Monday, May 6, 2013

Is Full Spectrum trying to squeeze Hal and Mal's?

Everyone got stirred up over the weekend as the Mississippi Business Journal and Clarion-Ledger reported Jackson icon Hal & Mal's might have problems with its lease. The MBJ reported Friday:

"Owner Malcolm White said he wants the business to “stay and continue to be the cultural center of the redevelopment of downtown” but insisted: “We want our lease back.”

White, who lost his brother and business partner Hal White to a fatal brain aneurysm in late March, has been operating under a month-to-month arrangement with new landlord Full Spectrum South for the past several months
.


It’s an arrangement White said he wants no part of and believes the State of Mississippi put him in a very uncomfortable position by taking away his lease to the circa 1923 train depot on Commerce Street he has occupied for 32 years...."

Mr. White spoke to JJ Saturday morning. The Whites started leasing the building over thirty years ago. The lease is $2,000 per month. However, the Whites spent over $250,000 renovating the building when the lease began. Mr. White said the building had no electricity, no plumbing, no running water, or rooms. They were leasing a shell, a dilapidated husk. He said they "poured in sweat equity and money" into the building. The result was a Jackson tradition loved by many.

Mr. White said he wants to purchase the building. A bill in 2011 gave Full Spectrum the rights to manage the Old Capitol Green site on Commerce Street. The site includes Hal and Mal's. Full Spectrum became the landlord. Unfortunately for Malcolm White, there is Full Spectrum does not have the authority to sell him the land. The legislature will have to change the law before Hal and Mal's can actually purchase the building.

Mr. White said he has not met with Full Spectrum in eight months. He said he is on a month to month lease. Hence Full Spectrum can terminate the lease or raise the rent at any time. Needless to say, Malcolm White does not like being at the mercy of Full Spectrum. He said he will move Hal and Mal's if the situation ever becomes untenable. He said the next generation of White kids if already working at the restaurant, preparing for the day when Mr. White finally gives up the St. Paddy's Day baton. He said Hal and Mal's does not occupy the entire building. He rents out the remaining space to artists and other tenants. Some of the tenants have resided there for decades. He said he has no interest in negotiating with Full Spectrum. He said the only reason the story was reported by the media was because Full Spectrum contacted the media last week.


Full Spectrum. Regular readers will remember that company as we've busted them here before on this website. Full Spectrum is a company that presented some pie in the sky plans to develop Commerce Street to the city, state, and county. Office buildings. Apartments. New-fangled garages using robots. The plans were pretty. Jobs, jobs, jobs. The problem was, Full Spectrum never obtained any financing. The company refused to provide any tax returns or financial statements to Hinds County for over six months- while it asked for a loan of $17 million to build a parking garage. Malcolm Shepperd told the supervisors Full Spectrum gave that information to the Jackson Redevelopment Authority. JJ learned from discussions with JRA and public records requests submitted to JRA that Full Spectrum never provided such "information" to JRA. Strike 1.

The county demanded Full Spectrum provide tax returns, audited balance sheet, audited income statement, and commitment letters from tenants by a deadline or else it would not provide the $17 million loan for the garage. Full Spectrum submitted the documents literally only a few minutes before the deadline expired. They did not include the required commitment letters but only letters of interest from prospective tenants. The Hinds County Economic Development Agency voted against providing the loan by a 10-2 vote.* JJ learned from several sources that the amount of money Full Spectrum had was less than $20,000. Strike two. But Full Spectrum has another story cooked up for the media. MBJ reported:

"Shepherd said $20 million developers had been allocated by the state would trigger an additional $30 million in new-market tax credits to help cover the costs of the development, which was to feature a 129-unit residential building, an 88,000-square-foot office building, a 480-space automated parking garage and retail space....

Developers also tried to engage Hinds County officials for financial support. But the county backed out, saying such support would be too risky to taxpayers and that developers didn’t give sufficiently detailed information about the project.

Shepherd disputes that claim. The delays over the county’s role caused the state to reclaim the $20 million to strengthen its bonding capacity, meaning that and the tax credits were lost, Shepherd said
."

Yes, everything would have been peeeerfect if the county had just given him his $17 million. He doesn't provide any evidence of the tax credits. Some correspondence with those who do provide such credits would be nice. In case you haven't noticed, Full Spectrum never provides any documents or evidence to support their claims. The one time they did submit financial statements and other information is when the county took a hammer to Full Spectrum. Strike three. However, Mr. Shepherd has more ideas. MBJ reports:

"Shepherd, meanwhile, says he wants to see White show an increased willingness to negotiate. “He is the one who has been delaying his future,” Shepherd said, and claimed Hal and Mal’s “has not kept up with” required tenant improvements.

Shepherd said he plans to “reposition” the building to increase the number of apartments from there to 10 and add a second floor artist workshop.

“We need more mixed use in the building” he said, while emphasizing he had no plans to convert any of the space now used by Hal & Mal’s.

The legislation conveyed the lease with a “non-recourse” provision, meaning any disputes over the lease must be worked out between Full Spectrum and Hal & Mal’s.

