The "state newspaper" took the role of pump monkey for the Jackson Convention Center Hotel deal in its editorial today:
"Mayor Harvey Johnson Jr. and the City Council did the right thing picking up the ball and moving forward with a proposed hotel for the Jackson Convention Complex. The council voted Monday to buy about 3.1 acres along Pascagoula Street for $14.3 million. The city will then lease the land to the developers."
Well, Hampton should have written "The council voted to buy its own land back" as the City funneled a HUD loan to TCI back in 2007 to purchase the land from the city. Yup, we are buying back our own land.
"As The Clarion-Ledger reported, Transcontinental Realty Investors Inc. says construction could begin by the end of the year and would take 18 months.
The 16-story, full-service hotel will feature 309 rooms, a restaurant, lounge, bar and 12,700 square feet of meeting space, including an 8,000-square-foot ballroom.
There will be 175 on-site, surface-level parking spaces, with room on the adjoining parcels to bring that total to more than 300."
Wow. Hollywood comes to Jackson. We'll finally hit the big-time.
"It's about time that there was some movement on this project. While the $14.3 million is a big pill for the city to swallow, it's nearly the amount the city has lost by the land being idle.
The Jackson Convention and Visitors Bureau has estimated the convention center has lost at least $13 million in business since opening because it did not have a complementary hotel.
And the city had only a narrow window of opportunity for financing at advantageous rates.
The city is using Gulf Opportunity Zone bonds allowed for building projects in the wake of Hurricane Katrina with a Dec. 31 deadline.
While it's not a great idea for governments to be putting funds in risky ventures, it's certainly not unusual for governments to enter in to public/private partnerships. It makes projects like this possible.
The Jackson Redevelopment Authority is a case in point, where a quasi-governmental agency spurs development through city, state and federal cooperative agreements."
You have to forgive the newspaper as its pretty clear the concept of risk is beyond its powers of comprehension. Mr. Hampton and his writers ignore the fact the city is on the hook for the bonds, over $100 million when interest is added to the principal, if TCI goes under.
However, the Clarion-Ledger went past the point of negligence or incompetence in writing this editorial. The staff at the newspaper is aware of the TCI problems reported on this website. All that mattes to Mr. Hampton and the editorial staff is how much money can they dump into this project. After all, we have to do something, and do it NOW. Here is what Mr. Hampton ignored:
1. TCI has lost $52 million this year, $76 million last year, and $80 million the year before. TCI has turned a profit, and small ones at that, only three times in the last ten years.
2. TCI is trading at a little over $2.00 per share. Its share price has dropped 75% in the last twelve months. Its market cap is only $20 million. TCI has performed at a lower level than other publicly traded companies in the same industry. Much lower.
3. TCI is highly leveraged. $1.3 billion in assets. $1.2 billion in liabilities. Nearly 100%. Parkway Properties is leveraged at only 60% in comparison.
4. Multiple lenders have accused TCI of committing fraud in several lawsuits filed in the last twelve months. The lenders accused TCI of transferring properties purchased with commercial real estate loans to another TCI company without telling the lenders. The lenders thus claim their collateral in effect disappeared when the lenders went to foreclose on the properties as the borrowing company no longer owned the property. The loans were nearly $100 million.
5. Bankruptcy court twice dismissed bankruptcy petition filed by the TCI subsidiary mentioned above after the lenders objected and claimed the bankruptcy petitions were made in bad faith so the company could avoid lawsuits. The trustee objected as well. The court agreed both times and threw out the petitions.
The editorial mentioned none of these facts. Risk is a foreign concept. Due diligence? The writer probably has all of his cds. Mr. Hampton and his staff are either ignorant of them or (more likely) simply don't care. Its one thing for the Clarion-Ledger engage in sloppy reporting about the hotel deal and omit the facts mentioned above about TCI. However, publishing an editorial pumping up this deal without taking into account TCI's problems goes past negligence. It is nothing but editorial irresponsibility as the editorial completely abdicates its duty to tell its readers the truth. If TCI fails, the city is on the hook for over $90 million. Mr. Hampton has been derelict in his duty as a journalist, editorial page director, and community leader. If this deal blows up, we are going to not just hold Mr. Hampton and his newspaper accountable but we are going to run them into the ground.
You know what the first syllable of hotel is? Well, that first syllable applies to the Jackson city government, city council, and the Clarion-Ledger as they have completely sold out their responsibilities and principles while putting us on the hook for over $90 million.
Oh, here is one last link for you. Enjoy. Old Wall Street Journal story
Wednesday, September 28, 2011
Clarion-Ledger: pimps itself out to pump up the hotel deal.
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I have noticed too in articles that no mention is ever made of the "Telecommunication Training Center" that was originally supposed to be part of this facility. Has this moniker been conveniently dropped? I wrote a letter to the CL years ago predicting the failure of this facility. I no longer live in Jackson or MS for that matter, so I am kind of out of the loop.
Very interesting as well, is the absolute silence from the JFP (eoples' Republic).
