Category: Columbia County

RW Allen’s Guaranteed Money Pits

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IMG_4374Owners like to use a contract delivery method called “Design Build” when they don’t know what the heck they are building, don’t want to take the time to design it before bidding it out, or have a site with too many unknown conditions.  Since they don’t know these things they put a fig leaf of protection against unlimited costs called a “Guaranteed Maximum Price” or GMP. Even in commercial or industrial construction, supposedly knowledgeable in cost controls and with fewer unknowns, GMP contracts are a challenge to administer, because the assumptions the contractor gives in quoting a GMP generally last only days or weeks. Owners would be better off with a pure cost-plus contract with great controls, but the owner’s internal politics command at least a fiction of a fixed price.

Imagine trying to catch a butterfly in a windstorm – that is how elusive the “guarantee” becomes.

In government there is no better money-hemorrhaging device than these contracts, hence perhaps GMP should automatically be understood by citizens as being “Guaranteed Money Pit.”

The City of Augusta, Georgia loves to squander money using GMP contracts, having thoroughly embarrassed itself with the things. Augusta built a $30 million Convention Center across land the city didn’t own, and then had to pay for it with Kitchen Equipment added by change order to a “guaranteed” price, spent about $50 million on a Municipal Building Remodeling that was supposed to cost $20 million, mostly covered by another GMP contract, and built houses in the Laney Walker district with maximum-price, not to exceed contracts that never were adjusted to actual cost.

There were only three finalists selected by Augusta for the Old Green Street Library remodeling, and two of the three had “Allen” in their name. The low bidder who didn’t have “Allen” in its name and who bid on the whole project in its bid, with a Guaranteed Price for all of the work, somehow didn’t get the award. RW Allen, LLC was awarded the work on a piecemeal basis, destroying any figment of a guarantee, in this writer’s estimation.

John Allen, nephew and contributor to Congressman Richard W. Allen, is a principal in the Allen-Batchelor firm, which was also on the finalist listing.

District 8’s Wayne Guilfoyle said it best, “If all three firms are proposing this project, the following including the proper scope, met the required schedule and fully capable of completing the RFP, why are we selecting the highest bidder?” Then later Commissioner Guilfoyle said, “So we’re approving something we don’t have a clue, only a partial.”

It must be nice to be RW Allen, LLC, and to have Augusta push you into yet another money pit where nothing is guaranteed but more profits.

No Opting Out of The Greatest Transition

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You got your demons, you got desires, well I’ve got a few of my own – Don Henley

Four years ago, a loose coalition of citizens came together to bring a powerful blend of research, online publication, media presence, and reform to Augusta, Georgia and East Central Georgia. One started a blog named City Stink, that moniker being a statement of admiration for long-time Augusta Chronicle columnist Sylvia Cooper and her column City Ink, yet impishly labeling the town as the source for all manner of unsavory things. Augusta wasn’t the sole target, either. The archives of Agraynation are amply populated with the City Stink posts, which retain power and utility for change.

As with all human endeavors, members grew weary, lost stomach for the political idiocy, and allowed personal differences to intercede in what was a wonderful community effort. During a nearly two year hiatus, individuals in the group ventured out on various initiatives, successfully defeating SPLOST 7a in Augusta and forcing SPLOST 7b proponents to slash waste, while promising reforms. Members of the Facebook groups Augusta Today and Augusta Political Watch, along with old participants in the City Stink effort, have used the interruption in the fray to observe what transpired in the vacuum and how positive developments proceeded from those action-filled 30 months.

The methods were proven. Mistakes were made, but those were instructive. Glenn Frey, the late Eagle and co-writer of, “One of these Nights,” said, “We all have our dreams, a vision we hope will come true someday. When that ‘someday’ will come is up to each of us.” Yes, our demons and desires got in the way of continued success, but the need for action has never been greater.

America has lost nearly every institution with direct responsibility to control financial matters and the Rule of Law. The foundation of social stability is, for all practical matters, dead. The Accountants have abandoned financial standards that protected us for decades. The Lawmakers have rewritten the Law to legalize fraud. The Ministry has thrown, “THOU SHALT NOT STEAL,” out of the Ten Commandments. The Bankers have destroyed one of the two functions that make the United States Dollar, “money,” and are on the brink of killing the other. The Media have been either silenced or captivated.

