Was county's decision to purchase golf course a good one?

Earlier this year, Iredell County commissioners voted unanimously to pay $4.75 million for 189 acres of land adjacent to the county landfill – $3.25 million more than the land sold for just two years earlier, and about $3 million more than county assessors have since determined it is worth.

County officials maintain that the property – on which Twin Oaks Golf Course is currently situated – is needed for a future landfill expansion. They say the purchase was forward-thinking and fiscally responsible.

That could certainly be true. But the seemingly hurried process by which the county acquired the property, and the associations among some of the people involved, raise a few questions.

Was the county’s purchase of the Twin Oaks Golf Course property a sound, responsible decision? Read the following history of the project, and let me know your thoughts:

In November 2005, a development company, Twin Oaks Golf Development, LLC, purchased the 189 acres adjacent to the landfill for $1.5 million. Mooresville attorney Ben Thomas – the development company’s managing partner – said that he and his partners, Michael Ryon and John West, purchased the Statesville golf-course property “within days of it coming on the market (in 2005) and before it was common knowledge” that the land was for sale.

“The company believed the asking price was well below the market value for land that could be developed into residential lots with water and sewer already on site,” said Thomas in a two-page statement to the Report on Friday.

“At that time, in our view,” the statement read, “the seller was treating it simply as the sale of an older golf course needing significant repair, and not with the potential of it being developed into a viable and attractive golf course community.”

In December 2005, Twin Oaks Golf Development, LLC requested from the Iredell County Board of Commissioners a release of zoning jurisdiction to the City of Statesville in an effort to have city utilities extended to the golf-course property.

According to the minutes of the Dec. 20, 2005 briefing of county commissioners, Planning Supervisor Steve Warren said that the planning staff recommended approval of the request, which had received prior approval from the City of Statesville.

Warren cautioned commissioners, however, that the site was near the county landfill, which “at times, might not be too conducive for a housing development.” The minutes state that Thomas, along with Twin Oaks Golf Club’s general manager, Patty Keath, and Equity Commercial Property’s Frank Harmon – “all interested parties or developers in the housing project” – were at the meeting to encourage county approval. “They said having a landfill in close proximity to a housing development was ‘not new ground,’” the meeting minutes read.

Also according to the minutes, Iredell County Manager Joel Mashburn said that the area had “traffic, noise and occasional odors.” Keath added that “methane gas (from the landfill) could occasionally be smelled (from the golf-course property), but only on a really hot day.”

But Iredell County Commissioner Sara Haire Tice – who was chair of the commission at the time – noted a positive element to the proximity of the would-be residential project to the county landfill: homeowners would have city water.

The request for zoning jurisdiction was added to the commissioners’ consent agenda and later approved.

To read the minutes from the Dec. 20, 2005 meeting, click on the documents below:

Twin Oaks Golf Development, LLC “developed preliminary plans for a 335-home golf course community,” Thomas said, adding in his statement to the Report that “the potential profit margin of the home sites after expenses including the value of the improved golf course was determined to be in excess of $9.5 million.” It is unclear who made that specific determination.

Thomas said the company then acquired a $3.3 million loan, apparently from Catawba Valley (now CommunityOne) Bank, “to purchase the property and to develop approximately 1/3 of the home sites.”

The company, said Thomas, began “engineering the subdivision, clearing trees and making improvements to the golf course, including landscaping, new cart paths, remodeling the club house, acquiring new golf carts and building an outdoor pavilion.”

Approximately $2.5 million of the $3.3 million was spent on the purchase, engineering, planning, improvements and interest on the loan, Thomas said.

He said he and his partners “began negotiating in earnest with a large homebuilder to buy all the lots in an effort to realize the anticipated return on the company’s rather expensive investment.” But that builder backed out, so the company “was left looking for other options” and “began working with several small builders to purchase the future lots,” Thomas said.

That’s when Twin Oaks Golf Development, LLC contacted the county landfill office, said Thomas, to find out “when it would be finished with final landfill activities being conducted next door to the golf course.

“During that discussion, and in light of our unanticipated delays with potential construction partners,” Thomas said, “we disclosed that the project was being delayed and might even be sold to another developer.”

The county, according to Thomas, contacted Twin Oaks Golf Development, LLC “and indicated that if the property was for sale they might be interested in buying it to expand its landfill.

“Negotiations ensued, a selling price was discussed, and the county was not willing to pay what the company believed the overall property was worth at the time,” said Thomas. But since the company “was receiving pressure from its lender to move forward with the road construction, even though no contracts had been signed with builders to buy the lots,” Thomas said, “the company decided to continue negotiations with the county at a reduced price with the mutual understanding the county would lease the golf course back.”

Coupled with that, the company “felt an obligation to keep the golf course open and the employees on staff for as long as possible,” Thomas said. Therefore, “an agreement was reached and a sale was made under those terms,” he added.

Thomas said that the development company, at the time of sale, “had the very strong opinion that it was not getting as much for the property through its sale to the county as it could if it were to finish the development” or sell the property to another developer. But the company went through with the sale “because it felt the county could purchase the property sooner than any other potential buyers.” And that, he said, “would eliminate the company’s risk in the investment much quicker.”

By now, it’s November 2007. County commissioners were working on a “school improvements” campaign, planning to borrow $106 million in Certificates of Participation (COPS) to make capital improvements to various county schools. The COPS package was increased to $115 million in early December. In mid-December, the commissioners voted to purchase the golf-course land for $4.75 million.

In a Jan. 15, 2008 meeting, commissioners set the public hearing on the COPS package for two weeks later, on Jan. 29. It was also during the Jan. 15 meeting that the purchase of the golf-course land was added to the COPS proposal, increasing the total bond request to not-to-exceed $120 million – $113 million of which the county eventually issued.

Below are minutes from various meetings of the Iredell County Board of Commissioners, showing the evolution of the COPS bond package. Click on the documents to enlarge:


(The minutes above are from Nov. 6, 2007, when commissioners were discussing a "not-to-exceed" $106 million COPS bond package for improvements to various county schools.)



