Wednesday, February 27, 2013

Short Sheeted via Term Sheet



Public Thrown for Loss in (nearly)Free Falcons Stadium?

By Al Gray


Georgia Dome to be Torn Down for new Falcons Stadium




About two months ago, a “term sheet” was signed by the Georgia World Congress Center and the Atlanta Falcons to build a new retractable-roofed stadium for their pro football team. After the travails that followed the notorious Augusta Tee Center Term Sheet, the mere mention of that phrase was enough to raise eyebrows.

The thought came to mind “What if……?” What if it was a one-sided deal against the public? What if the consultants’ reports were not analyzed? What if the cost to the taxpayer was a whole lot greater than advertised? What if the legalese meant huge opportunities for cost-shifts to the public? What if media was silent because of the team owner’s position on the board of the Atlanta newspaper’s parent company?

The deal was too huge and the possibilities too big to ignore, so this author performed a month long investigation on the reported stadium costs versus what the documents showed. The report that came from this effort is the inaugural article in agraynation.com, the multimedia blog born out of the Augusta Project, that work being a year-long series of investigations and articles that appeared in City Stink and the Augusta reform Facebook pages. 

The Falcons say they are paying $700 million of the $1.2 billion cost.

Are they really? Or is this another prank of being short sheeted via term sheet? Will the weary public think it is turning in to a warm comfy bed, only to find all openings denied?


Most of the cost is all ours.

There is a big rush to get this deal approved ASAP.

Stay tuned.

Monday, February 11, 2013

Corporal Gripweed: Sometimes Gridlock is Good

Monday, February 11, 2013
Augusta, GA
By Corporal Gripweed
"That which is right will become popular,and that which is wrong will soon lose its temporary popularity, and sink into disgrace".
                Thomas Paine.

There are certain words and phrases that have become popular in recent political discourse. Words like; moderate and bipartisanship . Phrases such as "reaching across the aisle", and "avoiding gridlock."
   Gridlock…I've always loved that word…Thomas Jefferson wrote  that "Government which governs least, governs best".

I submit that in some cases, gridlock is a good thing. The recent vote on the TEE Center skywalk which would connect the parking deck to the TEE Center across Reynolds Street, is a perfect example.The Commission voted 4-4 to deny funding for the project. 

In this case, the so-called "boogeyman" of gridlock worked as it should have. It is no secret that I, and many of my compatriots here at CityStink.net have never thought this project to be a wise use of taxpayer monies, especially given the fact that we were to absorb all of the expenditures but reap virtually none of the profit, if any. Under the current contract with Augusta Riverfront LLC, the owners of the Marriott and the contracted manager of the TEE Center, the taxpayers are guaranteed only a measly 5% of the catering receipts after a $400,000 threshold is reached. 

This last point is a slap in the face to taxpayers as we have already spent $1.4 million on the kitchen that will do the catering. My guess is, this threshold will not be met regularly, meaning that the city (the taxpayers) receives 0%. But what is more distressing is the fact that two of Augusta's "freshman" Commissioners, Mary Davis, and Donnie Smith voted, "No," on the motion to deny the expenditure for the skywalk , which means they are in favor of spending more money we don't have for something we don't need.

So much for the Augusta Chronicle's glowing assessment that Mrs. Davis and Mr. Smith would quote,"shake up the Commission". Already they have shown who they are working for. And in this case it does not seem to be the taxpayers.

On the other side of the equation we have the other two newly elected Commissioners, Marion Williams and Bill Fennoy. Because I'm a conservative, I'm guessing that my political ideas on a national level are very much different than theirs, but on this one they got it right. In particular, Mr. Williams who rightfully pointed out that we should not spend money we don't have on something that hasn't yet shown itself to be worthy of that expenditure. Sounds prudent to me. In this case Mr Williams sounds like the fiscal conservative.

On top of all of this we are supposed to believe that well educated executives and those bright enough to be conventioneers can't cross a semi-busy street in a modest sized city where there are two crosswalks with signals?…Indeed.

My suggestion is, if Billy Morris, Paul Simon and Augusta Riverfront LLC truly appreciate the incredible $65 million gift given to them by ARC taxpayers and facilitated by city administrator Fred Russell with the help of outside counsel Jim Plunkett ,then they should be willing to pay for their own skywalk. After all, they are already advertising the facility as the "Marriott Convention Center".

Moreover, we the taxpayers, could very well be on the hook for the yearly management plan of the TEE Center, soon to be voted on by the new Augusta Commission. A worrisome prospect given the recent exuberance by some commissioners to hand over the keys to the public treasury to the detriment of the citizens of Augusta.

