Recent comments here have raised some key points and questions in the ongoing MI-Connection saga.
We can always look behind us and chastise our elected officials for their decision to purchase the system, despite the public outcry. But that’s a score that can be settled in the voting booth. Even then, we’re left with a cable system. As one commenter (Aug. 31 at 6:41 p.m.) very plainly stated it: “Let's suppose we vote everyone out? Great! Your mission will be accomplished. Then what? Anybody have a buyer just waiting to bail us out? If so, let's bring them forward and talk to MI-C or whomever. The fact of the matter is right now we are stuck with this system until we can sell it….”
Another comment (Aug. 30 at 8 p.m.) added: “Regardless of what anyone thinks of this deal and whether or not it should have been approved, the fact of the matter is, we own the system … What's done is done and you can use the election to voice any of your displeasure with the people who voted for the deal.”
That commenter goes on to rally folks to support MI-Connection, lest our taxes are raised to pay for the system.
While town officials from both Mooresville and Davidson are assuring us that raising taxes isn’t in their “plan,” they’re also pointing out that the success of the system depends on us, the residents and prospective MI-Connection customers. In a Sept. 1 DavidsonNews.net article, David Boraks quoted Davidson Mayor John Woods, saying: “To those negative voices in the world, I say the future is in your hands. Use the system and it will be successful.”
But some of you aren’t buying that. “So to be clear Mr. Mayor,” one person wrote (Sept. 1, 8:22 p.m.): “Whether or not you raise our taxes depends on if we ‘embrace’ the system. So our ‘embracing’ of the system is not unlike paying the mob protection money. Pay up, and no one gets hurt.”
I think it’s smart for us to be wary of Woods’ argument. Why? Because we’re also being told that for MI-Connection to be profitable, residential subscribers aren’t going to be enough – instead, the system must be upgraded to be able to serve more lucrative commercial accounts. Last year, we were told that $12.5 million would be sufficient for that. A year later, however, we’re being told that the $12.5 million was, oh, maybe $19 million short.
As one recent post (Aug. 31 at 1:22 p.m.) stated: “All the upgrades have been for RESIDENTS who didn't want this thing in the first place. Now they need BUSINESSES to MAYBE make it profitable. But oops they ran out of money before they made it possible to service the businesses.”
Added another post (Aug. 31 at 2:29 p.m.): “There is a misconception that we just need a little more business so this thing will break even. Wrong! Even if the top line were to double, MI-C would still lose money (just check out their budget and do the math). There aren't enough households in Mooresville and Davidson to make this thing profitable.”
So, which is it? Will the system be successful if, as Woods stated, we simply use it? Or are we actually being asked not only to subscribe to the system, but also to support another multi-million-dollar infusion into its capital budget (guaranteeing it with, yes, our tax dollars) to make MI-Connection profitable?
That’s the $19 million question raised by a comment at 7:47 a.m. this morning:
“I have been (supporting MI-Connection) and in case you haven't noticed, we have had our rates increased at least twice since they have taken over. How many more increases are there going to be? And if they still go under...how much more (are) we going to pay? Seems we will be paying two fold for supporting them when we didn't even want them.”
One problem is that we might not ever see the full picture. Town officials are scrambling to figure out ways to keep confidential information about MI-Connection that could be competitively damaging. But they have a dilemma, because in doing so, they would also be keeping from the public a lot of information about a system that we own. That’s a legal no-no. And as any honest government official in Mooresville (no jokes here, please - ha) would tell you with certainty, that hasn’t traditionally sat well with Mooresville citizens.
Is it a sticky predicament for the government? You bet. And we could all shake our fingers and say “we told you so.” But, again, we’ll still own the cable system.
I am not suggesting that our government will hear our suggestions or solutions. But an open, constructive debate has never hurt anyone.
