County commissioners are moving forward on Langtree at the Lake’s request for $46 million in bonds – but they’ve decided to do some homework first.
Developers of Langtree at the Lake wanted commissioners to pass a final assessment resolution yesterday. Langtree has asked the county to issue $46 million in bonds to install public infrastructure at its $800 million Mt. Mourne development. The county, in turn, would designate Langtree properties a special tax district, which means the development would repay the bond through property assessments. (For more information, visit http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html)
The final assessment resolution, County Manager Joel Mashburn told commissioners yesterday, “is not a final document – it’s not a final act. It’s not the thing that issues the bonds.” Instead, he said, the resolution simply “establishes parameters and criteria” that detail “where we go from here.”
But most of the commissioners agreed that too many questions remain unanswered – including whether the county would face any ramifications if it adopted the resolution then decided down the road that it didn’t want to issue the bonds.
County Attorney Bill Pope reminded commissioners that the county would not be legally liable if Langtree defaults on repayment, but he also restated his concern that it could result in “reputational taint.” Pope and Mashburn said they felt the county wouldn’t be committed to issuing the bonds even if it adopted the resolution.
“So what I’m hearing from Mr. Pope and Mr. Mashburn,” said Commissioner Sara Haire Tice, “is if we approve this document today, the county can always back out if they change their mind or if they don’t get the documents they need?”
Answered Mashburn: “That’s my opinion.” However, he said that since this particular type of financial arrangement has never before been tackled in North Carolina, he couldn’t say unequivocally “what action may come out in moving forward at this time.”
“If you’re not comfortable with that,” Mashburn said, “I certainly think it’s within your authority to say, ‘We will wait until we’re more comfortable with this, and here’s what it’ll take to make me more comfortable.’”
He told commissioners that the question facing them was essentially one of policy. The county must pass a final assessment resolution and perform due diligence before approaching the Local Government Commission, he said, adding that the commissioners basically needed to decide which to do first.
Iredell Commissioner Steve Johnson cut to the chase: “I’m getting a little frustrated, and I’m trying to control myself,” he said. “Is it the policy of the LGC that we are to perform our due diligence” before presenting a proposal to the LGC?
“That is correct,” answered Mashburn. He said the LGC will expect that all the county’s questions are answered and all the necessary impact studies are complete before a proposal is submitted.
“They don’t put all this stuff together,” Mashburn said of the LGC. “The county will be the applicant on this.” The LGC will simply review the information compiled by the county, he added.
“Why not do (the due diligence) now?” asked Johnson. “Do it on the front end of the project – not after we’ve already approved the resolution.”
“I have friends on both sides of this issue,” said Johnson, “but I’m here as a representative of this county. They hired me to do a job, and I’m going to do it.”
“We’d all be better served if (due diligence) is done on the front-end of this project.”
Throughout the discussion, commissioners expressed concerns about passing the resolution without having seen any of Langtree’s financial information.
Statesville attorney and Langtree partner David Parker, who spoke on behalf of the development group at yesterday’s county meeting, held up a three-ring binder and told commissioners: “I have our business plan right here; I'm ready to provide it to you.” He said the plan includes “spreadsheets for the next three years, month-by-month.”
Langtree has said it is confident that the business plan would answer any and all of the county's questions.
Parker said Langtree fully understands that “when you ask the government for help, you have to open your books to the government.” However, he said, the developers are obviously hesitant about opening the business plan “to full disclosure,” because all of Langtree’s financial information would become public record … and could wind up in the hands of competitors.
County Commission Chairman Marvin Norman said in yesterday’s meeting that he doesn’t feel the county has enough information to vote. He said he won’t be satisfied until the county manager, attorney and finance director are satisfied. “And right now, I’m not hearing that,” he said.
In a follow-up telephone conversation with the Report today, Norman said: “I don’t have a problem with (Langtree) wanting to invest in the community.” However, he said, “I do have a problem with them not being able to answer my questions.”
He said that Langtree “initially did not give (the county) the information we asked for.”
“If they’re not getting me this information, they’re not getting my vote,” he said. “When I got voted in, people put me in there to make good decisions. Taxpayers are expecting us to do our jobs. If somebody gets mad about that, guess what – it doesn’t bother me.
“I don’t have a dog in the fight,” Norman continued. “My dog is trying to make sure the taxpayers don’t get caught in a bad situation on my watch.”
