Tag Archive for 'jekyll-island-company'

Linger Longer at Jekyll Island: Fact or Fiction?

Published
by
Wilson
on December 20, 2007
in Podcast
. 0 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 (334)

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

Published
by
Wilson
on October 12, 2007
in Podcast
. 1 Comment

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 (312)