My advice to newly elected Commissioners, who recently voted for re- opening the city's purse, yet again,would be; To rethink your stance…And do what's right…not what you think might be popular among the "ruling elite" .***
CG

Friday, February 8, 2013

Escalating School Board Legal Fees Raise Questions



Friday, February 8, 2013
Augusta, GA
By Thomas Easton

Yes, the good people at CityStink.Net and Augusta Watchdogs have been somewhat dormant recently but we felt with the New Year after a nice holiday break we would continue our investigations into what is ‘right versus wrong’ in Augusta and its surrounding areas and ask all those questions some say local media won't or can’t ask.
After reading the recent article in the Augusta Chronicle article from January 19th of this year, “City Continues To Use CostlyOutside Counsel Despite Staff Attorneys” article about all the money being paid by  Augusta Richmond County for its legal services.  It started our collective investigative juices flowing.  We definitely could argue about the amounts paid out by the Augusta Richmond County for some of these services seem to be rather high especially when taking into account the actual service rendered, but this article is not about that.  

It is about good management of a vendor.  It is the requirement of any good client to manage its vendors for a profitable relationship by both parties.  In this case, the client: The Richmond County Board of Education (RCBoE) does not ‘manage’ its client-vendor relationship with Fletcher, Harley & Fletcher LLP.  The information we received was from records requests as well as the external study Performance Review of the Richmond County School System, March 12th 2008.   
   
Our various records request dealt specifically to the fees paid to Augusta based Fletcher, Harley & Fletcher LLP.  You ask why we just chose Fletcher, Harley & Fletcher LLP? Well, they are the only legal firm providing services to the RCBoE and now the Columbia County Board of Education (CCBoE).  The amounts paid out for legal services by the RCBoE are high, and it is believed this is because RCBoE is not managing  its business relationship with Fletcher, Harley & Fletcher LLP as efficiently as it could and their is a lack of oversight and protocol.

Fletcher, Harley & Fletcher LLP has been providing legal services to the Richmond County Board of Education for over forty years (this is proudly displayed on the firm’s web site) and started representing CCBoE as counsel in 2007.  They are an established Augusta based legal firm specializing in Banking and Investment, Bankruptcy, Corporate Business, Education, and Environmental & Natural Resources.

Since this article is about the management of the client-vendor relationship, it does in the end come back to the effective use of the taxpayer’s dollars.  The taxpayer has demonstrated a ‘blind’ trust in that the elected and appointed officials of the RCBoE to judiciously carry out policy and supposedly ensure our children are getting every advantage for every dollar spent  However, the question is exactly how good is this stewardship  when it comes to effectively managing the public’s trust, the interest of the children as well as tax dollars?  

The information regarding the spending of tax dollars for legal services surprised us.  We were amazed over paying so much money for legal services when actual student populations are decreasing.
Here are the RCBoE legal costs from 2000 through 2011:

The legal cost for this twelve year period totals out to be $5,842,460.02 for a twelve year annual average of $486,871.67.  Unfortunately we were unable at this time to receive the actual invoices for billed services from RCBoE to show the actual services rendered, actual hours, how they were billed or guidelines for use.
Since this is will be an ongoing investigation of the RCBoE very similar to our investigative work into TEE Center and TEE Center Parking Deck fiascos perpetrated by the bad management practices of City County Manager, be prepared for more revelations in the weeks to come.

In closing, based on our work so far on the RCBoE, we ask this one question that individual citizens of Augusta Richmond County may want to ask the RCBoE as well as individual elected officials, Does RCBoE have a procurement process for legal services or any services and if so is it documented where all individuals are trained on it?***
T.E.

Stay Tuned..More to Come

Thursday, December 20, 2012

New Stadium Did Not "Slip Away" From Augusta


Thursday, December 20, 2012
Augusta, GA
By The Outsider

Project Jackson. It sounds like a top secret military program, and yesterday some of its details were declassified in a public presentation in North Augusta, SC. It turns out that all of the rumors flying around last week were true: there indeed is a plan to move The Augusta Greenjackets across the river  --- and  a proposed new stadium will be a centerpiece of Project Jackson.

The response to this news ranged from enthusiasm, confusion, and hand wringing -- depending  on what side of the Savannah river you are on. A riverfront ballpark has been debated for more than six years, but up until now, the discussion has always centered on a location along the downtown riverfront on the Georgia side of the river. Yesterday's presentation revealed the most specific proposal to date for a new stadium for the Greenjackets. Here is what we now know:

The Details

Ripken Baseball will be selling the team. The new owners will be an Investment Group  known as Agon Sports and Entertainment. One of the principals of this new group is none other than Jeff Eiseman, the past President of The Augusta Greenjackets under the Ripken group.