We have the tools to overcome it all. The Augusta reformers proved several important techniques and strategies. As great as the challenges are, the technology and methods are here to overcome them all. All that is missing is desire to make it happen.

Laughter is the best medicine and there are bounteous sources of outrageous humor that only need a little attention to have everyone laughing on the way to restoring our cities, counties, states and America. We are in the midst of the greatest transformation and transition in 400 years, if not all of human history.

“Agraynation” perhaps sounds a lot like “aggravation” to some. The subscribers list is stale, yet there are many in the community and state included in the automatic notification feature. Posts may be coming faster than you like via your email account. If so, please UNSUBSCRIBE if you get one notification too many. Please accept my apology if notification that accompanies this post is that, “one too many.”

Thanks to everyone for you encouragement, support, and participation. And… … … welcome back to the fray.

– The Arrowflinger

After Lee Anderson Blew Off Clark Howard…

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By The Arrowflinger

In 2010, Georgia House District 117 Representative Lee Anderson was getting calls from constituents with concerns about the upcoming House vote on Senate Bill 31, the infamous law that delighted more than seventy Southern Company lobbyists by giving the company’s Georgia Power Company over $1 billion in advance profits and a guaranteed 11% return on nuclear plant Units 3 and 4 at the Vogtle generating complex near Waynesboro. Famous consumer advocate Clark Howard begged Lee and the rest of the legislators to vote no, and he did so repeatedly.


Seventy Lobbyists? With Lee it was the 71st lobbyist, his Southern Company-employed daughter, who mattered more than the folks back home.

Anderson of the 117th voted AYE.

These days, Lee is campaigning for the vacated Georgia Senate District 24 seat, waving his phone, promising voters that he will answer the phone and call them back. He isn’t saying when. He called this constituent after his vote for SB 31.

Now where are we? Unit 3 was to have begun operation last month, but recent updates have the unit only 26% complete with a $900 million cost overrun, to be paid by ratepayers when Georgia Power gets its way after the May elections.

Contractors have been paid out to the 60% completion level, despite the unit being only 26% complete. This is the tight construction cost control the 70 lobbyists touted?

Clark Howard was right, but Lee Anderson’s 71st lobbyist home economics were the sizzle in the bacon for House District 117 residents, who got $109 a year higher invoices.

He isn’t much good at writing bills, but is wonderful at raising them.

After Lee Anderson blew off Clark Howard, how are you going to pay your power bill, and what is that hay farmer going to toss in next?

(Editor’s Note: The above clips are included here under the terms of FAIR USE for journalistic and educational purposes. As part of the public record, this material is not available through non-archive means, and is hereby presented for the public good.)

Columbia County Tax Dollars Fuel a Banker’s Bonus???

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You just have to laugh when the politicians in two urban counties down the road resort to hiding videos, switching meeting times, and cutting debate time in half to thwart an old busybody and his gang of reformers. Their latest trick play came between Tuesday May 6 and Thursday May 15, 2014 down in Evans. Columbia County has a pledge to post its commission meeting video within 48 hours of its Tuesday meetings, but it took 9 days for this one to see daylight.

Agraynation.com has been in the habit of bringing videographers to ensure that a video record is secured, but in a previous Columbia County meeting Chairman Ron Cross admonished that having video shot was unnecessary because the county provides it so reliably. Not this time. This speaker had a most unpleasant message and an even tougher question but obviously had no prepared text to post later. Rather than let the explosive video and information out, the administration sat on it.

Metro Spirit reporter Eric Johnson observed and wrote a wonderful piece on the Commissioner Ron Thigpen bonus presentation titled “Collateral Damage.” The title was pure brilliance, because the collateral damage from the Columbia County banking scandal will range far, wide and deep.

