Magnolia Trace: Money Trail Traces to the Gold Dome

**City Stink Exclusive!**

Magnolia Traces to the Gold Dome


Originally posted by CityStink
December 8, 2011
Augusta, GA
By IndyInjun

The author, Al M. Gray is President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s well-known companies, businesses and governments desiring Superior Returns.

Old Gomer Pyle used to say “ Surprise, Surprise, SURPRIZE!!!” Well, the money trail from Magnolia Trace , LLC to Affordable Equity Partners of Columbia Missouri, might fork, meander, double back, and double CROSS, but the sleuth hounds of Augusta Today and are rarely shaken or even stirred in pursuit. The quarry was found in the bowels of a gold-domed lair in Atlanta.
Does this surprise anyone? It shouldn’t.
Affordable Equity Partners, Inc. boasts a leadership team headed by Jeffery Smith of parent JES Holdings, with affiliated companies named ES Dev Co, Inc., Fairway Construction Co., Inc., Fairway Management, Inc., and Capital Health Management, Inc. An article on exposes how Smith and his companies have played the campaign contribution and lobbying game very well in Missouri to the tune of capturing $26 million for low-income housing projects into 2009.
Has AEP played the same game in Georgia? Their own words suffice to provide our answer. “AEP has been involved in Georgia since the initial introduction of the state tax credit and was instrumental in formulating the revisions to the statutes in 2001.”
At this juncture, the process of following all of the related parties, employees, PAC’s and agents is not complete. There will be more to come.
What is revealed so far by researching these entities’ contributions via the Georgia Ethics Commission Campaign Contributor database?
Lt. Governor Casey Cagle got $882.50 from AEP going back to 2008. Sister company Capital Health Management Inc. gave Cagle another $10, 453.50 and gave House Speaker David Ralston $5000 in 2011, this nonelection year.
Then there are the PAC’s.
At this juncture, the Augusta Today and team is investigating another Missouri based entity that was noted to be working in conjunction with the AEP affiliate Capital Health Management to fund one of these PAC’s. The company has contributed many thousands of dollars to Georgia’s Legislators.
Was it coincidence that Ron Cross, a Nathan Deal supporter, and Trey Allen, Nathan Deal’s Columbia County Campaign Chairman, scurried to meet with Magnolia Trace developers in County Attorney Doug Batchelor’s office?
Or did they get calls from Casey Cagle, Nathan Deal, David Ralston, Ben Harbin, and Lee Anderson “encouraging” the meeting and their subsequent resolution in support of this unwanted public housing development?
Only the unforeseen and unpredicted are surprises.
Even a Gomer Pyle knows the score on this one.***
More to come.
Below is a a link showing the State of Georgia Housing tax  plan that AEP helped write for itself into law. It’s heavy reading for those of you with some time to kill.




Magnolia Trace: After The Storm (videos with enhanced audio)

Originally Posted by CityStink
Wednesday Dec 7, 2011
Augusta, GA
By AL Gray
The author, Al M. Gray is President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns.
As we predicted,  there were indeed a lot of fireworks at last night’s Columbia County Commission meeting. Angry residents, mostly from Martinez neighborhoods surrounding the controversial Magnolia Trace subsidized housing development now under construction off Old Ferry Rd, packed commission chambers giving commissioners an earfull.
Jennifer McCray, founder of the opposition group on Facebook: Say No to Magnolia Trace Housing Project gave a very civil presentation that voiced many of the concerns of the residents who were opposing the development and their frustration over being left in the dark by their elected officials. You can view Jennifer McCray’s presentation below:

Other speakers were a bit more theatrical like afternoon radio talk show personality Austin Rhodes. We kid Austin, but he is in the theater. Also later in the video Commissioner Trey Allen addresses some questions and makes a motion to hire outside counsel. Ron Cross remains defiant. See entire Columbia County Magnolia Trace video in two parts below (better Quality):
NOTE: you may be prompted to activate the SilverLight Plugin for your browser. This will only need to be done once.


