Conflicts of interest at the BID?
The BID (Business Improvement Committee) is considering giving IGT Media Holdings, their entire marketing operating budget in the amount of $234,800. That is 100% of the marketing money. In return, the BID would receive a multi-media ad campaign which would include the BID and individual merchants receiving advertising in various publications chosen by IGT.
I question giving 100% of the budget to one company. IGT operates by offering coupons and discounts with their IGT discount card. The Downtown Development Authority (DDA) and the Coral Gables BID use IGT for this and apparently this is how it came to the Grove BID's attention.
The scandal going around town is that the president of IGT, Ric Roth, sat at a BID meeting a couple of weeks ago and he lied to everyone.
On Thursday, August 27, at a very crowded BID meeting, for Special Events and Marketing, Ric was asked if Marshall Steingold, the chairman of the BID's Special Events and Marketing Committee (who was sitting at the head of the table), had any association with IGT. Ric looked at everyone in the room, the BID board members and the people sitting in the audience (I was one) and said, "No, we are just friends. We have been friends for 20 years and have worked on and off during that time, but I am sole owner of IGT." He said there was no conflict of interest.
Ric's answer was evasive, while Ric may be sole owner, Marshall is a Vice President in the IGT organization and continues to sell the IGT concept to businesses in the Grove.
According to an email sent by Robert A. Whelan, manager of PMAT Acquisition, who is one of the big guys at CocoWalk, who pays more than most into the BID: "Marshall has sold this Prime-Card program to CocoWalk for at least four years from 2006-2009 and just 2 months ago (subsequent to the formation of the BID) tried again for 2010."
I like Marshall, but this is very questionable. And to make matters worse, Marshall proves the point on his Linked In social network page shown above. The actual page is here.
Now, a few facts are that Dave Collins, BID executive director, met Ric Roth and liked the work he did for the Gables and the DDA and he asked Ric to come and speak to the BID board, despite Marshall's relationship with Ric. So Dave brought Ric in, not Marshall.
Marshall agreed to have Ric speak, but always expected to have an RFP (Request for Proposals) before anyone was handed the account and he would of course recuse himself from any votes. Marshall works on commission for IGT, and the BID would not be his account, he would not make any money on the BID account. Marshall is scheduled to clear everything up at the next BID board meeting on September 17, and people should respect that and hold all judgement until they hear what he has to say at that time.
I think the problem was that there is a conflict of interest and no matter how great Ric Roth is in the eyes of the BID, he should not be considered for the BID account. Too many people are suspicious at this point. Ric should have been forthcoming at the last meeting. Once evasive, always evasive. The BID needs an honest person working with them.
I think the BID is new and there are no "how to" books to consult. Mistakes will be made. While some mistakes are stupid, I don't believe the guys at the BID are dishonest. I do think they need to loosen the purse strings a bit and not make people beg for money, but that's another issue.
Ric Roth should never have been considered to handle any account of any size, knowing his connection with Marshall Steingold. Marshall was put in a very uncomfortable position for no reason. There are hundreds of marketing firms out there. Surely the BID can come up with a few other marketing companies who can present fair proposals.
posted by Tom Falco at 10:00 AM
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59 Comments:
Regardless of conflict, you do not give one company your entire marketing budget.
That's enough to make you wonder if anyone on BID has ever run any kind of business or even taken any business classes.
Marshall also lied at that meeting on tape saying he had nothing to do with IGT - Ric is not the only guilty party here
If Marshall expected there would be an RFP, then why wasn't the agenda item the creation of an RFP, or the question of whether it would make sense to do an RFP and farm out the entire marketing budget? He's the Chair of the committee.
As you stated Marshall Steingold is Chair of the BID's Marketing division which allocates all the marketing funds to the very same company that he is VP of, not just part and parcel but the whole Budget. Please!!!
Clarification on this if you can Grape.
Marshall is not even on the Board of the BID how does he come to be chair any committee especially of this committee?
.
