USMMAAA Eviction

The Government Accountability Office, in its 2009/2012 landmark and definitive analysis of the financial dealings, contracts and agreements of the Academy (whose recommendations are being closely monitored and enforced by Congress), unequivocally defined the AAF as an “affiliate” of the Academy; and found nothing improper with respect to the Foundation being provided space on board the Academy without cost, the so-called “preferential treatment” Admiral Helis refers to. We are, in fact, included on the Academy’s organizational chart drawn up by the GAO in its report. In addition, the GAO particularly recognizes the significant financial contribution of the AAF to the Academy.

Where this situation began: Our previous high expectations of a positive, mutually beneficial relationship with the new Superintendent were shattered as a result of a meeting and letter initiated by Admiral Helis on November 30, 2012 with our Board Chairman and our AAF President.

In response to a request prior to the meeting for an agenda and the reason for the planned participation of the Academy’s attorney, since the AAF had not planned on having legal representation, Admiral Helis wrote “We would like to discuss improving the relationship between the Academy and the USMMAAAF to ensure that we are working together to support the continued success of the Academy”.

Instead, Admiral Helis, accompanied by his attorney, presented a letter containing numerous provisions, all of which required that the AAF surrender legal rights existing under several agreements.

That the new Superintendent would take such an unprecedented step, misrepresenting the purpose of the meeting, allowing an attorney by his side, indicating no AAF attorney need be present, and presenting a document which by its very nature was attempting to negate existing legal agreements negotiated by previous leadership in good faith was very telling of the actions we have since seen that meeting from the Superintendent’s office.

Since that time, we have been working quietly and cautiously to avert the present situation.

Attempt to Rescind the 2004 Academy-AAF Agreement and an unsigned attachment: In his November 30th letter, Admiral Helis stated that he was rescinding the 2004 agreement (noted previously) which defines the role of the Foundation as the principal fundraising agency for the Academy and the sole alumni organization representing its graduates. The agreement also binds the Academy and the Foundation “to cooperate fully with one another for the benefit of the USMMA and its Midshipmen, and to assist each other in fulfilling their respective charitable purposes.”

As part of this rescission, Admiral Helis produced what appeared to be an earlier 2008 rescission letter from the then Superintendent, addressed to the then Foundation COO. However, this document was not only unsigned, it was dated before either of them became employed by the Academy and the AAF respectively.

The “Non-Lease”: The lease proffered by Admiral Helis was never signed and is becoming a moot point as eviction appears imminent. However, the context around its content is worth repeating. As fiduciaries for our donor’s money, we could not sign an agreement that gave Admiral Helis the right to terminate the lease unilaterally, without cause, giving only 10 days notice of eviction, at a rate of $140,000/mo. Based on Admiral Helis’ other actions described above, we are unfortunately left to conclude that, like the current April 30th eviction date, this usury rental rate was not an error. Because he would not negotiate off that position, the $140,000 rent/month did not change.

Further, Admiral Helis’ statement that “The Academy will not agree to a lease with the AAF that removes federal property from its control” adds confusion to this issue, as that is the exact nature of a lease, the transfer of control from owner to tenant. We are not a concessionaire or other organization of inconsequence to the school, we are an affiliate of the Academy and have been for over sixty years.

While the rent issue has less significance than the eviction issue, it is relevant in the context of what has transpired over the past several months and how the AAF has been treated by the Superintendent. The AAF asked for, and the Superintendent refused to provide, the rents charged other entities on the campus, for example, the Ships Store, etc. How can we evaluate the rent for Babson without knowing what rent other entities pay? While refusing to provide that information, what we do know is that the contract offered for Melville Hall (a larger, much nicer space than Babson) provided for an annual payment in lieu of rent of only approx. $16,000. We were being asked to pay, per the lease, $1.7 million and per the Superintendent’s then updated response, $140,000 per year. Either amount is so far above what is being asked for Melville Hall to be shocking and apparently meant to be punitive to the AAF.

Had the Superintendent negotiated in good faith, all of this could have been avoided.