Johnson implied that the talk was long-winded, overlooking that it was 8 minutes before a body that allowed 10 minutes until this campaign season began. He was also puzzled. The key exhibits were not shown to the public, because their sensitive nature commanded the decency to allow the Rons, Thigpen and Cross, to respond to the deep concern of this old supporter and friend.

To summarize, the county entered into a mass banking agreement with the Rons’ bank in 2010 after a series of recusals, mystery documents, a vote to allow two commissioners to even vote on it, and more irregularity than comes after a trip to a filthy restaurant. About the same time, Ron Thigpen, who is President of the bank, got a new bonus that looks to have doubled because of the massive Columbia County money deposited in his bank.

The media around these parts whines that just about any issue involving money is too complex. This one isn’t. It is third grade math. If you have 1 over 2 (1/2), you double the result if you subtract 1 from the bottom number. That is how Ron Thigpen’s bonus was set up. After Columbia County’s $1 (hundred million) is applied at December 31st of that year, the equity denominator falls to $1(hundred million) from $2(hundred million). Sources of the county monies are an open records response and the bank equity figures are from the FDIC.

When all factors are taken into account, it would appear that the $22,000 cash bonus paid to Thigpen was 2.2 times higher than it would have been without the county deal.

Last week, Ron Thigpen was overheard in an ad for Chairman Cross’ reelection saying how “comfortable” he was with Ron Cross.

We all can be comfortable along with him that fellow bank stockholder Cross did the right thing to enhance their wealth.

Collateral Damage, Mr. Johnson? That was very, very well done! Next up, Cat Burglars and Cat Bankers – the $12 million heist.

This is Arrowflinger Al reporting on a cloudy day from points west. Stick around for the missing video.

Intimidation in Evans?

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During the recent look at Columbia County Georgia’s controversial 2010 Banking Services Request For Proposal, which was awarded to Georgia Bank and Trust, a bank in which two county commissioners held stock and a third is now President of the bank, Ms. Leanne Reece was seen at the County Commission meeting accompanied by a young lad taken to be her son. You can see the boy in this video.

His presence was enough to change the topic of the presentation that night from Banking Services to the TIA 2010 scandal, because there was no desire to pressure his mom in front of him.

It is a shame the county commissioners aren’t so forgiving when it comes to applying pressure to county employees to get an intended outcome.

The banking RFP seems to have gone through the entire process up to a week or so prior to the meeting as Bid Title: Banking Services for Columbia County, GA Board of Commissioners Bid Number: 2010-005 but was on the Agenda April 20, 2010, the fateful night that the commission awarded the contract, as RFP 2010-005 Banking Services for the County and Water Utility.

Why is the title change potentially significant? Based upon the submissions by responding banks, the evaluation team only recommended Georgia Bank and Trust for the Water Utility accounts, county accounts the bank already had. Finance Director Reece was one of the evaluators and had even noted that the apparently winning bank based upon the evaluation, First Citizens Bank, had offered a 1% interest rate minimum. She wrote there was “no floor” in the GB&T proposal, an odd statement since GB&T is shown to have offered a floor of 0.75%. Can it be that was true with the original submittals, since replaced by altered documents? With this gang of manipulators, who knows?

If she was that attuned to the greater interest earnings potential of First Citizens, why would Director Reece go along with the lesser proposal based upon a speculative analysis from county bond underwriter Jeffries?

This entire affair reeks of pressure put on a professional woman with a family by powerful men with control over her job.

You have to hope that job isn’t in jeopardy for yielding to human fear.

Conflict in Columbia County?

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Would y’all just look what we have here! In April 2010 the award of Columbia County’s Major banking agreement was on the Columbia County Commission agenda. Uncomfortably, three commissioners had stock in Georgia Bank & Trust at the time of this vote. The county attorney seemed concerned about the whole area of ethics, but it looks from up here in the pine woods that the entire commission was prepped to put on ballerina slippers and tiptoe through the minefield of awarding the county’s mass banking agreement to, well, Georgia Bank & Trust.