If this same arrangement was a "Frank Melton" creation, they would be screaming their collective lungs out and dissecting every part of it.
No, the local "annointed one", KING HARVEY, is its author, so silence is the rule of the day.
Look at JFP issues regarding Gene Phillips before the King took Melton's place. NOW ABSOLUTE INVESTIGATIVE SILENCE.
Hampton thinks he is being a good cheerleader. He probably didn't investigate the matter any further than reading his own newspaper before cranking out today's editorial.
Hampton, on a daily basis, prostitutes himself if the cause is even remotely imagined to be in the interest of a more progressive Jacktown. Reality is never a consideration.
If he's ever in doubt, he runs it by McElwain or Tom Head.
Won't the meeting space in the hotel be in direct competition with the convention center?
So, I'm not a business person, but I can't understand two things.
1. If TCI owns the property, why do they need Jackson to buy it back; if the answer is to generate funds, then that's crazy.
2. Why will the proposed hotel have over 12,000 sq ft of convention space, when it is being built right next to the Convention Complex, for the sole purpose of servicing said Convention Complex.
@Kamikaze601 5:08 PM Sep 27th
Have some questions for Coucilman @Quentin_W call in 601 914 0064 or tweet @DirectLineTV23 w/ your comments. ITS LIVE TV! #comcast14
@MorningVent 8:25 PM Sep 27th
@Kamikaze601 Did @quentin_w justify guaranteeing bonds for a near bankrupt #TCI ? $100 million with THAT company?
@Kamikaze601 9:08 PM Sep 27th
@MorningVent @Quentin_W dont know if he "justified" it but rather said it was best of a bad situation they were handed. Quentin?
@Quentin_W (doing his best duck impression) 9:24 PM Sep 27th
@Kamikaze601 closer to accurate. Some folks try to knit pick.
@MorningVent 10:21 PM Sep 27th
@Kamikaze601 Tell me how anyone could look at that company & think this project is a good idea. $100 million? Insane! @quentin_w
You are a FRAUD Whitwell. You CAN'T explain your vote nor refute any of the SERIOUS concerns that Kingfish has exposed about TCI. You DUCK phone calls. Yours was the vote of a POLITICAL CONFORMIST. Yet you have the audacity to say that folks are nit picking? You are a COMPLETE FRAUD.
KF, I sent the link to your investigative research on this to the Clarion Ledger's reporter who wrote the puff pimp piece for the corrupt developer.
We'll see if he uses it as the basis for a follow up story in Clarion.
Keep up the great work!
I've given up on expecting investigative journalism from the C-L, which is my main reason for reading JJ religiously. The C-L eschews controversy like a small town weekly.
Now, if you would add the Cleveland brothers, Crankshaft and the NYT crossword, I could send you the money I now send the C-L.
AMEN 12:09 AMEN. Councilman Whitwell's response is a red flag warning. He's acting no different than the Democrats in Congress who are trying to pretend that the Solyndra scandal doesn't exist.
"You know what the first syllable of hotel is?"
hahahahahahahahahaha
once again those of us who live and pay taxes in JTown get screwed....
clarion ledger is down to about three employees. they have jerry mitchell covering everything from car wrecks to weddings. hampton is like a stray cat that you feed once, they can't seem to make him go away. the clarion ledger is actually an embarrassment to the city of jackson and the metro area.
In response to the two year old who was (tragically) shot and killed, Harvey said (televised), "This should not be happening in Jackson, Mississippi, but it did." I think that may be a new mantra for Harve that will cover all situations.
From Whitwell's twitter page 48 mins ago.
Quentin Whitwell
I hear some anonymous bloggers are enjoying rapping the council for approving the convention center hotel. There is more to come on this.
Was going to suggest to those with twitter accounts: bomb him @Quentin_W as I did, after he called Sandridge racist, and as you see in the comments above.
Black flag to the RINO boot-lick.
Someone needs to clue in the Councilman that the conundrum is all in his head. Maybe he can give Jeff Weill a call to find out how one stands and votes on principle.
I can see how having a hotel connected to the convention center (preferably by skywalk) would make it a more attractive place to have a convention (after all, who would want to go outside, especially after dark?). But does this proposed hotel have a realistic chance of turning around the revenues for the convention center? Or does the fact that the King Edward is just a few blocks away indicate that other factors are at work (such as a down economy and fewer conventions, or lack of other attractions for conventioners downtown)? If so, having an attached hotel might not be enough to attract those who would otherwise stay away, and the proposed hotel is just a waste of money which will dig Jackson into a deeper hole.
Of course, this is all just for the sake of discussion. The above hypotheticals presume a competent and viable partner instead of what Jackson appears to have in TCI.
What are the interns over @ the JFP learning these days because it sure as hell couldn't be investigative journalism.
I'm confused. Are y'all talking about the certainty of Riverwalk or the uncertainty of Ben Allen's latest pipe dream?
Lets not forget the "pump up" could be to help the C-L sell their holdings one block up. The entire block with an attractive 4 story building (counting the full basement). An across the street parking lot with a full warehouse connected and underground passage.
