Tag Archive for 'development'

The Beach at Jekyll Island: A Hopeful Reprieve

Published
by
Wilson
on April 14, 2008
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. 7 Comments

Sometimes, it’s not whether you win or lose, but whether you fight. Such is the saga of the effort to save the beach at Jekyll Island. In this interview, Sen. Jeff Chapman (R-3) and David Egan of The Initiative to Protect Jekyll Island, explain the cautious victory that has materialized out of defeat in the effort to get the Georgia Legislature to care about preserving Jekyll.

To summarize, it was last June, 2007 that the Jekyll Island Authority solicited proposals for the development of a 45 acre tract of land on Jekyll Island. That began a flawed, if not corrupt, bid process that resulted in a display of arrogant hanky-panky by the JIA, the award of a development bid to a big-time Republican contributor (Mercer Reynolds), a lawsuit by a disappointed bidder, and an effort by Sen. Chapman to get the Georgia Legislature to demonstrate leadership in protecting the open beach at Jekyll.

When the Georgia Legislature failed to care, the JIA announced that it had decided to “do the right thing” and relocate the proposed development so as to not interfer with the beach. This change of heart is not, in my opinion, due to any virtue of the JIA. Rather, the JIA is trying to make it appear it has heard the public and is now going to do the right thing. Bah, humbug. All the JIA is doing is trying to spin the recent action by the Georgia Department of Natural Resources which declared the beach area within the proposed development to be subject to the Georgia Shore Protection Act. What does that mean? Simply, the JIA can’t develop the area.

So, what is the lesson to be learned from this effort at Jekyll Island? Several things.

First and foremost: Many of the independent boards in Georgia don’t work, at least, not when it comes to protecting our natural resources from abuse by developers. Remember the ejection of Sally Bethea from the DNR Board last year! Gov. Perdue appoints the members of the JIA, as well.

Second, the only thing that is ever going to keep developers from developing your back yard is the law. This battle was lost, but for the Georgia Shore Protection Act which was passed more than 20 years ago when environmental issues received a little more attention prior to the push to develop every foot of land in Georgia.

Third, the Georgia legislature is virtually useless when it comes to doing the right thing. They refuse to correct their mistakes, such as the immunity they gave emergency room doctors and hospitals in 2005. They refuse to protect much of anything if it doesn’t affect their pocket book or improve their chances for re-election. They just don’t care. These arrogant self-promoters (and let there be no mistake, I am referring to the Republican leadership, particularly in the House under His Royal Sinus, Glenn Richardson) favor business interests in all things. Their mistress is the Chamber of Commerce, not the people of Georgia. They pass tax breaks for business in a year when they could not pass tax reform for individuals, and they did it in a year when, due to the Bush recession, no one should have gotten a tax break. They want to eliminate property taxes because they own so much commercial and investment property they would love to be able to pass that tax burden onto the average Georgian that owns a house by fooling him into paying more, much more, in sales taxes, under the guise of eliminating the property tax. They favor insurance companies and always make education the first victim of budget cuts.

Last but not least, fighting the arrogance of the JIA and other state agencies and boards is, ultimately, worthwhile. You just have to be strong enough to let the battle play out and every once in a while something unexpected will save the day.

Three cheers to Sen. Chapman and David Egan and everyone who supported the effort.

 
 Jekyll Island, Sen. Jeff Chapman, David Egan [28:09m]: Play Now | Play in Popup | Download (424)

Jekyll Island Showdown: Chapman, Egan, Langford, Garvey

Published
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Wilson
on January 25, 2008
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. 11 Comments

The Jekyll Island development controversy gains new clarity in this interview with four of the primary participants. (1) Sen. Jeff Chapman (R-3) plans to introduce a resolution which would effectively prevent new development on the beach. (2) David Egan, Founder of the Initiative to Protect Jekyll Island, wants the Jekyll Island Authority to listen to what the people want. (3) Jim Langford is the Project Manager of Linger Longer, the Revitalization Partner selected by the JIA in a bid process that is currently in litigation. (4) Eric Garvy is the Senior Director of Marketing and Business Development for the Jekyll Island Authority and firmly defends its actions and decisions.

Because all 5 of us were on the phone at the same time, I scheduled this interview for an hour. While this may be long, it is well worth the effort. My previous interviews with Chapman, Egan, Langford, and Garvey provide a lot of background, but it took this interview for me to truly appreciate the real bottom line in this controversy: Will Jekyll Island be preserved or developed?

A little history. Jekyll was purchased by the State in the late 40s. The State still owns all the land and simply leases it to homeowners, motel and business owners to generate the income necessary to maintain the roads and other infrastructure, as well as other projects such as restoration of the historic district and the Georgia Sea Turtle Center.

In 2007 the legislature declared Jekyll to be Georgia’s Jewel, but it is on the verge of being a multimillion dollar jewel in the hat of developers if the current 63-acre development project proposed by Linger Longer and selected by the JIA goes forward.