(These are minutes from a Dec. 4, 2007 briefing of county commissioners; the COPS package increased to "not to exceed" $115 million for "the financing of certain school facilities.")



(These are minutes from the county commission's Dec. 6, 2007 "mini-retreat." In a review of capital needs, no mention is made of the need to purchase land to expand the landfill.)



(These are the minutes from the Jan. 15, 2008 county board meeting, when the golf-course land is included in the COPS package. During this same meeting, commissioners scheduled the Jan. 29 public hearing. The COPS package increased to "not to exceed" $120 million.)



(Above are the minutes from the Jan. 29, 2008 public hearing.)



(These are minutes from the county commission's Feb. 5, 2008 meeting, showing the approved resolution regarding the COPS package.)

Also in January 2008, Iredell County Waste Management received a certified appraisal by Hawkins Appraisal Serve that placed the “highest and best use” of the golf-course property at $2.5 million.

But three months after receiving that appraisal, the county closed on the golf-course property for $4.75 million. And less than one month after taking over ownership of the property, county assessors appraised the property value at about $1.6 million.

To see the May 23, 3008 appraisal card, click on the document below:





After purchasing the property, the county attorney stated that the county had no intention of going into the golf business. But as a condition of sale, the county negotiated a “lease-back” agreement with Twin Oaks Golf Development, LLC, which stipulated that the county would receive 50 percent of the golf-course operation’s annual net profits, but a guaranteed payment of no less than $1,000 a month.

To read Iredell County's original lease agreement with Twin Oaks Golf Development, LLC, click on the documents below:

A consultant hired by the county to review the golf-course lease advised against the county asking for a percentage of net profits because the number could be “easily manipulated” by the lessee.

In three months this summer – May, June and July – the county received a combined total of $4,000 in rent, while the net-profit of the golf-course operations was $55,784 -- $20,015 in May, $20,532 in June and $15,237 in July.

The balance of one-half the net profits will be due no later than March 31, when the county, said Mashburn, also requires “audited financial statements to be submitted … for the preceding year.”

Thomas said that after Twin Oaks Golf Development, LLC sold the golf-course property to the county, “the golf management company called Twin Oaks Golf Club, LLC was transferred to the golf course manager of Twin Oaks who has been working there for 20 years. She is now the sole owner of Twin Oaks Golf Course, LLC.”

Just last week and after accepting bids, county commissioners approved a new operating lease with Twin Oaks Golf Club, LLC for a period of up to nine years, said Mashburn. Effective Jan. 1, “the lease payments to the county will be $2,000 a month and 3 percent of the gross receipts,” he added.

What oversight or monitoring does the county utilize to protect our investment? According to County Finance Director Susan Blumenstein, county staff makes “on-site observation visits to insure the course, equipment, and facilities are being maintained as required by the lease.” Also, she said a certified public accountant provides the county a monthly “‘cash basis’ financial statements for golf course operations.”

Why didn’t the county purchase the golf-course land in November 2005 when it was sold to Twin Oaks Golf Development, LLC for only $1.5 million? The answer is simple, said Mashburn: because the county didn’t know it was for sale. “What really triggered the county’s interest was when it came out in the paper that the new owner planned to put housing units in and around the golf course,” he said. “We felt that if that occurred, it would forever remove this land for possible landfill expansion, plus it would probably lead to numerous complaints from the new neighbors.”

Mashburn – who retires as county manager on Feb. 1, 2009 – said the county has been looking at the potential expansion of the landfill since 2004, when consultants told the county that it had 10-12 years of life left in the existing landfill. The county’s options: look for a new site elsewhere in the county or begin shipping waste to commercial landfills.

When Twin Oaks Golf Development, LLC made the golf-course property available for purchase in December 2007, Mashburn said it was a perfect opportunity for the county. “When the existing life is run out of the current landfill,” he said, “it will be almost impossible to relocate the operation to another location in the county. The possibility of finding adequate acreage will be almost impossible, to say nothing of the cost of relocating or restructuring the infrastructure which would cost well over $10 million for the infrastructure alone. It is in the best interest of all the citizens to be able to stay in the current location for as long as possible.

“By purchasing the golf course,” Mashburn added, “we should be able to stay at that location for about 50 years.”

He said the county does not anticipate expanding the landfill onto the golf-course property for another 12-15 years.

It is unclear if the county, before agreeing to purchase the 189 acres, thoroughly considered alternatives to solid-waste disposal or technological advances that could render landfills useless within the next 12-15 years. “Presently the only other effective alternatives to landfilling are cost prohibitive and very unpopular with most citizens” Mashburn said. “We are going a lot toward recycling to help reduce the amount going into the landfill.”

By the time that the landfill – if and when the county expands it – runs out of space, “hopefully suitable technology will be developed … so that it is no longer necessary to take up valuable land to bury the garbage … our society generates.”

Without an immediate need to expand the landfill – without compelling evidence suggesting that the landfill operation will ever need to be expanded, or even need to exist in a decade – did the county make a good decision in sinking $4.75 million into a piece of property that is worth far less than that? How much thought was put into the multi-million-dollar purchase, when the first time it was introduced for discussion was December 2007 and only a month later it was tucked into the county’s school-improvements bond package? And since many of the people integrally involved in the transaction have established associations with one another, the question must be asked: Did the business deal pass the muster of an “arms length transaction”?

Ben Thomas – the managing partner of Twin Oaks Golf Development, LLC – has served on the board of directors for the South Iredell Community Development Corporation (SICDC) since at least 2007 and is the organization’s attorney.

Iredell County Commissioner Sara Haire Tice and County Manager Joel Mashburn have also served on the SICDC’s board of directors since 2007, according to a roster of membership provided to the Report earlier this year by the Mooresville-South Iredell Economic Development Corporation (MSIEDC).

Woody Washam is President of the SICDC and – like Thomas, Tice and Mashburn – has served on the board of directors since at least 2007. Washam is also the market president of CommunityOne Bank (formerly Catawba Valley Bank), which provided the multi-million-dollar mortgage to Twin Oaks Golf Development, LLC to develop the golf-course property.