Here are some questions that'll hopefully get one started:
Do you subscribe to MI-Connection? What do you think of the service and price? If you do not use MI-Connection, which service do you use? Did you switch to a different service provider after the towns purchased and launched MI-Connection? Why?
If you do not subscribe to MI-Connection, are you considering switching in an effort to financially support the system? Do you buy into the notion that residential support of MI-Connection will be enough to keep the system afloat or, better yet, make it profitable? Do you believe that, without extra money from the towns, MI-Connection will go belly-up?
For those of you who do not subscribe to MI-Connection out of principle (because you disagree with government involving itself in private business, or you disagree with the government controlling media): What’s worse – compromising your principles, or paying higher taxes for a system with which you never agreed?
Should we just call it quits with the system and sell it, even in a bad market? Would you support that option even if the system sold for half the price we paid for it, and then tax increases would have to make up the difference? Should we invest additional millions for capital improvements then sell the system? What are the risks, and do you consider them worth it?
Should we simply trust the government and throw our support behind the system? Or, do you have a hard time supporting a system with ever-changing projections that have already cost millions … and are “projected” to cost millions more?
One commenter (Aug. 31 at 11:06 a.m.) listed several stipulations that s/he would have before switching to MI-Connection. Among them: the Town of Davidson passes an ordinance “prohibiting it from ever again borrowing more than $2 million without a vote of the citizens.” Thoughts?
Do you believe we should seek investors for a public-private ownership arrangement of the cable system? What are the pros and cons?
Wednesday, September 2, 2009
Tuesday, September 1, 2009
DavidsonNews.net: "A loss for 2009, but signs of growth at MI-Connection"
Thanks to a neighboring news website to our south, DavidsonNews.net, we have a first glimpse into yesterday's MI-Connection meetings. Be sure to check out David Boraks' article. It's linked in MI-Connection News Around Town (above), and also here:
http://davidsonnews.net/2009/09/01/a-loss-for-2009-but-signs-of-growth-at-mi-connection/
Of particular interest to me, at least, were the last few paragraphs of the article. I'll reprint them here for your convenience:
http://davidsonnews.net/2009/09/01/a-loss-for-2009-but-signs-of-growth-at-mi-connection/
Of particular interest to me, at least, were the last few paragraphs of the article. I'll reprint them here for your convenience:
AUDIT AND HURDLES AHEAD
The figures released Monday are still preliminary; an audit won’t begin
until Sept. 14.
Meanwhile, hurdles remain. System officials say they likely will need more
money in the future to continue growing.
“Based on what we know today and based on the obligations of MI-Connection
and our indebtedness, and based on a model that we think we can achieve … it is
a potential that the towns might need to invest more in the future,” Ms. Bright
said.
“It might be 19 (million dollars), it could be 7 (million) it could be 10
million,” she said. If growth picks up, the number would be higher.
The system expects to cover a shortfall this year (2009-10) with reserves,
but it’s unclear what happens a year from now in the 2010-11 fiscal year. That’s
when the towns will have to begin making principal payments on their initial $80
million bond issue, which paid for the system and initial work on the
upgrade.
“That’s really when there comes issues of the maybe the towns’ needing to
step up and help with capital, and that capital might be only the capital needed
to extend infrastructure to an enterprise customers or hook up more residential
customers,” Ms. Bright said.
TAXPAYER CONCERNS
Some critics of the system worry future capital infusions could come out of
taxpayers’ pockets. But officials from both Davidson and Mooresville said Monday
they don’t envision paying for growth or making up shortfalls with property
taxes.
“It’s not in our plan,” said Maia Setzer, Mooresville’s director of
administration and finance.
Added Davidson Town Manager Leamon Brice: “I don’t see it in our plan. That
really is speculation. … Now that we have the best system available, we
anticipate being able make (our) numbers. We now have a very good system that we
need to market and people need to support.”
Davidson Mayor John Woods also said a cable-related tax increase is
unlikely, and he said citizens can help make sure that doesn’t happen.