The law that created the JIA contained a specific directive for the income generated on Jekyll Island:

All income and revenues arising out of the operation of Jekyll Island State Park, and all gifts, grants, appropriations, or bond or loan proceeds made specifically for Jekyll Island State Park, shall be used by the authority for the sole purpose of beautifying, improving, developing, enlarging, maintaining, administering, managing, and promoting Jekyll Island State Park at the lowest rates reasonable and possible for the benefit of the people of the State of Georgia.

While it is the responsibility of the JIA to manage Jekyll in a manner that generates sufficient income, it seems obvious, at least to me, that in 1950 the legislature envisioned something other than a fully developed resort type recreation area. This interview explores in depth several issues which arise from the manner in which the JIA seeks to fulfill its responsibility to Jekyll and to the people of Georgia.

This is clearly not a dispute about revitalization of the existing motels and convention facility. Everyone agrees this is necessary, and in fact, several facilities either have been or are in the process of major renovation or complete rebuilding. When all are back online the increased capacity and higher room rates will result in more annual income for the JIA.

The controversy focuses on two basic issues: (1) Is the propsed 63 acres of new development necessary to meet the reasonable income needs of the JIA? (2) Should any development be allowed on the prime stretch of beach (approximately 9000 ft.) that is, without question, unique, both in the quality of the beach and length.

IS THE PROPOSED DEVELOPMENT NECESSARY? The answer depends on your choice of goals. Langford of Linger Longer contends it will generate $100 million in income for the JIA over 10 or more years. It is hard to argue against such a project if your goal is to make as much money as possible. Not only that, but this project is just the first that the JIA is contemplating. Presumably, the JIA wants even more in income. The question is why? The answer to that question is not written in some brochure or noted on the JIA website. The motives of the JIA can only be judged in the context of the its actions and conduct regarding the development and promotion of the project.

While I am sure Linger Longer and the JIA will disagree, that judgment is not flattering to an entity like the JIA which is charged with a public trust. Rather, the JIA has made a mockery of the idea that it acts as a Trustee for the people of this State. It undertook this project without any apparent attempt to determine its actual income needs. The JIA cannot answer this question: Will the existing faciliities, once they are renovated, generate enough income to meet the operational needs of Jekyll? Even with the old motels, Jekyll operated in the black every year but one, and that was when the renovations may well have affected the number of rooms available.

Another breach of the public trust by the JIA is its apparent total lack of concern, bordering on scorn, for public opinion and input. It dreamed up this project, it issued a request for developers to submit proposals, and it gave its approval to Linger Longer without ever undertaking to find out first what the residents of Jekyll or what the people of the State of Georgia wanted. Like most bureaucratic entities, the JIA assumes it knows best in all things and the people that actually live on or visit Jekyll know nothing.

In this interview, Langford and Garvey suggest that the JIA and Linger Longer are willing to scrap this project if the people don’t want it or if someone has a better idea. The actions of the JIA in this entire process raise serious doubts as to whether or not this is anything other than mere lip service. It is rare to see a state agency or authority decide on a course of action and voluntarily yield to public pressure to change direction. While it can happen, it is not easy for the public to force the change without the assistance of a big stick. That big stick just might be the pending litigation or, in this election year, it might be public outcry.

One other point. The JIA clearly seems determined to develop Jekyll Island to the fullest extent possible. Why? That goal is not in the legislative directive which created the JIA. Since 1950 the JIA has never promoted development, first and foremost, above all other considerations. Why the change? Why now? It could be that the recent appointments by Governor Perdue to the JIA have a new idea for what should be done to Jekyll. But the real answer is money, plain and simple. If you ever have a question about why government does something, follow the money. If Linger Longer’s proposed project goes through, it will make tens of millions of dollars. The JIA’s plans for further development will put hundreds of millions of dollars of pure profit into the hands of Linger Longer or some other developer.

Why development? Because we can is the JIA’s position. Why not! Earn millions, spend milliions, put millions into the hands of people like Mercer Reynolds, the owner of Linger Longer, who gives big, big money to governors and presidents.

IS IT NECESSARY TO BUILD ON A BEACH THAT HAS BEEN UNOBSTRUCTED FOR MILLIONS OF YEARS? The JIA’s position on this simple issue reveals the simple truth: The JIA isn’t interested in earning enough income to provide accommodations at the lowest rates reasonable and possible for the benefit of the people of the State of Georgia. It’s interest is to suck just as much money out of Jekyll as it can, the beach be damned. That’s it, spread the love, baby!

Without a doubt, whatever project JIA and Linger Longer propose to build could be built somewhere else on Jekyll. So why not satisfy the people and just move the project to another location and leave the unobstructed beach unobstructed? The answer, money! As Langford said at the beginning of the interview, the present goal of the project is to create an “economic engine.” As Sen. Chapman points out, there is nothing to suggest that the legislature or the people of Georgia bought Jekyll Island for the purpose of creating an economic engine. That was not and is not Georgia’s intent for Jekyll. The problem is the JIA has forgotten or ignored that it holds Jekyll in trust for the rest of us. The JIA thinks it owns the place.