When Twin Oaks Golf Development, LLC sold the property to the county, the development group still owed Catawba Valley about $2.5 million on the mortgage, according to the HUD-1 settlement statement associated with the transaction.

To view the statement, click on the documents below:




When asked about the risks involved in providing a $2.5 million mortgage against a piece of property in which ownership was only $1.5 million (and the appraised value was approximately the same), Washam said that the HUD-1 statement “only will tell you part of the story of what is going on and the overall transaction itself.

“I am sure that you are aware that how a bank structures loans is based on many variables,” Washam added.

Thomas said in his statement to the Report that the sale of the golf-course property to Iredell County “was certainly a good and fair transaction under the circumstances as they existed at that time.

“It was good for the employees at Twin Oaks Golf Course, and it was a very smart and prudent investment by the county,” he added.

Thomas said that the county “paid approximately $25,000 per acre" for the golf-course property, "which was below the market value at the time." In addition to that, Thomas said, "the county now enjoys the benefit of post-sale revenues from the lease of the golf course until it needs the property to expand the existing landfill.”

He also pointed out in the statement that "the individuals associated with Twin Oaks Development, LLC and Twin Oaks Golf Course, LLC are private citizens and are not public officials." While granting "express permission" for the Report to use the company names and information included in the statement, he "expressly and strictly prohibited" the use of "individual names of persons associated with or employed by Twin Oaks Development, LLC and Twin Oaks Golf Course, LLC."

To read Thomas' full statement, click on the documents below:

Mashburn has pointed out that county staff, not commissioners, recommended purchasing the land, and he defends the county’s decision to buy it: “We were well aware of how much the owners paid for the land, and we also knew how much we had appraised it for tax purposes,” he said. “We knew that the owners were asking much more than supported by the above, but we all know that the real value of a piece of property is what a willing buyer and a willing seller are able to agree on the purchase price being.” Mashburn has also said that landfill fees, and not property taxes, will be used to repay the debt from the golf-course land purchase.

Neither Tice nor any of Iredell County’s other four commissioners – Marvin Norman, Steve Johnson, Ken Robertson and Godfrey Williams – responded to Report questions last week. Robertson was the only commissioner to contact the Report, asking for additional time to answer the questions.

I will post their responses if/when I receive them.

County Election 2008: Six candidates are vying next week for three open seats on Iredell County’s board of commissioners. Scott Keadle will join Williams and Robertson as the county’s three Republican candidates on the Nov. 4 ballot. Tice’s seat is also open this year, but she chose not to seek re-election.

Democratic challengers for the county commission seats are Chuck Gallyon, Barbara Orr and Mark Vanek.

The two top vote-getters receive 4-year terms on the county commission, while the candidate who finishes third receives a 2-year term.

(A friendly reminder: Ben Thomas raised a valid point in his response to Report questions: the employees and associates of Twin Oaks Golf Development, LLC are private citizens and not public officials. At the same time, those people became "public figures" when they participated in a public transaction, involving public money. That being said, I welcome and encourage open dialogue about the issues brought to light in this article, but I urge anyone who plans to post a comment to be civil and not to make unsubstantiated allegations against the people named in the article. If any unsubstantiated allegations are made, I will promptly remove them.)

"Sound Off": MI-Connection

The towns of Mooresville and Davidson have paid about $93 million to purchase and upgrade the former Adelphia cable television system – a decision that many Mooresville residents have denounced from day one.

At the Oct. 15 town-hall meeting, Commissioners Chris Carney and Miles Atkins were asked about their stances on the cable system.

Atkins was not yet elected when the Town of Mooresville agreed to bond $80 million to purchase the bankrupt cable system, but earlier this summer, he voted against providing an additional $12.5 million for system upgrades.

Carney voted in favor of bonding $80 million for the system. He said it was one of the toughest issues he has faced as a commissioner, especially because it "goes against my philosophy." But when Time Warner (which operated the system from the time Adelphia went bankrupt until the towns took ownership) refused to agree to a “performance bond,” Carney said, he agreed to purchase the system “based on numbers.”

When MI-Connection asked for $12.5 million more this summer for upgrades, however, Carney voted against it. He said that’s because he was adamant that elected officials should not serve on the MI-Connection board of directors … and a member of Davidson’s town board also serves on the MI-Connection board.

Carney said he’s “not happy with everything” related to the town’s purchase of MI-Connection, but that the system “makes quite a bit of money.”

“It still pains me,” he said, noting that he has switched to MI-Connection for his home cable service. “I now have a whopping cable bill like everybody else.”

Atkins said he could imagine that the town board’s original vote to purchase the cable system “was a hard decision,” because government-ownership of the system was so “unpopular.”

As a private citizen at the time, Atkins said he thought “there must be something to it if (commissioners) were willing to go that far against (public opinion)” to purchase the system.

He said the cable debacle points to the town’s need for a public information officer – a person with “boots on the ground” who is “dialed in with the citizenry” and can “engage the community in a visioning process.”

Atkins said the town’s purchase of the cable system fueled the public perception that "elected officials are out of step" because it appeared that the town board was focused on buying a cable system while the public was concerned about issues such as "water, sewer and transportation."

But “opportunities come up, and sometimes we have to jump on them,” Atkins said. The challenge, he said, is "how to share the information with the public and get them on board."

Carney said he still feels that the purchase of the cable system "was a fiscally-responsible decision."

"Was it a good decision philosophically?" he asked, then answered: “You didn’t put me into office for my philosophy.”

To see MI-Connection’s September 2008 financial and statistical reporting package, click on the documents below:

Now it’s your turn to sound off: How did you feel about the town’s purchase of the bankrupt Adelphia cable system? How about the additional $12.5 million for upgrades? Are you a MI-Connection subscriber? How’s the service? Did you switch from MI-Connection to another cable service? Why?

Cops for Kids: No New News

It's been almost four months since various investigations were launched into former police chief John Crone's Cops for Kids program. But as of yesterday, there’s “no new news” on any of them.