Video Part One

Video Part Two

The whole meeting could have easily devolved into chaos with an angry mob storming the commission chambers with pitchforks and torches, but cooler heads prevailed. Jennifer McCray quickly emerged as the responsible and level-headed leader for the opposition.
At the outset it appeared that all the residents might be able to do was pack the chambers and voice their anger at the elected officials they held responsible for the situation. It appeared that trying to stop the development was a lost cause. However, in the end the opposition won a small victory. Dist. 2 Commissioner Trey Allen made a motion for the county to seek outside counsel to study the possibility of getting an injunction or getting the developers to alter their plans. That seemed to satisfy many residents. spoke with Jennifer McCray, the main spokesperson for the opposition, and  asked if she was pleased with  the outcome of last night’s meeting and she had this to say:
” Yes, I am pleased that the Commissioners are taking this seriously, and that they agreed to hire outside counsel. I am hoping that now  that they have seen the outcry from the community, they will be more willing to work with us and hopefully begin to build a relationship with the developer to try and find a happy compromise to this situation.”
But others are not so optimistic about the decision to hire outside counsel. Austin Rhodes called it nothing but “window dressing.” Many other citizens are still skeptical of the outcome from yesterday and see it as a “stalling tactic”.  The actions of the commission last night does not halt construction on the Magnolia Trace development. It will be interesting to see who the county hires as outside counsel and how vigorously they will pursue the matter. Or will outside counsel just tell the commission what they already know and stick taxpayers with a big bill. That  seems to be the sentiment of critics like Austin Rhodes.
We asked Jennifer McCray what her group was prepared to do if they are not satisfied with the results from the outside counsel. We asked if the opposition group would file its own lawsuit to halt the development. Ms McCray responded:
“I don’t know that a lawsuit of any kind could stop this. What we will need to find are loopholes that we can crawl through to stop this, or at least change the course. I hope that we can begin a dialogue with the developer to reduce the number of low income families being placed in those units, and instead balance it with elderly or disabled citizens.”
Ms McCray was not impressed with Ron Cross’ attitude towards the citizens at last night’s meeting.
“I was appalled at Mr. Cross’ behavior last night in the meeting. As an elected official, especially as Chairman,  I would expect him to keep his actions and comments as professional as possible. Attempting to bate the crowd with witty comments and outright sarcasm, I personally feel was juvenile and petty.”
Even though opponents did win a small victory last night, this saga is far from over. is working new leads on this story that could bring an entirely new dimension to it, possibly bringing much bigger names into the mix. Stay tuned, we will keep you updated as we learn more.***
* would like to thank Jill Peterson for providing the videos and Kurt Huttar for enhancing the audio.*

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Magnolia Trace: Expect Fireworks in Evans Tonight

Originally posted on CityStink
Tuesday, Dec. 6, 2011
Evans, GA
Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article.
It may not be the Fourth of July, but expect to hear some loud fireworks over the Columbia County Government Center in Evans tonight. Angry residents from Petersburg Station and other Martinez neighborhoods surrounding the controversial Magnolia Trace low-income rental housing development plan to show up in large numbers at tonight’s commission meeting in protest of the development that was unanimously approved by commissioners last year. They contend that the high density low-income subsidised rental housing will erode their property values, increase crime and put a strain on neighborhood schools.
A Facebook Group opposing the development called  Say No to Magnolia Trace Housing Project boasts over 225 members and that number appears to be growing by the hour. But will that translate into a large showing at tonight’s Columbia County Commission meeting?
The group has directed their ire particularly at Commission Chairman Ron Cross, who has said that the development will be a positive for their “older community”  and Trey Allen, The District 2 commissioner who represents Martinez and has also been supportive of the development.  Many are particularly displeased with Allen for not showing more concern for their property values when he was a vocal opponent of stadium lights at Augusta Prep because he maintained they would erode his property values in Spring Lakes. Opponents of the Magnolia Trace subsidised housing contend that this development will have a far more negative impact on their property values than “stadium lights.”
Though Commission Chairman Ron Cross appears to be an enthusiastic supporter of the development, Sheriff Clay Whittle and School Superintendent Charles Nagle are being more cautious. There are concerns that the influx of more low-income students into that part of Martinez will make Lakeside High a Title 1 school. Sheriff Whittle also has raised concerns about crime from other rental properties in the county, especially apartment complexes, but is cautiously optimistic given assurances that the Magnolia Trace development will require criminal background checks for applicants.
Still, neighbors of Magnolia Trace are not in the least bit “optimistic” and it is still not quite clear if they will be able to stop this development. The Georgia Department of Community Affairs has already issued the subsidies and the development is already under construction. What particularly angers the resaidents is that they were not consulted or made aware of the nature of this development before the commission gave its approval last year.
Even if they cannot stop the development at tonight’s commission meeting, they still want to voice their anger over the actions of their elected officials in this matter. They may not show up with pitchforks and torches (organizers haver promised to keep the protests civil), but tempers most certainly are running high. In fact some people are calling for the re-call of Chairman Ron Cross and commissioner Trey Allen. That’s not likley to happen under Georgia’s re-call laws, but it illustrates the anger and frustration some residents feel over this and  what they contend is a disconnect among the elected officials and their constituents.***
 Continuing Coverage
We will have a correspondent covering tonight’s Columbia County Commission meeting and we will bring you the report (including video) as soon as it becomes available.
If You Go:
What time?:  6:00pm today
Where?:   Columbia County Government Center Complex Auditorium, 630 Ronald Reagan Drive, Evans
Issue:       Citizens presentation Protesting The Magnolia Trace Low Income rental housing development .
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Magnolia Trace: No Trace of Trey

