With the Mayor and Mayor Pro-Tem having left the room, Ypsi City Council votes unanimously to pursue a formal investigation into their recent trip to China

At tonight’s Ypsilanti City Council meeting, as you might imagine, people were anxious to discuss the most recent scandal swirling around the International Village development. Unfortunately, those in the best position to comment didn’t seem to want to talk about it. Mayor Amanda Edmonds, who just last night returned from 10-day trip to China, which may or may not have been paid for by the developer of the International Village project, in violation of City ethics rules, said that, while she gleaned “invaluable” insights on the trip, she was just too tired to go into much detail at the moment. Edmonds, also said that, City Economic Development Director Beth Ernat would be better suited to speak about the sequence of events leading up to the trip anyway, as “she has the most information.” Unfortunately, Edmonds said, Ernat won’t be back in town until later this week, as she’s still making her way back to Ypsilanti. Mayor Pro-Tem Nicole Brown, who accompanied Edmonds and Ernat on the trip in question, said that she couldn’t comment about the trip, and how it was funded, because we’re now in an “investigation stage,” alluding to the fact that City Attorney John Barr had just recently retained a private detective to determine where the funding for the trip originated, and whether or not the four individuals who took the trip knew in advance that their travel expenses weren’t really being paid by a Wayne State student group, as the public had been led to believe.

For those of you who are unfamiliar with what’s transpired thus far, it looks as though, after being told by the City Attorney that they couldn’t pay for members of our City government to visit China, the developer behind the proposed International Village project sought to funnel money through a Chinese student organization at Wayne State University, in hopes of skirting City ethics rules. While it’s unclear at this point whether the four people who took the trip knew this to be the case before leaving, some clearly believe that’s what happened. Councilwoman Beth Bashert, for instance, said later in the meeting, after Edmonds and Brown had left the room, “The folks who went to China knew more about the funding than Council did when they took the trip.” Ypsilanti City Manager Darwin McClary, a few minutes later, asked Bashert to clarify, as evidence of their complicity has yet to be established, and she then backtracked, saying that her comments had been based on hearsay. Clearly, though, she has reason to believe this to be the case… She then added, “If true, it’s extremely disturbing.”

While Edmonds said the she wouldn’t be talking about the trip, or what she might have known about the source of the funds, again mentioning how tired she was after two days of travel, she did say that Ernat was preparing an executive summary, which would be shared with the public. She also mentioned that, during the course of their travels, she and other members of the delegation were taken to an area of Shanghai where they were shown the developer’s inspiration for the proposed Ypsilanti development. In this Chinese development, Edmonds told us, there were very small, affordable apartments, which she likened to the demo apartments one might encounter in an Ikea… the implication being that the International Village development, contrary to popular belief, would contain an affordable housing component, addressing the concerns of those who believe the up-scale development would force local rental rates beyond the reach of current residents. As someone in the audience pointed out during the community input portion of the meeting, however, this runs contrary to what we were told in late September by the developer’s own representative, who told us that the smallest units would be approximately 800 square feet and rent for about $1,200 per month.

The community input portion of the agenda, as you might imagine, given this recent news concerning the source of the funding, and the appearance of impropriety, was lively. One after another, citizens lined up to talk about the “dubious nature of the funding of the trip” and accuse their members of Council of being “a bunch of buttered-up politicians,” who lacked the “courage” to stand up to a developer promising to invest $300 million in downtown Ypsilanti. Members of City Council were, in turn, accused of being naive, taking bribes, and being incompetent. Lee Tooson, after asking how it is that, after ten days in China they still don’t have answers for their constituents about what they knew and when they knew it, said, “Y’all sell’n Ypsilanti out for a trip to China.” He then went on to say that their silence was reminiscent of a corrupt police department, where officers are instructed to keep quiet until they can all get their stories straight, hiding behind the excuse that they can’t comment on an ongoing investigation.

I could share pages of quotes, a lot of which were really entertaining, but, when you boil it all down, you’re left with a few clear messages. First, people feel as though this entire process played out in secret, with Council not only not soliciting public input, but actively fighting against it, by attempting to shut down forums and discredit community members who raised concerns, accusing them of being emotional, unrealistic, and even xenophobic. Second, it would seem people really don’t like the idea that the developer, perhaps with the knowledge of certain members of Council, sought to skirt ethics rules by funneling money through a third party. And, third, people are clearly hungry for a meaningful, substantive conversation about gentrification and how we as a community stay true to our shared values in the face of growth, which we can all see looming on the horizon, regardless of whether or not the International Village deal goes through. People, in short, want a seat at the table, and they expect honesty and transparency from their elected leaders, which they don’t feel as though they’re getting right now.