The N.C. Secretary of State’s Office said on July 8 that it was investigating an inquiry into Cops for Kids’ “charitable solicitation license.” (See http://thegattonreport.blogspot.com/2008/07/nc-secretary-of-state-investigating.html)

According to the Secretary of State’s website, any corporation or entity that solicits charitable contributions must apply for and obtain a license every year. Some organizations are exempt from the license, but it is unclear if Cops for Kids met the exemption requirements.

This week, George Jeter, director of communications with the Secretary of State’s Office, said, “So far, I don’t have anything.”

When asked how long it typically takes for the state to determine if an organization possessed a charitable solicitation license, or if it was exempt from the requirement, Jeter said: “I don’t know what they’re waiting to see. That’s not up to me to say.”

And it appears there’s at least a chance that the public may never know the results of the state’s probe. Sometimes the state just “keeps a watch on it,” said Jeter. And in those cases, “We don’t ever really say, ‘We’re done with that.’”

Meanwhile, Town Attorney Steve Gambill said there’s “nothing new regarding the internal employee investigation” being led by former FBI agent Ken Andrews.

Last month, town staff said that the N.C. State Bureau of Investigation had asked Andrews to stop his interviews of certain people so that the SBI could interview them. Gambill said yesterday that “Mr. Andrews has not resumed his interviews” but that he “will do so once he receives approval from the SBI.”

Gambill said that he has not received any updates from the SBI regarding its investigation into Cops for Kids.

The town’s director of administration and finance, Maia Setzer, said that she had spoken briefly with the SBI agent yesterday but that he “did not indicate what he was working on or a timetable.”

Setzer said the second accounting firm, which the town hired to corroborate the findings of the first forensic audit of Cops for Kids’ financial records, has started its work. But she said she has not been given a timeline on how long it might take for the firm to complete the audit.

Town Manager Steve Husemann said this week that he’s in no hurry to hire a replacement for Crone, who the town fired in August. “I’ve had some conversations about the position, but that is about the extent of it,” said Husemann.

He explained: “I think that Major (Carl) Robbins is doing a good job in an interim capacity, so I (have) not made filling the position a high priority.”

Husemann, who began work here on Sept. 2, added: “As I have more time to observe the department, the community and the personnel involved, it will help me make a better decision about both the process that we need to follow and the person to be selected.”

Crone has filed a grievance over his firing with the Town of Mooresville. But the details are not public record, per state statutes protecting confidential personnel information.

"Sound Off": Do we need an assistant town manager?

On Aug. 4, about 50 protesters marched on Mooresville's town hall, demanding in part the resignation of Assistant Town Manager Erskine Smith.

Some people believe commissioners should have disciplined or fired Smith while he was interim town manager -- not only because of his actions during the Cops for Kids fiasco, but for his role in every major town scandal since 2002.

“Everything this man has touched has been mud,” said one Mooresville resident to Commissioners Chris Carney and Miles Atkins at the town-hall meeting on Wednesday. “In a private industry, he would not have survived five years.”

Smith was interim town manager for seven months, from February to September 2008 -- a period of time, we've come to learn, when he had a tremendous amount of job security. Why? Because even if commissioners would have fired him, Smith would have simply reverted back to being the town's assistant manager. And commissioners have no authority over the assistant town manager position; only a town manager can take disciplinary action against the assistant manager.

In the month from Aug. 4 until Town Manager Steve Husemann came on board Sept. 2 -- and thus Smith reverted back to assistant town manager -- commissioners took no disciplinary action against Smith.

But we learned on Wednesday that at least two commissioners -- Carney and Atkins -- did look into it. What did they learn? "There was nothing we could do," Carney said simply.

After realizing that their hands were tied, Carney said he and Atkins compiled an "extensive report," detailing several years of questionable activity by Smith as assistant and interim town manager. “We’ve placed it in the hands of our (town) manager,” Carney said.

“We might not have any say” regarding Smith's employment, Carney added, “but it was the right thing to do.”

The Town of Mooresville pays Smith almost $106,000 a year. The question was asked on Wednesday: does the town really need an assistant town manager?

Atkins said he ran that question by Husemann, who indicated that the position is valuable because of the manager's workload.

However, Husemann did not have an assistant when he previously managed a town similar in size to Mooresville, said Atkins. Instead, he had "extremely strong department heads" that mitigated the need for an assistant.

Now it's your turn to "sound off." Does the Town of Mooresville need an assistant town manager? Why or why not? How do you feel about the way our assistant town manager handled the Cops for Kids fiasco this summer? Do you believe he should have been disciplined for his role in the matter?

"Sound Off": Are town officials too cozy with developers?

What is the town's position on staff and elected officials fraternizing with, being entertained by, or accepting gifts from developers and other professionals who do business with the town?

That was the question asked "right out of the gate" at Wednesday's town-hall meeting.

Article V Section 7 of the town’s personnel policy states: “An employee of the Town shall not accept any gift, favor, or thing of value that may tend to influence such employee in the discharge of the employee’s duties, or cause the employee to give someone a favor, service, or thing of value.”

Commissioner Chris Carney called the policy “grayer than it should be.”

When it comes to fraternizing with developers or other professionals who do business with the town, Carney said he believes "there's a difference between commissioners and town staff members." Why? Primarily, he said, because commissioners can recuse themselves from voting on matters involving developers with whom they may have friendships or histories.

Carney recalled one issue that he recused himself from because it involved a developer who has gone with him on mission trips. Town staff, he said, can't exactly remove themselves from such a predicament.

Carney said being friendly with developers is one thing - allowing friendships to cloud judgment is another.

“I have business with developers, and I’ve had wine with developers – I’ll be the first to tell you," Carney said. "A glass of wine doesn't buy a vote, and if (it does), that's a bad thing."

Carney said he has also played golf with developers, but that he always pays his own way.

But that wasn’t the case for three town staff members, including Assistant Town Manager Erskine Smith, who played in the 2008 Cops for Kids/DARE golf-tournament fundraiser earlier this year – compliments of a Mooresville engineer.

According to the tournament records, Smith (who was interim town manager at the time), along with a town planner and athletic supervisor, played on a four-man team in the tournament at the town golf course. The fourth player: Mooresville engineer Lee Dowell of Dowell & Company, PC.

