Wednesday, October 8, 2014

The Banana Republic of Minnesota: Solar Power, Part 2

Consider the career of Minneapolis Democrat politician Mark Andrew.  He served on the Hennepin County Commission from 1983 to 1999.  According to his LinkedIn profile, Andrew then joined the public relations firm Tunheim, and served as a Senior Vice President until 2006.

Tunheim claims credit for leading the effort to create a new baseball park for the Minnesota Twins during this period, one of Andrew's clients at the firm.  The ballpark, Target Field, is coincidentally owned and financed by the good taxpayers of Hennepin County.

After leaving Tunheim in 2006 to develop his GreenMark firm, Andrew’s business took off in 2010 with the completion of the new Twins field (named for Target, a Tunheim client).  The Minneapolis Star Tribune reported on June, 22, 2010,

Three years into an entrepreneurial foray into the greening of America's professional sports, former politician and communications consultant Mark Andrew is starting to make some green.
Andrew, [then] 58, is a former Hennepin County commissioner who championed the Hennepin County waste-to-energy plant and the county's recycling program.  He quit a $150,000-plus consulting job at Tunheim Partners three years ago to test his vision that the Minnesota Twins, a Tunheim client, and other teams could turn their stadiums into environmental showcases.
Around the time that the Twins were taking the field in the inaugural season at the new County-owned stadium, Andrew’s firm was really taking off, as the Star Tribune reported in 2010,

"Everything I made until this year, mostly some consulting, all went back into the company," Andrew said.  "We will have something close to $1 million in revenue this year, before we pay our [two] employees, contractors and consultants.  That will be three times bigger than last year."
He said the company makes money two ways.  One is consulting for the Twins and others, including the managers of Target Center, Xcel Energy and Northwest Airlines (now Delta).  The other is to build repeatable commissions from corporate sponsorships.
While Mark Andrew was starting to make it big with GreenMark, another Mark, former U.S. Senator Dayton, was locked in a fierce election battle for Governor of Minnesota.

Mark Andrew, a former Chair of the state Democrat party, contributed $200 to Dayton’s campaign that year and another $150 in 2011 to Dayton’s re-election effort.  In 2013 and 2014, Andrew donated an additional $1,250 to Dayton’s campaign for a second term.

When Dayton took office as Governor in 2011, one of his early appointments was to name Tunheim head partner Kathy Tunheim as his Senior Advisor for Job Creation at the Minneapolis Department of Employment and Economic Development (DEED).

The Tunheim firm boasts an impressive client list.  The list goes well beyond the Twins to include everything from major corporations to the controversial construction company URS, to state government agencies, like the Met Council, to local governments, like Hennepin County, to renewable energy companies to major nonprofits.

Among the many other appointments that a new governor makes are the members of the Metropolitan Airports Commission (MAC), the governing authority of the Minneapolis-St. Paul International Airport.

According to a spokesperson for MAC, the state government agency hired Andrew and GreenMark in 2011 to develop a solar power project (see Part 1) at the facility.  According to MAC, it paid GreenMark a total of $65,021 in fees from 2011 to 2012.

In 2013, Andrew ran for Mayor of Minneapolis, finishing 2nd in the multi-candidate race.

In 2014, the solar project was officially announced by Governor Dayton and Mark Andrew last week, along with a new study of green energy issued by DEED.

I’m told by the MAC spokesman that GreenMark has been hired for additional work involving partnership marketing at the airport facility.

As for the Xcel Energy-sponsored (Tunheim and GreenMark client) solar project at the airport, if I understand the economics correctly, it will produce $35 million in total revenue over the next 30 years.  Assuming the revenue is level over the life of the project, it will pay for itself after 21 years, if the equipment lasts that long.


A 21-year payback is no great shakes in corporate America, but it is good enough in the Banana Republic of Minnesota. 

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