Burnsville City Councilmember Dan Gustafson wasn’t lying when he told Thisweek he was broke following an accusation by one of his former employees that he wasn’t paying her. While we already knew Gustafson was in serious financial peril and discussed how it may affect his ability to do his job as a councilmember and president of the Economic Development Authority, at that point he still appeared to be trying to work his way out of the hole he had dug for himself.
As of today there is still an outstanding request by a Burnsville resident to sit down and discuss how Dan Gustafson’s personal financial history does not affect his ability to do his job as a councilmember and leader of the Burnsville Economic Development Authority. While Councilmember Gustafson agreed to do the sit down no further communication was provided to actually set an agreed upon time/date/location. Clearly the man has other priorities which are far more important to him such as:
Heading to Brit’s in downtown Minneapolis to watch the World Cup while he updates his Facebook status from his Android phone with what is likely an expensive data plan while he could be at home doing the same thing from his $120/month cable TV/Internet connection.
Why is this important? Well, as of June 10th, 2010 Dan Gustafson has filed for Chapter 7 bankruptcy protection. What does this mean? It means that details of his financial issues are made public and shows exactly how deep in the hole he was–an astounding $1.28 million in debt (case #10-34290, US Bankruptcy Court, District of Minnesota — records available via PACER or basic information over the phone).
I seriously have to question how someone who claims his only income comes from his wife’s $140/month job as a concession worker at the Burnsville Performing Arts Center, his $700/month income as a Burnsville City Councilmember, and his temporary unemployment pay can continue to pay for items which I consider a luxury such as Internet capable phones, cable TV (which I haven’t had for years), etc.
What does this tell me? The man who is responsible for making decisions which affect tens of thousands of Burnsville residents and the amount they must pay in taxes each year cannot make simple financial decisions of his own in order to save money so how can anyone trust him with Burnsville’s? His on-going refusal to speak with residents requesting a meeting to discuss his abilities to continue running the city even after agreeing to, his filing for bankruptcy protection, and especially his apparent inability to make simple cost cutting measures to his own personal budget show that he needs to step down as a Burnsville City Councilmember effective immediately.
We’ve talked about this time and time again but now that we are finally at this point do you believe it is time for the man to fess up, admit he cannot lead Burnsville effectively, and agree to step down from his seat because he is clearly holding on only because it pays him $700/month? Whatever you have to say about Dan Gustafson’s filing for Chapter 7 bankruptcy protection go ahead and comment on as I’d love to hear what you have to say.
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June 16th, 2010 at 8:31 am
This is sad, not because the guy is a city councilman, but because it sucks to see anyone go through something like that.
If/when he does step down, does anyone know how the city would go about replacing him? Would that position be added to the next election (doubtful since the filing deadline has passed) or would there be a special election or does the mayor get to appoint someone on an interim basis?
June 16th, 2010 at 8:47 am
I agree with this entire article, Bill. It’s not like he suddenly woke up one recent morning and said,
“Oh shit! It’s so bad I need to file for bankruptcy -today!-”
Some horrible tragedy just didn’t spontaneously befall him; this has built and built. So, yeah, sitting at a downtown pub with your expensive Andriod phone is pretty dumb. Broadcasting it to the world while also filing chapter 7? Also dumb.
So, why pick on this guy? Because he stood up and said “Fear not, citizens of Burnsville! I’ll help watch over your money; I swear!”
This is prime material for a segment of SNL’s “Really?!”
June 16th, 2010 at 9:53 am
I agree Joey, this is sad. I truly hope for the best for him and his family.
From a Burnsville citizen’s standpoint, this frustrates me to no end and I hope it’s the impetus for him to step down from his City Council position.
While I applaud his numerous Civic initiatives, clearly they have come at the expense of his personal financial responsibilities. Now we all foot the bill.
The $1 MILLION dollars worth of debt relief (business and personal related including $50,000+ in credit card bills) now falls upon the consumers’ shoulders through higher interest rates and tighter credit.