But, yeah, there were a lot of calls for our elected representatives to resign, as well as some very specific criticisms directed at individual members of Council. [For instance, one Council member was reprimanded for having said during a committee meeting last night that International Village would be good for the community, as it would bring “real Asian food” to Ypsilanti… a comment which understandably upset those who currently operate Chinese restaurants in town. And two other Council members were called out for having abstained from the purchase agreement vote a few weeks ago, essentially allowing the relationship with International Village to move forward, in spite of public pleas to slow the process down. According to several members of the audience, this decision of theirs reflected a certain degree of “political cowardice.”] In general, though, it was a positive community conversation about what we all love about this City, and how we hope to move forward together, broadening inclusion and striving to solve our problems more creatively.

Then, at some point after the public comment, Edmonds and Brown recused themselves, and the remaining members of City Council discussed how to move forward with the investigation into the China trip, how to employ their subpoena power, and whether or not to engage an outside law firm to conduct the investigation. In the end, the members of Council voted unanimously to seek outside assistance with the investigation, and to request that all four members of the China delegation, along with the City Manager, both respond to a series of written questions concerning what they knew about the funding for the trip, and show up to be questioned in public on October 10, during a special session of Council. [The meeting is scheduled for October 10, 2017 at 7:00 p.m. in Council chambers, but I’ve got to think that they’ll end up moving it to a larger venue, given the interest.]

Here is the resolution which was passed unanimously by Council members Robb, Vogt, Bashert, Murdock and Richardson.

So, just to recap, there doesn’t seem to be any question that City ethics rules were violated. The only question seems to be when Edmonds, Brown, Ernat and Police Chief DeGiusti knew that Amy Xue Foster and her team had misled us about the true source of the funds for the trip. And, of course, this raises the question of not just how we should handle the internal situation, should it be discovered that City staff violated ethics rules, but also what this means for the International Village project going forward. As Councilwoman Lois Richardson said during the meeting, “This shatters any trust or faith I had in the developer.” Knowing that the developer had been told by the City Attorney that they couldn’t fund the trip, and then funneling the funding through a third party, Richardson said, proved to her that Amy Xue Foster was “not going to be honest with us.” And, she went on to say, that, in her opinion, this wasn’t the kind of group she thought the City should be doing business with. [It was shut down very quickly, but, at some point in the conversation, Councilman Vogt asked whether or not they should subpoena Amy Xue Foster to testify before City Council. Perhaps out of fear that it could scuttle the entire project, the idea was quickly put aside, and the decision was made to just focus on the four individuals who represented Ypsilanti in China and the CIty Manager, none of whom, they hoped, would have to be subpoenaed.]

OK, after five hours of watching Council, I too am tired… Here, however, are a few more things of interest.

PRIVATE EMAILS… I found it interesting that City Manager Darwin McClary, unrelated to the China investigation, mentioned during this session of Council that efforts were being made to ensure that all City employees, when doing City work, were using their official City email accounts. I suspect this has quite a bit to do with the fact that they’re finding it difficult to pin down exactly who knew what, and when they knew it, relative to the China trip, as the Mayor and others are known to use their personal accounts for public business. [Private emails are not covered by the Freedom of Information Act, and, hence, are unavailable to journalists and investigators.] It wasn’t brought up at the meeting, but I’m thinking that it might make sense, when these five individuals are being questioned in front of Council on the 10th, to ask if they would be willing to share their personal emails related to the China trip, and the work they did prior to the trip to secure funding. [We don’t know, for instance, if the funds secured from the Chinese consulate were requested by someone representing International Village, or if, by chance, a member of Council started the conversation after unsuccessfully seeking funding for the trip from the MEDC, SPARK, etc.]

COMMUNITY BENEFITS AGREEMENT… One good thing about going through this process with International Village is that it seems to have forced City Council to look more seriously into how we vet developers, and how we articulate what we expect from those doing business in the City of Ypsilanti. As many people stated tonight, there’s a sense that the developer we’re currently negotiating with really only cares about our community because of its proximity to Ann Arbor and the new American Center for Mobility at Willow Run, and not because they see any intrinsic value in the community itself. And there’s a sense that we should make it clear to not only this developer, but any who might follow, that we intend to demand more of them. And that’s where the Community Benefits Agreement comes in. It would enumerate what we expect from a development partner… from the hiring of local people, to the incorporation of affordable housing… covering everything from sustainable building practices, to principles of participatory design. [This, as others have pointed out, is something that’s already being done elsewhere.] While Councilman Vogt suggested that we should tread carefully, as we wouldn’t want to scare away any potential developers, others seemed less concerned about the possible downside, instead focusing on the fact that such a document would help us to identify partners willing to invest in a City with clearly articulated values, etc., avoiding many of the problem we’re now facing.

HOW MUCH MONEY ARE WE TALKING ABOUT… This investigation, according to City Attorney John Barr, would likely cost in the neighborhood of $6,000, at the end of which, depending on the findings, we may have to pay back the money spent on the trip. When asked how much that might be, Barr and McClary estimated that it would have likely been a little over $4,000 per person, for a total of $16,200 or $16,800. [We’d, of course, have to dig a bit deeper into how much was spend on food, lodging, entertainment, etc.]

