What Is Goin’ On?

If this interview with Wade Shealy of The Jekyll Island Company doesn’t piss you off, nothing will.

On September 24, 2007, the Jekyll Island Authority, in a display of arrogant stupidity (where you do something arrogant in front of the world for everyone to see), if not downright corruption, awarded a redevelopment project, worth billions, to Mercer Reynolds’ company, Linger Longer. You know Reynolds as in Reynolds Plantation on Lake Oconee, as in Bush’s former Ambassador to Switzerland, as in Advsior to the Scooter Libby Defense Fund, and as in one of the biggest fundraisers and contributors to Bush and the Republicans. An ambassadorship is an appropriate reward, bilking the State of Georgia isn’t.

In June 2007 the Jekyll Island Authority solicited proposals (RFP) to develop 45 acres (the acreage specified in the RFP) on Jekyll Island. Bids were turned in by the middle of August. Four companies submitted proposals: The Jekyll Island Revitalization Group, Linger Longer Communities, Cousins Coastal Ventrues, and Trammell Crowe Company.

One company’s proposal, Cousins, was culled because only the top three could be considered for the award. The winner was announced on September 24th by Ken Bleakley, the consultant hired by the JIA to oversee the process. (NOTE: When the consultant was being selected, Ken was the only one interviewed. At least two JIA Board Members wouldn’t even vote because only one candidate was being considered for such an important position. Ken, of the Bleakley Advisory Group, was the focus of some controversy in Macon in 2006. And, I couldn’t find a website for BAG which seems odd.)

The selection committee was composed of two employees of the JIA, together with the Chairman, Benjamin (Ben) G. Porter of Macon and JIA Board Member, Robert W. (Bob) Krueger of Hawkinsville, GA, both of whom were appointed to the JIA by Perdue in August 2006. While the full JIA Board apparently voted, they apparently had no opportunity to do any evaluation of the various proposals and just had to accept the selection committee’s choice.

When Ken announced Linger Longer as the winner, he said the reason was their proposal provided more green space. He seems to have forgotten to mention that the reason their plan had more green space was that it included a 19 acre park that was not located on the 45 acres specified in the RFP.

QUESTIONS OF THE DAY: (1) Why is it that the other 3 companies were never told they could include an additional 19 acres if they wanted to? (2) If this were an innocent mistake (as opposed to intentional rigging of the process), why weren’t the other companies allowed to resubmit their proposals based on an amended RFP? (3) Why wasn’t Linger Longer’s bid thrown out (rather than Cousins’) for failiing to comply with the specifications of the RFP? Why didn’t Ken Bleakley get in trouble for screwing up the process.

Wade Shealy, the Managing Partner of Jekyll Island Company, thinks his company submitted a much better and more favorable proposal for the State of Georgia than did Linger Longer. Here’s why:

(1) His company was going to fund the project without borrowing any money from the State. Linger Longer’s proposal includes two loans from the state totalling $84.5 million. (Good grief, not only do they get to make millions, we have to finance it for them!)

(2) His proposal would have returned to the State almost $100 million more in income over the specified 15 years than Linger Longer. (Apparently, Linger Longer’s money doesn’t linger longer.

(3) His proposal included 277 condos that would sell for less than $400,000. LL’s proposal provided for 17 condos below $400,000. (For the concern about keeping Jekyll affordable for average Georgians, see my interview with David Egan.)

(4) His proposal gave the residents of Georgia a 30% discount. LL’s, none.

(5) His proposal also gave $500,000 a year to the Jekyll Island Foundation, which would certainly go a long way in helping to preserve Jekyll.

(6) His proposal included establishing a permanent conservation easement on teh 65% of Jekyll that is to remain undeveloped so that politicians can’t change their mind in the future and open more of it for development.

Being awarded the Master Developer contract means profits in the millions of dollars, maybe even hundreds of millions. While that may be a hell of a lot of money, the risk of failure, poor sales, etc. is always there. But if this project is to be so lucrative, if Jekyll is to be the “Jewel of Georgia,” it is a disgrace to have the award of the contract sullied by these types of shenaningans. And that is putting it lightly!

Now why, you may ask, would the State accept Linger Longer’s proposal over Jekyll’s? Why would the JIA allow deception in the proposal procedure. As it always is in politics, follow the money!

According to Wade, he was told before the proposals were submitted that the choice of who would get the project had already been determined.

After the winner was announced, Wade even called one of the Board Members, Sam Kellett, another big Republican contributor, to see if he was concerned about the integrity of the process. Kellett’s response: Don’t make trouble, don’t go to the press, and there will be something for you later on!

You should also know that Senator Eric Johnson and Representative Jerry Keen are “advisory” members of the JIA Board. I haven’t heard about any outrage from them. Wonder what their advice was?

And there you have it. Contribute money. Get appointed to influential boards. Boards that spend millions. Contribute money. Submit bids for million and billion dollar projects. Someone will find a way to get you a good return for your money.

I guess Linger Longer lingers longer at the trough because it has a lot of political contributions to make.

If you think this is a disgrace, call the Governor’s Office and let them know. The number is 404-656-1776. You call the Governor, I’m gonna call the Attorney General or the District Attorney!