He said that’s why he “wasn’t in a hurry” to pass the resolution yesterday.
“I want to be the best person I can to everybody, but I’ve got to be objective,” Norman said. “I have to look after the county, the people who put me in that office. I can’t look after special interest people just because they want to do a special project. When you look at today’s economy, the risk is very high.
“Whatever you do, somebody’s gotta pay for it,” Norman added. Private developers, he said, “are in it to make money.”
“There are no free rides,” he said, directing his comments to private businesses. “I want you to make your money, but don’t ask me to subsidize it."
Bottom line, said Norman: “I’m not happy using the county government for something it was not intended to be used for. We’re not there to provide their needs, other than what we can do to help them get by. We’re not there to be a financial institution for anybody other than the taxpayers.”
Norman said that Langtree may eventually be a shot in the arm for Iredell’s economy. But before the county involves itself in a financial agreement with private developers, he said, commissioners need to be certain that the true beneficiaries of the project would be the county and its taxpayers and that the county would in no way be at risk.
Right now, he said, commissioners don’t have enough information to feel completely confident about that. He said the answers to too many questions have started with “as far as I know.” And Norman said that makes him nervous.
Mashburn told commissioners in yesterday’s meeting that “nobody can give you definite answers to all your questions because we’ve never done this before. The state has never done this before.”
The developers believe that all the questions can’t be answered until the LGC is approached with a proposal.
Norman said he represented the county in a meeting with the LGC in Raleigh on Oct. 29. He said it became clear at that meeting that there were far more questions than answers about the proposed financial arrangement, which was made possible through state legislation that was passed into law just three months ago.
“I was really nervous because they couldn’t answer my questions, and if they can’t answer mine, they can’t answer yours,” Norman said, adding that even the county’s bond counsel from New York “kept saying he’s got to research this.”
Norman agreed that sometimes government has to gather as much information as it possibly can, then take a leap of faith. But at this time, he said, more information is needed before the county can take that leap with Langtree.
Norman said that Langtree "initially did not give us the information we asked for." He said the developers brought some of that information to yesterday’s county commission meeting in the form of a business plan, but even then, they didn’t open their books. “Eventually I think it’ll have to go public,” Norman said of the business plan. “They entered into a public arena as far as I’m concerned.”
Could county commissioners look at the financial books without them automatically turning into public record?
Norman said the commissioners will need to pour over Langtree’s financial information to make sure the developers “meet all the criteria and have the equity” to pay back the bonds. “Just showing us ain’t gonna cut it,” he said.
Commissioner Godfrey Williams at yesterday’s meeting said he wishes the county “had a precedent to look to.” He said he needs assurances that the county would not be impacted if Langtree defaults or forecloses.
“I certainly have some additional concerns,” Williams said, adding that he has different concerns each time he reads the final assessment resolution.
Responded Parker: “Any question you have, I would be delighted to answer in this forum or any other.”
“I guess I’m confused,” said Tice, explaining that it was her understanding that Parker had spoken with the county’s bond counsel, the county attorney and the finance director … and that everyone had agreed that “this final assessment resolution paperwork was ready to move forward.”
“Is that not correct?” she asked.
Citing the resolution, Parker said that everything would be “subject to the approval of the Local Government Commission (and) the receipt of studies and reports acceptable to the county commissioners.” Basically, anything and everything would have to be presented to the county board for approval before it is presented to the LGC.
“We have an obligation to turn that over to you,” said Parker. “If we don’t, we won’t get the bond, and we won’t get approval from the LGC.
“Everybody gets to ask questions,” Parker said. “Until we satisfy everybody, you’re not going to pass a bond resolution.
“This whole thing is about job creation,” he continued. “This is an economic stimulus package.”
Commissioners mentioned that another company already plans to approach the county with this same type of financing request. Tice said that she has not put the county at risk in all her years as commissioner … and she doesn’t intend to do it now. But the new law that allows county government to work with private business for infrastructure needs, she said, “is probably going to be the way to go in the future.”
Williams said county commissioners need to “make sure we know what we’re doing the first time.”
Langtree’s managing partner, Rick Howard, asked commissioners to keep in mind that “this is an opportunity.”
“This is not about Langtree,” he said. “This is about infrastructure.”
“We’re running water and sewer to Alcove Road; we’re widening roads two miles from our project,” Howard said, adding that such infrastructure projects are typically funded by towns or counties. But the towns and counties don’t have any money right now … and banks aren’t lending.