Oh please. The only one that put Marshal in an uncomfortable position is Marshal. The entire thing is underhanded, unprofessional unethical, and unsound as a sole marketing plan. I am sure the neither the Gables BID nor the DDA turn over their entire marketing budget to IGT. And even if they did, the difference is that Marshal is not the Chair, since its inception, of those organization's Marketing Subcommittees, and that most likely the rest of the the Subcommittee weighed in on the matter by being fully assessed of the players in the game beforehand, which the BID Subcommittee was not.
And Dave Collins, BID executive director, should know when to shut up. His excuse that he " met Ric Roth of IGT and liked the work he did for the Gables and the DDA and he asked Ric to come and speak to the BID board, despite Marshall's relationship with Ric" is a feeble attempt to protect Marshal's integrity after the fact. It actually nails down his own complicity and duplicity.
How do you think that Dave met Ric? And why would he be making these marketing arrangements without consulting the Subcommittee that was formed for this very purpose?
Marshal claims that there was going to be a request for an RFP all along. Yet they let IGT present first, and would have pushed another IGT presentation yesterday, but it was cancelled due to the unexpected hot water they got into. That is BS. The whole RFP thing was backpedaled when the plan to slip this one through the same way they have all along went down bad.
BOTH DAVID COLLINS AND MARSHAL STEINGOLD MUST RESIGN FROM ALL INVOLVEMENT WITH THE BID
For a long time now there has been a Coconut Grove Mafia Media Family taking charge of ALL the promotions and advertising for Coconut Grove.
This has been a small group of tight knit people and they know who they are. Finally I'm glad after making many comments to public officials and people related to the BID that this situation has come to light and hopefully now other people have a chance to earn a living especially those in the advertising and marketing business.
Grape where does this guy Steingold live.
There is no difference between primecard or IGT same officers and same bus. address.
DAVID COLLINS IS A YES BOY! YES MR.SARNOFF, YES, MR. NELSON. YES, MARSHALL I WILL HELP YOU ROB ALL THE COCOUT GROVE MERCHANTS. GREEDY BASTARDS! ALL THE MERCHANTS NEED TO BE AT THIS NEXT MEETING AND ANY BOARD MEMBERS THAT NEW MARSHALL WAS VP OF IGT SHOULD BE REPLACED AND BANNED FROM ALL SAY SO... MARSHALL AND DAVID CAN'T BE TRUSTED!!!
Marshall Steingold lives in Coral Gables
Excusing this unethical practice by claiming the BID is new and there is no "how to guide" is treating the BID like it was a college Business 101 project. These guys are wheeling and dealing with someone else's money, specifically that of Grove businesses that are being taxed by the BID, and who should expect their money be put to good use, and not to the personal agenda of the guy who is running the Marketing subcommittee. If Collins had no clue as to how to behave ethically he should have consulted the very expensive "how to guide" the BID has provided at his continued request these past years, the firm of Biederman from New York, on $10,000 yearly retainer. Collins should have used the phone and asked "What would Biederman do?" Instead he listened to his pal Steingold. BID board needs to put its house in order or we'll just end with another Playhouse situation.
David Collins is an employee of the BID. He reports to its Chairman, who is ultimately responsible.
Does it really take all this scheming and scamming to place some ads in the Miami Herald? Pathetic.
1. There's always been a lack of transparency at the BIC in reference to advertising and media placement.
2. IGT and Marshall have been doing business with the BIC for a long time.
3. The Coral Gables BID creates their own budget.
4. This is the perfect time to demand more disclosure from the BID - even including in the loop the property owners and tax payers that actually PAY the $$ to the BID.
This story demands looking into further.
Collins reports to his entire board - some 20 members inc. the two Co-Chairs, and the Miami Parking Authority.
OH NO not the Miami Parking Authority toooooo.
Grapevine name the Board of the BID. Lets look at who got the wool pulled over their eyes. This is shocking. How does Marshall justify being on the BID and living in Coral Gables. He has no vested interest in the Grove.
Marshall was appointed to be the Chairman of the Marketing Committee. Three guesses who made the appointment?
