DEFAULT IS NOT IN OUR STARS, BUT IN OURSELVES: Part 8 — We’re Havin’ A Crime Wave, A Municipal Crime Wave!

“A review of the Wenonah Park project determined that activities the grant was based on fell outside the date range approved by the Michigan Strategic Fund, and therefore the grant could not move forward as planned.

No funds were disbursed to the project.”

Kathleen Achtenberg, MEDC spokesperson

In late June 2023, local news outlets announced that “nearly $1M in improvements” were coming to Bay City’s Wenonah Park.

However, MEDC spokesperson Kathleen Achtenberg confirmed in an email late yesterday afternoon that Bay City’s $900,000 Revitalization and Placemaking (RAP) Program grant “could not move forward as planned.”

In a nine-page June 23, 2023 press release, Bay Future, Inc. maintained that Bay Future, the State Theatre, Bay City’s Downtown Development Authority, and the City of Bay City “collaborated” to secure the state funding.

That’s a stretch — with the exception of a “General Support Letter”, the grant application was authored by the City of Bay City’s Economic Development department.

Although the MEDC spokesperson would not comment further on the grant application submitted in June 2022 by the City of Bay City, a review of the ten-page document reveals a lack of material facts.

In the grant application, under the “Explain the applicant’s project team’s level of similar project-specific experience” a Bay City Economic Development staffer noted :

“The City of Bay City will oversee the construction with direct assistance from the State Theatre staff Mike Bacigalupo. [SIC] This is due to having a long-term contract with the State Theatre for maintenance of Wenonah Park (agreement attached).”

Although the grant application included the State Theatre’s rudimentary 2017 “maintenance” contract with Bay City, the grant’s author did not reveal the State Theatre only has a “verbal agreement” with the City of Bay City to “build, insure and maintain the pavilion, accessory building and the band shell in Wenonah Park located in downtown Bay City”.

In addition, the grant application maintained that in “2021, the State Theatre completed the renovations to the Wenonah Park World Friendship Shell (Phase I and Phase II of the bandshell renovations). This project cost $1,500,000 and consisted of enlarging the stage, creating a new roofline, and renovating the dressing rooms.”

However, the State Theatre has not issued an “Independent Auditor’s Report” or an IRS Nonprofit Form 990 since the fiscal year ending December 30, 2020.

It is unclear where the City of Bay City’s Economic Development department derived the professionally-evaluated financial information required to definitively make that specific assertion.

A material fact is “a fact that a reasonable person would recognize as relevant to a decision to be made, as distinguished from an insignificant, trivial, or unimportant detail.” In other words, it is a fact, the suppression of which would reasonably result in a different decision.

Even the appearance of concealing two key material facts (the State Theatre merely had a “verbal agreement” with the City of Bay City to oversee the multi-million-dollar renovation effort at Wenonah Park in downtown Bay City; and the State Theatre had not produced required financial reports since the year ending December 30, 2020) is troubling.

And while it’s unclear what, if any, post-submission/post-award financial disclosures are required, it’s likely Michael Bacigalupo’s direct involvement in six-figure Bay City State Theatre concert dispute would qualify as a “material fact”.

On July 18, 2023, roughly three months before the State Theatre removed his name from its website, Michael Bacigalupo signed a “Host Agreement” contract with Major League Fishing.

Bacigalupo misrepresented his role in local government by signing the agreement as a “Director” of the “City of Bay City”, even using Bay City Hall’s address and a “baycitymi.org” email address.

Among the documents relating to the dispute (obtained from the City of Bay City via a public records request) was a November 21, 2023 letter from Allsopp Wackerly & Blossom, the Bay City law firm that “serves as the City Attorney for the City of Bay City”.

The letter stated that “not only did the City Commission not approve the contract/agreement, the City Commission was never informed of the contract/agreement.”

The Allsopp Wackerly letter advised MLF “that all future billings should be sent to Michael Bacigalupo. In an email from Michael Bacigalupo to Sydney Elliott of Major League Fishing, Mr. Bacigalupo indicated that invoices should be made out to The State Theater, 913 Washington Avenue, Bay City, MI 48708”.

QUESTION

How could Bacigalupo, after misrepresenting himself as a Bay City official in the July 18, 2023 contract with MLF, and subsequent departure as Chief Operating Officer of the nonprofit State Theatre in early November 2023, stick the State Theatre with his $50,000 contract debt… after his departure?

And, more importantly, why would the attorney merely reiterate Bacigalupo’s direction and not question the seeming impropriety of a departed Chief Operating Officer holding financial sway over the financially compromised State Theatre?

Well, ya got trouble my friend.
Right here I say, trouble right in River City.