The state passed into law the “special assessment district” funding option on Aug. 3 “specifically to be a rapidly deployable economic stimulus tool available to counties and municipalities interested in improving the economic environment in their jurisdiction,” Langtree developers maintain.
Howard asked county commissioners yesterday: “How do we develop the southern end of the county to become the economic engine that we want it to become?”
“This,” he said, “will help accelerate it with no risk to the county.”
“We need the opportunity to move forward together,” Howard added. “I ask for your support on behalf of Iredell County, not Langtree.”
Statesville attorney Bedford Cannon, who appeared before the board as a concerned citizen yesterday, wished success to Langtree. However, he said to commissioners, “these folks are private-sector developers. There’s no reason for the county to be involved.”
Commissioner Johnson said the county needs more answers. He said he “cannot buy the argument” that the project would be delayed if the resolution isn’t passed until after due diligence is performed.
Williams asked Johnson: “Not knowing even the questions to ask, how are we going to come up with questions for due diligence?”
Replied Johnson: “You’re going to have to ask someone smarter than me, and there’s a lot of them out there, but I’ll let you know when I’m done asking questions … and I’ll ask them ‘til I’m darn good and done.”
Mashburn said “somebody will have to pay” for the county’s due diligence, including impact studies and consultations with outside sources. “And I don’t think it should be the county,” he said.
He recommended that before the county begins incurring costs associated with due diligence, it should enter into “some kind of agreement up front with the developers.”
Parker said that Langtree would at some point in the process have to enter into a “development agreement that is acceptable to the (county) board that will cover a lot of details” before the LGC is approached.
“That contract will come to you,” he said. “You can turn the project down then.”
In fact, said Parker, commissioners will have several opportunities to shoot down the project. “There will be many, many bites at this apple, and at any time you don’t like the taste,” Parker said, “you can spit us out … at no risk to this board.”
Johnson made a motion that the board instruct county staff to “consult with whoever” to “develop a comprehensive definition of what due diligence is” and “what is expected of due diligence.” He also asked that all expenses incurred by the county “be born by the developer.”
The motion passed 3-1, with Tice dissenting. Commissioner Ken Robertson is out of the country on business and was absent from the vote.
Johnson then amended his motion to include language about the county’s intent to enter into a development agreement with the Langtree developers with all expenses paid by the developers.
That motion passed unanimously.
An agreement could be ready for the board’s consideration as soon as its Nov. 18 meeting.
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16 comments:
"We need the opportunity to move forward together,” Howard added. “I ask for your support on behalf of Iredell County, not Langtree.”
Please Mr. Howard do not insult our intelligence! This is not an economic stimulus package. On second thought, maybe it is! It will certainity simulate your Personal Economics!
You want these bonds so you can enhance the profit margin on your endeavours, not to benefit Iredell County. Your Business Plan had financing from the inception and now you see an opportunity to get lower cost money from County underwritten Bonds.
So, let's be 100% clear on this. The Langtree project will go forward, regardless. They do not NEED the help of Iredell County. Langtree is a multi- million dollar conglomerate with more than enough financial backing. Langtree simply sees this as an opportunity to futher line their pockets.
When Langtree as announced at Town Hall, Ms. Tice strongly promoted the project, even before the Project was reviewed by the Town. While it was merely in the concept stage, she added her name and Office to the Press release from Langtree. We need Commissioners in Office with enough backbone to separate personal connections from what is good for the County.
She continues to support Langtree's request even though there are many, many open questions? One needs to ask "why?"
I applaud Iredell County's vote to postpone the decision. I applaud the County for insisting the Developers pay for the due diligence but I beseech the County to firmly reject Langtree's request.
There is no need here, only greed.
Ms. Gatton, we owe you a debt of gratitude, again. Please keep us informed, it is appreciated.
Kudos to Iredell County councilmen. I was very pleased to read Mr. Johnson's and Mr. Norman's comments to this blog. If this bond deal can be sold to two men who have the taxpayer's best interest at the forefront of their decisions, then maybe it can be sold to the public. I hope the county gets the answers they are seeking.
langtree cant have it both ways.if u come to the pubic trough u gotta open your books to the people.this is the way the government system was set up so that we dont have to blindly trust our government anymore than we have to blindly trust hungry developers.if they do something we get to check in behind them.america is a government by the people for the people so if you ask the county for something youre asking the people and yes even your competiters for something.if your records are kept close then everybody that does businenss with the government will want their records closed.what makes you any more special then them?