Robert Whelan is a rumor monger, ranting his crackpot theory. He is not really interested in the truth, but simply pursuing a partisan political agenda. Whelan and his partners are out to make money. Pure and simple.
There should be a full and complete investigation of Robert Whelan and his parnters. There is more to his kooky theory than meets the eye.
Cocowalk is not exactly doing well in this economy. In fact they are treading water- at best. Cocowalk is dirty, parking is poor and not run well. How dare this big shot and is fat cat partners make these outrageous, absurd allegations.
Marshall lives in Pinecrest.
Mafia is about right "MS" has been known to strong arm businesses and demanding to see their books when they balked at paying both him and the BID.
Lets get a new committee, leave David in place and put people into marketing that have experience and Marshall Steingold has got to go or the entire BID goes down the drain. Fix it now David. Someone is going to be the sacrificial lamb one way or the other. The writing is on the wall.
Grape this is not a mini scandal. Get real this is about control, money, get to the bottom of this.
Do your job we appreciate knowing when someone sneezes in the Grove.
The Mafia so right on. Intimidation, bullies, lets look at who's calling the kettle black. CocoWalk is putting in a lot of money into the BID and the only person who voted against the IGT was Mia
now she has balls. Make her head of the BID
Bob Whelan is lining his own pocket. I've been reluctant to post anything of consequence to a site. I am sure I am being watched by the owners of Cocowalk.
Walks like a duck, quacks like a duck, smells like a duck, doggone it, it is a duck !!! Simple question: What qualifications does Mr. Collins posses to have been appointed the director of the BID. And talking of Conflict of Interests, sure Mr. Collins has none, oh wait !he owns a business in the Grove, and just by mere coincidence his landlord is also the landlord for the BID office. Come on people, lets not be naive, this whole thing just does not pass the smell test. Just dig a little more and I am sure more many more non kosher things will soon emerge.
This is not about Bob Whelan. He is a Board member who simply asked the BIG Question, and it was about time.
Notice that all pathetic messages attacking BOB Whelan came in during the time of the BED Races meeting tonite. I was there. Saw lots of people from the Grove businesses. Oddly enough, the BID director was not there. hmmmm.....
This is not new. This has been going on for a long time and the question has always been what does Marshall have over some people, that he gets to be Chair of the marketing subcommittee year after year, and that he gets to call the shots. The guy does not own a business in the Grove, certainly does not pay into the BID, and does not even live in the Grove. Yet he has been cemented into the role of marketing and media lord since day one, deciding where and how the marketing money is spent. And he is doing this as a volunteer? What is he the Mother Teresa of marketing? Of course not. He has been making money since day one.
The Billboard on 27 is bought by IGT and they then sublet it to the BID and the other Grove businesses. That coupon booklet that gets printed year and year and all the merchants claim that it brings them no business. Guess who's company prints that?
This is a sham and a scam, but the real shame is on the BID Board, for not asking questions, for letting David act like this is his money and he can decide what event to give it to or not, and for never once in all these years asked David or Marshall for back up bills to see where the marketing money is going and put 2 and 2 together. Nobody ever asks the right questions at those BID meetings. And if you do they shut you up.
Does anyone actually expect any honesty from some commitee when there is $200,000 floating around?
Way to go, Tony. Marshall has bee sucking at the front tit of the Grove for many years (can anybody say "Coconut Grove Marketing"??
The marketing reality for the Grove is we have to start looking forward with new ideas and stop looking backwards, doing the same crap that made the marketeers wealthy and the Grove poor.
Do something goofy and the Grove will love it. Do something normal and the Grove will look like Adventura.
We all know David Collins reads this blog daily. Why has he not said anything? He is always silent. Please defend yourself!
NO, actually Marshall lives in Cutler Bay on the other side of Cutler Cay.
Why would the BID select a marketing effort that is completely restaurant-based? Maybe I'm wrong, but doesn't IGT push a discount dining card? What about all the other businesses in the Grove? I looked at the PrimeCard website and thought it was pretty weak.
http://www.igtcard.com/index.php
Grape. Thank you for exposing this!