I’m not going to say which of those bills/expenses is “worthy” or not, and I’m not even going to thoroughly question why two able bodied, well-educated individuals (including his wife) can’t hold a job. But the debts are still mounting and none of them are getting paid while he relentlessly works to promote Art and All That Jazz and serves on numerous local and Council boards.
I’m one resident that’s going to repeat re: Dan’s “service” to our City and community:
THANKS BUT NO THANKS. It’s time he steps back/steps down and focuses on his personal responsibilities.
June 16th, 2010 at 10:05 am
If it wasn’t for the fact that there appear to be a number of current and past conflicts of interest with this man, I wouldn’t be looking at him stepping down. But obviously, he has fallen victim to the same attitude that many who file bankruptcy fall into. Specifically, the attitude that even though my income is down, I can’t change my lifestyle.
Bill is lucky to have a budget Nazi. Dan certainly could have used one.
June 16th, 2010 at 10:10 am
Dan is supposed to be Burnsville’s Budget Nazi. Instead he continues to advocate for spending well beyond the taxpayer’s means.
June 16th, 2010 at 11:00 am
Wow, nice work Bill pulling this together.
This is not surprising to me looking at Mr. Gustafson’s voting history resulting in the reckless spending of our tax dollars and these poor business decisions have obviously caught up with him personally placing him in this situation.
Mr. Gustafson will just vote to increase taxes on the citizens and businesses as he has in years past to pay for the poor decisions he has made on the city council so that the city does not default on their financial obligations as Mr. Gustafson has had to do personally.
Bottom line as MSPD stated, Now we all foot the bill!
Dan Gustafson should resign effective immediately from the Burnsville City Council.
I wonder if Mr. Gustafson wants his nicotine stained key piano back from the Burnsville Performing Arts Center as that would increase his net worth and maybe prevented or delayed him from filing Chapter 7.
June 16th, 2010 at 12:12 pm
[...] This post was mentioned on Twitter by garciasn, LazyLightning.org. LazyLightning.org said: Burnsville's Dan Gustafson Files for Chapter 7: http://tinyurl.com/29kcz5z [...]
June 16th, 2010 at 3:07 pm
Other interesting revelations from the filing:
1. Mr. Gustafson owns no interests in insurance policies or annuities; he has no life insurance;
2. He owns no interests in any IRAs, ERISA or Keogh plan or a pension or profit sharing plan;
3. He owns no government bonds of any type;
In other words, he has absolutely no safety net, no retirement savings. Nothing.
The earliest IRS lien information contains a 2000 date – this was far before the economy turned sour. He’s a City councilmember not paying his Federal and State taxes??? Something was amiss with his finances long before 2008, when it started to turn. Its a disservice to people who lost their jobs through no fault of their own, and found themselves on hard times, for Mr. Gustafson to claim he’s in the same boat. Its not even close to the same.
Didn’t Mr. Gustafson miss an important City Council meeting last fall because he had to tend bar at his business, the Applewood Rustic Grill, because they were short staffed that night (the night of the final Twins game in the Metrodome, if I’m not mistaken)? So, was the Applewood “his business” or not? Can he have it both ways? Was it right for him to use the business as an excuse to miss a City meeting, but when it comes to the bankruptcy filing, its not “his” business? Which is it?
I think this filing raises many questions about Mr. Gustafson’s financial fitness to serve the citizens of Burnsville. I’m with MSPD: he should step down and focus on his personal responsibilities.
June 16th, 2010 at 6:13 pm
When you talk about economic development in Burnsville I am reminded of a story in the Dakota County Tribune where the Burnsville City Staffer in charge of economic development was discussing the high value of commercial property next to park property. Burnsville had recently given $1.25 million in goodies to get the Mediterranean Cruise Café to build next to the puddle park.
June 16th, 2010 at 8:28 pm
So, who is paying for the cell phone, the computer, the tab at Britts, etc if the guy is a million dollars + in debt?
His values are clearly different than mine. I was always told that I need to pay my own way. Freeloading off the people whom I am supposed to be representing is hardly a value I look for in my city council members.
Every penny this guy has should be going to pay down his debt. But, some people just dont think the rules apply to them. Why should he have to pay his own way?