One would THINK that Mrs. Tice would at least PRETEND to be objective. Hey she's got one foot out the door. Why worry about hiding the fact anymore that you're not above doling out favors to your friends at the good taxpayer's expense?Good riddance Mrs. Tice.I'm glad you've convinced yourself that you've never put this county at risk. I'm just not so sure.Lucky for you we haven't been paying attention to yous folks up north.I have news for the rest of them--that's all changed now.
I just read in the Mooresville Tribune an "Our View" titled "Snakes in government". Apparently at last week's Mooresville meeting of councilmen, the mayor saw a snake crawling toward them. The meeting had to be interrupted and the snake removed. Too bad it's not always that easy to "remove the snake(s)" in such meetings.
Mrs. Tice, you used to have my respect but no more. From all appearances you are more concerned with the welfare of the Howards than you are of the Citizens of Iredell County that put their trust and confidence in you.
Also, it has been mentioned that your son works for the Howards. If that is correct, shouldn't you recuse yourself from voting on this issue?
9:24 A.M. Actually, and thank God, we have a system that lets us expose and remove the snakes from our government and replace them with people who will look out for the taxpayer and not special interest groups. All we have to do is put that great system to work.
What do retired snakes do, anyway? They shoot horses, don't they?
Sarah Haire Tice stated she has never put the county at risk ... what a joke ... Anyone else remember she lead the board into buying a hospital that was offered to the county free of charge? It was offered to the county for free ... less than 2 years later the taxpayers paid millions for it. Then paid last figure I heard was around 10 million in bringing it up to code and removing the asbestos. She commented on how important it was for the county to invest in a government center for the south end. A new building and land at the time would have cost 1/2 as much as we spent and still are spending on a 70 year old building
She is as forgetful as the Sheriff. No that can't be! They both assume we are to busy to remember what they have said through the Statesville Record and Landmark for the last 14 and 20 years ....
Campaign Motto for the Sheriff " I want to keep Iredell County a good place to raise a family, conduct business and play" also "I will work hand in hand with the DA to ensure swift and longer prosecution sentences for violators in Iredell County" When is he going to get swift prosecution and longer sentences for his employees that have done wrong? What about his own Felonies? The illegal campaign contributions, and golf tournaments, and Barbeques. The Narcotics Detective that embezzeled funds and got a slap on the wrist was his first oppourtunity in the 90's. A deputy that committed a double murder in another state was barely mentioned in the local media around 2004 or 2005. The deputy that took evidence home: The SBI showed up inquiring about it and then it is located, Redmon later through his favorite news source said his agency discovered accountability errors with evidence but it did not involve a criminal case .. BS !! You would think when his first evidence issue around 1997 arrived he would have come up with a better plan. That employee "Lori Leird" discarded lots of evidence and thousands of unsolved criminal case files without legal authorization. Nothing was done to her. Wonder why? I finally read after someone blogged here about the Captain embezzling that he was indicted by the Feds .. That has been going on a year and still he has no been adjudicated .. What's up with that? Of course Redmon in his news source said his agency discovered it after the employyee confessed which is why Redmon let him retire and draw a pention. I guess when the Feds show up and order you into your own office and tell you they are going to arrest and employee of yours - That means the employee confessed. I don't know if Redmon being 69 does that to his logic or if it just substantiates his saying "Tell them what you want them to know and deny everything else!!" Course he has told me about 10 times at various community events he is Sheriff Redmon. He may be getting forgetful. I see the DA he told me to vote for lost. But both his judges won .. Maybe that is why he is not in worry mode.