FOLLOW THE MONEY… There seemed to be quiet a bit of confusion still as to the path the money might have taken. Going into the meeting, I thought it was pretty well established that the money went from the Chinese consulate in Chicago to the developer, then on to the student group at Wayne State, and ultimately to Ypsi City Hall, where the tickets were purchased, etc. From what it sounded like tonight, though, the money may never have actually passed through the hands of the student group. And, this, according to Vogt, who is an attorney by trade, is why we need a real investigation that gets beyond the hearsay and establishes a verifiable account of events, especially as it relates to custody of the funds in question.

WHO KNEW WHAT AND WHEN… As Councilman Pete Murdock said, we know for a near certainty that ethical rules were violated. The question is, to what extent were members of our City government involved. “Once the money went into the hands of the developer, it tainted the whole thing,” Murdock said. “We know that.” We just need to know who knew what, and when they knew it. And that’s why Council was unanimous in their decision to bring in an outside law firm to conduct an unbiased investigation. As Councilman Brian Robb said, there’s still a great deal we don’t know. For instance, were tickets for the September 21 trip to China already in hand when Ypsilanti Economic Development Director Beth Ernat sent an email to members of City Council on September 11, alerting them to the fact that the Wayne State University Chinese Student and Scholar Association (CSSA) had come forward with the funds necessary to send the entire Ypsilanti delegation to China? And, if so, what, if anything, would that imply?

COUNCIL HAS LOST CREDIBILITY… Several members of Council alluded to how all of this was reflecting on them. Richardson talked of a “dark cloud” hanging over Council. Bashert, discussing the “serious trust issues,” said that Council had to do everything in its power to “repair the damage.” And, that, she said, is why we needed to bring in an investigator from outside. “We do not have enough credibility right now (to do the investigation ourselves),” she said. And, judging from the mood of the audience, I’d say that she was right.

COULD IT HAVE BEEN ETHICAL… In an interesting exchange toward the end of the evening, Councilwoman Bashert asked City Attorney John Barr if there was any way at all this trip could have been ethical. Barr said that there was nothing wrong with the trip in and of itself. The trip, he said, could have been justified as “due diligence,” and it would have been fine. It would have probably been a “positive,” he said. The problem, though, according to Barr, was with “how it was financed, and how it was represented.” And, if I understood him correctly, it wasn’t even that the money had come from the Chinese consulate. It’s that the money passed through the hands of the developer, and that we, it seems, were purposefully deceived.

update: I didn’t think that it needed saying, but, based on the memes that I’ve been seeing since posting this, I think it’s probably worth reminding folks that we still live in a country where people are innocent until proven guilty. And, while I certainly have issues with the way this whole thing went down, and look forward to the findings of the investigation, I don’t feel as though it helps any of our causes to muddy the waters right now with unfounded accusations. Furthermore, I think it’s worth remembering that, whatever might have happened, we’re all still neighbors, and we’ll likely continue to be neighbors well after all of this is long forgotten. So, for what it’s worth, I’d suggest that we hold off on the meme-ification of the situation for just a little while longer, and put our efforts instead into something positive, like the drafting of the Community Benefits Agreement referenced in the post above.

Here, while we’re on the subject, is a short clip (slightly edited) from something I posted a few weeks ago about the International Village development. Given the vitriol I’m seeing today, I thought that perhaps it was worth sharing again.

…I actually like members of our Planning Department and City Council, and I sympathize with them. As Councilman Vogt pointed out a few weeks ago during one of the public meetings at the Freighthouse, it’s not easy to say “no” to a credible developer, especially when the citizens of Ypsilanti, in good faith, just voted to raise taxes on themselves to pay the debt associated with Water Street, with the understanding that our elected officials would do their best to bring in a developer as soon as possible, and terminate said millage… And I know that our overworked and under-appreciated City staff is doing their best to make something positive happen for Ypsilanti. Whether or not you agree that International Village, as explained to us by the developers, would be a positive for the community, I think you’ve got to admit that our folks have been working their asses off to find something that will see the toxins dealt with, create jobs, and increase the tax base, so that we no longer have to cut away at city services and contemplate the prospect of receivership, which would truly decimate this City that we all love…

Yes, it could very well turn out that individuals in our City government knew about the efforts on the part of Amy Xue Foster and members of her team to deceive us. And, if that turns out to be the case, I’ll be demanding accountability. Until then, though, let’s at least try to keep the possibility open that they were unaware of what was happening, and perhaps allowed their enthusiasm for the project to cloud their judgement. Granted, it’s becoming more difficult to accept that possibility, given that the individuals involved haven’t yet come out against the developer, etc, but let’s at least try to stay cordial, and keep the bigger picture in mind… which is that, whatever happens here, we’re going to have to work together to repair the damage that has been done, and move forward in a way that works for all Ypsilantians.