“It has never been our intent to support this system with taxpayer funds.
The 2010 budget has been approved and there is no need for taxpayer assistance.
The future depends on our citizens and businesses embracing the system, taking
advantage of its offerings,” Mayor Woods said.
“I hope we can celebrate a locally-owned effort that contributes to this
community. To those negative voices in the world, I say the future is in your
hands. Use the system and it will be successful,” the mayor said.
Press Release: MI-Connection launches search for new general manager, enters new customer growth phase
(Click on the documents to enlarge:)
Monday, August 31, 2009
Town/BVU officials can meet today, after all
A couple hours ago, I received an e-mail from Sara-Lynne Levine, communications director for the Town of Davidson. She said the three people who are holding individual conferences with the press today and tomorrow could accommodate a meeting with me today (as opposed to tomorrow), after all.
At first, I agreed, as long as the officials could meet a little later in the afternoon than the 3 p.m. time they proposed for my conference. But after further consideration and discussion, I've decided that I can't go to the meeting because I cannot justify attending a meeting that the public is not allowed to attend.
I sent an e-mail to Levine, thanking her for trying to accommodate my schedule. However, I explained that I am very uncomfortable with the format of the meetings. Various media outlets will be meeting individually to discuss MI-Connection with Mooresville Finance Director Maia Setzer, Davidson Town Manager Leamon Brice and Bristol Virginia Utilities Chief Finance Officer Stacey Bright.
The people of Mooresville and Davidson - who are ultimately responsible for the MI-Connection system - are not invited.
I let Levine know when the three folks holding the individual conferences decide to present themselves publicly and field questions from the public, I will make any necessary adjustments to my schedule to attend that meeting.
At first, I agreed, as long as the officials could meet a little later in the afternoon than the 3 p.m. time they proposed for my conference. But after further consideration and discussion, I've decided that I can't go to the meeting because I cannot justify attending a meeting that the public is not allowed to attend.
I sent an e-mail to Levine, thanking her for trying to accommodate my schedule. However, I explained that I am very uncomfortable with the format of the meetings. Various media outlets will be meeting individually to discuss MI-Connection with Mooresville Finance Director Maia Setzer, Davidson Town Manager Leamon Brice and Bristol Virginia Utilities Chief Finance Officer Stacey Bright.
The people of Mooresville and Davidson - who are ultimately responsible for the MI-Connection system - are not invited.
I let Levine know when the three folks holding the individual conferences decide to present themselves publicly and field questions from the public, I will make any necessary adjustments to my schedule to attend that meeting.
Sunday, August 30, 2009
Town commissioner on MI-Connection: 'There's a storm brewing'
Mooresville and Davidson: Get ready to dig deep – again – for MI-Connection.
Town officials predict the cable system might need at least $19 million more in the next five years.
Officials contacted by the Report last week did not want to discuss specifics, citing “proprietary information” – specifically, information that could be damaging once in the hands of MI-Connection’s competitors.
Town commissioners say they’re reluctant to elaborate because they haven’t been given “hard numbers.” Commissioner Chris Carney, in fact, said figures being used in discussions are “speculative” at best, because no one has yet seen MI-Connection’s audited year-end financial statements. Those aren’t expected to be released until October.
Town Manager Steve Husemann received MI-Connection’s unaudited year-end financial report last Wednesday. He did not release a copy to the Report, however, before beginning an eight-week leave of absence on Friday.
“I know there have been discussions that money is going to be needed if we’re able to accomplish all the things we’ve talked about,” Carney said last week. But when asked how much money is being discussed, he said: “So much of what we’re talking about is speculation. The numbers are unaudited. They’re good to use as a tool to start coming up with a strategy, but you don’t base your entire business plan around them because they’re not accurate yet.”
Once the numbers are given to commissioners, Carney said, “We are going to be honest. If we have something that says the sky is black, then the sky is black. We can be honest, but we need to be factually correct when we’re honest.”
