WLBT's Anthony Warren and C.J. Remasters took on the subject of the Smith-Wills stadium lease last week. They delved into the nuts and bolts of the lease while interviewing Kusche Sports Group owner Tim Bennett as well. Watch video here. The dynamic duo reported:
Since taking over the stadium, Bennett says his firm, Kusche Sports Group, has invested millions into renovations into the Lakeland Drive stadium, with much of that coming out of Bennett’s own pocket. “When we first walked in, the two main bathrooms, the satellite bathrooms, were completely abandoned and taped up... No lights, the ceiling falling in, leaking,” he said. Improvements also included adding a new lighted sign along Lakeland - a $400,000 investment - repainting the facility, and cleaning up the 10 acres behind it to get rid of the homeless encampments. Bennett also has taken on other projects, such as maintaining, free of charge, the ball field in front of the stadium where Jackson Public Schools plays many of its games.... “We’re on Lakeland Drive and it’s been said to be the busiest intersection in the state,” he said. “In my mind, I’m thinking, ‘We’ve got to improve this.’ What people see before they get here... it needs to be immaculate. It needs to look like the Hank Aaron Sports Academy at Smith-Wills Stadium. It doesn’t need to look like Smith-Wills Stadium that was built in 1975.” “We started taking on those responsibilities financially, and, as you can see to this day, we continue to take on those responsibilities,” he continued. “I’ve got over $40,000 just in equipment [to] maintain the facilities.” All the while, Bennett has been doing the work with little to no revenue coming in. In 2020, the COVID-19 pandemic hit. Smith-Wills was used as a drive-through testing and vaccination site. After that, the SWAC baseball tournament slated to be played there was canceled due to the city’s water crisis. KSG spent another $100,000 to bring in the Gulf Coast Athletic Conference, but that tournament also couldn’t happen, after a storm knocked down an outfield wall. Later, during the city’s 2022 water crisis, the Smith-Wills parking lot was again taken over, that time by the National Guard to be used as a water distribution site. “Jackson Public Schools, because they didn’t have any place to play and were reduced from seven schools to six, so, now you had six schools with only one baseball field, and we said, ‘We’ll cover the cost of that. We’ll let JPS come and play...’ The fact that we allowed both Belhaven and Tougaloo to play here for free,” he said. “We’re happy to do it, and it was a good thing, and it was the right thing to do, but [there was] no revenue coming in.” All the while, potential revenue streams dried up when Aaron died. “When Hank passed, we were in negotiations to get financing from Major League Baseball and several other organizations,” he said. “With his passing, any revenue that we were going to get was cut off, gone.” To bring in funds, in 2021, Kusche entered into an agreement with the federal government to provide parking to the Veterans Administration. Under terms of the deal, Kusche is receiving nearly $359,000 a year to provide the VA with access to 234 spaces at the parking lot, as well as a security, and shuttle service to the G.V. (Sonny) Montgomery Medical Center. Bennett said even with that contract, he’s not bringing in enough to cover the stadium’s operational costs. Nor was he bringing in enough to pay the rent under his previous contract. Under terms of that contract, Bennett was required to pay the greater of $125,000 a year or 20 percent of all gross marketing revenue generated. He was also required to make about $6 million in initial renovations. Records obtained by WLBT show Kusche made just two payments to the city through December 2023 - a $5,000 payment on July 27 and a $2,200 payment on August 3. Both of those were for “hosting an entertainment event.” The city did not have a record reflecting how much Bennett had done in renovations. However, Director of Planning and Development Jai Keeton told the city council at its January 18 meeting that he had made $3 million in improvements. That’s the same meeting where the council voted to amend its contract with Kusche. Under the modified terms the city agreed to accept some work done at the stadium as “in-kind” donations and partial payments, leaving Bennett owing $100,000. The first payment of $25,000 was due upon the execution of the amended contract, with the next payments due on October 1, 2024, October 1, 2025, and October 1, 2026. Records show Kusche didn’t make that first payment until July 9, for $37,500, some seven months later.
The payment was not made until a week after this website and the Northside Sun scrutinized the lease as well as the lack of payments. Instead of whining about negative coverage, Hizzoner should be grateful to the media for getting his city paid for once since he is obviously incapable of collecting money owed Jackson.