June 16th, 2010 at 8:31 pm
Chad,
Being that he’s collecting unemployment, his check from Burnsville, and his wife works for the PAC, it’s clear that we are all paying for his lack of fiscal responsibility in more ways than one.
But being that he’s had the IRS after him for 10+ years it’s clear that he thinks it’s completely acceptable to leech of the taxes he never paid in the first place.
June 16th, 2010 at 9:35 pm
why does anyone call him MR?
bb
June 16th, 2010 at 9:41 pm
How does this guy have nothing as far as retirement funds? He has to be hiding something. Either that or he already blew all of his retirement money.
June 16th, 2010 at 10:11 pm
This has been inevitable for a while, so I can’t say I’m surprised. I think resigning and getting his life together would be the best thing for everyone, including himself, at this point.
Dan, lots of people don’t have retirement funds, especially if they spend through them in financially bad times. It’s not a wise move — the law protects those pretty strongly from creditors in the event of a bankruptcy — but people either don’t know better or aren’t thinking straight.
June 17th, 2010 at 6:21 am
More from the Pioneer Press here: http://www.twincities.com/dakota/ci_15314750
Whit basically destroyed all of his bullshit answers. Pretty funny. Typical lying politcian.
June 17th, 2010 at 8:47 am
The sad part is that (a) probably 95% of the people who read that Pioneer Press article will just accept what he said without thinking about it critically in terms of the timing of the debts, and (b) about 90% of the residents of Burnsville won’t read the article/know about the issue at all. I wish Jessica would have asked him the tough follow up questions: Why no safety net – even during the good economic times? Why did you underpay your taxes/how did that happen? How long had that been going on? Tell me about your prior businesses – what caused those failures?
Just accepting what he had to say without challenging it is, well, just not acceptable.
June 17th, 2010 at 9:55 am
I agree — this is nonsense. The bit about small businesses, etc. just doesn’t fly at all. Whit, you hit the nail on the head — a decade of unpaid taxes, through economies good and bad cannot be pinned to “the bad economy”.
By the way, what the hell is “underpaid”?? You have taxes you DID NOT PAY. 10%, 50%, 99%….whatever. Some are paid and some are UNPAID.
I’d like to highlight this item from the filing: “Income from employment or operation of business”
2008 – Cass Group Inc. Jan. – Dec. $222,429.00
2008 – City of Burnsville Jan. – Dec. $8,400.00
IN 2008, THIS MAN’S INCOME WAS OVER $230,000. He had worked for those companies for 10 years, presumably at similar pay.
The bit about it being mostly business expenses also doesn’t fly. Why wasn’t his company’s parent group providing any security? There are a number of business mechanisms to protect your personal finances from a failing business venture. I see “Inc.” and “LLC”. Yet, this is the worst kind of PERSONAL bankruptcy filing — not Chapter 13 where you promise to repay your debts via future earnings which would indicate SOME shred of decency. No, it’s Chapter 7 where you are under no obligation to pay back anything outside of the back taxes.
“Here citizens of Burnsville and elsewhere…thanks for picking up the tab. Now leave me alone — I have to post on my Facebook page about my evening at the pub, my week-long trip to Boston and the six non-income-earning pet projects I do for the City.”
Again, thanks for your civic interests, but no thanks.
I was going to lay off of this, but his stupid comments in the PP just opened the door. What part of “mostly business-related” is:
$571 Kohls Credit Card
$1,348 Macy’s Credit Card
$244 Macy’s Credit Card
$1,499 Sam’s Club Credit Card
$2,671 Target Credit Card
$2,386 Shell Oil Credit Card
$1,166 Citibank Credit Card
$728 Citibank Credit Card
$19,000+ American Express Credit Card
$142 Other Credit Card
$4,819 Wells Fargo Credit Card
$3,192 US Bank Credit Card
$800+ to Sprint
A repossessed SUV?
$11,889 “Time Shared Loan” in Scottsdale, AZ??
$28,538 Marriot Ownership real estate loan in Lakeland, FL??