Commissioners might not know just how black the sky is right now. But in the words of Commissioner Mac Herring in an e-mail obtained by the Report in a recent public-records request, they do know “there’s a storm brewing.” And in fact, town officials confirm they’ve been told to anticipate at least $19 million more in five years.
“Not sure if our local fiber optic venture will be successful,” Herring wrote in the e-mail. “The financial model is flawed, the Chair has apparently been withholding information, and the confidence in BVU (Bristol Virginia Utilities) at running the system is faltering. Their operations seem to be sound, but there has been little success at marketing the business applications. Perhaps we just kept our eye off the ball for too long.”
The towns of Mooresville and Davidson purchased the cable system for $80 million in December 2007. Last summer, the two towns coughed up another $12.5 million because, without it, MI-Connection wouldn’t be able to complete upgrades, including extending fiber to local businesses, which would be a significant money-maker for the system. (For detailed information, visit http://thegattonreport.blogspot.com/2008/05/cable-cash-cow-turned-catastrophe.html)
Four seats are open on Mooresville’s town board this November – the mayor’s seat and those of Commissioners Herring, Carney and Frank Rader. All four voted for the original $80 million financing for MI-Connection; Carney voted against the second $12.5 million request. Rader and Thunberg - two of the staunchest town-board supporters of MI-Connection - did not respond to Report questions this week. They are both running challenged races this year. Carney and Herring are running unopposed.
Mooresville Finance Director Maia Setzer said last week that the original $80 million for the cable system was “a Certificate of Participation borrowing,” while the “secondary ($12.5 million) was an installment loan.” This fiscal year, she said, $4.7 million is due in debt payments – half next month, and the other half in February.
Herring said: “I am of the opinion through our discussions (with no ‘real’ numbers in front of us), that MI-Connection can make its payments but will have no capital to make the taps into the business market. It’s kind of like having a wonderful 6-lane highway with no exit ramps.
“My understanding,” he added, “is that in order to reach the potential business customers … additional capital will be needed.”
“We have a high quality telecommunications product but need to market it (and) find some additional capital to get it to market,” Herring added. “We have a Cadillac of a system, now we need to start utilizing it.”
But if MI-Connection overextends itself in infrastructure costs, trying to reach more lucrative commercial accounts that will foot the repayment bill – and if that puts MI-Connection in a position where it can’t repay the towns’ debt in the meantime – does the burden of repayment fall back on the town?
“It would,” said Setzer, “but there has been no indication that MI-Connection would not be making those payments this year.”
But if Herring’s understanding is accurate, then MI-Connection may be able to pay its debt payments, but that will leave the system with not enough money for capital improvements to be able to lure in more lucrative accounts.
So what happens if the town continues subsidizing MI-Connection’s capital costs? Will town commissioners have to raise taxes? Setzer responded simply: “I do not know.”
While official figures have not been released, officials in recent e-mails make repeated references to the pending projections and the “bad news” that will accompany their release.
One e-mail in particular may provide more questions than answers, but it points to a looming problem for MI-Connection. In the June 5 e-mail, Wes Rosenbalm – president and CEO of BVU (MI-Connection operators) – stated to Davidson Commissioner and former MI-Connection Board Chairman Evan Webster: “We do not want to be alarmist but we think the situation with MIC is very serious.”
Rosenbalm points to two attachments (removed before the e-mail chain was sent to Mooresville commissioners): “a memo from (BVU Chief Financial Officer) Stacey (Bright) to me on the situation,” Rosenbalm wrote, “and then a memo from me to you on what options we have at this point.
“I apologize for sending this to you before I leave on vacation,” Rosenbalm said to Webster, “but we thought it was serious enough that we need to get it to you this week. We request that you share this with the remainder of the (MI-Connection) Board so they are aware of the situation.”