Of course, it is no surprise Kusche has no money to pay rent when it is literally giving away the product for free to schools and colleges. JPS has a budget in the neighborhood of $190 million. It can pay rental fees for the stadium as can Belhaven and the other colleges. It is not the city's job to provide free baseball fields. One more example of why Jackson is always broke, but hey, it's for the children.
Then there is the matter of the V.A. sublease for the parking lot. The profit on the sublease is obviously not enough to pay the rent due the city. However, the question must be asked. Why didn't Kusche pay what profit it did make towards its rent?
26 comments:
Did CJ change his name to Remasters?
Bennett played LeMaster the entire interview. It became so ridiculous at the end that I was expecting LeMaster to get up and give Bennett a hug.
Once again Kingfish does the hard part and then here comes the other media to get the credit.
The only thing that matters in this scandal is the contract. Mr. Bennett had plenty of excuses about not honoring the contract but, no solution to solving the problem.
One more financial failure as the result of graft and corruption.
I am glad you posted this today. I was going to comment under another thread after my experience this weekend. I went to a High School summer league game this weekend at Smith Wills. The game was initially going to be in Hattiesburg but go moved to Smith Wills due to weather. My nephew is a player on a team from North Mississippi. Long story short is the place was a dump. It's flat out in disrepair. There is no way he has spent "millions". Several of the chairbacks were broken, the concrete sections need a pressure washing in the worst kind of way. Gum and dried funk all over the concrete that wasn't just there from 4 teams over the weekend, it had been there a while. The field looked horrible, plus the dirt/gravel on the 1st & 3rd baselines in the outfield caused several players to misstep. The parking lot looked like Gaza. Potholes and loose gravel everywhere. There were extension cords and water hoses everywhere as well. Everything looked just pieced together. My 4 year old daughter commented "why are there so many rocks" about the parking lot. There were random funky shoes next to the giant bbq pit when you walk in. The bathrooms, my wife wasn't going to use the women's, but was told there was no toilet paper if she did. The place just had a funky smell to it and looked run down. I did notice there was some freshish red and blue paint in the entry way, a few plaques of Hank Aaron and I think someone else. But other than that, the place hasn't changed much since I was a little kid. I am 41. No way he has spent "millions". I am pretty well versed in commercial construction, it's simply a lie. I would like to see receipts to back it up as well as sign up to be a sub contractor if he's spending that much. I didn't get a chance to look at the homeless encampments, but the dead pine trees and several derelict scoreboards still up in the outfield are hard to miss. Kingfish, I implore you to go look for yourself.
You know, the Kush business model makes perfect sense if you think about it. Secure lease with City of Jackson. Enter into lease with Veterans Administration for parking lot. Pocket rent payments from VA. Stiff City of Jackson. Take care of the bug guy. Once called out, create the illusion of having been the victim of a bad deal.
But, but, but there are binders of Home Depot receipts.
My wife is an attorney. She watched the interview when it ran during the news and took note when Tim Bennett claimed that he was told by someone unnamed that the performance bond wasn't required. She immediately asked why the interviewer didn't ask for the name of that person and then said she's sure other attorneys worth their salt will also be asking for the name. FWIW.
CJ rips off JJ again. How pathetic.
This is a textbook Jackson scam. If called out raise the "race card" and the mayor's name and you get a free pass.
The $400,000 lighted sign is a digital billboard...that produces revenue.
I would think that if I were dealing with a business entity or with a government agency and I needed to modify or re-work the terms of a contract, I would have precise accounting to justify my request. General assertions of hardship don't cut it in the business world especially when I have a sub-lease paying more than enough to compensate. Is there a spreadsheet or real accounting documentation? Taxpayers deserve that, don't they? Well, outside of Jackson they do.
@9:25.. you are spot on- my thoughts exactly!
Bennett, meanwile, has never gotten a performance bond, as required under the contract.
That was something Foote brought up at a July 1 council meeting, where the Smith-Wills lease again was discussed. The councilman said had the performance bond been in place, the city wouldn’t have had to forgive Bennett’s $500,000 in past-due rent.
“That’s the reason you have a performance bond, so, if for some reason, the vendor is not able to pay, the performance bond, the insurance company, will pay you the proceeds,” he said.
Bennett tells WLBT he didn’t get the bond, but was told by the insurance companies that he didn’t need one.