Project Jackson will be more than just a ballpark. It includes over $110 million in additional private developments that include a luxury hotel, apartments, town homes, restaurants, retail and office space.

The public sector is expected to chip in 30% of the cost of the project, totaling around $43 million. This would include the cost of the stadium, a conference center, and a riverfront park.

Despite the move to South Carolina, the new team owners expect the name to remain The Augusta Greenjackets.

This is just a proposal. There is no guarantee the stadium will be built. Depending on what funding mechanisms are used, voters could reject the stadium in a public  referendum. Also, some nearby residents of the affluent neighborhoods of Hammonds Ferry and The River Club have expressed concerns about noise, congestion and light pollution from a stadium. So, this is not a done deal by any means.

A Collective Whine

As soon as the details of Project Jackson emerged yesterday in North Augusta, you could practically hear a collective whine from across the river. An article on the stadium proposal appeared yesterday on the Augusta Chronicle website and  received over 100 comments by the end of the day.  Generally, people who were proponents of a new stadium on the downtown Augusta riverfront viewed the news as a major defeat and wanted to point the finger of blame. To paraphrase some of the comments from those wringing their hands over the announcement : "Augusta blew it,"  " Augusta just lost a great opportunity", "This idea was just too big and progressive for the people of Augusta" and "would the last person leaving Augusta turn the light off?" 

Some people wanted to blame Augusta commissioners for supposedly "letting this great opportunity slip away."  That blame is misplaced. For more than six years, Augusta commissioners have asked for a specific proposal from the Ripken Baseball group and the mayor. Those specifics never came. Instead, all Augustans got were vague sales pitches of  "Multi-use facility" and "public/private partnership". The Ripken group was intentionally coy about how much of their own money they were even willing to invest in the project. In fact, after the dozens of meetings Mayor Deke Copenhaver and City Administrator Fred Russell held with Ripken Baseball officials, not once did they produce a concrete proposal like the one that was revealed yesterday in North Augusta. Not once were actual costs presented to the public and Augusta commissioners. All we got was a six year long sales pitch for a product we never even got to see.

Show Me The Money!

It was obvious that the Ripken group had their eye on the former Golf and Gardens property  almost as soon as they purchased the team -- perhaps even before. When the state of Georgia announced that the downtown golf themed attraction -- that never even fully materialized -- would be closing, the sales pitch for a baseball stadium at the site began almost immediately. But instead of making an offer on the property when it was available, the Ripken Group stalled and teased the public with pretty conceptual water colore renderings. They created a "Bring Baseball Downtown" website that was supposed to look like a public grass-roots effort. They talked about possible condos, and all sorts of goodies, but with no specifics and  more importantly, no actual dollar figures. The trite term "public/private partnership" was continually batted around, but with no specifics of how much the private sector would invest into the project versus the public sector.  And after the recent debacle of the "public/private partnership" between the city of Augusta and Augusta Riverfront LLC over the TEE center and numerous other failed downtown boondoggles over the years, that term naturally sounded  off alarm bells in the minds of taxpayers from Washington Rd to Willis-Foreman Road.

Several years ago Mayor Copenhaver  asked commissioners to commit to acquiring the Golf and Gardens property from the state of Georgia for potential use as a site for a new baseball stadium. This would have cost the city $millions more for a property that it had already sunk $6 million of SPLOST money into for the failed golf and gardens attraction. Commissioners were naturally hesitant, especially when Ripken Baseball was still unwilling to give them more specifics. So time went by .. and the Ripken Group never made an effort to acquire the Golf and Gardens property on their own, and they still never brought a specific proposal forward to the commission. Instead they engaged in back room meetings with the mayor and city administrator and went on a prolonged six year tease with the public. We kept hearing reports over the years that a "big announcement" was imminent over the ballpark.. but nothing ever materialized. Bottom line is, Ripken Baseball and the mayor had six years to make a presentation to the public like what was done yesterday in North Augusta, and they never did.

Augusta is the Big Winner

Despite all of the hand wringing from some, the city of Augusta stands to be the big winner if Project Jackson   happens. The metro area will still have a minor league ball team, and that team will still be called the Augusta Greenjackets. This team will have a new state of the art facility much closer to downtown Augusta than the current one at Lake Olmstead. But the best part is that  Augusta taxpayers will not be on the hook paying for any of it.