Records show that Dowell footed the $200 entry fee for the team, plus an additional $75 to sponsor a hole for the tournament. (Click on the documents for larger versions.)




Without offering specifics, Carney said Wednesday: “There have been some concerns” about town employees not adhering to the policy about gifts and favors. And if there is proof that an employee has violated that policy, Carney said, that employee should be terminated.

“The prior manager (Jamie Justice) did not uphold that, and he’s gone,” Carney said.

Miles Atkins – the only other elected official to attend Wednesday’s meeting – said he has heard Carney point out to Mooresville's new town manager, Steve Husemann, that certain employees' abuse of the town policy "has to stop."

Husemann, said Atkins, is "very much aware of it, and I am confident that he has a handle on that.”

Now it's your turn to sound off. What do you think about the town's policy regarding gifts and favors? Are our town officials too "cozy" with developers/other professionals who do business with the town? And if so, how does that impact you as a taxpayer? What are the benefits of town officials having strong relationships with such professionals? What are the risks? Do you think it's possible for town officials to be friends with developers and other professionals but still hold them accountable?

Getting Back to Basics

Wednesday night’s “town hall meeting” was an eye opening experience – in many ways.

From fraternizing with developers to the treatment of the town’s elderly and special-needs population – mingled, of course, with lively discussion about some of the town’s more controversial issues – the meeting offered citizens a rare opportunity to speak casually, yet candidly, with their elected representatives.

Two commissioners – Ward 4 Commissioner Chris Carney and At-Large Commissioner Miles Atkins - turned out for the three-hour-long informal meeting, organized by Rev. Larry Green and attended by about a dozen local residents, including Iredell County Commissioner Ken Robertson. Green said every commissioner except Thurman Houston responded in some way to his invitation. Mitch Abraham and Mac Herring said they had previously-scheduled plans, and Frank Rader didn’t respond to Green but told the Charlotte Observer that he wouldn’t attend. Mayor Bill Thunberg, said Green, didn’t respond to the invitation at all.

And that’s unfortunate because even though I wasn’t sure what to expect from the meeting – or if it would be fruitful or productive at all – the free flow of information and the uninhibited exchange of ideas was unlike anything we have ever witnessed in Mooresville before.

I left the meeting with fresh insight. Perhaps the most compelling impression that the meeting left on me was that our town and its government is headed in the right direction. It is progress, not perfection, that we expect. And as long as elected officials are talking to us, and listening to us, we’ll continue to move in that direction.

The open dialogue that transpired at the meeting reminded me of the original purpose of my blog – and it highlighted for me just how far some have strayed from that purpose.

I am a fervent believer in the First Amendment of the U.S. Constitution, and I staunchly defend people’s right to speak freely – even when their speech displeases me, and even when their words stand in opposition to everything in which I believe.

Commissioner Atkins and his wife, Kim, have been heavily criticized in the comments section of my blog since last week when the Mooresville Downtown Commission announced that it had hired Kim Atkins to serve as its executive director. I have no problem with people questioning public officials, doubting their motives and/or intentions, and holding them accountable for their actions.

What I do have a problem with is this: Despite sustained attacks on this blog against Atkins and his wife, when he stepped out of Town Hall and sat down willing to face his critics on Wednesday, only one person confronted him about his potential influence over his wife’s hiring. That one person: local attorney Cliff Homesley.

Homesley pointedly asked Atkins if at any time during the hiring process he had discussed his wife’s candidacy with other government officials or MDC board members.

“I have had no contact even with fellow commissioners,” Atkins said. “I’ve had some talk to me, but I have refrained.”

It appears, however, that at least two elected officials did not “refrain” from attempting to interfere in the process. In fact, those two individuals apparently threatened to withdraw the town’s funding of the MDC if it hired Kim Atkins as the new executive director.

Atkins neither confirmed nor denied the information, but he said that since his wife’s hiring he has heard that some of his fellow elected officials were “really opposed” to her hiring.

Carney, however, stated that members of the MDC board of directors approached him, concerned about their funding from the town. He said they asked him if the funds would be “at risk” if they hired Atkins as the executive director “because they had heard that from other elected officials.”

Carney acknowledged that he warned the MDC board members upon their selection of Atkins that “they better be sure their policies and procedures were in place.”

He told those in attendance at Wednesday night’s meeting that it was improper for commissioners to have spoken for the entire town board and to have threatened to pull an organization’s funding.

Carney explained that town commissioners earlier this year agreed to fund the MDC as long as the organization met certain goals that it spelled out in a three-year business plan that was shared with town commissioners in budget talks this year.

Homesley also pointed out that Carney’s brother, Robby, was recently hired as the existing industry and marketing manager of the Mooresville-South Iredell Economic Development Corporation – an organization that, not unlike the MDC, receives annual funding from the Town of Mooresville.

County Commissioner Ken Robertson chimed in, denying that government agencies “play favorites” with family members of public officials. “They actually get scrutinized more,” he said, because of precisely what is happening right now to the MDC. “The employers are afraid they’ll be accused of cronyism,” Robertson said.

Sometimes, he said, that means the employer will “work twice as hard” to find a reason not to hire the family member.

And the government official, Robertson said, “is scrutinized only because they are related to someone who is trying to maximize their value in this world.”

Said Atkins: “I hope that people will get to know Kim and myself. She is accountable to her board as I am accountable to you as your public servant.

“She has to stand on her own as a professional,” he said.

Simple, straightforward questions. Simple, straightforward answers. A free-flowing exchange of ideas and opinions. That's what Wednesday night’s meeting proved is possible.

It’s also what my blog is about.

Let me make something clear: My reporting is about principles, not personalities. And I expect out of others what I expect out of myself -- that any criticism will be relevant, well-founded and factual. If I ever fail in that, I ask that you hold me accountable for it.

I created my blog just over seven months ago to foster open, uncensored dialogue among and between the residents of Mooresville, southern Iredell County and beyond about issues that are important to us.