There are only two ways to deal with a state agency which has become arrogant, that won’t listen to anyone, that is intoxicated with its own power. One option involves violence, is clearly illegal, and therefore not one that I can recommend. The other option is legislative action which is exactly what Sen. Chapman proposes to do. His proposal would prohibit development on the beach so that the view we all grew up with would be there for our grandchildren. It would also insure that whatever leadership failures future members of the JIA exhibit, it won’t threaten the beach and the view.

Now, the question is whether or not that Republican majority in the legislature will exhibit some leadership on this issue. And that is a big question!

 
 Jekyll Island and Development [59:18m]: Play Now | Play in Popup | Download (502)

Jekyll Island Development: A Question of Fairness and Justice?

Published
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Wilson
on December 24, 2007
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Last week, I interviewed Jim Langford, the Project Executive of Linger Longer about the status of the proposed development of a new Town Center on Jekyll. This week, Wade Shealy of the Jekyll Island Company responds.

The focus of the controversy is a simple question and answer asked by persons unknown and answered by persons unknown at at June 25, 2007 compulsory meeting. In this interview, Wade explains why neither the Jekyll Island Company nor any of the other companies submitting a proposal assumed that the question and answer changed the development project from a 45-acre development to a 63-acre development. His answer is fairly simple: The written request for proposal, RFP #244, said repeatedly: Do not exceed the 45 acres specified! If the JIA intended to change the acreage on something as important as a $500 million project, you would think that the one thing the JIA could get straight was the acreage to be developed.

Linger Longer seems to be hanging it’s hat on that question and answer. The ultimate success of that position will be determined by the Superior Court of Fulton County. A preliminary test is scheduled for January 14, 2008 when the court will hold a hearing on Jekyll Island Company’s request for an injunction to prevent JIA from going ahead with the development until the issues concerning the selection process are resolved.

If the court issues an injunction, it will be because justice demands it. The question will then be whether or not the JIA will continue to fight or do the right thing, the fair thing, and go through the selection process again.

Wade says that is all his company wants: a fair selection process. He is apparently willing to trust the JIA to make a fair selection, once the acreage issue is resolved. Wade may not have much of a choice, but I have little faith in the ability of JIA to do anything fairly when it comes to selecting one development proposal over another. Just about everything the JIA did in the selection process suggests secrecy and bias. Why you ask? Money!

At stake are profits which Wade estimates to be in the range of $500 million. Think about that: $500 million. $500 millioin in profit for a private company for the privilege of developing an island owned by the people of Georgia. This is not to minimize the risk involved, or to suggest that this level of profit is unreasonable. I simply don’t know. My point is the huge incentive for the selection process to become corrupted, for political favors to be paid, for campaign contributors to be rewarded, legally, so to speak.

A curious side note! Wade was appointed by Governor Perdue to the Georgia Land Conservation Council. On December 6, 2007 the Council announced the purchase of almost 20,000 acres in 3 Georgia counties at an expenditure of $92 million. Wade says he was advised that a press conference had been scheduled to announce the decision to purchase the property. The only problem: the press conference was being scheduled before the Council voted, which means the Council was expected to simply rubber stamp a decision that had already been made. Wade questioned the propriety of scheduling a press conference before a decision had been made. While Wade did vote for the purchases, his reward for asking the question: He gets a letter from Governor Perdue telling him he is no longer on the Council, effective at the end of the month!

And that ladies and gentlemen, is the state of leadership and politics in this great state on Christmas Eve 2007. If you voted for these guys, you asked for it, you got it!

 
 Wade Shealy, Jekyll Island Company [27:31m]: Play Now | Play in Popup | Download (371)

Linger Longer at Jekyll Island: Fact or Fiction?

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Wilson
on December 20, 2007
in Podcast
. 3 Comments

Jim Langford is the Project Executive for Linger Longer, selected as the Revitalization Partner by the Jekyll Island Authority with regard to a proposed 45-acre development. Here is an aerial photograph of the Jekyll Island Site Development Plan.

Jim joined Linger Longer about 6 months ago. Surprisingly, he told me came from a long line of yellow-dog Democrats and even served on the DNR Board with two of my yellow-dog Democrat friends, Reese Thompson from Vidalia, and Jim Butler, from Columbus. Jim’s father served as a Democrat in the Georgia House and Senate. I mention this because Mercer Reynolds, the Reynold’s Plantation Reynolds and owner of Linger Longer, is a heavy Republican contributor.

Jim’s background is in environmental work, historical site restoration and archeological site preservation. He has previously been the State Director of the Trust for Public Land.

It was on the DNR Board that he met Jamie Reynolds, a cousin of Mercer Reynolds, who owns all or most of the Linger Longer company. According to Jim, Jamie’s grandfather had a cabin on the Oconee River in the early 1900’s which he called Linger Longer. The grandfather’s will provided that the property could not be sold or divided unless a dam was built on the river. And what do you know, in the 1970’s they built a dam, created Lake Oconee and the Reynold’s fortune was made, or at least a good portion of it.