At the rate they are going they will need the cash from the sale to send to corporate in Virginia.
OOoops lets not forget about the large parking lot across the street from the post office.
Found my way here to http://kingfish1935.blogspot.com/ from http:// left at Clarion website. Never knew this Jackson Jambalaya website here before now. Have lived in North East Jackson for 73 years. Was born in small house on Old Canton Road that is gone now. Was Hinds County back then. We are the city now. Live off Saratoga. Never thought I see the day when our North East Jackson City Ward person agrees to Jackson home owners spending 92 million dollars for a hotel. That is plain stupid. Everyone in my 4 generations of family moved out of the Jackson area. I am the last one here. All things come to an end. 92 million dollars for a hotel anywhere is stupid. Goodbye.
D.J. Brown
5:02 what does Allen have to do with this? He urged the city to change horses years ago.
5:02 what does Allen have to do with this? He urged the city to change horses years ago.
Right. Uncle Ben is blameless. Fool.
Sigh. Right behind you D.J.
Didn't Quentin Whitwell recently recuse *after* discussion and comment about a David Watkins property? This hotel thing smells like Jackson crony capitalism.
6:14. Explain??? He was a paid lobbyist for Watkins. To what do you refer?
Do you read the C-L 6:17?
6:24. No. Do you? Why? If they printed a story, I assume by your asinine reply, you believe it.
Idiots prevail. I repeat:
"6:14. Explain??? He was a paid lobbyist for Watkins. To what do you refer?"
Harvey Johnson is a joke if he is re elected next year Jackson is going to burn . The police department sucks . This hotel will be like mosquitoes to water for criminals .
Go fist yourself 6:28. Whitwell recused about FARISH because of a relationship with Watkins. HE RECUSED FROM A COUNCIL VOTE after being privy to extensive council discussion and deliberation. End of story. Whitwell's GOOSE IS COOKED.
@6:38 Does the JPD even have a chief right now? Watching the news and I'm starting to think Colendula Green is.
6:38; it amazes me that Harvey would NOT want an effective, or at least mediocre, police department. Prior mayors have been roundly criticized for insisting on running the department. Not only is Harvey not running it, neither is anybody else. Why would he want a campus cop in charge of a major department with crime stats bumping the upper limits of FBI charts? I've never understood that.
I realize Harvey's primary objective is running an employment office, but, HELL....
Quentin can't keep the peoples in his neighborhood homeowner's association happy because he's an extreme control freak. Anyone who thought he'd hold the line on spending got played.
Out of curiosity, since the city is buying the land back for 14.3 million, how much did the city sell it for originally?
I certainly don't like the smell of this deal, and I fully understand the problems with Johnson. But, try this on for size, Mayor Lumumba. Has a nice ring to it doesn't it? We will beg for Johnson if we ever have a Mayor Lumumba.
Chokwe will be your new Mayor. Better enjoy these days with King Harvey. You will long for the day he was Mayor, after Chokwe's first week. Hail to the new republic!
@7:22 doesnt seem like it does it . That was a bad hire on johnsons behalf . What is she doing besides collecting a check . the hotel is a bad idea because the visitors are not in the best area . Their safety cant be guaranteed down there.
@ 8:20 ... 8 million in 2006. 45% increase in value in 5 years while all other real estate value tanked.
P.T.Barnum said there is a sucker born every minute.... I say there is a sucker put in office every election day.
Quentin Whitwell can't spell "nit-pick"? He thinks it has something to do with knitting?
--Oh, and the hotel thing, that's disturbing, too.
September 28, 2011 7:17 PM wrote:
Whitwell recused about FARISH because of a relationship with Watkins.
If Quentin Whitwell attends the Farish Street status update as reported today in the Clarion-Ledger will he be attending as David Watkins' attorney or will he be there as the Councilman representing Ward 1?
His conflicted status precludes him from wearing both hats at the same time.
Does anybody know how the Hilton/King Edward is doing in terms of occupancy?
From earlier posts, I gather the city sold the property in 2006 for $8 million and is now buying it back for $14.3? If so, THIS is the real story, and not which politician is the biggest loser. For the record, I don't think any of them are stupid. I think some very smart business people got some very pliable people elected to office, and they are, together, and across this country, transferring wealth from the taxpayers to the private corporations that support them with campaign contributions (and hookers and blow and cushy jobs post office on some corporate board). We're the dumbasses here.
I bet Harvey, et al. get a chuckle out of reading all the post talking about how dumb they are for being taken advantage of. THEY'RE IN ON IT PEOPLE!
JRA sold the property at the appraised value back then (3 maybe 4 years ago). Sale price, I think, was $14MM.
Kingfish can you "open records" this and find out?
I put that 8mill figure in and now must retract it after more research. purchase was 17 mill with a 7 mill loan from the city.
http://www.jacksonfreepress.com/index.php/site/comments/JRA_Hires_Consultant_for_Convention_Hotel_081111/
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