District One Commissioner Ron Thigpen was Chief Operating Officer of GB&T (very recently promoted to President). The county attorney found he could avoid the technical definition of a “Conflict of Interest” by recusing himself from this, an official vote of the commission. The county attorney found that the other GB&T shareholders, Ron Cross and Charles Allen, Jr., held less than 5% of the bank’s shares, and the bank being publicly held fit another exception in the Ethics Ordinance. The final step in the fanciful footwork that carried them to apparent safety was getting the not-ensnared commissioners Scott Dean and Trey Allen to bless the choreography and allow Cross and Charlie Allen to vote, which they did, awarding the banking deal to their bank.

Did the commission gracefully tiptoe across the ethics minefield on gilded slippers, as they would have us believe? Or were they really tap-dancing across it wearing snowshoes?

One of the Rons sure looks like he stepped on one of those Vietnam -era “Bouncing Betty” mines with a slow trigger. After all, it has taken 4 years for the damage to pop up and show itself to the taxpayers of Columbia County.

The mine had “Appearance of a Conflict” written all over it. The shrapnel might just now be striking. Wasn’t the key issue for Cross and Allen really how much their stock made up of their total assets and how much they stood to gain? How could Thigpen make myriad impartial decisions, beyond just that commission vote, like whether to increase or pay down debt when his bank stood to gain or lose revenue from the county’s deposits there?

Coming up next in the series is “Blame it on the UFO!”

-AF

Enron Accounting Revisits DOT

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On February 5 of this year, the time of the groundbreaking for the Riverwatch Parkway Extension Project, WAGT TV26, WJBF Channel 6, and the Columbia County News-Times all incorrectly reported that the $34 million project was being funded wholly out of TIA-2010 funds, also known as TSPLOST.

The TIA funds for the project came out of the 75% funding level list approved by voters within the Constrained Projects List. There is a project cost estimate found in the details. That paints a truthful picture. Nearly $11 million for the project is reserved out of DOT highway and fuel taxes and there is a $3.3 million cost overrun already, leaving $20 million in TSPLOST funding.

You know there is something screwy when that many news outlets get it wrong and are all using the same number.

Well, it didn’t take long to find the source. It was DOT, who came into the TSPLOST debate tarnished and smarting from Governor Sonny Perdue accusing them of “Enron Accounting,” but seems back to their bad habits by putting out a webpage showing TIA spending that looks to be TIA, alright – Totally In-Accurate. A Lincoln County project is only $1 million of TIA funding, but DOT listed it as $4 million. Wrightsboro Road in Augusta is shown as $19 million TIA funding, but it is only $2 million.

If DOT wants to reestablish its credibility after its flirtation with Enron Accounting, they sure have a funny way of showing it.

How they are going to fund the huge cost increases with revenues collected so woefully low would make an Enron Accountant strain.

ETCOD Center, The Land of Tomorrow Doomed by Its Own Flaws & The Rule of Law

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Monday, June 4, 2012
Evans, GA
By Al Gray

In last weekend’s article, Overlay Somebody Else: My Battle With Columbia County Over Property Rights, the birth pangs of the ill-fated Evans Town Center Ordinance and the Evans Town Center Overlay District (aka ETCOD) in 2000 were revisited. This week, let’s look at what happened two years later, after the ‘rules’ had been in place long enough to judge how well they were applied.

 

During the heated debate of 2000, the spirit of economist and philosopher Frederic Bastiat had to have been there. Among his relevant quotes were these:

 
It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder… Sometimes the law defends plunder and participates in it. Thus the beneficiaries are spared the shame and danger that their acts would otherwise involve… But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them and gives it to the other persons to whom it doesn’t belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime…. Legal plunder can be committed in an infinite number of ways…

 

We can add to his list of legal plunder “town center ordinances” and “overlay zoning.”

Augusta attorney Gail Duffie Stebbins might not know Frederic Bastiat but she knew that the Evans Town Center was legal plunder. In 2002 Ms. Stebbins sued to have the Evans Town Center Overlay Zoning Ordinance set aside for failure to give her and other property owners sufficient, defensible notice. A Superior Court Judge agreed with her. Columbia County responded by curing the technical defects, then reintroducing the same ordinance.