Columbia County Commissioner Trey Allen
Originally posted on CityStink
December1, 2011
Augusta, GA
By Al Gray
The author, Al M. Gray is President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns.
The saga of the hotly-protested Magnolia Trace development on Old Ferry Road in Martinez Georgia is incomplete without an examination of the role of  Trey Allen, Second District Commissioner on the Columbia County Board of Commissioners. Magnolia Trace is within Commissioner Allen’s District. The project is funded by the Georgia Department of Community Affairs (DCA), upon whose board of directors Commissioner Allen sits, representing the 10th District.
This seems at this juncture to be mostly unpleasant circumstance for Commissioner Allen, as his appointment to the DCA board by Governor Deal in March of this year came 9 months after he, county attorney Doug Batchelor, and County Commission Chairman Ron Cross met with representatives of Magnolia Trace Limited Partnership in preparation of ushering through a resolution endorsing the project during the June 15, 2010 Commission Meeting.
At the time of approval of this resolution, which references “affordable single-family home subdivision of up to 50 homes” on 15 acres. Commissioner Allen was serving as Columbia County Chairman for Nathan Deal’s gubernatorial campaign.  What looked then to be a reward to a faithful supporter by Deal now looks to be a curse as the DCA is at the epicenter of one of the most furiously-opposed residential developments to be initiated in Columbia County in years.
Fueling Commissioner Allen’s current hot seat even more is his prolonged and furious opposition earlier this year to stadium lights for Augusta Preparatory Day School which will illuminate Springlakes Subdivision, where he resides.  Old Ferry and the Pass opponents of the Magnolia Trace subsidized housing have been disappointed so far that a similar degree of indignation for theirdiscomfiture doesn’t seem to be forthcoming from their 2nd district commissioner.
Will this most unfortunate combination of a bad deal, coincidence, and location of the latest Columbia County NIMBY (not-in-my-backyard)eruption taint, even doom, what was only yesterday the brightest political career out of Martinez in this century?
Memories run long there. Ask former Commissioner Frank Spears, who has carried the stigma of being “Mr. Rain Tax” for almost a decade. Only now does Spears seem likely to be rehabilitated enough for a come-back.
Now the bloom is off of  Trey Allen’s magnolia as the harsh lights illuminate his Springlakes home.
It will be interesting to see how he Deals with that.
Video: See the video Segment from the June 15, 2010 Columbia County Commmission Meeting where the the resolution was approved supporting the Magnolia Trace Development below:

Meeting to approve Magnolia Trace Project

Below is a copy of the Columbia County Commission resolution from June 15th, 2010 giving the county’s support for the Magnolia Trace development accompanied by an informational packet about the development. It clearly states “affordable housing.” The resolution green-lighted the Georgia Department of Community Affairs (a board which Comm Trey Allen now sits on, as he was appointed by Gov Nathan Deal) to begin the process of issuing tax subsidies for the development.

Magnolia Trace Information Packet