Location on Board the Academy: While Admiral Helis wants to remove the Alumni Association and Foundation from Academy grounds for reasons he has not made public, the AAF is very clear in its position that in order to be effective stewards of our mission and continue to provide the important services we deliver to the midshipmen, alumni, faculty, staff, administration, and guests – we must remain on board the Academy.

Being located elsewhere in the Village of Kings Point or in Great Neck would create a significant physical and psychological disconnect between all stakeholders, greatly and adversely impacting our ability to execute our mission effectively.

Alternate Space: Despite MARAD’s statement to Congress, no alternative space was ever offered to the Alumni Association and Foundation by Admiral Helis. The question of why Congress was told by MARAD that alternate space had been offered, and refused, remains unanswered.

We, however, remain open to remaining in Babson Center or moving to alternate space on the Academy grounds.

What wasn’t said: Rather than focus on recent inaccurate representations by the Superintendent and DOT Secretary LaHood, it is more telling to focus on what was not said by Admiral Helis or the Secretary regarding the Academy and the Alumni Association and Foundation. We bring this up because the intent suggested below would be the intent of any of the past eleven superintendents, as it would be of any alumnus in Admiral Helis’ position:

Not said: “I worked with the AAF to find a solution and we have developed several good alternatives we all agree will work. It shows what a strong partnership we have.” (In fact, as we know, the Superintendent did not offer any alternatives to the Alumni Association and Foundation.)

Not said: “I need the AAF to continue its mission on board the Academy. Their good work provides valuable resources to the Academy and the Regiment. I value their charitable service to both the Academy and the Midshipmen.”

Not said: “I am doing all that can be done to help the AAF in their mission and to work with them to find proper alternate space.”

Not said: “Both Secretary LaHood and I are excited about the new Lerner Alumni Offices and Visitors Center. We are doing all we can to make it a reality.”

Not said: “To date, our attempts to attract a for-profit company to manage Melville on a contract basis ended in failure. We now understand that such a low revenue break-even operation is not viable for a for-profit contract operation without government subsidies or guarantees. Accordingly, we are turning to the AAF to provide a solution."

The Lerner House & Future Alumni Offices & Academy Visitor Center: The Alumni Association and Foundation approached the Superintendent with respect to the Lerner property and offered to donate the land in exchange for a $1/year in perpetuity lease; including a provision that would have the land revert back to the AAF should the Academy cease operations. This solution would have avoided the need to seek variance approvals from the Village of Kings Point as the property would be federal land.

This model resonated well with previous Superintendents, but was denied by Superintendent Helis.

Similarly, the Superintendent was asked by the Alumni Association and Foundation if he would write a letter to the Village of Kings Point indicating that he/the Academy support the AAF’s move to the Lerner property and support our variance request. This would have been extremely helpful in obtaining the permits that are needed.

This request was also denied as the Superintendent cited “The Academy values its relationship with both its alumni and the Kings Point community and believes this issue is best resolved between the two involved parties.” Who is better suited to work with the Village and the Academy to make this happen? It is for this exact reason that the Academy’s Superintendent is an ideal person to facilitate this process.

At the same time, the new Superintendent indicates that he is willing to work with any “graduate that is interested in ensuring a strong future for the school,” but refuses to assist the AAF with this issue. If this contradiction is confusing for us, we can only imagine how confusing it must be for you.

SO HOW DO WE MOVE FORWARD? WE REITERATE:
We have the land, building and funds for a new Alumni Association and Foundation office and Visitors Center.
It is essential that we operate, as we always have, within the Academy perimeter.
If not Babson Center, then avail the Alumni Association and Foundation other reasonable alternate temporary space on campus.
Work with the AAF to encourage the town to allow rezoning (which we believe will happen as was done for the house on Steamboat Road purchased by GMATS).
As a further concession and as a show of good faith, the Alumni Association and Foundation will also agree to make donations of $12,500 per month to the Superintendent/Academy for use against his qualified needs list and until such time as our move (and other conditions) to Lerner is complete. This translates to more than the $144,000 per year which Admiral Helis claims now is the annual rent in the lease he proffered.

Summary: We believe that if all the facts were on the table it would be clear that the new Superintendent has unstated ulterior motives for trying to force the Alumni Association and Foundation off campus and that these unjustified actions are to the detriment of the greater good of the Academy and the Midshipmen.