To So Fla Real Estate Blog: Because since day day one The BIC marketing program, as controlled by Marshall has been about wrapping the Grove marketing program around IGT instead of wrapping a marketing program around the marketing needs of all Grove Businesses. He combines it to maximize the exposure of his other Grove clients. And if you refuse to be strng armed into being part of the click. You are out.
What about selecting a Grove based marketing company? They will a - have a vested interest in the results, b - be well attuned to the product they are marketing, c - be evidence that the Grove supports itself!
And, no, I have no connection to any such firm, this is not a self serving post. Just a logical idea.
David Collins and both the guys at IGT may be investigated for criminal conspiracy to defraud public funds. these guys are pathetic and should be ashamed of their behavior...oh yah that requires a moral compus. i guess we can forget them being remorseful.
I pay into the BID and will not be paying another penny into the BID until these clowns are removed from the BID office. And if they are not removed from the BID office, we may be forced to suggest in court that the BID be desolved. It cannot be trusted with our money.
Fiduciary responsibility is lacking here and there is a reason to sue the whole Board.
Great job Grapevine. You have more journalistic integrity than 99% of the mainstream news. Calling out a person you like is never easy. Wrong is still wrong no matter how many people are for it and right is still right no matter how many people are against it. Great job.
If you want to see a great marketing idea for the Grove come to the meeting on September 12th at the Arts and Minds Center Theatre at 10:00am.
There is going to be a tour of fiberglass Peacocks in the Grove to promote our village in the Spring.
When Chicago did this it attracted 2 million visitors over 3 months and brought over $500 million to hotels and restaurants and shops
Now I know we are not Chicago but think what this could do for the Grove.
"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."
Thank you Grapevine. There are many of us that have watched this go on too long and been powerless to blow the whistle because we do not want our businesses blackballed. If you are not with the little core group that "runs" things, 100% then they are against you.
The BID Board was only formed at the beginning of the summer and already Collins was proposing that it not meet on a regular monthly basis, but less times a year (so even less supervision).
Nobody really knows what happened with the first agency that they picked for PR, Republica. They were in one day and out the next. The explanation for them being gone was they could not come to terms with the contract-- which is suspicious, given that the contract was for $1500 a month, which was so meager to a big agency such as Republica, that they were supposedly chosen because they claimed that they were going to give the retainer 'back to the Grove" to support causes in the Grove. They were never presented at the newly formed BID committee meeting, which would have been the expected thing.
Some showed up at the merchant Meeting the next week, and here is what the big plan of publicity consisted of: "if you have any press releases, send them to us and we will send them to the press, and if you have anyone famous come into your place let us know so we can Twitter it." Then they left before the meeting was over, not even taking the time to stick around and get to know the merchants they are suppose to help publicize.
They did this logo that just says THE GROVE, with a big orange dot on the o, which could be anywhere, and it was presented to the BID Board by the marketing subcommittee chair with no opportunity to discuss it or even see what else they may have come up with. The rest of the subcommittee never even saw any version of this logo and some of the Board members said they did not like it, but they just keep using it.
Then, Republica was gone and Kiskinis was in and still there is no branding plan so all they are doing is writing a couple press releases about Commodore that show up on Neighbors (big deal). Probably not Kiskinis' fault since they are operating in the dark not even knowing about the IGT plan. It is painful to see our money go to waste because of this little controlling group.
12:15 ANONYMOUS you bet it's the critic that counts, when it comes to exposing unethical business practices. The quote is nice but there is no merit when the "effort" is to lie and bully and the "worthy cause" is to line one's own pockets.
Please attend the next BID meeting September 17 at 11:30 to support the removal of both Collins and Marshal. David goes from being a BAD retailer to running the BID and help deceive the public of money?????
I would like to note, of the 45 comments so far, only 5 have been signed, and one of those, was way off the subject. The rest are anonymous. The tone is down right nasty and many of the posts are inaccurate and or wrong! It makes me sad to see honest, hardworking and bright people slandered behind " anonymous" posts.