At times, certain readers have used my blog as a conduit for outright lies about me and other private citizens. One example: an innocent joke by a reader was turned into an accusation that I was having an extramarital affair … without regard for the fact that my husband, my two young daughters … my mother … all read my blog.

One reader has repeatedly called for investigations of private citizens, including me, accusing us of having “skeletons in our closets,” always stopping short, however, of disclosing just what those skeletons are.

I have even been accused of being “on welfare.” Though I see no shame in human beings who fall on hard times and need a little help, the fact remains that my husband and I chose to make financial sacrifices in order for me to be at home with our children while he earns our living … and pays our taxes.

Many readers who have signed their names to their comments, and others who are simply mentioned in my posts or readers’ comments, have been randomly grouped together despite the fact that some of us would not know each other if we ran into one another in the grocery store.

One reader wrote obscenities and attributed them to me and other community activists. Other readers have gone so far as to ridicule peoples’ appearances, their body shape, their national origin and their religious beliefs. They have stooped so low as to use derogatory and vulgar terms such as “sheep,” “freaks,” and “retarded” to describe readers who have posted statements that are critical of government officials.

I agree with one reader who pointed out that in our system, there is a fundamental distinction between public officials and private citizens. When it comes to criticism, public officials are fair game. Private citizens are not. Why? Because public officials are public officials by choice. If they don’t relish scrutiny and exposure, they can rescind their status, reverting back to being a private citizen. Private citizens don’t have that luxury; they can’t “rescind” their status as a private citizen.

The long and the short of it is this: Like many of you, I have been appalled by the hateful content of some comments that have been posted on my blog. Countless people have contacted me, beseeching me to censor such comments. But I have refused to do so. My loyalty to freedom of speech easily trumps any hurt feelings which may result from someone’s words.

However, I call on those of you who have committed to joining me in my “mission” to refrain from engaging with those whose sole purpose is clearly to personally attack others – that includes private citizens and public officials alike. This does not preclude legitimate, factual and pertinent criticism of public officials.

Let's get back to basics. In the coming days, I plan to post several different topics that were discussed at Wednesday night’s meeting. I will provide a brief synopsis of what was discussed, and, as always, I welcome and encourage your voice in the ensuing discussions and debate.

Among the issues that will be posted:

• Town commissioners and town staff fraternizing with developers
• What ever happened to the town-hall protestors’ demands for the assistant town manager’s firing? Does the town really need an assistant-town-manager position?
• The town’s hiring of engineering firm CH2M Hill for the expansion of the wastewater treatment plant
• The ever-controversial question: Should Iredell County’s two school districts merge?
• Town employees’ use of the municipal golf course

Town commissioner, MDC board member respond to citizens' questions

When we say we expect open government, that doesn’t mean we expect perfect performances from our community leaders and government officials … or that we expect them to know all the answers to every question, every time.

What is does mean is that we expect them to be responsive. When we have a question, we expect them to answer it; when we have a concern, we expect them to address it.

Some folks have expressed some very legitimate concerns about last week’s hiring of Kim Atkins – wife of Town Commissioner Miles Atkins – as executive director of the Mooresville Downtown Commission (MDC).

On Friday, I took your concerns to the people who could best answer them. Within just a few hours, they had all responded, acknowledging the merit of the concerns and offering an “open-door policy” for any further questions.

Conflicts of interest?
One reader asked about a potential “conflict-of-interest clause” that may prevent Kim Atkins – as a former unpaid member of the MDC's board of directors – from stepping down and then becoming a paid employee of the organization. “There are supposed to be documented rules and procedures to prevent conflicts of interest,” the reader posted. “Those steps and procedures are required BY LAW to be documented and kept in place. If they are not, they will lose their non-profit status with the IRS and could face conflict of interest charges.”

The reader added: “The bylaws or organizational documents MUST address how directors may or may not be compensated or apply for positions that are compensated. The conflict of interest documents must also outline how the remaining directors shield themselves from conflict of interest because they were colleagues of the former director.”

Article V, Section 11 (b) of the MDC’s bylaws states that a person cannot simultaneously serve as executive director of the downtown commission and as an unpaid member of the organization’s board of directors.

To read the MDC’s bylaws, click on the documents below:





The reader also asked about potential conflicts of interest between town commissioners – specifically, Atkins’ husband, Miles – and the MDC board of directors. “How do they (the MDC directors) shield themselves from the fact that the director's husband is an elected official? Was there any undue burden placed on those directors, or did they feel as if there would be if they did not hire her? Does Atkins have any regulatory authority over them or their businesses? Any influence at all?”

“Those are very, very valid concerns,” Commissioner Miles Atkins said on Friday. “And honestly, I would have the same questions.”

Town Attorney Steve Gambill has already addressed the question of whether Commissioner Atkins will be able to vote on matters that impact the downtown district. Citing N.C. General Statute 160A-75, Gambill said a commissioner “shall not be excused from voting ‘except upon matters involving the consideration of the member’s own financial interest or official conduct …’

“Thus,” said Gambill, “if funding by the town of the downtown commission would financially benefit Commissioner Atkins (for example, if the funding will pay in whole or in part Ms. Atkins' salary), he can disclose it to the board and ask to be excused from voting on that particular matter.

“This feature of the statute in and of itself helps to prevent a conflict of interest when a board member's own financial interests are involved,” Gambill said, “and it offers a resolution by allowing such member to be excused from voting on that particular matter.”

Commissioner Atkins vowed that he will “disclose my relationship with my wife and recuse myself from a vote if it has even the slightest perception of a conflict.”

But that’s unlikely to placate some members of the public, such as the reader who posted this: “Even if Adkins (sic) doesn't vote on Downtown Commission issues, we all know that there are conversations and arrangments (sic) made between commissioners. You scratch my back; I'll scratch yours. That kind of thing. And even if it never happens this way, people will always wonder if it is happening and it will taint the Board. And it will taint Miles Adkins. Already has.”

Another comment suggested that other commissioners “will give him and vote (sic) what he wants for his wife and things to make his life more comfortable.”

Responding to the allegations, Atkins said he had absolutely nothing to do with the MDC's hiring of his wife as executive director, but that he “completely understands” peoples’ concerns.