The controversy surrounding the award of the development project to Linger Longer focuses on the request for proposal, RFP#244. There were 4 companies that submitted proposals. Three of them submitted proposals based on the proposed 45-acre development specified in the RFP. However, Linger Longer submitted a proposal to develope 63 acres. Linger Longer got the award. One of the companies that did not get the award, Jekyll Island Company, filed suit November 15th in Fulton Superior Court to set aside the award to Linger Longer because its proposal did not comply with the requirements of the RFP.

The question that I wanted to ask Jim and Linger Longer was why did they submit a proposal that covered more acres than the 45 specified? It seems to me that a company submitting a proposal on a project potentially worth millions of dollars certainly would not want to screw it up by failing to comply with the bid requirements.

This is what Jim told me. The RFP was put out in June 2007. A mandatory meeting was scheduled for June 25th. There is a note on the JIA webpage about this mandatory meeting on June 25, 2007. There is also a list of attendees and among them is Wade Sheally of the Jekyll Island Company.

According to Jim, during the June 25th meeting someone, not Linger Longer, asked a “key” question. The questions asked at the meeting are posted on the JIA website. The question to which Jim refers is as follows:

6. WILL PROPOSALS BE RESTRICTED TO THE TOWN CENTER SITE?
A. No, the RFP primarily addresses the Town Center Site because the JIA wanted to receive readily quantifiable and comparable offers for a specific property and project. The RFP also discusses the JIA’s desire to enter into a long-term partnership with the selected developer based on the results of this first project. Proposers are encouraged to discuss your interest in becoming the Authority’s long term development partner and how you would propose structuring the partnership in terms of future development opportunities on Jekyll Island. It could include a discussion of future development options, management of the Authority’s existing amenities and proposed financial structure for the partnership.

Jim and Linger Longer interpret this question and answer as somehow modifying the specifications contained in the RFP. Frankly, Jim, I don’t see it. It seems to me that the answer reaffirms that the JIA is seeking a partner for a particular project, the 45 acre project. Jim and Linger Longer will have to consult with their lawyers but I wouldn’t spend a lot of money until the Superior Court or even the Supreme Court rules. After the interview Jim advised that a hearing has been scheduled in Fulton Superior Court sometime in January on the issue of whether or not the Court will restrain the State and the JIA from proceeding with development of the Linger Longer proposal.

I should also mention that Senator Jeff Chapman had written to the oversight committee in the legislature, indicating his concern over the Linger Longer proposal. According to Jim, Sen. Chapman’s letter was written before the details of the Linger Longer proposal were known and he hopes the Senator’s concerns are being dealt with.

One of those concerns was the cost of accommodations on Jekyll as a result of the development. Jim told me that there are 4 hotels in the development, one of which is the fancy one attached to the conventiion center. The convention center rooms will cost $183 per night.

Jim denied that there was any back room deals in this process. He even indicated that a reporter in Atlanta who had initially been interested in looking into the matter further, had apparently become satisfied with the information available and was not pursuing the story any further.

Linger Longer and the JIA are now asking for public input to tweak the plan. If you want to let them know what you think you can check out rediscoverjekyll.com.

I intend to follow this saga and see how it turns out. Should be interesting, to say the least.

 
 Jim Langford, Project Executive, Linger Longer [28:45m]: Play Now | Play in Popup | Download (386)

Rep. Jeff Lewis (R-15), Chairman House Energy Committee

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Wilson
on December 20, 2007
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Jeff Lewis is Chairmen of the House Energy, Utilities and Telecommunications Committee. While the committee has a broad range of jurisdiction, this interview focused on energy. You may have heard of the ethanol plants being built in Georgia. The one in Camilla uses corn and the one in Treutlen County uses wood chips (pine trees). According to Lewis, it takes about 1 to 1.5 gallons of energy to produce one gallon of ethanol using corn. Wood chips take less energy to produce the same gallon of ethanol.

Georgia has more pine trees than any other state in the Union. If wood chips can be utiltized to produce ethanol efficiently, such plants could represent an economic boost to the state in the future.

When it comes to generating electricity, it is anticipated that in the next 10 to 15 years Georgia will need another 22 to 25 thousand additional megawatts of electricty per day. That could mean as many as twenty new power plants. That’s a lot of power plants! You may not realize it, but new power plants are being built all the time. While the Public Service Commission has responsibility to approve the construction of a new plant, the Energy Committee has the responsibility to set the guidelines by which new plants are considered and authorized.

You will not believe the number of power plants in Georgia, and most of them are not owned by Georgia Power. Many companies and cities apparently generate some amount of electricity.

The decision that is on the horizen is whether or not to change that focus from coal or natural gas plants to nuclear plants. A nuclear plant generates 1000 to 1500 megawatts of electricity. It can take 12 to 15 years to plan, permit and build a nuclear plant. The Energy Committee could increase electricity production in Georgia by shortening the time required to permit a new plant.

