WJTV coverage
The Clarion-Ledger reported today the city of Jackson is taking steps to gain title to the land next to the convention center owned by TCI:
"The city of Jackson took its first step Thursday to formally end a partnership with a Dallas-based developer that lasted more than three years but failed to produce a full-service hotel to serve the Jackson Convention Complex.
That process could include litigation regarding how Transcontinental Realty Investors will repay a $6.7 million federal loan the city says the company has defaulted on.
The City Council voted 4-0 to authorize city officials "to take any and all action necessary" to resolve any remaining issues and wind down an agreement between the city and TCI to build a 16-story, 309-room hotel across from the convention center."
However, the article included this tidbit of information:
"He said TCI hasn't made any principal payments on $6.7 million of a $10 million Housing and Urban Development loan issued in 2008 to a local subsidiary, TCI MS Investments, to help developers acquire land for the project.
The loan was twice modified afterward to cover architectural fees and other costs, Teeuwissen said.
He couldn't immediately say why TCI hasn't made any payments, but indicated developers had told the city those payments would be made once a deal to build the hotel was finalized.
Developers never used the remaining $3.3 million in the loan, city spokesman Chris Mims said."
I knew it. I knew it I knew it, I knew it. I knew when I read their lawsuits and financial statements they had already done something on this deal, the question was what. Now we know. I heard about the default last week but was unable to confirm it with anyone on the record and didn't feel comfortable publishing the information without further verification. Now before the commercial realtors get up in arms, I know it is common practice for commercial borrowers to make interest-only payments some time while development takes place.
However, we are not talking about most commercial borrowers but TCI. They have not made an principal payments and nearly 100% leveraged. During public hearings their representatives have given evasive answers about their ownership and financial condition.
Well, I can tell you what is coming down the turnpike. Don't be surprised if TCI MS follows the practice of other TCI subsidiaries and files bankruptcy. That will allow them to tie Jackson up for a while where TCI will eventually lose the case or force Jackson into a settlement more to its liking. In fact, I will say it now: Jackson, go get yourself a good bankruptcy lawyer. Based on my Evans case observations, I'll even make a few recommendations: Richard Montague, Kristina Johnson, John Corlew, and since he won a few rounds, Scott Jones of Adams & Reese. I would recommend Jeff Rawlings but since he busted a couple of Bennie's cronies in bankruptcy court, that is probably not a good idea. TCI's share price is $1.64 and the market cap is $13.8 million.
Then there is this comment by KIM Waaaaaaaaaaaade in the comments section:
"The Hud 1 statement(s) cites the City of Jackson as the Lender. Hud involvement only raises the stakes re:liability. TCI assembled the acreage drawing on a $7 million dollar line of credit from City of Jackson. It bought property from several entities including JRA at prices that doesn't appear to be supported by comps.(I am not suggesting the initial sellers did anything wrong).
However, one plot of land sold for $135,000. Then 20 mins later a contiguous plot of land sold for $1.5 million dollars at the same closing table.
Best I can tell from the docs I've seen. We're talking about a total of 9 acres. The hotel land is about 4+/- acres. The question is will TCI get to keep the other acres bought with taxpayer money.
In this recent effort to build a hotel. The city was ready to pay TCI $14 million for the 4+/- acres. This would have paid off TCI's $7 million loan.And at closing TCI would have walked away with $7 million dollars at closing. Again, I've seen no appraisal to justify these numbers at this point.
They need to put crime scene tape around those closing docs. This whole thing is a Sandusky shower scene for the citizens of Jackson. We might come out of there clean. But we won't be able to sit down for a week.... "
Earlier posts about convention center hotel:
JRA rejects hotel proposals and says see ya next year
Earlier post about financial statements
Developer makes bid cheaper than TCI
More info on hotel deal
TCI pays all late taxes one day before vote
More TCI lawsuits
Kingfish discusses hotel deal on WJNT
Meet Jackson's new partner. Bankruptcy. Alleged mortgage fraud. Straw companies. Who cares?
Friday, December 23, 2011
TOLD YA!!! TCI never made payment on Jackson loan
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32 comments:
Thanks for continuing to be the only evidence-based media outlet reporting on this matter. The Fondren Harpy can chirp all she wants but her outlet provides NOTHING close to the source documentation and videos offered here at Jackson Jambalaya.
FYI, don't know if you've noticed but since the C-L went to Facebook commenting many of Kim Wade's comments left on various stories are getting summarily taken down.
"Sandusky shower scene".
Wow. Now that's a vivid illustration of what happened to the CoJ.
good thing we do live in the USA and Donna can technically "say" anything she wants to and push it as the truth
B F D
"I think our outlook is bright, Crozier added."
What about the loan? What are the terms? Is there a penalty for not making payments? Who knew these payments were required? Who knew they weren't being made?
Or was this one of those no doc loans that make everyone rich.
Seriously, how is it that this just now becomes known? wtf
Anonymous said... B F D
That is what Ben Allen said every time he voted to jack up property taxes on his fellow Jacksonians.
"Jack Up" is not typically the term associated with Ben Allen.
BS as usual in the "Bold New City"... what loan? what payment? not my job! they did what? pay their water bills! my wife is done gonna wiff and diff you to death in my absence! and last but not least...here comes tyrone and his merry band of thugs! HAPPY NEW YEAR!
Better late than never on killing this TCI train wreck deal. Now the world will be watching as this episode goes to round 2.
Not to worry 9:35. I am sure that the decisive leadership of King Harvey will have all of this sorted out in a couple of months.
Happy Crimmus said they
As they head for da sleigh.
Wif my hand in the cash
And my foot up yo ass.
