Politicians. Predictable as always and the Madison County Board of Supervisors are no different in that respect. You know the formula. Spend, spend, spend. Give sweet deals to the friends. Smear anyone who questions the divine right of spending. Then if the budget blows up, no problem, raise taxes on the sheep who put you in office. What a country.
The supes followed this formula to a "t". The Madison County Board of Supervisors blew money for years and now seeks to raise property taxes on homeowners by 4.46 mills. No sacrifice will be asked of their friends. No contracts will be terminated. Forget there is a recession and the economy is stalled. Taking responsibility? Please. Its easier just to tax the people some more.
The county faces a $1.6 million deficit. Its no surprise there is a deficit. The supervisors over the last few years wasted a $50 million bond issue that resembled an Obama stimulus package: long on spending and benefits for the chosen few and short on results. Then there is the average $25,000 per month paid to the board attorney in fees. County needs some good PR so it decided to pay $30,000 a year this year to a PR specialist who just happened to help run a supervisor's campaign. Oh yeah, money's getting tight. Lets get some money from the legislature. We going to need a lobbyist. Presto. $72,000 a year to Butler Snow. Who needs to bid these contracts out to see if there is a better price? Its just the taxpayers money. Supervisor Ronnie Lott asked county officials to find areas to cut spending. Here you go Mr. Lott. Nice sweet contracts your board has awarded to its buddies over the last few years begging to be cut. You do want to cut spending, don't you?
Then there is the elephant in the room: the Parkway South and Parkway East projects. They are a perfect example of why this website fought the Convention Center Hotel, Old Capitol Green, and the Farish Street projects. Economic development. We all love it. Nice buildings. More jobs. Tax revenues. We see Renaissance and the King Edward and say "wow, look at that!" However, there is a seamy underside to such deals: they CAN fail and if they do, its the taxpayers that are on the hook as Madison County homeowners are discovering to their chagrin.
The parkway projects were an idea by developers to build another Highland Colony Parkway on a road next to I-55 from Madison to Gluckstadt. Never mind Highland Colony and Highway 51 are not completely developed. You know the drill. Fancy drawings. Pie in the sky projections. Jobs. Tax revenue. Shiny buildings. The co-signing of the loan by the county so the developers can sell bonds to finance the project. Ah yes, the co-signing of the loan. A case of either the developers couldn't get private financing or they wanted a way to stick the county with the bill in case things didn't work out for the project. No problem. They got the Godfather of Madison County for their attorney just in case any wheels needed greasing. $27 million in bonds were sold for the Parkway East Public Improvement District and another $10 million for Parkway South in the mid-2000s.
The PID was supposed to make the bond payments with special assessments collected annually from landowners in the district (See map below). However, many quit paying the assessments and the PID ran short of funds to pay the bondholders. The PID's defaulted and the county is forced to make bond payments and will likely continue to do so for two years under the term of a contribution agreement it signed with the PID when the bonds were sold. The bond schedules state the following payments are due over the next few years*:
Parkway East:
May 1, 2012: $534,030 (Interest), $880,000 (principal)
November 1, 2012: $528,410 (interest)
May 1, 2013: $518,410 (interest), $910,000 (principal)
November 1, 2013: $501,803 (interest)
May 1, 2014: $501,803 (interest), $940,000 (principal)
November 1, 2014: $484,178 (interest)
Total due in 2012: $1,942,410
Total due in 2013: $1,930,213
Total due in 2014: $1,925,981
Parkway South:
May 1, 2012: $400,000 (principal), $194,987 (interest)
November 1, 2012: $201,900 (interest)
May 1, 2013: $450,000 (principal), $186,887 (interest)
November 1, 2013: $177,550 (interest)
May 1, 2014: $500,000 (principal), $177,550 (interest)
November 1, 2014: $166,800 (interest)
Total due in 2012: $796,887
Total due in 2013: $814,437
Total due in 2014: $394,250
Don't worry, this is a great deal for taxpayers. How do we know? John Bell Crosby and Bob Montgomery told us so after the PID came to the county for help. The Madison County Journal reported in April:
"In the long-term we feel it will help (the parkway) the whole county," Crosby said. "It's a great strip of property and has very great potential to bring in businesses anywhere from the south end to the north end of the industrial park. It's in the county's best interest to make it work or help it work."