But Webster did not pass the information along until July 10 — five weeks later. “Wes sent this email approximately 5 weeks ago,” Webster said in an e-mail to other MI-Connection board members. “I did not forward it at that time because I did not agree with the tone or the approach. Wes left for a two week vacation after sending this, and I wanted to talk with him before pushing this along. In addition, we were still working on the budget.”
Webster stated that “the outlying situation” documented in the memos “has been discussed among ourselves, so the subject matter should not come as a surprise.” He also indicated that Bright’s memo included a financial analysis that “does highlight the slope against which we must climb.” However, Webster stated, “her initial analysis assumes that we will climb the slope in one year. I think that this is a multiple year project.”
As for the options that Rosenbalm proposed, Webster stated to the MI-Connection board members: “Even if we concede that there are two options, prudence would dictate that we take the time necessary for adequate consideration. We know that we are good for at least 12 months.”
When word reached Mooresville that Webster did not share for five weeks the information provided to him by Rosenbalm, at least two town commissioners – Carney and Atkins – moved quickly to try to have Webster unseated as the MI-Connection board chairman.
With a resolution in hand at the beginning of the Aug. 3 town board meeting, Atkins intended to make a motion asking that a letter be sent to Davidson’s mayor and town board, on behalf of Mooresville’s town board, “informing them that we have lost confidence in the ability of Mr. Webster to lead MI-Connection in a direction that will benefit our Town and its citizens and asking that Mr. Webster be immediately removed from the MI-Connection Board of Directors.”
The resolution also stated: “It is imperative, both for the benefit of MI-Connection, and certainly for the citizens of the Town of Mooresville and our Board, that each member of the MI-Connection Board of Directors and most certainly its chairman, strive to make MI-Connection a successful business and service venture.
“Of equal importance,” the resolution added, “it is imperative that the person serving as chairman of MI-Connection keep our Town Board updated about the strengths and weaknesses of anything that might impact on the operation of the MI-Connection system.”
Commissioners found out just before the start of the Aug. 3 town board meeting that Webster’s term would expire Aug. 13. Assurances that Davidson would not reappoint him to the MI-Connection board mitigated the need for the resolution and motion at Mooresville’s Aug. 3 town board meeting.
Carney – who, along with Atkins, voted against the additional $12.5 million for MI-Connection last summer because he disagreed that elected officials should be able to serve on the MI-Connection board – said last week: “I very publicly had asked for a change in the board chairmanship for the last 12 to 18 months because the person in charge was not in a position to be unbiased.
“We have a system with the opportunity to break based on that. And – guess what? – it broke,” Carney added.
Webster also chose not to seek re-election this year to his seat on Davidson’s town board.
Carney said he hopes that new leadership on the MI-Connection board will “provide a different philosophy based on our original goals and objectives.”
Mooresville will also be gaining a representative to the MI-Connection board. While Mooresville guaranteed the large majority of the $92.5 million for the cable system, until recently it had only two representatives, as opposed to Davidson’s three, on the MI-Connection board. But Mooresville is looking now to appoint a third representative, which will decrease Davidson’s representation to two.
Atkins said that he has “complete confidence in, and admiration for,” the Town of Mooresville’s two current appointed MI-Connection board members, John Kasberger and David Pendleton. “They have been very open and transparent with the information that has been made available to them,” Atkins said, “and for that I am truly grateful to have them represent Mooresville’s interest in MI-Connection.”
In addition to changing the structure of the MI-Connection board, Atkins said the Town of Mooresville “has been assured MI-Connection will be much more aggressive in its sales, marketing and business development initiatives to meet the growth/revenue projections required to achieve the financial goals and obligations of the organization.”
MI-Connection itself is also undergoing an organizational restructuring. And town officials say they have identified a flaw in MI-Connection’s agreement with BVU that needs to be corrected: the agreement is not performance-based. In other words, it does not include a specific mechanism to hold BVU accountable for the performance of the cable system from a sales and marketing standpoint.