The As the Columbia County News-Times reported about the November, 2002 meeting: “It wasn’t any more quiet the second time around,” an obvious reference to the near-riot that broke out in 2000 in a Planning Commission meeting at which the original ordinance was advanced to the Columbia County Commission.

 

Ms. Stebbins’ temporarily-successful law suit was easily sidestepped. The findings of the another speaker turned out to be fatal. The News Times report continued in its report: “The Evans Town Center is as dead as some misguided possum crossing I-20, run down by high-speed development,” said Al Gray, whose family owns land in the town center district.

Brash statements? Not really. You see, there are concepts as old as society itself that found themselves into the Constitution of the United States of America and the Bill of Rights. Citizens cannot be deprived of EQUAL PROTECTION OF THE LAW under the 5th Amendment and cannot be deprived of property without DUE PROCESS OF LAW under the 14th Amendment. By these standards the ETCOD ordinance was doomed, because there had been scores of noncomplying structures and developments built with county approval. The proof was demonstrated in this presentation, made to the county commission that night.

**(See the ETCOD Nonconformity presentation below. ETCOD Nonconformity (1)

 

The approach was this. First, the ETCOD ordinance was broken down into the component standards. Second, digital photos were taken of all structures, buildings, parking lots, and landscaping represented by approved and constructed projects since the Town Center was launched in 2000. Third, the noncomplying features were categorized under the pertinent design standard that was violated. Fourth, the fact that there were scores of noncomplying projects and only 5 variances requested and granted was documented. Fifth, it was pointed out that the near-universal approval of nonconforming structures would simply doom the ordinance in court. 

This is how one defeats an overly aggressive government. One can turn the planners own ordinances, actions, and lack of enforcement against them. A property owner cannot be singled out for not conforming when equal protection says he must be accorded the same leniency of those who came before. Yes, that night Columbia County fixed Ms. Stebbins’ objections, only to run into decisive defeat before the meeting concluded. 

The county never was able to subdue a patient determined landowner after that night, because they were armed with knowledge of their rights and how to successfully demand the same standards as those who came before them. Those standards had been gutted by the county’s own hand. “Columbia County does not have the resources to manage 5-square-miles with the ordinance as it is written,” said Richard Sorensen, a Northwoods subdivision resident. “What you are biting off is more than you can chew.”
Indeed.

After all, equal protection has its roots in the Bible admonition, “Do unto others as you would have them do unto you.” Even politicians find themselves nodding in agreement with that.

 

The Town Center plan ended up being a collection of upgraded architectural finishes and landscaping, but the unenforceable parts died that night.

 

Today, Columbia County’s Richard Harmon is putting the finishing touches on a comprehensive rewrite of the Evans Town Center ordinances, based upon these realities. Wise heads prevailed in the end. ***

AG
 
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Overlay Somebody Else: My Battle With Columbia County Over Property Rights

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Friday, May 25, 2012
Evans, GA
By Al Gray

New Year’s Day in the year 2000 did not find this writer worried about the world’s computer systems crashing because of the Y2K or much of anything else. Two new clients and two projects in Missouri – a state-of-the-art hot dog plant and a deli meat production facility beckoned. It was a very lucrative contract that took me away from the Augusta area, as nearly all of them have. A most successful bowhunting season had just been concluded. The parents were still able to take care of themselves. 1999 had been good, but 2000 would be even better. It did not start that way, January 1 pleasantries not withstanding.

Sometime in February, after trudging through 15 inches of snow in St. Joe, MO, I returned to my motel room just in time to catch a call from my parents. It seems that they had gotten an official notice about an ‘overlay’ zoning ordinance to cover something called the Evans Town Center Overlay District (ETCOD). It concerned them that the county was looking to pass some sort of control over their commercially zoned property on Washington Road. We were not totally surprised, having attended one of the planning meetings for the town center at Savannah Rapids Pavilion.

