More here.

Economic Development: None of Our Business?

A nice piece from Arkansas on an endlessly controversial practice:

The Arkansas Economic Development Commission is an agency that thrives on secrecy, so much so that big-name projects' real names aren't uttered until they're a done deal.

A Denmark windmill blade manufacturer's Little Rock plant was known around the office as "Project Zephyrus." When Hewlett-Packard Co. mulled a move to Conway for a new facility, proposals detailing the millions offered in state incentives simply referred to HP as "Project Sigma."

The secrecy, state officials say, is necessary to keep Arkansas in the hunt for major business projects. No company will come to the state if they fear that details of their internal operations will be splashed on the front pages of newspapers or lead the nightly local newscast.

Democracy and a free press, however, thrive on openness. So it's not anything new for the state's economic development arm and reporters to clash over access to information.

That rift appeared again in June as word leaked out of HP's decision to open a facility that will eventually employ 1,200 people in Conway. ArkansasBusiness.com was the first to report that HP was coming to Arkansas -- four days before the official news conference.

When the news got out, HP spokesmen and government officials from Gov. Mike Beebe on down declined on-the-record comment for the rest of the week.

Arkansas Economic Development Director Maria Haley appeared to criticize media for reporting on the development before it was announced, calling the leaks "extremely irresponsible."

More here.

Now THIS is a piece of FOI-driven reporting...

From a favorite former student at the Orange County Register:

What do $3.70 lattes, an Indian casino and a BMW dealership have in common?

An obscure California agency thinks they're all public benefits worth tax-free money.

The agency, the California Statewide Communities Development Authority, issued about $4.2 billion in tax free bonds in 2007, ranking behind only the states of California, Ohio and New York.

County supervisors and city council members statewide formed the agency. Last year, their political associations pocketed $4 million from it.

The Bay Area businessmen who staff it made even more. They collected $10 million.

For 20 years, they have operated out of the public view, using a public agency to help finance their special interests while siphoning off tax revenue for projects of dubious public value.

They have taken a public agency and made it a private benefit.

"This is the ultimate in invisible government," said Orange County Supervisor Chris Norby, who's been suspicious of the agency since he was a Fullerton City Councilman in the 1990s. "It's kind of the worst of both worlds," he said, "public and private."

More here.

Now This Is More Like It...

While some states slavishly kowtow to private interests, striking secret deals, California looks the other way:

A bill approved in the state Senate would ban private companies who contract with the government from using confidentiality agreements to keep their dealings secret.

The bill by Democratic Senator Leland Yee responds to a California Public Records Act request filed last year by the San Francisco Chronicle. The newspaper was seeking information from the University of California.

Yee says the UC's San Francisco campus would not release an independent financial review or name the firm that was paid $165,000 to conduct the audit. University officials say the private firm controlled the audit's release.

The Senate voted 33-1 on Monday to require the records' release regardless of such contract clauses. The bill applies to both local and state governments.

Senate Minority Leader Dick Ackerman, a Republican from Tustin, was the lone dissenting vote.

The bill now goes to the state Assembly.

More here.

Bad Idea Watch: Secret State Grants in Iowa?

The secrecy surrounding economic development is a theme today. In Iowa, some fear that transparency will keep some companies from applying for state grants. I say let 'em sit it out, then. If they can't come clean with the public, they certainly don't need taxpayer money.

Lawmakers are considering a proposal to allow companies that apply for state economic grants to keep larger portions of their information secret.

Some opponents fear the move would allow projects such as a nuclear power plant to gain state grant money before the public learns of the plan.

Supporters say the state needs to keep more business information confidential to prevent competitors from scooping potentially revolutionary ideas as their own...

Iowa in the past year launched the $100 million Power Fund program, which will allocate millions of dollars to programs aimed at boosting renewable fuel research and production. Some companies have expressed hesitation to apply for such grants because of Iowa's records policies, said Mike Tramontina, director of the Iowa Department of Economic Development.

House File 2558 allows Tramontina's department to establish policies to allow some information in grant applications to remain secret if requested by the applicant. Such information could include marketing strategies, business expansion plans, concepts that are not yet patented and plans to target certain customers. The idea has passed the House, as well as the Senate Economic Growth Committee. It is now eligible for debate by the full Senate.

More here.