I get the impression from Jeff that nuclear power is coming, it is just a matter of when. The “Three Mile Island” incident in 1979 resulted in a virtual moratorium in the construction of nuclear generating plants. According to Jeff, nuclear power is the most efficient and cost effective energy source. He believes the issue of disposing of nuclear waste is being dealt with.

While the US obtains almost 20% of its electricity from nuclear power, Europe relies heavily on nuclear energy: France 80%, Italy and Spain 60%, and England 50%. Here’s a list of European countries with nuclear power plants.

Jeff also mentioned a new generating plant to be located in Clay County, which will generate 250 megawatts by burning “biomass,” such as peanut shells and pecan hulls. The Committee approved a sales tax exemption for the plant so that it did not have to pay sales tax on the raw products it buys to generate electricity. This incentive was necessary to convince the plant to locate in Georgia, rather than Florida or Alabama who were also competing to get it.

I also asked Jeff about comments attributed to him when the Committee met in August in which he expressed doubts as to whether or not global warming is real, and if real, to what extent do humans contribute to or cause it. Jeff took a lot of heat for those comments.

Like a lot of people, I believe global warming is real and that human generated greenhouse gases contribute to it, but the truth is, my opinion means absolutely nothing.

The concern is that while other states have passed laws setting goals for energy efficiency and emission standards, Jeff and other Georgia legislators apparently don’t believe that such measures are necessary. Jeff doesn’t want to do anything to handicap the state’s economy, when its competitors around the globe may not be doing likewise. He says that he and other legislators are educating themselves so that if and when they have to make substantive decisions for or against global warming, they can make the best decision for Georgia.

I think that global warming is an issue that is too big for individual states to resolve. This issue requires and demands leadership on a national scale. Without that kind of leadership, there will only be a continued unresolved controversy. It is just like the water problem we are now dealing with in Georgia. State leaders have known this problem was approaching for years and did nothing, primarily because to do something is to limit growth or spend a lot of money. Just like water, states will never effectively deal with the economic aspects of global warming until some crisis in the air or water quality exists. Just like water, that could be too late.

Jeff indicated that the Committee is not presently expected to consider any specific legislation during the ‘08 session.

 
 Rep. Jeff Lewis, (R-15), Chairman, House Energy, Utilities and Telecommunications Committee [30:37m]: Play Now | Play in Popup | Download (287)

The Jekyll Island Saga Is Taken Up A Notch!

Published
by
Wilson
on November 20, 2007
in Blog
. 2 Comments

If you have been following the interviews concerning the Jekyll Island controversy (1, 2, 3, 4, 5), you may be interested in this.  (BTW:  If you read the post in #3, it begins with a comment that the interview should piss you off. That reference was apparently confusing, particularly if you did not read the entire post. I was not referring to the person interviewed, Wade Shealy. Rather, I was referring to the subject of the interview, a corrupted bid selection process in which Shealy and his company did not appear to have been fairly treated.)

There was an article in the AJC last Friday about a lawsuit filed November 15th in Fulton Superior Court seeking judicial review of the process by which a politically connected developer, Linger Longer, was selected as the Revitalization Partner of the Jekyll Island Authority in the proposed development of 45 acres on Jekyll Island.

The Jekyll Island Revitalization Group (JIRG) and its related company, Jekyll Island Company are the plaintiffs in the lawsuit. The defendants are:

JEKYLL ISLAND – STATE PARK AUTHORITY; BENJAMIN G. PORTER, Chairman of the Board of Directors of the Jekyll Island – State Park Authority; EDWARD E. BOSHEARS, Secretary of the Board of Directors of the Jekyll Island – State Park Authority; HOMER DELOACH; MICHAEL D. HODGES; BECKY KELLEY; SYBIL D. LYNN; ROBERT W. KRUEGER; SAMUEL B. KELLETT; STEPHEN B. CROY, Members of the Board of Directors of the Jekyll Island – State Park Authority.

You can read a copy of the petition for judicial review, but these are the basic allegations:

COUNT I: THE PROPOSAL SELECTED BY JIA WAS NOT RESPONSIVE TO RFP 244, IT SHOULD NOT HAVE BEEN CONSIDERED BY JIA, AND IT SHOULD NOT HAVE BEEN SELECTED BY JIA.

COUNT II: JIA EXCEEDED ITS AUTHORITY IN CONSIDERING AND SELECTING THE LINGER LONGER COMMUNITIES PROPOSAL.

COUNT III: JIA VIOLATED ITS DUTIES AS A TRUSTEE.

COUNT IV: JIA VIOLATED THE OPEN PUBLIC MEETINGS ACT, AND JIA FAILED TO FAIRLY AND EFFECTIVELY COMMUNICATE ALLEGED CHANGES IN THE REQUIREMENTS OF RFP 244.

COUNT V: JIA VIOLATED JIRG’S RIGHT TO DUE PROCESS.

COUNT VI: JIA VIOLATED JIRG’S RIGHT TO EQUAL PROTECTION.

COUNT VII: JIA’S ACTIONS CONSTITUTE A TAKING WITHOUT JUST COMPENSATION.