I will admit that both Tice and Redmon have done one Hell of a Job politicking and more than an adequate job in their respective positions. But bottomn line is both have long served their good and are now letting personal gain and egos be their agendas !! At least Tice was respectful enough to retire while the getting is good and before she deeply tarnished the good that she has done. What is her goodbye ceremony going to cost us taxpayers? Redmon is obviously to egotistical to do that! And look at this media blitz about our poor overcrowded inmates the last few months.Redmon is wanting another jail. The one Redmon has only has been in use a little over 11 years. The paper back then said it would be used for 20 years. Redmon then said he would hold federal Inmates as we had plenty room and we got paid to keep them. Then we needed a jail just for women and teens. We got the old prison just for that purpose. Average daily population in that little bitty 1st jail was 180 inmates. The new jail alone was supposed to hold an additional 200 inmates. The old prison redone for the county was supposed to hold an additional 50. By my math that means we should have enough facilities without overcrowding for 320 to 340 inmates. Look at the bottom line 3 jailers used to watch 180 to 210 inmates in a little jail. Now 11 per shift watch 275 to 340 and we need another 25 million dollar jail and 4 to 6 more jailers per shift to watch another 100 inmates. How about kicking the fed inmates out of the county jail and how about using those drug seized funds to save for a new jail and sheriff's office. Quit buying motor homes, golf carts, and lab equipment(the state labs check it for free), and campaign propoganda. (Thanks for that Sheriff's knife you gave me though ...lol).It is amazing to me that Redmon is politicking for both and he got both less than 11 years ago brand new. Are you commisioners actually going to Fund this? I know he has endorsed each of your campaigns through the years but come on. Work on the bottom line for us taxpayers and not an old egotistical politician. Maybe those letters that have been floating for a year or so have finally landed on someone's desk that will actually investigate and prosecute Redmon ... Then his but can sit in the comfy jail with Crone !!!
1:17 a.m. I cannot believe that you would berate our fine Sheriff that way. Hell, you said he gave you a pocketknife!
Wow, I have had to do some research on the 1:17 am posting. But I did find some facts to alot of it.
I do agree that both have done more than an adequate job. I also agree Redmon is a politcian like no other.
I for one think we need a true law enforcement officer type guy or Lady to be the sheriff. Other wise we are always going to have these I'll support you if you support me deals.
I also don't think we taxpayers should pay for any going away ceremony for Sarah Tice. Give her a plaque and two minutes recognition like the regular government employees get when they retire.
Interesting, but now that you bring it up, I recall Phil Redmond endorsing several candidates Karen Ray, Alan Martin, and Brad Howard. As they lost in their primary races, he quickly shifted to the "winners". I received an invitation to a fundraiser for Scott Keadle hosted by others and Sheriff Redmond. Wonder how Keadle will vote for funding whatever the sheriff wants now? Wonder if Sarah Kirkman is pleased to have Redmonds support (albeit after his primary choice lost)enough to follow in Gary Frank's footsteps of do nothing about the corrupt accusations surrounding the Sheriff? Wonder if newly elected judge Deb Brown's kids will be prosecuted now? Or Redmond will do a favor for a favor? Yep Redmond sure can pick em' Hope those endorsements don't effect us all !!
Now now. I can't believe ya'll are tearing up such a fine man.
If you have ever been in his office, he has a large stick leaning in the corner. According to him, a man made that for him long ago because he said Brother Phil reminded him of Sheriff Buford Pusser portrayed in the movie Walking Tall. In real life Sheriff Pusser almost single-handidly cleaned up his small town of crime and corruption, but at a personal cost of his family life and nearly his own life.
Now here ya'll go claiming that he is not the upstanding crime buster he advertises himself as.
Phil is a legend in his own mind and I consider it irresponsible for you people to take that legacy from him. His walking stick, gold chain, pinky ring and award winning smile are all testimony to his legendary crime busting capabilities.
LOL !!!!! I think the biggest difference between Bufford Pusser and Phil Redmond is Sheriff Pusser actually arrested criminals ... Pusser didn't have a local news lady take his picture with the ritches of what his hard working deputies had done and steal their thunder but getting the best profile shot of himself inspecting those goodies.. Now that I think of it Pusser never had his girlfriend working as a secretary either. Wonder what Cindy what's her last name makes anyway?
1:17 am said "Maybe those letters that have been floating for a year or so have finally landed on someone's desk that will actually investigate and prosecute Redmon"
What letters?!! Is this something that needs to be given to Jamie? If so, 1:17, give her a copy of whatever you have, I'd like to see it.
I have complained before about people getting off topic on here. The topic of this post was the Langtree Development. I do wish posts could stay relatively close to the original subject.
I have to say that Sheriff Redmond does sound like another government official that needs to be scrutinized. If there is evidence out there taht people are aware of, it needs to be brought to light so it can be addressed.
As 7:31 said, send a copy of what you have to jamie. Then we could have a post that was devoted to the subject of Sheriff redmond that could stay on topic.
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