Not paying taxes, or even your f**king grocery bill or car payment when you are making $230,000 in a year.
This is a person who is guiding our City’s economic development.
This is a person who is about to vote to raise the City property levy 5.5%, with a large percentage to pay off PAC debt. (Star Tribune June 16 “Tax Increases Again Loom for Burnsville”)
This is a person who voted to amend the City Code allowing the City to shut off utilities for people that are in arrears on their utility bills. (March 2 Council Meeting)
This is unacceptable. I will be one citizen (hopefully one of many) that will be asking him to resign.
June 17th, 2010 at 10:17 am
MSPD for Mayor of Burnsville in 2012!! The sign is going up in my yard today.
June 17th, 2010 at 10:39 am
MSPD for Mayor in 2012: order your lawn signs now!
June 17th, 2010 at 10:40 am
When I think of all the sacrifices that people make every day, just to keep food on the table, clothes on their kids backs, and the lights turned on, it just disgusts me more and more to see people who clearly flaunt the rules and take advantage of the rest of us like our CITY COUNCILMAN.
Men and women all over this city bust their asses every day to try to give their children a better chance. They sweat to scrape some money together in the hopes that someday they can retire. They work to make payments on houses that are underwater, and to keep beat up old cars running so they can get to work each day. Part of the money they bust their asses to make goes to pay for this idiot’s pet BPAC. Now some more of it goes to pay of his debts, while he is downtown eating and drinking with friends.
This guy is a slap in the face to every single person working hard to pay their own way, pay their debts, and life within their means.
Jerk.
June 17th, 2010 at 10:45 am
Ha! Thanks fellas — I needed a laugh to calm down.
June 17th, 2010 at 4:12 pm
Then there is Gustafson’s appearance of a conflict of interest with the Art and All that Jazz Festival. Gustafson was the owner of this “for profit” festival. Prior to his vote to build the PAC he changed it to a “non profit. Gustafson is the liaison person between the city and this “non profit” festival…. Now for the first time the Art and All that Jazz Festival will be using the PAC. This was NOT only a conflict of interest when he voted for the PAC but NOW as well. This looks extremely suspicious. Is he receiving any type of remuneration from this festival? How about money for being a booking agent for the acts? If it sounds like a duck, looks like a duck, and walks like a duck. It must be a chicken. Where is the transparency in Burnsville government? Where is the honesty and integrity in Burnsville government?
June 17th, 2010 at 10:02 pm
His Twitter account seems to be gone. On a related note, I didn’t know there were so many people around here with the same or a similar name.
June 17th, 2010 at 10:26 pm
Tim, it was from his Facebook account, not Twitter.
June 17th, 2010 at 10:51 pm
You’re right; whoops. Don’t know why I thought it was Twitter.
June 18th, 2010 at 1:27 pm
I have my own business and make quarterly tax payments. Lets just say there is a method to that, rules for how much to pay when you are looking forward and backward at your P+L and expenses. It isnt brain surgery, and I was always taught to be conservative when paying to the Fed and State, playing games ends up in audits even if you end up right.
Having said that, while I agree with the sentiment here, the story unfolding is kind of a metaphor for the entire USA from about 1996-2007. Living on leverage and smoke and mirrors… the number of credit cards and the amounts on them is a telling sign of the mindset that existed in the days of the bubble economy.
he should resign and do the noble Roman thing, but based on the story told, i suspect that is unlikely.
June 18th, 2010 at 1:33 pm
At least one Burnsville resident has called for his resignation via e-mail but more need to do so–preferably in public and at a televised city council meeting. He needs to be shown that the residents will not tolerate a piece of shit like him representing them.
June 19th, 2010 at 10:55 pm
It’s funny. He claims in the Pioneer Press that this is all business and not personal and he can certainly run the city. By his actions today at the International Festival where he was off buying raffle tickets, it’s clear that this man has no fucking shame, no fucking decency, and cannot be trusted with his job.
Burnsville citizens: stand up at the next council meeting and tell that man to step down from his post. Any person who can continue to go out and spend money they do not have is clearly unable to make sound financial decisions for others. You need to stop him and stop him now.