COUNT VIII: INJUNCTION AGAINST FURTHER NEGOTIATIONS BETWEEN DEFENDANTS AND LINGER LONGER COMMUNITIES.

In seeking an injunction, Count VIII alleges:

107. JIRG lacks an adequate remedy at law. Unless JIA and Linger Longer Communities are restrained and enjoined from conducting planning and contract negotiations concerning RFP 244, JIRG will suffer irreparable harm in it ability to not only seek and obtain effective judicial review of the Final Decisions, but also to obtain an effective and fair remedy if the Final Decision is reversed.
108. The public has a substantial interest in honest and fair bidding on public projects and decisions concerning requests for proposals. The public interest would likewise suffer immediate and irreparable injury should JIA and Linger Longer Communities not be enjoined from planning and contract negotiations.

And what does JIRG want the Superior Court to do?

WHEREFORE, the Plaintiffs pray:
(a) that this Court enjoin the following parties from taking any action in furtherance of negotiating a contract for RFP 244:
(i) Linger Longer Communities, including any person or entity that created or submitted any information on behalf of Linger Longer Communities in response to RFP 244, and the directors officers, members, employees, and agents of those entities; and;
(ii) Defendants, and the officers, employees, agents, and those acting in concert with the Jekyll Island – State Park Authority;
(b) that this Court order JIA to transmit the entire record in this matter before JIA to this Court;
(c) that this Court order, adjudge, declare and decree that the Final Decision is void and unenforceable in its entirety;
(i) that this Court order JIA to strike the proposal submitted by Linger Longer Communities and select the proposal submitted by JIRG;
(ii) in the alternative, that this Court order JIA to re-start the bidding process for RFP 244; and
(d) that this Court grant such other, further, plenary, and different relief as may be deemed just and proper.

Injunctions require hearings and I assume there will be a humdinger sometime in the near future.  If a temporary injunction is granted, the development projected will be on hold indefinitely.Â

Water and Property Taxes: Senator Tommie Williams Says…

Published
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Wilson
on November 16, 2007
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I think he gets it.  I hope he gets it!  But only time will tell and it will take the 2008 session of the Georgia legislature to reveal just how Senator Williams and the rest of the Republican leadership are going to deal with the issue of water.   This interview focuses primarily on water, but near the end we discuss Glenn Richardson’s proposal to eliminate the property tax. 

When it comes to Speaker Richardson’s proposal, Tommie makes it clear that while it may pass the House, it will not pass the Senate, at least not in its original form.  I am not sure what that means, but Senator Wiliams is equally emphatic that the 2008 legislature is going to do something about property taxes.  According to Senator Williams, people are upset about their property taxes are going up. 

He points out that people on fixed incomes have to worry about their property taxes increasing to the point they can’t afford to pay them.  I don’t think anyone would argue with the idea that the elderly and people on fixed incomes need some protection, I don’t think this justifies a criticism of the property tax as an effective and fair tool for raising revenue.  There are two basic reasons the taxes of homeowners go up significantly:  (1) correcting years of under-stated property values because assessors did not do their jobs, or (2) the inflated value of real estate in this economy. 

I mentioned to Tommie that Warren Buffett, the billionaire, had recently announced that he paid 18% of his income in taxes and his secretary paid 33% of her income in taxes and had challenged members of Congress to disclose their tax rates.  I then asked Tommie if he thought the shifting of the tax burden from a wealth basis, such as the property tax, to a consumption basis, such as the sales tax, would result in his paying less taxes.  He readily admitted that he had already done the math and that he would pay less tax. 

And that, ladies and gentlemen, is the primary reason behind Glenn Richardson’s efforts to eliminate the property tax: less taxes for the rich, more taxes for consumers.

Water, is not an easy topic to discuss, since it seems that no one wants to talk specifics.  However, in light of Governor Perdue’s recent public confession of sin regarding the way the water problem has been handled, I really wanted to know what sins had been committed that may be affecting the delivery of water from the heavens.   I am still not sure what those sins are, but I still resent having my supply of water affected because of them.

It did not take long to establish that the water plan proposed by the Water Council is not going to receive the legislature’s approval.  The real question is what plan will pass, because some plan has to pass unless they change the law.

Tommie also pointed out that everybody is sick and tired of the hassles that come from too much growth and development in Metro Atlanta.  Too many cars.  Too much traffic.  Too little water.  However, I did not detect any real desire to curb the enthusiasm of developers for more. 

Tommie readily acknowledges that South Georgia is not going to stand for having its water sent to Atlanta.

He doesn’t think that building more reservoirs is a long term solution to the water shortage, mainly because he thinks the EPD and the Endangered Species Act would effectively prevent a reservoir being approved. 

He mentions the possibility of a desalinazation plant to pump water from the coast to Atlanta as a possibile means of providing more water to the Metro Atlanta.  That is certainly a possibility, but the costs is going to be a big issue.  Not only that, will Atlanta pay for it?  Can Atlanta pay for it?