Two things come to mind. 1. If you are not part of the problem, please be part of the solution. 2. Empty vessels, make the most noise.
Louis M. Del Borrello
Given the pretty unanimous outcry from the Grove Community arising from possible misuse and/or mishandling of Public funds, why doesn't Chairman Sarnoff and Art Noriega (caretaker of the BIC/BID funds and employer of BID staff) call for the City Auditor General to audit the the books of the BIC/BID specifically in respect to the Marketing dollars spent while Mr. Collins and Mr. Steingold have been on the BIC/BID Board. The grovites deserve to know the full truth. If Sarnoff and Art do not take this issue seriously then I suggest we start a Petition demanding a full audit. WHAT DO YOU THINK, GRAPE ? SHOULDN'T WE DEMAND THE TRUTH ?????
Mr. Louis M. Del Borrello, we are questioning those very words "Honest and Hardworking".
Secondly, the first thing on your mind does not make much sense at all.
Anon @ 1.34 !! I agree a 100% with you, many of us prefer to stay anonymous as we fear retaliation in some form or the other.
Victor Igwe, the City's Independent Auditor General has previously warned the BID staff about some questionable business practices.
for many years coconut grove has suffered for lack of positive imagery to near invisibility. at the table was Marshall Steingold first at C of C . David C rallied the merchants and created the Merchants Assoc. guess who was at the table, Marshall Steingold. WAKE UP everyone. If we are lacking in visibility IGT or Primecard, Marshall Steingoldare all one and the same and still in charge and profiteering. perhaps we never needed a BID. David is clever and articulate makes one wonder.
I just clicked on the Linkedin link in your post to see Marshall's profile and it reads "profile not found."
Let's hope you got a photo of it before it was removed Grape.
David and marshal should both resign. Period. David is not only a conspirator to defraud the public he is completly incompetent. He goes from running a bad retail shop to the bid??? Maybe he should try panhandling.
Remember Mia votes the way Bob Whelan tells her to vote - she is their mouthpiece.
And what happened to 100 words or less?
Well, since I personally know Marshall I can tell you that he lives in Cutler Bay, his kids goes to school there and he spends all of his money there. My only questions is, Why is someone who does not live on the Grove or hasn't lived on the Grove for the passed 18 years or so, is involved in the BID or the Grove?.
I can see justice at work here. Guilty before a trail. Most of you should be ashamed of yourself. A man works for 30 years in this community and some rich guy who is a part owner of Cocwalk gets up and screams fowl. Oh boy. I have seen that one before.
You have no idea of what value you are receiving. But you do know how to be jealous. It's no wonder most of you will never amount to anything other than a wannbe.
Now, I don't know whether there is any impropriety involved here. What is do know is that many of you are nothing but a bunch of envious screamers, quick to convict. That is not justice in the USA.
WOW! Jealousy?!?! Really?!?!? Get it together man! We are livid that our hard earned money is being pissed away by someone who has no clue what he is doing! If you had a business in the Grove and were paying into the BID, you might be just a little upset yourself! It's about time the businesses here became outraged at the Grove Mafia!
I see where some comments are way off base. Why attack CocoWalk, Mia and the owners when they are demanding transparency of a lot of money that seems to be destined for the wrong pockets. Of course Bob and CocoWalk want to make money, they have invested $90 million in CocoWalk and pay a lot into the BID. CocoWalk is not supposed to be a non profit corporation like the BID is. I think they have the right as does every other member of the BID to raise questions. And questions need to be raised as there are red flags flying BIG TIME! Mr. Sarnoff are you watching?
As a business owner in the Grove, I offer the following: For some reason, Sarnoff has been getting a free pass. The BID, the Director and the make-up of the board all have his signature.Although David Collins is arrogant and incompentent, he is only doing what Sarnoff wants in order to keep his job; if he had to live off of the proceeds from Out of Africa, he would starve.
Now to the Board, is it legal for a convicted felon to be appointed to the board as a non-voting member. Anonymous for fear of certain retribution.
GRAPE why is this buried down here.
Did someone plant something in your ear.
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