Dan, seriously, you need help.
June 28th, 2010 at 10:46 am
I am a Burnsville resident and note that all the councilmembers have businesses or are retired like Creighton and Sherry , which as a Union Member ( retired ) , I do not like , however , they have other meetings to attend besides the twice monthly council meetings , so it is difficult for an emplyoyee to be on the council , however , if you are like Kealy and Gustafson , they do not attend any meetings religiously anyway. Now back on point he left all kinds of debts as a bar owner also
June 29th, 2010 at 1:43 am
leslie Elm, What do you know about his debts as a bar owner?
June 29th, 2010 at 11:22 am
@leslie Elm
I’m having a hard time understanding what you wrote; it’s not clear (to me, anyway.)
• What exactly is it that is that you, as “a Union Member ( retired )” do not like? Other retired people? People who have businesses? Both?
• How is it “… difficult for an emplyoyee to be on the council…”? Are you saying that people with jobs have a hard time attending meetings? A good friend of mine has a very busy, full-time gig that requires frequent travel, but never misses a meeting in his city.
• Help us better understand how “…all kinds of debts as a bar owner…” is back on point. This is the first I’ve seen of this *point.*
Thanks for clearing this up! :)
June 29th, 2010 at 11:43 am
I will give it a shot.
* Leslie, as a retired union member, is probably slightly distrustful of management/business owners, as they are historically at odds with unions. You could go so far as to say Democrats vs Republicans.
* Leslie feels that its difficult for a average employee to be on the city council because many of the time requirements (meetings) might conflict with the work schedule of someone who is not able to come and go as they please (an employee). This is probably somewhat true, and your friend is possibly an exception and/or very dedicated.
* Leslie is getting back on point (topic) by going back to a discussion about the debts of Mr Gustafson, as this thread is about his bankruptcy. However, as noted, this thread does not single out and sort of bar debts. My assumption is that Leslie is talking about Applewood and/or ICCC?
So, I dont want to put words in anyones mouth, but those are the points I took from leslie Elm. Feel free to give them your own spin though, it might be fun.
June 29th, 2010 at 11:54 am
This was my interpretation:
*I either just wet my pants or the bench at the bus shelter bench still had dew on it.
*Sometimes when it rains my right elbow aches and I crave brussels sprouts.
*Skimping and buying a keyboard at the Dollar Tree with no period key, and that inserts a space before every comma is a questionable idea but I did it anyway.
*Sometimes that kindergarten graduation ceremony is the only event of its kind some people will ever experience.
I may not have gotten the gist 100% though.
July 1st, 2010 at 2:37 am
Clever, mspd. I love cynical humor, but discount it a little when the foil is some person or idea clearly compromised by intellectual capability, or age, or something similar.
I asked Leslie Elm whether he (she?) would offer more on the bar debts. Other respondents were more pointed in their questions. No responses to any of them.
Absent responses, you chose to ridicule. Maybe ridicule is warranted. Maybe the writer is fully capable of understanding the risks of buying a keyboard at the Dollar Store and is comfortable with that. And maybe, as you imply, a Dollar Store keyboard is all he or she can afford.
Maybe that makes you and others better than this person.
Hell, maybe this person has Alzheimer’s, like my old man does, which sucks for everyone involved. But I’d NEVER buy him a fucking Dollar Store keyboard. Not that he’d know he difference. He can’t operate a computer.
You’re so smart mspd. Enjoy that.
July 1st, 2010 at 10:11 am
cripes, I make more fun of myself on here and everywhere else than I do others.
Besides, my opinion is if you have the intellectual capability to surf the internet, read an article, form an opinion, fill out an online form, etc., you also have the capability to type a coherent sentence. That’s the beauty of typing vs. speaking. You have all day to get it right, read it back to yourself asking “does this make one shred of sense?”, use the backspace key, and re-do things.
Case in point if you’ve ever met me in person. I’m brilliant on a keyboard but pretty much a buffoon in person. Mrs Marcos, Whit, Kim….back me up on that. For sure Bill will tell you how uncomfortable it is to see me “live”…especially in my spandex bike gear.