“The insurance carriers have said the performance bond is when you’re taking on a construction project,” he said. “Then you need a performance bond, [so] if you don’t complete the project as you’re supposed to, the performance bond kicks in to pay whatever was supposed to be allocated for that... project.”https://www.wlbt.com/2024/07/25/3-your-side-investigates-off-base/
Bennett says some insurance companies told him performance bonds are only for construction projects?
How could a person not think that some or all of that could be possible?
On the other hand, there are at least a few examples of City of Jackson requiring performance bonds on service contracts. (Whether or not the bonds were ever provided could be a question.)
1: The City of Jackson's Emergency Agreement For Solid Waste Services with Richard's Disposal dated February 17, 2022 specified that withing 5 days of the signed contract and the City's Notice to Proceed the contractor will furnish and provide to the City a performance bond in the amount of One Million Dollars to secure contractor's performance of the Agreement. ( See #11 Performance Bond.)
2: The proposed Agreement for Solid Waste Services between City of Jackson and Richard's disposal presented to Council in March of 2024 also included the requirement for the contarctor to provide a performance bond.
The proposed amount of the bond was 30% of the estimated annual compensation to the contractor under the agreement. Possible numbers could be $891,000/month X 12 months X 30% = BONDED AMOUNT OF $3,207,600. See 11.2 SECURITY; LIABILITY; DAMAGES
Did Richard's provide performance bonds? Perhaps someone should check into this.
Is Kusche Sports Group more special than Richard's Disposal?
Didn’t Bennett leave unpaid Smith Wills lease payments to Jackson when he was involved with the Diamond Kats? There was a reason Harvey wouldn’t fool with him a few years later on a stadium for the Braves.
Notice the ironic correlation between the slum hotel folks (OYO etc.) and the city. It's the same scheme: 1 obtain a property that is no longer in its prime but still has some potential with a little investment; 2. invest as little as possible into the property while squeezing every possible penny you can out of it until someone comes in and says it has to be torn down.
The truth is that none of what Bennett, Lumumba, WLBT, or Kingfish should matter at all. There is a contract and the contract should do the talking. Both sides should honor and enforce the contract. The city has failed in enforcing the contract and collecting what they are owed. The city is incompetent.
Jesus, WLBT trying to make Tim Bennett look better.
>“We started taking on those responsibilities financially, and, as you can see to this day, we continue to take on those responsibilities,” he continued. “I’ve got over $40,000 just in equipment [to] maintain the facilities.”
>All the while, Bennett has been doing the work with little to no revenue coming in.
I don't think anyone accused you of being a good businessman, Tim.
Why has no one looked at the law? 38 USC 8109. Requires, since '86 amendment, for any VA parking lease over 100K a year to collect parking fees from employees, but not veterans (eligible VA patients) or volunteers. Any evidence that there was a justification packet in records from VA Regional Office? If so, has there been any effort to collect the fees for reimbursement of US taxpayer funds? Required by law? All these schemes are tied to 1979 Carter Administration policies on "urban sites" for Federal buildings and facilities (with incumbent opportunities for side gigs, such as the inevitable parking costs, nearby minority businesses, and setasides for "traditionally disadvantaged" persons). Think. Dig. Easy GubMint money for "Friends."
Has this not been reported to the GAO? They would be interested, I would think.
Cato kept standing up in the Senate and saying over and over "Cartago delenda est!" Carthage must be destroyed! My version of that, which I have added to the comments over and over, is "Jackson must be put into a receivership!"
Bennett is not evil, but he is way too dependent upon the assumption that government at all levels will overlook his failures as an entrepreneur. Until Jackson is jerked into modernity as a corporate entity, this sort of dependence will always bear fruit.
“I’ve got over $40,000 just in equipment [to] maintain the facilities.”
Good Lord! He must be counting two zero turns and a small John Deere lawn tractor with a blade. mower! Meanwhile, a mini excavator, required for large property maintenance, will run upwards of sixty thousand dollars.
July 29, 2024 at 9:25 AM
+100,000
I don’t believe a word Bennett said
Standards are relative. Using Jackson, Mississippi standards, the property has been well maintained and could be considered a showplace.
I am certain Belhaven had a signed lease and was making payments before Bennet blindsided them by shutting them out of the stadium, leaving Belhaven to go pay to use Trustmark Park.
Sure would make a perfect spot, for a brand-new state-owned, state-controlled Thalia Mara Hall, being that it's STATE LAND. Mississippi shouldn't risk losing the International Ballet Competition.
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