Bob Montgomery, Parkway East's counsel said he was happy to work with the board.
"We're impressed by their cooperation," Montgomery said. "They have the benefit of a $20 million road given to them without compensation. They're making a good investment to keep it viable."
In 2004, a $20 million loan was taken out to construct the road. The loan was backed by the county in an agreement with the PID. Since its construction, the road has sat dormant with little development taking place."
Nothing like a Bob Montgomery special. Build a road, develop nothing, and then stick it to the taxpayers. Of course, the board president thinks this is a great deal. He said so. Wonder if he will show off this empty road to nowhere in his campaign commercials net year? "Hi, I want to do for the city what I did for the county. Look at this." They should work for Debbie Wasserman-Schultz.
However, back to the taxes. There is no reason the board should be raising taxes. None. However, it is hard to feel sorry for Madison County taxpayers. None of these contracts were made in secret. The deals made with Parkway East and South were out there for everyone to see. The problem is no one bothered to pay attention. Who can blame the supervisors for thinking they could get away with a tax increase after pulling all of their financial shenanigans. Madison County taxpayers were warned for the last several years by this website, the media, and even the Mayor of Madison about the financial mismanagement taking place in Canton. Didn't matter. It was boring. It was just politics.
Madison County voters even kicked off the board the one supervisor who tried to stand up for the taxpayers. His replacement now says this is not really a tax increase but they have to call it one although its really a fee increase, you understand (Yes, that was written intentionally in a confusing manner.). Then when the votes were counted last August, the board discovered the voters gave them a green light to do whatever they wanted. Why shouldn't they spend, spend spend? They were told it was ok to do so. If taxes do indeed go up in Madison County, the taxpayers have no one to blame but themselves. Maybe this will be their wake up call to start paying attention to what goes on in Canton but don't bet on it. They will gripe for two months and then go back to Facebook and football while the supervisors and their friends spend more money.
Meet the new boss......
TIF bond Task Force report, Parkway East default notice, Parkway East Audit 2011, Parkway East bond statement,
*The county has made the following payments:
May 11, 2012: $258,328 Parkway South
October 24, 2011: $374,021 Parkway East
April 25, 2012: $838,397 Parkway East
Monday, September 10, 2012
Editorial: No Madison County tax increase
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37 comments:
Hard to argue with KF here. I especially like calling for a tax increase more or less simultaneously with blowing $72K on a bogus lobbying contract.
Of course, $72K probably doesn't seem like much money to the supes ... which itself is part of the problem.
Right on target!!! What in the devil are the Madison Republicans doing about this!! Where is the revolt???????
Nothing to disagree with here either.
I would add that when it comes to developers in Madison County, there hasn't been much in the way of minimum standards required or inspections, especially in residential neighborhoods.
The developers have some responsibility here in terms of what their proposals are like and they should be named.
Another way the taxpayers will be " gouged" is by paying to replace and repair the sub-par roads, bridges and sewer lines etc in their neighborhoods and repairing homes shabbily built.
Even Cecil Brown comes on this site occasionally to defend nonsense. I wonder (not really) if John Bell Crosby will do the same.
"Attention Kroger Shoppers. Cleanup on Parkway East please. All staff report with mops and buckets. Someone please dial 911".
Just now reading 8:25's post. Not sure if he is aware that the Board of Aldermen has to review, approve and sign off on every development all the way down to the tree line, planned fencing and site drainage. Of course this includes minimum square footage, design and other standards. Where do you get off claiming this is not done in Madison?
You're the one claiming 'they should be named'. How about naming builders and identifying neighborhoods you claim are shabily built or won't pass inspection. Or were you talking about residential areas out in the country? In either event, have the guts to identify the areas you speak of.
8:25 - my favorite is the apparent rule that A/C units in subdivisions shall be underpowered for the job of actually cooling the house in August.