And the private aspect of Project Jackson -- the hotel, the apartments, the town homes, restaurants and retail and office space -- is what is expected to  pay for the ballpark. That was a crucial missing element from proposals floated for the Augusta riverfront. Initially, six years ago, we did hear about the possibility of a mixed-use development, but talk was always vague and never as specific as what is being proposed in North Augusta. As the years went on the proposal for the Augusta riverfront started to be called a "multi-use facility", which is a big difference. This basically means they were pitching a baseball stadium that could be used for other events like weddings and concerts. The talk about a mixed-use development, including upscale condos and restaurants, seemed to have completely disappeared from the discussion and the sales pitch from the Ripken Group.

And it is not like the Golf and Gardens property on the Georgia side of the river will sit fallow. It is slated to become the site for an exciting expansion of the new merged University. This will include student housing, research and teaching facilities and even possibly a performing arts center. So downtown Augusta stands to benefit from two big projects: a ballpark and town center complex right across the 13th street bridge and a new university campus in the heart of downtown. If commissioners had of committed the city to acquiring the golf and gardens property for a ballpark, downtown Augusta would have ended up with far less... likely only a taxpayer subsidized stadium that would sit vacant most of the year. In this case, Augusta gets to have its cake and eat it too.

Even Mayor Copenhaver had to admit that this news might be good for Augusta:


And what if Augusta taxpayers had built the Ripken Group a new stadium to keep them in town? Well, it appears, based on yesterday's announcement, that may not have even have made a difference. The Greenjackets are getting a new riverfront stadium, but yet the Ripken group is selling the team anyway. What guarantees did Augusta have that building a new stadium would have kept Ripken baseball and the Greenjackets in Augusta? None.

Perhaps former Augusta mayor Bob Young summed it up best in a comment he posted to Facebook earlier in the week when the details of Project Jackson started to emerge:
"Time to put down the Kool Aid and have a reality check. 
First, North Augusta is going to develop a project with a baseball stadium that requires about 4 times the public investment stadium supporters in Augusta were talking about. This tells me that the true cost of this project is finally seeing the light of day. Second, Ripkin is selling his team, even though he is getting a new stadium. What's with all of his talk about loyalty to Augusta? Folks, if the people of North Augusta want to go on the hook for this, more power to them. 
Augusta's challenge now is the stadium on the lake. It's bought and paid for. The city gets control back when Ripkin leaves (remember, the contract gave Ripkin control over all uses of the park, not just baseball.) New home for our local college teams, perhaps?"
Indeed. The challenge for the city of Augusta is what to do with Lake Olmstead stadium. The city owns the facility free and clear, and now with complete control of it, Augusta can receive all of the profits generated from events and concessions. Maybe it's time the city started marketing that facility. The other option is to lease it out to the new merged university for college sports. Either way, the city is in a much better position in regards to controlling its asset at Lake Olmstead and reaping the benefits from it.

But officials should not jump the gun, So far, Project Jackson is merely proposal, and North Augusta citizens could give it the same icy reception that Augusta did with talk of spending tax dollars on building a ballpark. Also, there may very well be a push back from residents in nearby  Hammonds Ferry . It's still very early in the game, but by all appearances it looks like North Augusta officials went about this the right way. They came up with a specific proposal first with actual cost figures and who would pay what... and now they are pitching that to the public. It's the complete opposite way Ripken Baseball and the mayor went about handling selling the downtown stadium proposal.

The challenge for North Augusta officials now is to make sure that the private sector keeps their end of the bargain. As we have reported in previous stories, when cities build new stadiums on the promise of adjacent private development, it often does not materialize or not to the extent as promised. If North Augusta is going to commit $43,000,000 towards Project Jackson, taxpayers will want to be confident that the private development will come and pay back the public's investment. That means North Augusta officials need to insist on clauses in their partnership agreement that stipulates a time frame for construction of the private portion of  Project Jackson, with financial penalties if the private sector breaks their promise. Luckily, North Augusta does not have the incompetent Fred Russell as their city administrator.. so we expect they will negotiate a much better deal for the taxpayers.

The end result of Project Jackson is that it may finally help unify both sides of the Savannah River. Hopefully it will also make Augusta leaders  look at how North Augusta handles planning and negotiating these big projects, and they will learn something. You could say that both sides of the river could view this as a home run.**
OS

Wednesday, December 19, 2012

Commissioners Nix BID and Bridge to No Where


Wednesday, December 19, 2012
Augusta, GA
By The Outsider

The Mayan calendar supposedly predicted that the world would end at the  close of 2012, but perhaps what they really meant was that Augusta's controversial downtown Business Improvement District and the frivolous TEE Center sky walk would  have no future. In a marathon meeting yesterday, the last of 2012, Augusta commissioners decided not to renew the BID and its companion CADI (Clean Augusta Downtown Initiative) and the proposed "Bridge to No Where" spanning Reynolds street connecting the new convention center and its parking deck failed to receive the needed 6 votes for approval.