“If the shoe were on the other foot,” Atkins said, “I’d be asking the same thing.”

He said it is an unfortunate truth that “power can corrupt, and people can abuse power.”

Atkins, as a private citizen in 2005, spearheaded the town’s adoption of a Code of Ethics for elected officials. “I live by the same standards that I apply to anyone else,” he said. “But if in any capacity I have ever abused the power or authority graciously given to me by the people of this community, then I expect to be held accountable for it.”

The hiring process
Readers have also asked about the MDC's hiring process: How many candidates applied? How far and wide was the search? Did the board of directors choose the best candidate? Did Kim Atkins close her Main Street business and step down as chairman of the board of directors just so she could apply for the executive director’s position?

“Man are we lucky or what,” one reader posted on Oct. 9. “People from all over the country were interviewed and guess what? The most qualified person for this position was someone from right here in Mooresville! Imagine that! And, she is a former board member AND she just happens to be the wife of a town commissioner. What were the odds of that happening? Does the Downtown Commission really think this does not look just a little suspicious?”

Kim Atkins announced in July that she would be closing her Main Street business, The Garden Party, in September due to the downturn in the economy. She does not own the building in which her business was situated.

Atkins resigned as chairman of the downtown commission’s board of directors in August; a new chairman was appointed on Aug. 18. Atkins applied for the executive director’s job on Sept. 9, and she was hired last week.

John Amon, a downtown businessman and MDC board member, said the selection committee – which included MDC members and representatives from the Mooresville Convention & Visitors Bureau (MCVB), the Mooresville-South Iredell Economic Development Corporation (MSIEDC) and the Mooresville-South Iredell Chamber of Commerce – considered 22 applicants “from as far away as Georgia and Ohio.”

The selection committee included the MDC’s Robert Holshouser, Howard Kosofsky, Steve McGlothlin, and David Miller, along with Leah Mitchum (MCVB representative), Karen Shore (Chamber representative) and Russ Rodgerson (MSIEDC representative).

“The committee was made up of very reputable people who dotted their Is and crossed their Ts,” Amon said. “I personally have not seen the other resumes that were submitted, but the committee has said that Kim’s resume was head and shoulders above the others.”

Additionally, Amon said, “I do not believe that any decision was made to have Mrs. Atkins resign (from the chairman’s position) because she was -- wink wink -- going to get the job. The people on that committee did a lot of work, and I believe that they did not have any pre-conceived ideas about the job or the person to be hired.”

He said the committee, during the selection process, “pared the applicants (from 22) to around 8 and then held face to face interviews.

“Kim Atkins was the choice by everyone on that board committee and that was presented to the entire MDC board,” Amon said. It was then that the MDC board offered the position to Atkins, he said.

Amon said while the MDC board of directors advertised the position on a state level, “the job wasn’t that appealing to a lot of people” because the pay is disproportionate to the job duties.

While Atkins’ salary has not yet been confirmed, the former director, Wayne Frick, made $46,000 plus benefits – no more than $56,000 total – according to Amon and the MDC’s most recent budget. Amon said Atkins will likely be making less than Frick after factoring in insurance and benefits.

So, why didn’t the downtown commission hire a headhunter or broaden its search?

That’s simple, said Amon. The budget of the downtown commission is only $117,000. The most recent budget anticipates $60,000 from the Town of Mooresville, $52,000 in district tax, and an additional $5,000 in “ADV & entertainment” revenue.

In addition to the executive director's salary and benefits, the MDC budgets about $25,000 a year for entertainment and advertising, $11,500 for festivals and events, and thousands of dollars for expenses such as beautification projects, a merchants' newsletter, "facade grants," insurance and accounting.

In the current budget year, the MDC plans to cover half the cost of the sprinkler system in the John Franklin Moore park, at a cost of $3,250. The organization also plans to spend $600 for tulip bulbs for the park and $10,000 for a promotion that will attract people to downtown every Thursday and Friday from Thanksgiving to Christmas. The $10,000 includes co-op advertising, Christmas lights and trees, a window-decorating contest, fliers for the schools and movies at the Citizens Center. Amon said the Christmas lights "are a one-time purchase and are long-lasting LED low wattage bubs that should last a long time."

A headhunter would have cost the MDC $10,ooo to $18,000 to find a candidate for the executive director’s position, said Amon. And typically speaking, a headhunter doesn’t target $45,000-a-year candidates. Such a salary “doesn’t get a lot of people excited, from a headhunter’s standpoint,” Amon said.

The simple truth is that the downtown commission, a non-profit 501(c)4 on a set $117,000 budget, couldn’t afford a headhunter and a more expensive executive director.

In addition to that, Amon said, “If we had gone with a headhunter, we were looking at 120 days from the time we signed a contract until we had a person.

“Everyone is struggling like crazy,” he said of the downtown merchants. “I think time is of the essence. We needed someone right now.”

Also, he said, “We need somebody that understands Mooresville and North Carolina law. Different states do things differently. Kim is going to bring so much because she knows the dynamics of this region.

“And who’s to say that Kim wouldn’t have been the headhunter’s pick?” Amon added.

He also addressed some of the concerns about the MDC’s potential hiring of a consultant for a couple months. Though “a consultant has not been hired nor agreed upon,” Amon said, the MDC is considering hiring one to help Atkins and the MDC board “understand what are justifiable goals.” Amon said that is “something that hasn’t been done in the past.”

He said the role of a consultant is not to “train Atkins” as one Report reader suggested. Instead, he said, a consultant will help strengthen some of the MDC’s weaknesses in general.

He said the MDC wanted an executive director that “has some marketing experience … somebody that can understand what the downtown merchants are dealing with and understands that the property owners want the values of their property to go up. We need a liaison with other municipal functions and someone who is good at grant writing and who is familiar with the Main Street USA program, which is on a state and national level."

A candidate who is strong in each and every one of those areas, he said, “is impossible to find.” A consultant will help strengthen the areas in an executive director that “may be a little weak," Amon added.