Under terms of the lease, Full Spectrum would have to give Hal & Mal’s six months notice for an eviction.

The lease transfer authorized by the state requires that Full Spectrum initiate improvements on the train depot building within five years from July 2012. Otherwise, control of the lease reverts to the
state
."

They know more about developing Hal and Mal's than does Malcolm White? Uh-oh.

Editorial note: One can not trust or believe anything Malcolm Shepard says or any statements made by Full Spectrum. This website has busted him lying on the Old Capitol Green project several times. He tried to avoid giving the county any financial documents whatsoever while he tried to obtain $17 million. In my opinion (that is my opinion, not statement of fact), that money would have somehow disappeared as there would have been delays and other problems with the construction of a garage. If a company tries to avoid letting you see its books while taking money, its a safe bet to say something is not quite right with that company. These guys have very little money according to what they submitted to Hinds County. The talk of new market tax credits and additional government financing is just that- talk. Smoke and mirrors.

Advanced Environmental Consultants obtained a $26,520 default judgment against Full Spectrum in 2010. The landlord for its office, Stimley-Brown law firm, sued the company several years ago for not paying rent. The lawsuit is still alive in Hinds County Court. The simple truth is Full Spectrum has little or no money. They are now trying to screw up one of the things downtown that does work- Hal and Mal's. It was Full Spectrum who contacted the media last week or else there would be no story in two publications.

 These guys are feeling the heat and are trying to do anything they can to squeeze money out of this project. Good luck, Mr. Shephard, if you run off Malcolm White. You have any clue about the backlash you will receive if that happens. That man has done more for downtown Jackson than you ever thought of doing, even with your fancy pie in the sky designs. Mr. White never used smoke and mirrors or told stories. He just rolled up his sleeves and got to work. He built something. He didn't run around in nice suits trying to be a hot-shot developer. He just developed. You should try it some time instead of screwing around with people who have actually created something. Old Capitol Green will never happen. The project is dead. Full Spectrum will not obtain financing, tax credits, money, whatever they want to call their flavored financing of the month. Full Spectrum needs to go away. Period.

Supes pull out of Old Capitol Green (video)
Another nail in the Old Capitol Green coffin
Mo' Money but no papers"
Old Capitol Green Update
Old Capitol Green has not provided financial statements to county
Landlord seeks to evict Old Capitol Green


*Only two members of the board are white. Some members of the black community have tried to scream racism over the decision. Um, yeah.

25 comments:

Anonymous said...

The county demanded Full Spectrum provide tax returns, audited balance sheet, audited income statement, and commitment letters from tenants by a deadline or else it would not provide the $17 million loan for the garage.

Have they ever produced audited financials?

Anonymous said...

Whatever happened to Carlton Brown? As I recall, he's the CEO of Full Spectrum, and had at least some degree of success with development projects in other places. He hired Malcolm Shepherd to handle the local politics back when Full Spectrum won the RFP to develop the site. If Shepherd is now essentially running the company on his own, that's interesting.

Dante said...

Full Spectrum has bought a lot of friends in the non-profit world promising free rent and financial support.

Those of us who've been on boards since the beginning know that their promises have been empty there as well.

Robert Graham School of Police Impersonation said...

Can't think of too many stupid political moves that will unite both sides of the aisle faster than f'ing with Hal & Mal's.

Anonymous said...

Hard to believe that a bill was pass by the State leg. giving rights to deveopment downtown Jackson to Full Spectrum.That can not be the way this really happened.There has to be a middle man agency in there some where.

Seventeen Blues Clubs!!!!!! said...

White wants to be the cultural center of downtown revitalization? Cool. Now's a perfect time to move to Farish Street. Same goes for Jeff Good and Donna Vlad. All these people that spew sunshine and roses when discussing downtown need to put their money where their mouth is.

How about we get that entertainment district started off with Hal & Mal's, Sal & Mookie's and the offices of the JFP, then worry about BB King's and the new Subway?

Anonymous said...

What is Shepard's motivation for going to the press? Anyone know what the bill number was for the 2011 legislation?

Anonymous said...

12:17 -

Maybe your questions were rhetorical or sarcastic; I'm not sure.

But I wouldn't go to Farrish Street at night, for Hal & Mal's, or anything/anyone else. Why?

Because it's a block away from crack-ville. Dangerous. Stupidly dangerous. Nice brick streets and new buildings? So what? I'm not taking my life in my own hands to go hear a band.

Anonymous said...

Let Mr. White sink or swim in his best efforts to make his best business deal. And let him do it without public hoopla, petitions and phone calls from Ben and the boys. Nobody owes him shit.

I dropped out of the Mal White fan club the same day I dropped out of the 'Sweet Potato Queens' Shit Don't Stink' club. Jackson nor the Metro owe these self absorbed tap-dancers anything at all. I don't know of any other metro-area police department that would put up with that many drunk drivers weaving away from the place if it were to relocate.

frank said...



4:oo Probably if you had done as much the last 25 years to help the city, state, Children's Hospital as Mal has you would not come across as such as stupid prick.

