Westin Hotel project. TIF bonds. Hinds County Board of Supervisors. What could possibly go wrong?
The Board held a required public hearing on the project. Courtney Baldwin of Gouras & Associates represented the developers on the project. $1.75 million in TIF bonds will be issued for the project. The county will sell the old Mississippi Valley Title to the developers. The board first beat up the developers over the issue of minority hiring. The developers said the project had a target for minority hiring of 50%. However, Supervisor Alphonso Hunter said he wanted "minority participation with teeth" and "protection" as well as "first reservation of rights" since the "county has quite alot of skin in the game." He said "it was hard to support it if the county had the first reservation of rights so if anything go wrong, we line up first, not second, and be protected." (Start at 4:45).
Ms. Baldwin and developer Joseph Simpson told the board Westin achieved 46% minority participation on a similar project in Birmingham. The project is part of the Jobs for Jacksonians program. The team said the project would create 1,066 direct and indirect jobs, including 126 permanent jobs. However, Mr. Hunter said "I"ve been in this game a long time and heard alot of stories." Then Stokes moved the county hire Chambers & Gaylor law firm and financial adviser Malachi Financial Products to structure the bonds and advise the county. Supervisor Calhoun pointed out the county has an economic development department that already performs the same function. Supervisor Robert Walker stated the board already had an attorney to issue such advice. Didn't matter. The board tabled the motion, then took it up again three hours later after the executive session when few were present, including no media. The board voted to hire Tony Gaylor and Malachi to investigate, study, or structure, you get the idea, the project and the TIFs. Interesting part is is Jackson is on the hook for the TIF's, not the county. Stokes then said the "only way I will feel safe is if we have a financial adviser and a legal team to watch everything."
No terms of the retention was mention or discussed. No one said how much the county will pay Malachi or Gaylor. No contracts were proffered. There was simply a vote to hire these two and that was it. No statements by Stokes about county deficits.
Here is the resolution:
resolution
Westin Hotel Tax Increment Financing – Hire Counsel and Financial Advisor
UPON A motion of Kenneth I. Stokes and a second by Robert Graham, Peggy Hobson Calhoun voting nay, Alphonso Hunter voting aye, Robert Walker voting nay, it was
RESOLVED to approve hiring Chambers and Gaylor law Firm and The Malachi Financial Group for advisors to the county for this project. Documents affixed hereto and incorporated herein.
Editorial comment: This was just an excuse to send more taxpayer money to cronies Porter Bingham and Tony Gaylor. Whether or not the money remains with them, only they know. However, no developer is safe from these clowns as first they beat up the project representatives over minority hiring then use the project as an excuse to throw more money at their boyz. As two supervisors stated, the county already has a team in place to handle these chores. However, the board seems more concerned with lining pockets than revitalizing downtown. If this is how developers are to be treated, don't expect them to line up trying to do business in Hinds County.
29 comments:
BooBoo says I don't want to think. I don't know how. So's I wants legal and financial advice from an outside source. And I don't gots confidence in county employees to make recommendations either. KF editorial comment pretty well sums it up.
Are financial advisors excluded from the no bid contract law? Can't remember.
And Auditor Stacey, we know you read this. Here is another example of easy pickings in your backyard (well, office backyard anyways). Why don't you go after some big boys and prove yourself worthy of those higher offices to which you aspire?
i second that 7:20...
Well-written editorial. I am amazed that anyone would want to work with a governmental entity so inept, so racially focused, and so aloof. For years, Peggy Calhoun has shown more financial leadership than most on the Board, and she appears to be maintaining this status.
And it is worth repeating: if the project can not attract private money, thus requiring taxpayers' risk, the project sucks.
The economic implosion of Jackson and Hinds is well underway. Jackson and Hinds County are lost.
I guess they are speaking about white people being the minority, since Jackson is 80% black.. They should just be glad someone is willing to stick their neck out and invest in the city of Jackson with these idiots steering the ship..
would be nice to see a high level budget of where all the money is coming from. A TIF bond is not a bad thing in itself, but what else are we on the hook for?
How can Courtney Baldwin "represent" anyone at a hearing, if she is an inactive member of The Mississippi Bar?