Obviously the board of supervisors is for sale---or you would not have these ridiculous roads to nowhere being built----at least Madison is not for sale at least not by this mayor !!
8:25, I assure you that the minimum standards for roads in residential neighborhoods is tougher than what the county builds. Taxpayers in Madison County have never been gouged for sewer lines (Madison county has ZERO sewer lines), nor have taxpayers ever paid to repair a shabbily built home.
I think this tax increase is bullcrap and am certainly against it. However, your information is bogus.
Taxpayers in Madison County have never been gouged for sewer lines (Madison county has ZERO sewer lines),
How does the sewage get moved? Everybody got a septic tank?
The audit mentions landowners in bankruptcy. Who are they? Or where can we find that info? They have not paid their fees and are part of the reason why taxpayers are on the hook (aside from the obvious: shitty representin' by everyone not named DI Smith on that board).
SF, I think 8:25 was referring to the county developments. I read it that way because I live in the county, not the city and also because he/she wrote the words "Madison County". I realize that this could read to include the city, but I think the intent was to refer to developments out in the county.
I'm pretty sure Landstock, LLC is one of them in Bankruptcy. But, if you look at the map, St. Dominic is owner of a large part of the parkway property. They are tax exempt, but this is an assessment for servicing the debt rather than a tax, and they should pay their portion. Same for the parcel owned by the YMCA. I'm also assuming that the parcels labelled Madison County are actually owned by the Madison County Economic Development Authority (MCEDA) and they should have to pay their share as well. The last I heard Dick Ambrosino and S.L. Sethi owned all of the parcels that are part of Parkway South. I don't think either of them are bankrupt.
Gerald is running the show and instructions are given to Overby by him on what is on Rudys wish list--Gerald is too dumb to add or subtract--Notice how goofy Gerald is--
Thanks. Didn't see the map listed. Here are the officers and directors according to the Secretary of State. Who isn't paying their fees to the PID? And why are the forcing the taxpayers to pay for them?
Landstock LLC = George Whitten and Don McGraw
ADAB, LLC = Dean Blackwell
Rolling Meadows = Richard Scott Hines, Shirley Claire Hines Phillips, Ralph Todd Hines, Dwight Kirkland Hines
Madison Parkway LLC = Paul Gunn and Rodney Triplett
891B Properties = Robert D Drinkwater
Individual Owners of land (not llc)
Curtis Whittington
Dudley Bozeman
George Whitten
Madison County Ec Dev and St. D. own most of the land. KF, do you know if St Dom is exempt from paying the assessment?
Madison Parkway, LLC - Paul Gunn is an attorney who does a lot of real estate work. He may have set this LLC up for a client and the SOS wasn't notified. I think that happens a lot.
12:54 Madison County has ZERO sewerlines. Sewer in the county is owned by entities such as Bear Creek Water Association (the sewer in the Gluckstadt area). They are supported by water and sewer fees, not taxes.
I like this quote from the MC Herald:
Supervisor Gerald Steen compared the solid waste tax to a garbage bill that city residents pay. “We’re really talking about the same type of increase,” he said. “But if it goes up, it’s millage, not a billing.”
For those in constant constipation over Mayor, Mother, Queen Mary don't forget a major developer came to Madison wanting PID/TIF money for their "Big Time' development behind the Texaco. So she told them to show ALL their cards. The city would not be caught in a trap. They refused and they have no money and the taxpayers are safe.
How would that have played out with "bagboy" as mayor?
Just sayin
Want to bet the Rankin County BOS sticks it to the poor
Memo to Supervisors: We will remember this on election day.
I see several comments critical of John Bell Crosby with respect to the creation of the PID. Unless I am mistaken, he was not on the board when the PID was approved. Wasn't this done under the watch of Andy Taggart, Doug Jones, Tim Johnson, Karl Banks, and Paul Griffin? John Bell is just trying to make the best of a bad situation.
As someone posted earlier, the PID is definitely the gorilla in the room.
Also, I have the utmost respect for David Overby as the county administrator.
Never said he was around for the creation of the PID. However, his comments earlier this year are fair game, I think you will agree.