Anonymous said...

hear hear!

Anonymous said...

You need to cut off this sniping Kingfish. Do we need to contact Mr. Brown for a new column to restore order?

Anonymous said...

Stand-Down cheerleaders. Mr. White is a big boy. He no more gets a free pass than Leland does.

Anonymous said...

Check out the Hinds County taxroll online on this property. Wow! Others pay taxes while H&M skates.

Anonymous said...

6:01
Please tell us ?

Anonymous said...

He no more gets a free pass than Leland does.

You REALLY ARE an IDIOT. Leland Speed hasn't received any free passes downtown -- NONE certainly remotely close to the great many other no-skin handout scam artists -- and Mal ain't asking for one either.

LOSER.

Anonymous said...

HEY K.F.

Is it confirmed that Full Spectrum is actually driving the bus? Or is this just another claim?

Looks like there are 17 Leg. bills from 2011 to go through, which I will do later today unless the bill number with cite is posted here first.

Anonymous said...

Enough said-

http://www.co.hinds.ms.us/pgs/apps/real_property_billing_roll_list_detail.asp?ID=11930015001

Bottoms Up! said...

The pass Leland always gets is in the form of people like 6:20. They harp on his contributions over the past ninety years so whatever he proposes therefore ought to slide through like poop through a goose's greased colon. Then we have the same harpies yacking about Mal's contributions, therefore, he ought to get a pass when he gets in a tight spot.

The unfortunate reality is that place of business has done more to contribute to delinquency, drunk driving and poor choices than any other venue in the Metro. Don't like it? Lump it.

chris myers said...

The comments on this site never cease to amaze me. Hal & Mal's is an institution. Period. The White Brothers believed in downtown Jackson when no one else did. They worked hard and have created a place that I've never hesitated to send out-of-town visitors to. A pass? Hal and Mal deserve a medal.

If you don't like it, enjoy your time at the O'Charley's bar in Pearl. The rest of us will be sitting at the Hal & Mal's bar, sipping on craft beer, listening to local live music, and eating some of Hal's famous seafood bisque.

Seventeen Blues Clubs!!!!!! said...

Geez, Chris. How do you breathe with your nose buried so deep in Mal's posterior?

Hal & Mal's is a fine place, but it's not the "institution" you make it out to be. I've never had a bad meal, there, but I've never had a great one either. The food is OK, but it's right on par with other local joints (except they do make some fine red beans and rice). The menu is incredibly narrow. If you don't want a sandwich or a burger, then good luck.

The reason Malcolm (and Jeff and Comrade Donna) won't move to Farish is precisely the reason May 6 1:04 said...it's a block from crack-ville and no one wants to take their kids or their parents or their best girl down there after dark. It's really easy to tout downtown Jackson from Fondren or Banner Hall or Highland Village. It's entirely another thing to put one's business and the safety of one's patrons on the line by relocating to thugland.

I dare Donna to move the offices of the JFP to Farish and to work late nights there without protection, since crime is such a perception and anyone who doesn't swallow the downtown Jackson paradise line is a racist. Right, hun?

BTW, does anyone remember that Celebrate Jackson campaign that kicked off 11/14? What happened there? More wasted money, methinks.

Anonymous said...

Unbelievable! This ia a joke,right? Malcolm benefits from the fundraiser every year! All that money does not go to the children! Lets get the facts straight! It helps the Whites pocket and a little goes to the charity! Also, too bad too sad the Whites improved a building they did not own! Sounds like a bad business decision to me! He deserves no more than anyone else and I sure as hell would not eat there! It's nasty! Sorry all you downtown Jackson butt kissers! Get a real cause instead of a lost cause!

Anonymous said...

There was a cartoon goin' around during Obama's first election run. Featured a festooned, colorful little Tinkerbell-looking 'guy' playing a flute, dancing through town with a long line of childlike followers, dancing along, following blindly. Obviously the suggestion was the Pied Piper about to lead the gleeful followers off the edge of the cliff.

This is how I see Mal White. Assumed to be a paragon of virtue and man of great sacrifice, leading all the craft-beer drinkers and mid-lifers into the den of iniquity.

Looking forward to Kingfish's radio program.

chris myers said...

So, if someone isn't up for moving their business to Farrish Street, they're not legitimately pro-Jackson?

That's absurd.

Anonymous said...

Look, I don't think Malcolm White deserves any greater consideration than do any of us, but Full Spectrum is damn near a criminal enterprise - a shell company with a few bucks and fancy plans that hopes to convince gullible, unsophisticated city and county officials (with names like Stokes) to cough up money for promises and "good faith". It is to the county's credit that they said no.

White is in a bad situation and Full Spectrum has no more business being his landlord than Donald Trump does. If he wants to buy the building, the legislature should allow that at a fair price, with consideration for his improvements, and cut the interloping Full Spectrum out.

I'm no Mal White fanboy. I find self-appointed "saviors of the city" like him and Jeff Goode tiresome, but he shouldn't be penalized for running a successful business, especially by a charlatan who doesn't have the better interests of the city in mind.



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