July 1st, 2010 at 10:18 am
Yeah my own pants get tight when I see MSPD in person. Truly uncomfortable.
July 1st, 2010 at 10:45 am
We need to get MSPD into TOASTMASTERS because I already started making a sign MSPD for mayor and if what he says in #35 is true all he needs is a few TOASTMASTERS meetings!
Now back to the subject at hand! I wonder if Councilman Dan Gustafson would give us his birthday and release his credit information so we could end the speculation. There has been enough intellectual dishonesty that should give us the right to get a enough information to end the speculation. After all, he is a public official spending a lot of our money.
July 1st, 2010 at 10:50 am
Oh MSPD, congrats on post #900.
Cliff, request the documentation about his Ch. 7 filing from PACER. You’ll know all the gory details.
July 1st, 2010 at 10:55 am
Cliff, one of my greatest personal ironies is that I have a bachelor’s degree in Speech Communications. I’m beyond help — Toastmasters would eat me alive.
July 1st, 2010 at 1:02 pm
Congrats on 902 MSPD.
July 1st, 2010 at 3:49 pm
MSPD: sorry for not responding earlier re: cripes’ criticism. I think those of us who comment here regularly, and likely those who have been lurking for a long time, (a) recognize your sharp, deft writing style and wit, and (b) know that it is not personal – for example there is NO WAY that I would interpret what you wrote as insulting to a person with Alzheimer’s disease, nor, having met you, would think that you would ever think or express such a sentiment. Further, I recognize that MSPD was responding to Chad’s closing sentence: “Feel free to give them your own spin though, it might be fun” as in invitation to delve, in his stream of consciousness way, into what might or might not be, a part of the thought process behind a particular person’s post.
In fact, cripes, I made a similar criticism (perhaps even a “worse” one?) of a person’s post, in terms of spelling, syntax errors, etc., in response to Mikal Steele’s post on this topic: http://www.lazylightning.org/isd-191-arts-magnet-syllabi-must-be-a-joke-right#comments. I noticed that you had participated earlier in that discussion, yet did not criticize me as coming down too hard on Mikal.
On another note, cripes, I’m sorry about your dad. I know that there is no way that the diagnosis is an easy row to hoe for anyone involved.
July 3rd, 2010 at 2:40 am
To all:
Understood. It was a little drama prince of me to bring up the Alzheimer’s, though once you’ve broached it, when you naively never imagined you would, disparaging references you’d have passed over before now resonate … piss-pants kind of stuff, for example.
Such is life; no reason to abandon being caustic, satiric and critical. Those are necessary and fun.
But leslie Elm (first-time poster, self-proclaimed RETIRED union member) would clearly seem to be an older person, whom reasonable people, based on the marginally coherent post, MIGHT suspect has cognitive or other issues.
MSPD: Some folks might have “all day to get it right,” but their minds will still fail them. Perhaps you’ve not witnessed that.
leslie Elm may be a dolt, or may not be (my direct question to him/her went unanswered) but you guys pounced way too hard, in my opinion. A little dignity, please.
September 8th, 2010 at 8:05 am
[...] Why anyone would want to side with a man who is happy to steal from his own employees and then file bankruptcy to steal from his creditors I’ll never [...]
November 3rd, 2010 at 8:24 am
[...] it or not and while in this instance the issues are not the same as say Burnsville Councilmembers Dan Gustafson‘s or Dan Kealey‘s, the weight of the financial burden, legal wranglings and costs, and [...]
December 31st, 2010 at 11:13 am
[...] Burnsville’s Dan Gustafson Files for Chapter 7 [...]
October 27th, 2011 at 7:21 am
[...] his filing for Chapter 7 bankruptcy protection back in 2010, his debts were eventually cleared and he took up a job at a local freight company. [...]
August 10th, 2012 at 7:02 am
[...] those who agree with her. Because her opinions have prevailed due to having a guaranteed vote in deadbeat Dan Gustafson and a nearly rock solid supporter with swing vote Mary Sherry, she hasn’t had to show her [...]