Bye Bye BID

Perhaps receiving the most attention at yesterday's meeting was the proposed renewal of the BID. Up until the last minute, it was not even certain if the DDA had secured the needed 110 signatures from select downtown property owners to even bring the item before the commission for a vote. As of late last week, they were 20 short, and they received a major blow when the largest property owner in the district, William S Morris III and his related companies, came out against renewal. But late on Monday, the DDA miraculously pulled the necessary signatures seemingly out of thin air, getting 4 more than the minimum necessary. But that did not sway commissioners. Wayne Guilfoyle, Bill Lockett, Alvin Mason, Joe Jackson and Joe Bowles all voted against renewing the controversial program. Commissioners Matt Aitken, JR Hatney, Jerry Brigham , and Corey Johnson voted to keep it. Outgoing commissioner Matt Aitken made a motion to renew the program with new provisions, but it failed to receive 6 votes for approval.

Critics of the BID maintained that just because the DDA managed to  scrape up the bare minimum of needed signatures to bring it before the commission did not mean that it had the support of a majority of downtown business and property owners. Robin Schweitzer, a downtown business owner, spoke out against the BID at yesterday's meeting and pointed out that it did not cover all of the Central Business District and was purposefully gerrymandered to insure its passage in 2007. But even under the DDA's selectively hand drawn BID, they were barely able to get the  minimum number of signatures for renewal. Former commissioner Andy Cheek, who served on the commission when the BID was first enacted, also spoke out against renewing it in an afternoon public meeting. He said that the DDA had mismanaged the program from the very beginning and never delivered on their promises to provide enhanced security downtown.

Paul King, a prominent downtown property manager, showed up with a posse clad in bright yellow t-shirts emblazoned with "I'm 4 CADI." Observers noted that most of them were employees of the program and tenants and employees of Mr. King. He appealed to commissioners to save the program, admitting that some mistakes were made but gave no specifics how the program would be corrected if continued.  Commissioners questioned the logic of renewing a program with so many flaws and failed promises. Several commissioners questioned how 7 to 9 hourly wage sidewalk sweepers could cost downtown business owners in excess of $350,000 a year and said the entire program begged for an audit. We have attempted to gain access to the books of the BID and CADI for previous stories and have received nothing but stonewalling from the DDA and their attorneys.

Some political observers are questioning why  Paul King was the main spokesperson for renewing the BID at the commission meeting yesterday, instead of DDA director Margaret Woodard, and this lead to people asking who is really pulling the strings at the DDA. We will have more about Mr King  in an upcoming article.

The Bridge to No Where Goes No Where

An agenda item that was expected to gain easy approval yesterday was the proposed sky walk connecting the new convention center to the new parking deck across Reynolds Street; however, it also failed to receive the needed six votes for approval. Championed by Joe Bowles, who had placed it on the agenda, the sky walk was estimated to cost close to $1 million. Bowles said that money that was left over from construction of the deck would pay for it, but others questioned the need to spend that money on something that was not  necessary and instead proposed putting the money in the bank or spending it on something that was actually needed.

With a bit of theatrics, Bowles made an impassioned plea for approval of the skywalk, citing recent pedestrian deaths in Augusta. Bowles said he did not want "to have blood on his hands" if a pedestrian was struck and killed crossing Reynolds Street trying to access the convention center. Critics of the skywalk asked why not spend the money to improve the safety at intersections that actually do have a history of pedestrian fatalities like Washington and Peach Orchard roads. Reynolds Street is relatively safe for pedestrians. Also in a bit of irony, traffic engineers said that a flashing billboard proposed for the skywalk would actually make Reynolds Street less safe for motorists and pedestrians. Under the management agreement for the convention center, Augusta Riverfront LLC would have received all profits from advertising on the electronic billboard on the skywalk.

Striking out yet again on both items was Mayor Deke Copenhaver, who even went on TV endorsing passage of the skywalk and also supported renewing the BID. Lori Davis, however can chalk up two more political victories. She helped mobilize opposition to renewing the BID and also fought approval of the skywalk. Davis took to her government watchdog Facebook group yesterday and asked citizens to email all of the commissioners and urge them to vote "No" on both agenda items. Davis says she has a lot more planned for the coming year.***
OS

Related Stories:



Coming Up Tomorrow: We discuss the ballpark and adjacent development proposed for the North Augusta riverfront known as Project Jackson.