He said the MDC wanted an executive director “who is going to grow as our needs grow,” and, he said, the MDC board feels strongly that Kim Atkins is the perfect fit.

Amon invites anyone with further questions about the MDC and its hiring process to attend the organization’s monthly meetings. The MDC meets the first Wednesday of each month at 1 p.m. in the Charles Mack Citizens Center, and its meetings are open to the public. “We would love to hear ideas on how Mooresville can better serve the citizens, merchants, and property owners,” Amon said.

Downtown commission hires new director

It’s a new day on Main Street.

The Mooresville Downtown Commission has hired its new executive director – downtown resident Kim Atkins – to succeed long-time director Wayne Frick, who retired in June.

Calling her “passionate,” “vibrant,” and “energetic,” the downtown business community says Atkins will bring much-needed new life to the downtown district.

Atkins – wife of Town Commissioner Miles Atkins – recently stepped down as chairman of the downtown commission’s board of directors. Her decision to give up that post came on the heels of her closing her 4-year-old Main Street business, The Garden Party, due to the downturn in the economy.

Dennis Cowardin, who succeeded Atkins as MDC board chairman, said that Atkins’ “past service” to the MDC board “demonstrated that she has the right leadership qualities, passion and determination that are needed to unite, ignite and drive initiatives.”

The MDC board of directors – consisting of downtown business and property owners – selected Atkins from a field of qualified candidates. In a statement released today, the MDC board said Atkins has what it takes to “lead the MDC in creating a vision and implementing a strategy to enhance revitalization efforts while actively facilitating a collaborative effort with key community stakeholders to achieve its desired goals.”

“Kim will bring vibrant energy to downtown Mooresville,” said downtown businessman and property owner Bob Amon. “Her experience as a business owner and resident of Mooresville should allow her to understand the challenges downtowns face and prepare her to help downtown Mooresville bloom and prosper.”

Though Atkins had to close her business doors, she said The Garden Party taught her much of what she’ll bring to the table as executive director of the MDC.

“It was my first venture into the small business world, and in our first two years we were nationally recognized by ‘Home Accents’ magazine as a ‘Today’s Top 50 Retail Stars,’” Atkins said of The Garden Party. “This award was given based upon innovative strategies and creative merchandising in conjunction with a strong presence in the community.”

The Garden Party, said Atkins, “was recognized regionally as a destination shopping experience that also served as a recruitment asset to attract other businesses to our downtown.” She said it was more than just a store – it was “a place where people gathered socially, relationships were built, and many lasting friendships were established.

“I am very blessed to have been a part of something that touched so many people in such a positive way,” she said.

Because of her experience as a downtown business owner – coupled with her 15 years of experience in sales and marketing – Atkins said: “I understand and recognize both the challenges and opportunities that lie ahead” for the MDC.

Atkins will be responsible for forging effective relationships with other area organizations, such as the Town of Mooresville, the Mooresville-South Iredell Economic Development Corporation, the Mooresville-South Iredell Chamber of Commerce, the Mooresville Convention & Visitors Bureau, and Historic Preservation.

“These are fundamental relationships that, if approached collaboratively, will help create a vibrant downtown and strengthen the core of our community,” Atkins said. “In addition, the downtown property owners and unique merchants play a significant role in our future success. These relationships need to be renewed and sustained.”

Howard Kosofsky, a major investor in downtown Mooresville, said Atkins will be “a great addition to the Main Street Program.

“Her passion for Mooresville has been evident with her past involvement as chair of the MDC and a small business owner on Main Street,” Kosofsky said. “We are excited to have Kim on board.”

The Mooresville Downtown Commission is a non-profit organization incorporated in 1987 to develop the economic, cultural and educational potential of Mooresville’s historic downtown. The organization focuses on attracting new business and increasing occupancy rates to cultivate a vibrant downtown area.

Citing statistics from the Small Business Association, Karen Shore – president/CEO of the Mooresville-South Iredell Chamber of Commerce – said that “shopping dollars spent downtown have a greater return on investment for our area.

“Of every dollar spent with an independent business, 60 cents is re-circulated back into the community as opposed to only 6 cents of every dollar spent with a ‘big box’ retailer,” she said.

The downtown commission is funded by a special district tax and an annual contribution from the Town of Mooresville.

The question has already been asked: Can Commissioner Miles Atkins rightfully vote on funding for the downtown commission, which, in turn, will pay his wife’s salary?

Town Attorney Steve Gambill said there’s no cause for concern.

“I know of no legal impediment or prohibition preventing Ms. Atkins from serving as the executive director because of her being the wife of Commissioner Atkins,” Gambill said.

Citing N.C. General Statute 160A-75, Gambill said a commissioner “shall not be excused from voting ‘except upon matters involving the consideration of the member’s own financial interest or official conduct …’

“Thus,” said Gambill, “if funding by the town of the downtown commission would financially benefit Commissioner Atkins (for example, if the funding will pay in whole or in part Ms. Atkins' salary), he can disclose it to the board and ask to be excused from voting on that particular matter.

“This feature of the statute in and of itself helps to prevent a conflict of interest when a board member's own financial interests are involved,” Gambill said, “and it offers a resolution by allowing such member to be excused from voting on that particular matter.”

As executive director of the MDC, Kim Atkins said she intends to look into additional funding options for the organization. “Grant money and fundraising are areas that desperately need exploration and can supplement our monetary resources,” she said. “For our long-term success, we must create and gain support to carry out a unified vision.”

Atkins plans to lead the MDC in creating measurable goals. Short-term needs, she said, “consist of marketing and promotional opportunities, consistent branding and distinctive seasonal events.”

Mid-range goals, Atkins said, include attracting “more dining and entertainment venues.” Recruiting more “unique retail” – and lowering the overall vacancy rate of downtown storefronts – will be another mid-range goal, she said.

Long-term, Atkins said she will “be focused on new or expanded business growth and residential opportunities” and “the ongoing recruitment of potential businesses.

“Our economic vibrancy,” said Atkins, “can come from many areas, including Historic Preservation, transit and residential … but only if we are actively engaged in planning for the future.”