Actually seeing the map of ETCOD was an eye-opener. It was a gerrymandered map that looked like a headless woman in a dress stumbling like a zombie. Then there was the matter of the text of the proposed ordinance. It banned any store over 30,000 square feet, imposed expensive architectural upgrades, and made plans to completely rework the zoning map via overlay zoning to impose government land use planning instead of free market economics. It was aimed straight at our family, who had decades long plans for a major shopping center to the west of Ronald Reagan Drive. Worse, it would have ruined decades of planning along with previous county officials which included gifted water and sewer easements and providing for a road into a subdivision.

The night of the first Planning Commission meeting, the elite of the Augusta and Columbia County development sector was in attendance. Your scribe had never made a public speech before. Knees shaking from fear and voice quavering, my speech might have gotten off to a disastrous start, but the first order of business was to loosen things up by poking fun at the gerrymandered map. The room exploded with laughter. A key point was made that the map was discriminatory, lacking uniformity of application. The county attorney would later agree, forcing new notices to be sent to everyone in a 3500 acre circle. Up behind the lectern, a transformation took place. The meek accountants knees were still knocking, but the cause had turned from fear to RAGE!

Things have not been the same since.

When the county was forced to make ETCOD a uniform circle, the action resulted in our family gaining scores of new allies against ETCOD. Even one of the chief proponents realized our position because her family’s land was now in the overlay zone! She exclaimed in a meeting. “We don’t want those rules on OUR PROPERTY!” Neither did a lot of folks. When the planning commission decided to ram through ETCOD, two of the commissioners stayed home in fear. The 3 left decided to ram the vote for the ordinance through. The entire room, it seemed, leaped to their feet and shouted “NO!!!!!!” It was the closest thing to a riot that Columbia County has seen in a public meeting in modern times. The county commission appointed a citizen’s committee headed by contractor Ron Cross to work out a compromise. The Evans Town Center Ordinance was birthed eventually, but the baby was a lot trimmer and caused less labor pain.

There were other battles to come. They are best left to another day.

The salvation of our family came in the form of gifts from our founding fathers. The 5th and 14th amendments to the United States Constitution provide each of us, as citizens with guarantees of Equal Protection Under the Law and that we cannot be deprived of property without Due Process of Law. More recently Columbia County implemented Corridor Overlays, Lincoln County did the same, and last year Augusta attempted to enact a flawed Laney Walker Bethlehem Overlay District. In each instance it was a privilege to help fellow citizens being assailed with threats to their rights from overlay zoning.

Pertinent to today’s events, in which the diabolical Agenda 21 plan is infiltrating all levels of government, the Evans Town Center Plan developed by consultants Rosser- Lowe, was even then replete with references to “smart growth” and “sustainable development.” You have to remember that Columbia County is a solid Republican County, not a place one would suspect that a socialist agenda could take root in. We have to be constantly vigilant everywhere.

The Evans Town Center Plan was supposedly based upon town centers in Redmond, Washington; Reston, Virginia; and Smyrna, Georgia. A key component of largely defeating ETCOD was this analysis comparing those places with the Evans Town Center.

ETCOD BATTLE CHART

When one can dissect the planner’s plans and turn the evidence against them, he can win huge victories against the odds, for the truth overwhelms the planners and allies arrive in droves.

A County Commissioner and two Planning Commissioners said that the ETCOD was a “Done Deal.”

Well, it came UNDONE.

Thanks founders, for the Constitution. Agenda 21? That’s just another undone deal of our making.***

AG

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Wide Open Records at DCA Put Sunshine on Magnolia Trace

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Magnolia Trace Under the Magnifying Glass

Thursday, March 1, 2012

Evans, GA

by Al Gray

The furor over the construction of Magnolia Trace Subdivision, a low income housing development funded under the auspices of the Georgia Department of Community Affairs (DCA), was white hot back in November of last year. Much was said and written about hidden machinations behind this development, particularly the Columbia County Board of Commissioners’ resolution in support of the development at the apparent prompting of county attorney Doug Batchelor in June of 2010. Ire of project opponents reached epic proportions when it was revealed that Batchelor had worked for the developer, Affordable Equity Partners of Columbia Missouri, or one of its stable of interrelated companies on an earlier project and was the closing attorney when AEP affiliate Magnolia Trace, LP purchased the land in the second half of 2011.