While these plans have not been announced publicly, Mooresville’s Husemann has tried relentlessly to get in front of the story at least since the beginning of August. In e-mails to town and MI-Connection officials, Husemann repeatedly stressed his uneasiness with unaudited figures – that could turn out to be wrong – being reported by the media. He is also adamant about the need for an action plan and to be open and honest with the public. On Aug. 12, he stated in an e-mail to the MI-Connection task force, including Atkins, Carney and Herring: “We would be wise to package the bad news with a statement about what is being done to address the situation.
“When we have official projection numbers, bad news could have a negative effect on marketing,” he added. “Any type of governance restructuring, changes in personnel, changes from engineering to sales/marketing all need to be announced soon as well as a statement about the financial situation.
“The message,” continued Husemann, “needs to be ‘Yes – we have a problem, but here is how we hope to address.’ Open, honest …”
In an Aug. 21 e-mail about a pending press release, Husemann stressed: “This needs to happen ASAP. We need to announce it early next week and be very open and honest.”
Obviously, no one moved on Husemann’s pleadings until last week, when pressure mounted from the press.
On Friday, meetings were being scheduled for tomorrow and Tuesday with various media outlets. The Report was contacted by Sara-Lynne Levine, Davidson’s communications director, requesting to meet Tuesday “to discuss MI-Connection” with Mooresville’s Setzer, BVU’s Bright and Davidson Town Manager Leamon Brice.
I will not meet on Tuesday. Therefore, once news from the meetings begins to be posted online – possibly on newspapers’ online sites tomorrow since that’s apparently when their individual Q-and-A sessions were scheduled – those articles will be linked here. Online-only news sources were apparently scheduled to meet for their individual conferences the following day. As soon as those stories are posted, they will also be linked here. If you find them first, please feel free to post the link in the Comments section.
Town officials predict the cable system might need at least $19 million more in the next five years.
Officials contacted by the Report last week did not want to discuss specifics, citing “proprietary information” – specifically, information that could be damaging once in the hands of MI-Connection’s competitors.
Town commissioners say they’re reluctant to elaborate because they haven’t been given “hard numbers.” Commissioner Chris Carney, in fact, said figures being used in discussions are “speculative” at best, because no one has yet seen MI-Connection’s audited year-end financial statements. Those aren’t expected to be released until October.
Town Manager Steve Husemann received MI-Connection’s unaudited year-end financial report last Wednesday. He did not release a copy to the Report, however, before beginning an eight-week leave of absence on Friday.
“I know there have been discussions that money is going to be needed if we’re able to accomplish all the things we’ve talked about,” Carney said last week. But when asked how much money is being discussed, he said: “So much of what we’re talking about is speculation. The numbers are unaudited. They’re good to use as a tool to start coming up with a strategy, but you don’t base your entire business plan around them because they’re not accurate yet.”
Once the numbers are given to commissioners, Carney said, “We are going to be honest. If we have something that says the sky is black, then the sky is black. We can be honest, but we need to be factually correct when we’re honest.”
Commissioners might not know just how black the sky is right now. But in the words of Commissioner Mac Herring in an e-mail obtained by the Report in a recent public-records request, they do know “there’s a storm brewing.” And in fact, town officials confirm they’ve been told to anticipate at least $19 million more in five years.
“Not sure if our local fiber optic venture will be successful,” Herring wrote in the e-mail. “The financial model is flawed, the Chair has apparently been withholding information, and the confidence in BVU (Bristol Virginia Utilities) at running the system is faltering. Their operations seem to be sound, but there has been little success at marketing the business applications. Perhaps we just kept our eye off the ball for too long.”