We would prefer to seek constructive alternatives, and will continue to do so. We believe both of our suggested approaches are consistent with the articulated goals of the Superintendent and advance the interests of the parties we all claim to be concerned about – the Academy and the Regiment of Midshipmen!

The Alumni Association and Foundation has acted with propriety and in the best interest of the Academy and the Midshipmen. We are concerned, given the actions of this Superintendent, that should we be forced to leave campus, it will be difficult to return. To this end, we will look to any and all proper solutions.

How you can help: Our preferred solution has been and continues to be to work with the Superintendent and all those having jurisdiction over the Academy to achieve the goal(s) above, and fulfill our mission in the most effective manner possible—to provide support to the Academy and the Midshipmen. We will require the assistance of the Superintendent; assistance, which to date, he has refused to provide.

Please, therefore, continue to contact your Congressmen (http://www.house.gov/representatives/find/) and Senators, Admiral Helis (HelisJ@usmma.edu 516-726-5812), Maritime Administrator David Matsuda (David.Matsuda@dot.gov) and Secretary LaHood (Ray.LaHood@dot.gov) and express your concern about this matter. And know that we appreciate all your concern and help!

Sincerely,

Your USMMA – Alumni Association & Foundation
Board of Directors

Moderator

Please consider moving this thread to the academy news forum

Summary: We believe that if all the facts were on the table it would be clear that the new Superintendent has unstated ulterior motives for trying to force the Alumni Association and Foundation off campus and that these unjustified actions are to the detriment of the greater good of the Academy and the Midshipmen.

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I am nonplussed.

The AAF has been granted a temporary stay of eviction and will not be leaving the campus today. The stay was granted by a federal judge and a ruling will be made next Monday, May 6th. Additional updates will be provided

I will say I am impressed!! Taking this as far as federal court and getting a second chance by standing up to Admiral! Well done.
Moral of the story: Don't screw with former MM's Keep up the good work and best of luck.

Acta non verba

Before this news broke more than a week ago I did not have an opinion one way or another. I appreciate the support the Alumni Association provides the academy and the midshipmen. I believe it is important to have an effective Alumni Association that people can trust and support.

When you have two sides that present contradictory statements, it comes down to who you believe and who has the most credibility. But now, after reading all this and looking into it myself, I find myself supporting the position of the Administration. There have been several issues that have caused me to feel this way but there is one that stands out.

Tankercaptain appears to be the primary Alumni Association representative on this forum and it is many of the statements he has made on this forum that have caused me concern.

The announcement of new USMMA Superintendent was made nearly a year ago, on June 25, 2012. Just three days later, on June 28, 2012 Tankercaptain made his first posts ever on this forum.

tankercaptain said:

The worst choice for the superintendent. With no background or understanding of the Merchant Marine or the Merchant Marine Academy, he is doomed to fail….

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tankercaptain said:

…Col. Helis won't last longer than a year, he is set up for failure….

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tankercaption said:

…I am not "bashing" the man. I am stating the truth. Let's be honest about what is going on at Kings Point and its future. Graduates have tried to apply for the position, that is a fact. However, the graduates that have applied have had discussions with Maritime Administrator Matsuda. Those discussions did not go well…

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tankercaptain said:

…The person that was chosen is nothing more than a political puppet….

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The disrespect and arrogance shown in those statements makes it absolutely clear to me that the leadership of the Alumni Association had no intentions of working with or supporting the Superintendent.

Then just yesterday Tankercaptain said.

tankercaptain said:

…Like you, until recent events involving the new Superintendent, we have always felt that the Foundation enjoyed a special relationship with the Academy leadership…

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And

tankercaptain said:

The question of why the new Superintendent has not engaged himself in the same relationship shared by our Alumni Association and Foundation and his predecessors remains unanswered.

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I find those statements very disingenuous and it makes me put very little credence into other statements they have made.

I believe the Superintendent has shown remarkable restraint and professionalism in dealing with the situation.

It was the Alumni Association that chose to air out this issue in the court of public opinion and I believe that tactic has badly backfired and harmed their reputation.