By the way, OCG was supposed to start shoveling dirt in August, remember? ;-)
There are around 100 people there right now.
I apologize KF, but I don't know what OCG is. Also, you were not the one I was thinking of with respect to the criticism of John Bell Crosby.
I've been a resident of Madison since 1975 and consider Mary and John Bell as my personal friends.
I appreciate what each of them do, and not want either of their jobs!
The county IS paying for Ambrosino and Sethi assessments---Two once millionaires and they just raised our taxes to cover their dirt!!!
Doesn't the city of Ridgeland have a similar situation (PID Default) with respect to the Harborwalk Project?
Well, you can thank Andy Taggart, Doug Jones, Tim Johnson, Karl Banks, and Paul Griffen for this mess. They are the ones who voted for the PID. The current board (and we taxpayers) are stuck holding the "bag". Mary did the right thing in not supporting a PID in Madison.
Some are using PID and TIF interchangeably... IT was a TIF that Mayor Hawkins Butler and the Madison Board of Alderman denied the developers (Sethi and Ambrosino) of the area behind the TEXACO.
Another TIF: Mayor Hawkins also denied a TIF on the the two Ambrosino buildings on Parkway South, but John Bell Crosby voted with TIM JOHNSON, Karl Banks and Paul Griffin to give up 100% of the county ad valorem taxes even though the City refused ad valorem and sales tax for the TIF. Again, D.I. Smith was the only member of the Board of Supervisors to use any common sense and vote against this hairbrain idea of a TIF in a PID area.
So, these TIF bonds were issued earlier this year, and now Ambrosino and Sethi are calling for the county to bail them our on the PID bond debt service payments! Absolutely amazing!
And, don't forget that our Madison County Engineer, Rudy Warnock, estimated in 2004 that Parkway East would cost $10 million to construct. And, now $42 Million in bonds have been issued and the money spent.... So, once again proof that Rudy Warnock can't estimate projects and should not be on the payroll at Madison County!
And, everyone should not forget that PID "contribution agreements" were not allowed by State Statute in 2005, when this agreement was signed by Madison County. "Contribution Agreements" were just passed during most recent 2012 Legislative session. Wonder who the attorneys were that advised the Madison County Board of Supervisors??? DIG, DIG, DIG!
This will probably make it to the State Supreme Court before it is settled!
Harbour Walk the disaster was supported and pushed by Gerald Steen--There is state grant money in that road--Wait until Ridgeland has to pay that back--Gerald will be called in to esplain his vote on that--
While reading this I forgot it was about an election... I have always read this site thinking it was facts not slanders or rumors but this site has been hijacked... Let me know when Kingfish comes back and he writes the editorials for now I will stick to the Northside Sun.
St. Dominic's lost their case before the state authorities to demonstrate the need for a hospital a couple of years back. From the map it appears that the whole development was premised on them getting the 'certificate of need' and building on the parkway. My guess is they were represented by Butler Snow.
Let me know when Kingfish comes back and he writes the editorials for now I will stick to the Northside Sun.
That will be fine. No doubt you read Kingfish's regular columns that also run in the Sun.
Greenhorn.
Bendini represents St. D.
Lest someone infer that Madison folks pay no sewage-line fees, I assure you that my monthly water bill includes several exhorbitant amounts to support several sewer/drainage districts into or through which my daily dump travels.
By the way, I notice with gratitude that nobody has (yet) blamed all of Madison County's current problems on David Richardson.
Appeals to the Miss. Supreme Court have made St. Dominic's a four time loser in respect to opening a Madison County hospital. A state statute re: appeals of hospitals to the MSC was declared unconstitutional by the court a couple of months ago. They have big legal & tax bills coming due.. .
How much did the City of Ridgeland loose on Harbour Walk?
The City of Ridgeland with Gerald Steen as alderman at LARGE approved a TIF that the city is on the hook for Lowes and has been paying a chunk for the past two years--Harbor walk needs to be investigated especially the road--that is SERIOUS--Gerald should explain that--Now he has taken this great knowledge to the BOS
Just out of curiosity, 8:18:
Whom do you propose to investigate?
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