The towns of Mooresville and Davidson purchased the cable system for $80 million in December 2007. Last summer, the two towns coughed up another $12.5 million because, without it, MI-Connection wouldn’t be able to complete upgrades, including extending fiber to local businesses, which would be a significant money-maker for the system. (For detailed information, visit http://thegattonreport.blogspot.com/2008/05/cable-cash-cow-turned-catastrophe.html)
Four seats are open on Mooresville’s town board this November – the mayor’s seat and those of Commissioners Herring, Carney and Frank Rader. All four voted for the original $80 million financing for MI-Connection; Carney voted against the second $12.5 million request. Rader and Thunberg - two of the staunchest town-board supporters of MI-Connection - did not respond to Report questions this week. They are both running challenged races this year. Carney and Herring are running unopposed.
Mooresville Finance Director Maia Setzer said last week that the original $80 million for the cable system was “a Certificate of Participation borrowing,” while the “secondary ($12.5 million) was an installment loan.” This fiscal year, she said, $4.7 million is due in debt payments – half next month, and the other half in February.
Herring said: “I am of the opinion through our discussions (with no ‘real’ numbers in front of us), that MI-Connection can make its payments but will have no capital to make the taps into the business market. It’s kind of like having a wonderful 6-lane highway with no exit ramps.
“My understanding,” he added, “is that in order to reach the potential business customers … additional capital will be needed.”
“We have a high quality telecommunications product but need to market it (and) find some additional capital to get it to market,” Herring added. “We have a Cadillac of a system, now we need to start utilizing it.”
But if MI-Connection overextends itself in infrastructure costs, trying to reach more lucrative commercial accounts that will foot the repayment bill – and if that puts MI-Connection in a position where it can’t repay the towns’ debt in the meantime – does the burden of repayment fall back on the town?
“It would,” said Setzer, “but there has been no indication that MI-Connection would not be making those payments this year.”
But if Herring’s understanding is accurate, then MI-Connection may be able to pay its debt payments, but that will leave the system with not enough money for capital improvements to be able to lure in more lucrative accounts.
So what happens if the town continues subsidizing MI-Connection’s capital costs? Will town commissioners have to raise taxes? Setzer responded simply: “I do not know.”
While official figures have not been released, officials in recent e-mails make repeated references to the pending projections and the “bad news” that will accompany their release.
One e-mail in particular may provide more questions than answers, but it points to a looming problem for MI-Connection. In the June 5 e-mail, Wes Rosenbalm – president and CEO of BVU (MI-Connection operators) – stated to Davidson Commissioner and former MI-Connection Board Chairman Evan Webster: “We do not want to be alarmist but we think the situation with MIC is very serious.”
Rosenbalm points to two attachments (removed before the e-mail chain was sent to Mooresville commissioners): “a memo from (BVU Chief Financial Officer) Stacey (Bright) to me on the situation,” Rosenbalm wrote, “and then a memo from me to you on what options we have at this point.
“I apologize for sending this to you before I leave on vacation,” Rosenbalm said to Webster, “but we thought it was serious enough that we need to get it to you this week. We request that you share this with the remainder of the (MI-Connection) Board so they are aware of the situation.”
But Webster did not pass the information along until July 10 — five weeks later. “Wes sent this email approximately 5 weeks ago,” Webster said in an e-mail to other MI-Connection board members. “I did not forward it at that time because I did not agree with the tone or the approach. Wes left for a two week vacation after sending this, and I wanted to talk with him before pushing this along. In addition, we were still working on the budget.”
Webster stated that “the outlying situation” documented in the memos “has been discussed among ourselves, so the subject matter should not come as a surprise.” He also indicated that Bright’s memo included a financial analysis that “does highlight the slope against which we must climb.” However, Webster stated, “her initial analysis assumes that we will climb the slope in one year. I think that this is a multiple year project.”
As for the options that Rosenbalm proposed, Webster stated to the MI-Connection board members: “Even if we concede that there are two options, prudence would dictate that we take the time necessary for adequate consideration. We know that we are good for at least 12 months.”