Speculation abounded, but truth lies in the documents, to the extent that they are discoverable. This writer prefers to focus on the story the documents tell, so was moved to examine the process by which Magnolia Trace came to be approved for DCA’s tax credit program. The review found that the DCA’s Qualified Application Program was so stunningly exhaustive in its information and filing requirements that very few mysteries would remain, should an examiner look at all of the filings that DCA has. Doing an examination of the required documents was natural and logical.

A Georgia Open Records Act request for DCA to make the Magnolia Trace Application available for inspection and copying was submitted last week, with the review taking place yesterday, Wednesday, February 29, 2012 in DCA’s Atlanta headquarters. Ms. Phyllis Carr, of the DCA Housing Finance Division, graciously coordinated the review, provided the documents, assisted, and answered questions.

The examination was intended to answer these inquiries: 1) Was Doug Batchelor prominently engaged by Magnolia Trace, LP in the application phase? 2) Was there active involvement of Columbia County, over and above what has been disclosed, during the application process? 3) What was the nature of the agreement to purchase the land by Magnolia Trace, LLP from previous owner, DORRA, LLC? 4) What realtor(s) were involved? 5) What entities benefited from this transaction and were politicians tied into them more than previously reported?

Beyond Batchelor’s involvement with gaining the favorable county resolution and being the closing attorney for the developers, no other evidence was found anywhere in the 8 inch thick application and supporting documents of his involvement or that of his firm, Hull, Towill, and Barrett. The attorney appearing on the option for the developer to buy the property was the Atlanta giant, Smith, Gambrell & Russell. VanMatre, Harrison & Volkert, P.C. Of Columbia, Missouri is the attorney of record for the project. Legal fees budgeted for the construction were $52,000, with no distribution among firms cited. Legal fees for land acquisition, where Batchelor is known to have fit in, were set at $15,700. Title and recording fees were a surprising $18,000.

Columbia County’s involvement beyond the controversial resolution endorsing the project was minimal. Most of the preliminary inquiries were done by intermediaries without the project or its owners being named. At December 31, 2010, when the application was due for decision, no issues pertaining to Columbia County remained.

The contract for the purchase of the land was executed March 24, 2010 between Peach Way Holdings, an affiliate of Affordable Equity Partners (AEP) and the owner of the land, DORRA, LLC. The particulars of purchase price, contingency upon DCA approval of tax credits, and eventual closing date have been widely discussed and will not be reiterated here. The contract for the sale shows that the realtor was Sherman and Hemstreet represented by agent Billy Franke. The deadline for closing of March 2, 2011 was obviously missed and was extended. The contract gave the buyer wide latitude to cancel the sale until it had approved and accepted the offer of tax credits on March 14, 2011.

The new information discovered in this review was that in a initial review and determination letter sent to Magnolia Trace, LP, dated December 14,2010, the DCA, “determined that the Application does not meet the required Threshold requirements of the Application.” The reason cited was that costs were out of line with other DCA developments. Magnolia Trace appealed within the allotted 5 days of the letter.

The tax credits were approved on March 14, 2011, three months before a sister AEP entity, Capital Health Management, Inc. gave Georgia House Speaker David Ralston $5000, so there was no quid pro quo evident in these events.

Overall, the strategy employed by AEP appears to be to internalize as many of the project planning, development, financing and other major cost components of its projects, meaning reduced use of other professionals. This strategy is employed in conjunction with lavish campaign contributions at the state level and to a much lesser extent, the local level, with Rep. Ben Harbin being the key local beneficiary.

Look for future reports here on the broader policy issues presented by this particular financing method for low income housing in Georgia, using Magnolia Trace as an example. The current effort was restricted to addressing local government in the process. No effort was made to investigate the DCA evaluation of this application after the initial rejection, because the reasons cited were costs, not local government factors.

No smoking guns were found in this examination as relate to Columbia County and its officialdom. What was found was a highly-regimented and documented process required by the Department of Community Affairs accompanied by a high degree of supporting documentation. The author was and is most impressed, as not many recent reviews have found such accuracy.

The Columbia County Commission can breathe again.***A.G.

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