I was surprised when he mentioned the Tennessee River, which he indicates Georgia owns half of.  Hmmm!  Never thought of that, but Tommie indicated that Georgia might claim a right to pump water from the Tennessee River to Metro Atlanta.  Of course, there are all sorts of issues with this, such as the power and control of the Tennessee Valley Authority over the Tennessee River, not to mention building the pipeline to Atlanta.

While these long term possibilities are interesting to discuss, I was more interested in finding out if anyone, including Tommie, had any idea what Atlanta was going to do in 250+ days, if and when the water ran out.  He indicated that the emergency managment agencies were working on that problem and I really did not get any idea what short term options were under consideration, other than, of course, hauling water to and fro.

The only thing that is still certain is that 2008 is going to be interesting, to say the least.

 
 Tommie Willians, Senate Majority Leader [32:13m]: Play Now | Play in Popup | Download (213)

Sen. Jeff Chapman’s Report to the Oversight Committee: Jekyll Island!

Published
by
Wilson
on November 7, 2007
in Podcast
. 1 Comment

Sen. Jeff Chapman (R-3) isn’t one of the legislators designated as a member of the Jekyll Island Authority Advisory Board, but as he points out, this State owned island is in his district, his constituents have a great interest in what happens there and he is concerned about some of the recent actions of the Authority.

There are two aspects of the current controversy surrounding the Jekyll Island Authority (JIA). In September 2007 the JIA selected Linger Longer as its Revitalization Partner to design and develop a new 45 acre (or is it 63) tract with hotels, motels and all the things that go with them. The only problem, as discussed in my interview with Wade Shealy, in selecting Linger Longer the JIA engaged in some sleazy tricks that appear to have been intended to benefit a particular Republican contributor and which also appear to have violated the law. In the very least, the JIA tarnished its status and justified criticism that it was acting unfairly and arbitrarily.

Sen. Chapman left the issues surrounding the bidding process to be resolved between the JIA and the Jekyll Island Revitalization Group, whether in or outside of court.

His concern is a little more fundamental. Regardless of who was selected as the Revitalization Patner, Senator Chapman is concerned about the nature of the development being contemplated by the JIA. To understand his concerns you can listen to the interview or you can read his letter of November 5, 2007 to the Oversight Committee of the Legislature.

When you talk about Jekyll Island there is one distinguishing factor which you have to keep in mind: the State of Georgia owns it. We, the people, own it. It is for us, for all of us, for the rich, for the poor, for the old couple that wants to drive to the beach and sit in the sand for a few hours, and for the couple with 5 kids that can’t afford a trip this year, but can entertain the kids at the Jekyll beach where the sand is wet, the water salty and the waves mesmerizing.

The JIA seems to be focused on turning Jekyll Island into a money making venture which simply means nothing cheap, nothing affordable (or very little), nothing inviting to the good old, average Georgian.

And then there is that view of the ocean. Just as soon as you get to the end of the entrance road, you turn to the left and there it is. The ocean, the waves, that sound! And, it goes on and on and on. When I was a kid it was 3 zillion miles from that first view of the ocean to the hotel! It is public and it is big and it is accessible. In contrast, go ride around St. Simons and count the number of times you can see the beach. You can hardly find the beach unless you are at a hotel.

Senator Chapman points out in his letter that several actions of the JIA appear to be

inconsistent with the park’s statutory purpose as a public facility set aside for the benefit of “the plain people” of Georgia.

And what is it that the JIA has done?

1. The possible violation of a constitutional prohibition against granting gratuities, including the forgiveness of a public debt as a result of the JIA “…granting a rent abatement estimated to be in excess of $10,000,000 to Trammell Crow and Partners…”

A similar possible violation of the gratuities prohibition by the JIA’s acceptance of “Linger Longer’s proposal for a combination of general obligation and revenue bonds totaling $84,500,000 to cover infrastructure costs associated with the proposed town center.”

2. An expressed intent by the JIA to make sure that ocean view rooms are not affordable by the average Georgian by allowing developers to charge what the market will bear and letting the “not so rich” go elsewhere if they can’t pay the bill. Senator Chapman notes:

This kind of thinking is reflected in policy shown by the Board’s approval of the replacement of the affordable Buccaneer Resort by Trammell Crow and partners, where room rates averaged $89 per night during the years 2002-2006, with a 540-room upscale hotel, where room rates will average double that amount in the off-season and $250 per night during the summer months. Add to these 540 rooms the 400 high-end rooms proposed by Linger Longer for its Jekyll town center, along with the 157 existing rooms at the upscale Jekyll Island Club Hotel, and the park will have well over half of its lodgings priced beyond the means of most Georgians.

3. “The Board is currently considering a proposal by Linger Longer Communities which calls for a beachside Jekyll town center that would result in the elimination of the state park’s most popular oceanfront public parking lots.”

4. “The Board has failed to take into account the environmental impact of a beachside community of the scale proposed by Linger Longer.”