I wonder if Alphonso needed a heart transplant would he demand a minority transplant team or pick the best qualified.
Pickering wont investigate because he and the previous auditors let white parasites do the same thing for so many years. Look closely at the projects on the coast, Meridian, and Southaven and you will see the same thing. One thing is for sure, Al Hunter and Boo Boo Stokes are not smart enough to invent this game. This is straight out of the playbook of Haley, Fordice, and Feel. I don't see the problem in minority hiring. If you look at most projects, minorities do most of the work anyway. Requiring minorities to participate when using public dollars is not a bad thing.
Some things are just basic, and if the BOS want to play, they need to get up to speed. A real estate and/or business appraisal would be a good start. What is the occupancy rate in Jackson; what is the average room rate; Where is the projected operating statement? All of this and other details should be summarized. REALLY, why would anyone build a hotel/motel in downtown drug and criminal areas? Their primary cash flow would be from events at the convention center, and that would not be adequate to sustain profits. Shame on the BOS for riding this horse into a black hole. Maybe Stacy should draw their attention to the attentive facts of the matter.
9:07 Then why bother with a bid process? Just give the business to an overpriced minority firm that knows it can overcharge and get the job.
Spend! Spend! Spend! Its only money!
Minority participation on a project usually consist of hiring them as a "front" contractor. They in turn hire an actual, competent subcontractor to perform the work. They generally get a small cut of the billing as it passes through them. I have seen projects with 65% minority participation where not one of the minority subs even stepped on site. It is all just a big shakedown and increases the costs, paperwork, exposure, and general headache of project considerably.
9:07am....Minority participation has nothing to do with who the workers are on site, and most of the workers are not african american or women. They are mostly hispanic, and i have yet to sign up one hispanic owned "contractor". I would love to find one, because they actually would manage and perform the work themselves, not just mail a billing once a month and take no responsibility for the work in the field.
I hope they hire all Asians
Socrates will turn up
Do you even understand how TIF's work?
I am the owner of a firm that is 98% Eskimo. We do have a few drawbacks - we're located above the Arctic Circle, none of us can tolerate temperatures above 60 degrees, so we can only work in the months between November and February, and the only building material my team is skilled in using is Solidified DiHydroMonoxide. However, we are a minority firm and will do the job for only 150% the cost of a local non-minority business (not including travel, meals, hotel costs, etc).
I will be submitting my bid on sealskin to Mr. Alphonso. Think he'll be satisfied with our minority status? We all have teeth, fyi.
Signed, Nanook Oda North
T.I.F. = Tax Increment Financing. Generally, most times TIF Bonds are repaid from the increase in sales tax revenues in the TIF district.
Kingfish - Thanks for all you do. We all know when we want the real story we come here first. Keep up the great work!
9:07
What i find funny is that you leave off Winter, Mabus, and Musgrove of your little list. Typical Democrap.
Or how about the one-armed bandit John Bell Williams, or Finch.
2:13 most of the time TIF bonds are repaid with the INCREASE in ad valorem taxes on the properties, that are dedicated to the bonds. Sales taxes can also be used if the re-payment is "skinny".
TIFs once were ok under certain conditions but the people that push are use them are now simple con men.There is not person in that article that is now shandy.
White or black, Republican or Democrat, corruption and incompetence in government needs to be stopped. The people deserve better than this.
Given the current leadership Jackson and Hinds county will make Detroit look like paradise in a few years.
With each passing day the evidence suggests that the State of Mississippi is purposefully letting Jackson fail.
Do you even understand how TIF's work?
Thought a TIF was when Kenny ate the last poke chop and LaRita wanted it.
Meanwhile (and this is NOT a continuation of the Whole Foods comedic posts) this morning's news tells us that the WF project is being delayed until 'winter 2014'.
@7:08 LMBO now that was funny! Nearly choked on my afternoon latte from laughing, but so worth it!
7:45 Really? What are they going to do with all the construction, closed parking spaces, etc that are there now?
I heard the news report about the delay in opening of Whole Foods but I interpreted it to mean they would open in the January-February time frame instead of November-December. Hopefully, our news people will put a little meat on these bones so we'll have a better understanding.
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