Rideon400 said:

Before this news broke more than a week ago I did not have an opinion one way or another. I appreciate the support the Alumni Association provides the academy and the midshipmen. I believe it is important to have an effective Alumni Association that people can trust and support.

When you have two sides that present contradictory statements, it comes down to who you believe and who has the most credibility. But now, after reading all this and looking into it myself, I find myself supporting the position of the Administration. There have been several issues that have caused me to feel this way but there is one that stands out.

Tankercaptain appears to be the primary Alumni Association representative on this forum and it is many of the statements he has made on this forum that have caused me concern.

The announcement of new USMMA Superintendent was made nearly a year ago, on June 25, 2012. Just three days later, on June 28, 2012 Tankercaptain made his first posts ever on this forum.









The disrespect and arrogance shown in those statements makes it absolutely clear to me that the leadership of the Alumni Association had no intentions of working with or supporting the Superintendent.

Then just yesterday Tankercaptain said.



And



I find those statements very disingenuous and it makes me put very little credence into other statements they have made.

I believe the Superintendent has shown remarkable restraint and professionalism in dealing with the situation.

It was the Alumni Association that chose to air out this issue in the court of public opinion and I believe that tactic has badly backfired and harmed their reputation.

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Rideon400

First those statements from a year ago are my own and have nothing to do with the Alumni association. I voiced my concern to the Association when the appointment was made. I was told not to worry and that the association is looking forward to working with Col Helis.
Second The most recent post with regards to the eviction and the superintendent are actual emails the alumni have received from the association. When this thread was started I felt it was important to include the emails that were being put out by both sides so people can make their own decisions.
Third I suggest you take the time to research what has been going on, you can read about this topic on maritimetv.com, coltoncompany.com, marinelog.com. and maritime-executive before posting.

Rideon400

By the way how were my posts disrespectful and arrogant? To be honest, they were spot on.

I'll add another tanker captain quote:

Third the alumni are leaders of the maritime industry, who better knows what educational direction the Academy should take, rather than a non informed bureaucrat.

Tanker captain your quote from this thread above bothered me.

You are a devoted servant to the alumni foundation, driven to make the institution better. You fail to realized that KP is a gift that shouldn't be taken for granted. Those same uniformed bureaucrats can turn KP into a Girl Scout camp. It is a federal institution not an industry institution. When the mission of the institution resides in serving the interests of an industry before the interests of the federal government it looses credibility.

This deliberation is healthy, the alumni should have a voice in serious discussions about the schools direction. But when you leave the board room you speak with one voice in public. Or you risk being marginalized.

We won inFederal court, write your congressman say you and others. Your winning the battles and loosing the war.

Bugsy

You are absolutely right, the federal government can turn Kings Point into whatever they want, however right now it's the US Merchant Marine Academt. As such it's mission is to "To educate and graduate licensed merchant mariners and leaders of exemplary character who will serve America's marine transportation and defense needs in peace and war."
I will remind you the minute it stops doing that is the minute it ceases being the US Merchant Marine Academy and as such ceases to exist.
Wheather you realize it or not, which you really apprently don't. The alumni are currently fighting for Kings Point's survival.
I'm posting as an alumni and this post and all the others that I posted that did not come from emails directly from me have nothing to do with the foundation. They are my own opinion. That being said the alumni could sit by and let it happen. We graduated, we have or had our licenses and commission. We have our diplomas, or careers. It wouldn't affect us, but it does your children.
We are the ones that make sure your DS/DDs can play sports, go on TMs, have clubs and activities to goto, training simulators, education opportunities, internships, and a host of other things.
So I want you to think, do you want your DS/DD to have a place to graduate from?

On a side note, it was the alumni and industry that got the DoT to get a "new" training vessel at KP.
When the DoT got rid of the old USNS Contender, the DoT originally had and no pans on replacing it.

Tanker Captain,

KP is a far better place having the alumni in full support.

Take off the boxing gloves, especially in a public arena.

As a parent, I appreciate your dedication to my DS's future and the prospects for his classmates.

Certainly in our ongoing war, we learn that what is won on the battle field is easily lost in the hearts and minds of the citizens.

Please take off the gloves, especially in a public arena.