5. “The proposed Jekyll town center includes 14 acres, currently designated as a “nature preserve,” that lie within the park’s 65% protected zone. Acceptance of all or any part of this segment of the proposal would require a redrawing of the existing 65/35 map and would constitute an amendment of the park’s Master Plan. Accordingly, the Authority would have to comply with sections 12-3-243.1 of the GA Code (see Attachment B) beginning with the submission of “a complete copy of the proposed amendment to the Speaker of the House, President of the Senate, members of the Jekyll Island State Park Authority Oversight Committee, and Office of Legislative Counsel at least 60 days prior to the date of the meeting at which the proposed amendment will be considered.”

Senator Chapman suggests several recommendations for the Oversight Committee’s consideration:

1. Seek an Official Opinion of the Attorney General on the question of the power of the Jekyll Island Authority to grant rent abatements or other subsidies to persons and corporations leasing property in the State Park from the Authority. Included among such subsidies the Attorney General should be asked about: a) the Constitutionality of a sale of bonds by the Jekyll Island Authority at the prescription of a party to whom the Authority is leasing property, when the proceeds of the sale of such bonds is to be used for the improvement of that leased property, and b) the legality of granting a rent abatement to a party for hotel redevelopment on nine acres of prime oceanfront property in light of OCGA 12-3-271, which calls for the Jekyll Island Authority to develop the park “at the lowest rates reasonable and possible for the benefit of the people of the State of Georgia.”
2. Seek an Official Opinion of the Attorney General in regard to that portion of the GA Code OCGA 121-3-235(14), calling for Jekyll Island State Park to be available to and affordable for people of average income, specifically in light of the Authority’s failure to exercise its power in behalf of the interests of Georgians “of average income” in its pursuit of the redevelopment of the hotel and other lodging facilities at Jekyll Island State Park.
3. Seek an Official Opinion of the Attorney General in regard to the applicability of the Environmental Policy Act, OCGA 12-16-1 et. seq., to the actions of the Jekyll Island Authority, specifically its duty to prepare an “environmental effects report” pursuant to that statute’s requirements.
4. Notify the Board of the Jekyll Island Authority of its duty to conform to the provisions of OCGA 12-3-243.1, in which notice of changes to the Master Plan for Jekyll Island must be submitted to the Overview Committee.

While the JIA apparently has some autonomy in ruling Jekyll Island, I certainly hope that the Oversight Committee flexes its muscles and imposes the will of the people of Georgia. The Governor appoints the members of the JIA, they aren’t elected. But those elected officials that can fix this, ought to and if they don’t that is what elections are for. If you think the JIA is on the wrong road, you can notify the members of the Authority Board, or Governor Perdue, or Sen. Tommie Williams (R-19) who is a Senate member of the Oversight Committee or Senator Chapman.

Let’s hope that Jekyll’s great view of the ocean is preserved for our kids and grandchildren!

 
 Sen. Jeff Chapman (R-3), Jekyll Island Report [29:15m]: Play Now | Play in Popup | Download (308)

Jekyll Island Revitalization Group Outlines Flaws in Bid Process!

Published
by
Wilson
on October 25, 2007
in Blog
. 0 Comments

The scandalous bid process for the redevelopment of Jekyll Island enters the next phase. In a protest letter to Bill Donahue, Executive Director of the Jekyll Island State Park Authority, Robert G. Brazier, the attorney for the Jekyll Island Revitalization Group, outlines numerous objections to and flaws in the bid process.

You may recall my interview with Wade Shealy in which we found out that political favoritism appears to be alive and well in Georgia. I don’t know how many people called Governor Perdue’s office to protest the shenanigans, but apparently the Jekyll Island Authority is going to stick by its guns and stand by its acceptance of Linger Longer’s bid.

That leaves the Jekyll Island Revitalization Group (JIRG) with little choice but to hire a lawyer and assert their rights, ultimately the right to go to court. (Which by the way, is probably the greatest right we have.) If you take the time to read the protest letter, you will find an overview of the various legal and constitutional issues resulting from the manner in which the bid process was handled.

What does JIRG want?

JIA is advised to consider these constitutional objections, as well as the facts presented to the JIA. JIA is requested to strike the proposal submitted by Linger Longer Communities and select the proposal submitted by Jekyll Island Revitalization Group. In the alternative, JIA is requested to re-start the entire bidding process for RFP 244.

Violations of the foregoing list of rights and guarantees with regard to Jekyll Island Revitalization Group give rise to a direct cause of action under 42 U.S.C.A. $ 1983 and $ 1988 for the violation of Federal Constitutional rights. Such causes of action allow for the recovery of all losses accruing to Jekyll Island Revitalization Group as a result of the JIA’s violation of these constitutional rights and guarantees, including attorneys fees and monetary damages. In addition, the violation of rights and guarantees could give rise to actions for a writ of mandamus or injunction.

Stay tuned. I am sure this ain’t over yet!

Perdue, Mercer Reynolds, Jekyll Island & Money: Hanky Panky in Georgia Politics

Published
by
Wilson
on October 12, 2007
in Podcast
. 5 Comments

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!

 
 Wade Shealy, The Jekyll Island Company [30:07m]: Play Now | Play in Popup | Download (364)