Y'all had it too long
Now yo trough-time be gone,
Now da doe keys is mine
And we standin' in line
All 'em jobs y'all once had
Is now US and we glad.
So dash away, dash away, dash away all.
Gitcho ass outa town, and
stay way frum da mall.
Go to Madison or Puckett or
Byroom or Pearl,
Just git the fig way frum hear,
Dis now be US world.
On Thunder Thighs and Spinners and
Tyrone and Blimp,
Yo Dashika and Blade, Kershwanna
and Pimp.
As we gather rount tables to split
up de pie,
Merry Crimmus to white folk and
a stick in yo eye.
now that is REAL funny...( and true too)
What real estate agents made money on the failed deal? These lawyers did:
Butler Snow
Watkins Ludlum Stennis Winter
Sam Begley
Chambers & Gaylor
What white folks made money on the failed deal? What about African-Americans?
Majority majority
Bottom line the entire strategy to rejuvenate downtown Jackson is a complete failure. The effort will never generate enough tax revenues to pay off the insane amount of accumulated debt let alone offset the continuing mass exodus of tax dollars to all points outside of the city. It is only a matter of time before Jackson is forced into bankruptcy.
10:42, what qualified black firm or person got screwed by the majority black "every governing body" having any interest at all in this spectacle.
Black folks need to get off their collective asses, start companies, and put in real proposals, so that their black compatriots on governing bodies can selelct them.
Same handfulof vendors over and over and over.
11:39, the city fathers or government leaders like Bishop Crudup, the Lord Mayor, Council, JRA Board, etc got tripped up on this deal and now have egg on their face. The citizens need basic service like water and sewer fixed and that requires a bond issue. If the city fathers get that done then citizens will probably stay and investment will happen. Public safety must show improvement and the Lord Mayor knows that is more important than the convention hotel. If the hotel is the priority over the aforementioned-then we are in trouble.
12:32 is so correct. Give a man a fish, teach a man to fish thing. It is so much easer to not get into the fray, then bitch about getting screwed.
The City of Jackson is a rentier city. Very powerful interests (Speed, Hederman, Underwood, Nejam, Mounger, McRae, et al) own much of the property and rent it to others. The professional class here is a rentier class that is in on every deal and I mean the engineering firms, builders, architects, lawyers & doctors. The black establishment are connected to small business and the government. The middle class here white & black are the latter or bureaucrats. Thats Jackson excluding the poor & gangsters.
But I heard Leland Speed several times claim he's on the up and up. The man even works for one penny, so it must be altruism, right?
KF; please hurry and give coverage to Kenneth Stokes' wife, who says she'll run for his old council seat. I thought it was a Channel 3 joke this morning when it showed this 'woman' talking about her plans to run.
She appeared with an inverted chamber pot on her head although it could have been a pith helmet from an Army Surplus Store. And she appeared to be wearing an old, brown trench coat like Jimmy Stewart's in the Christmas movie.
Missing at least every other tooth and oddly reminiscent of Sergeant Schultz, she spoke of Kennuf's 'tough times' and 'strenth'. They've rerun the segment now so I guess it's NOT a joke. The Ledger may rehire Ramsey full time just to cover this crap.
I saw the report on the next version of Stokes for the Council. So sad. You gotta laugh or cry........
True that Kenny Stokes lives on the fat of the land. So do the others tho and it ain't all Kenny's fault. Like the Governor-Elect says "Mississippi (not just Jackson) leads the nation in drop-outs & teenage mothers". So our whole STATE is a factory for poverty. What the political class & the elites do in the statehouse is just as important to the destiny of Jackson as the actions of the Mayor & Council. The Hotel is symbolic of the neglect of the social development required in this place generally.
I am at a loss to explain why anyone who is educated and works hard for a living continues to live in Jackson when there are so many attractive alternative towns within a 15 minute drive to downtown. To be marginalized and politically impotent while simultaeously carrying all the dead weight in the city - I just can't understand it.
The Hotel is symbolic of the neglect of the social development required in this place generally.
BS. There are many potential symbols to buttress your your observation but the hotel is not one of them.
See this King?
"Full Faith and Credit" of General Obligation Bonds Comes to Critical Test in Alabama Bankruptcy
If you are white and don't mind being less politically potent, you can handle it. You have to use what you have and get loud sometimes like the 'kingfish' does. On another website (Yall) one such person is listed no. 20 as the state's most influential persons. Methinks Jackson will have to shrink its footprint like New Orleans after the hurricane to survive and recover. Jackson has something the suburbs lack, character and history.
** YAWN **
@9:38. Did it really take 'the governor elect' to tell us Mississippi leads the nation in dropouts and teen pregnancy? If he keeps dropping these bombshells we'll be well informed.
@7:50. Sugar Ditch in 90s era Tunica had 'character and history' too.
If the Japanese or Hindus started snapping up all the vacant lands in Jackson, making the neighborhoods livable and thriving, people would still hate Jackson. If it were young creative types from the west coast, methinks the suburbans & political elites might give them a break and start moving investment back here. Read the biographies of Mounger or Underwood. Its racial isn't it? Black folk need to learn how to govern too. Not all thinking people like to live on Bradshaw Ridge. (smile)
The idea that creatives are going to save Jackson if only enough hundreds of millions are expropriated from Jackson's shrinking taxpaying class in order to make downtown habitable for them is as inanely shortsighted as the argument that a convention center, and now a hotel, and a small historic district lined with bars will magically turn the city into a tourism mecca.
I have been telling people for months of the ties of TCI to Gene Phillips to the MAFIA. What idiot associated with this deal was too ignorant to just do 20 minutes of investigation? At the end of the day Harvey will come out and say it wasn't his fault but at least no one was fired. God Bless the Mayor
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