The successes you mention in getting our training vessel and funding great institutions were all accomplished without degrading the administration.

We need you strong and credible. Thanks for what you do

Bugsy

I appreciate your post.




By the way it was the boxing gloves that got Kings Point a training vessel back.

bugsy said:

Take off the boxing gloves, especially in a public arena....

Please take off the gloves, especially in a public arena.

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"Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman."

Justice Louis Brandeis

Rideon400 said:

I appreciate the support the Alumni Association provides the academy and the midshipmen. I believe it is important to have an effective Alumni Association that people can trust and support.

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From this statement I assume you have some sort of connection to KP. Are you an Alumni, Parent or M/N? Academy or MARAD employee?

Thank you for your support.

We know when we have been sucker-punched

Our “stately strife-born alma mater” was born of a need. That need, in part, included recognition that this country is the eminent sea power in the world; and holds a responsibility to protect the safety of its shipping. In a post 9/11 world, with an ever-shrinking domestic fleet, the need merely shifts – it does not disappear.

All of us alumni are concerned about the ongoing mission – both as alumni and as taxpaying US citizens. So yes, we do believe we have a right to voice dissenting opinions. That is not arrogance, it is concern.

As we all know (or believe we know), this issue will have both sides presented before a federal judge, who should have access to far deeper information than any of us presenting our opinions in this forum. Given the history of how poorly KP has faired in court in the past, I would not be surprised to see the administration sadly disappointed.

Outside of being an alumnus, I have no position on any board, and I will note again that I have had my share of concerns about details of our own alumni operations, just like I have had my share of concern about the details of my family members over the years.

That being said -- this administration has provided nothing that makes me trust them in any way shape or form.

This quote in maritime dot com on March 15, 2012 from outgoing DOT Secretary LaHood speaks volumes:
“Everyone will have a chance to add their thoughts to the strategic planning process,” Secretary LaHood said. “But no one knows the Academy better than its midshipmen, faculty and staff, which is why we’re starting the process with them.”

Isn’t this the same faculty just rated as the absolute worst in the entire nation?

Also, while we love our midshipmen, who among us truly believes they understand what they need more than the alumni (especially those who are leaders in the industry)? After that statement was issued there was much pressure brought to bear, and input from the alumni was finally requested. If or how that input was utilized is anyone’s guess, but after reading the great strategic vision it has the look and feel of a term paper I might have started the night before it was due.

The most significant point to note here is this: The current administration was chosen by the same politically-appointed entity that fired its three predecessors in the last four years. In business, in the military, and in most organizations of any kind, stability is a valued commodity. The indisputable fact of this instability generates a line of logic pointing to massive failure. My most logical conclusion is that the acceptable puppets have finally been installed.

KPEngineer said:

From this statement I assume you have some sort of connection to KP. Are you an Alumni, Parent or M/N? Academy or MARAD employee?

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I am a Parent, and it is from that standpoint that I am grateful to the Alumni Association. My more critical comments, however, were from the standpoint of a Tax Payer. I do not have a first hand relationship with either party involved in this issue, so my opinions are formed by what I read here, and what I have researched myself.

As a taxpayer, I am not in favor of the Alumni Association being allowed to use a Federal Building free of charge, not even paying the utilities. The Administration stated they wanted “to avoid concerns regarding preferential treatment”. The Alumni Association implied all the other Service Academies get preferential treatment and they were just being picked on.

So I decided to do some of my own research. Going to the Coast Guard Academy Alumni Association web site I found an article where they discuss building their Alumni Center with their own funds. At one point they go on to say:

“With a building owned by the Association on property leased from the Academy, any ethical issues about fundraising from or holding events for the benefit of the Academy in the Alumni Center are removed.”

Additionally, I found that the Coast Guard Academy Alumni Association provides use of their facilities to the Academy AND pays the Academy $30,000 annually for utilities.

A very different stance from that of the Merchant Marine Academy Alumni Association which insists they should get it all for free. Even worse, after being notified the Academy needs the space for classrooms while other building are renovated, their response is to take it to court.

Again, I do support having a strong Alumni Association and am grateful for the work they do for the academy, but on this issue, I disagree with their stance.