Tag Archive for 'wade-shealy'

Jekyll Island Development: A Question of Fairness and Justice?

Published
by
Wilson
on December 24, 2007
in Podcast
. 0 Comments

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)

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)