When word reached Mooresville that Webster did not share for five weeks the information provided to him by Rosenbalm, at least two town commissioners – Carney and Atkins – moved quickly to try to have Webster unseated as the MI-Connection board chairman.
With a resolution in hand at the beginning of the Aug. 3 town board meeting, Atkins intended to make a motion asking that a letter be sent to Davidson’s mayor and town board, on behalf of Mooresville’s town board, “informing them that we have lost confidence in the ability of Mr. Webster to lead MI-Connection in a direction that will benefit our Town and its citizens and asking that Mr. Webster be immediately removed from the MI-Connection Board of Directors.”
The resolution also stated: “It is imperative, both for the benefit of MI-Connection, and certainly for the citizens of the Town of Mooresville and our Board, that each member of the MI-Connection Board of Directors and most certainly its chairman, strive to make MI-Connection a successful business and service venture.
“Of equal importance,” the resolution added, “it is imperative that the person serving as chairman of MI-Connection keep our Town Board updated about the strengths and weaknesses of anything that might impact on the operation of the MI-Connection system.”
Commissioners found out just before the start of the Aug. 3 town board meeting that Webster’s term would expire Aug. 13. Assurances that Davidson would not reappoint him to the MI-Connection board mitigated the need for the resolution and motion at Mooresville’s Aug. 3 town board meeting.
Carney – who, along with Atkins, voted against the additional $12.5 million for MI-Connection last summer because he disagreed that elected officials should be able to serve on the MI-Connection board – said last week: “I very publicly had asked for a change in the board chairmanship for the last 12 to 18 months because the person in charge was not in a position to be unbiased.
“We have a system with the opportunity to break based on that. And – guess what? – it broke,” Carney added.
Webster also chose not to seek re-election this year to his seat on Davidson’s town board.
Carney said he hopes that new leadership on the MI-Connection board will “provide a different philosophy based on our original goals and objectives.”
Mooresville will also be gaining a representative to the MI-Connection board. While Mooresville guaranteed the large majority of the $92.5 million for the cable system, until recently it had only two representatives, as opposed to Davidson’s three, on the MI-Connection board. But Mooresville is looking now to appoint a third representative, which will decrease Davidson’s representation to two.
Atkins said that he has “complete confidence in, and admiration for,” the Town of Mooresville’s two current appointed MI-Connection board members, John Kasberger and David Pendleton. “They have been very open and transparent with the information that has been made available to them,” Atkins said, “and for that I am truly grateful to have them represent Mooresville’s interest in MI-Connection.”
In addition to changing the structure of the MI-Connection board, Atkins said the Town of Mooresville “has been assured MI-Connection will be much more aggressive in its sales, marketing and business development initiatives to meet the growth/revenue projections required to achieve the financial goals and obligations of the organization.”
MI-Connection itself is also undergoing an organizational restructuring. And town officials say they have identified a flaw in MI-Connection’s agreement with BVU that needs to be corrected: the agreement is not performance-based. In other words, it does not include a specific mechanism to hold BVU accountable for the performance of the cable system from a sales and marketing standpoint.
While these plans have not been announced publicly, Mooresville’s Husemann has tried relentlessly to get in front of the story at least since the beginning of August. In e-mails to town and MI-Connection officials, Husemann repeatedly stressed his uneasiness with unaudited figures – that could turn out to be wrong – being reported by the media. He is also adamant about the need for an action plan and to be open and honest with the public. On Aug. 12, he stated in an e-mail to the MI-Connection task force, including Atkins, Carney and Herring: “We would be wise to package the bad news with a statement about what is being done to address the situation.
“When we have official projection numbers, bad news could have a negative effect on marketing,” he added. “Any type of governance restructuring, changes in personnel, changes from engineering to sales/marketing all need to be announced soon as well as a statement about the financial situation.
“The message,” continued Husemann, “needs to be ‘Yes – we have a problem, but here is how we hope to address.’ Open, honest …”
In an Aug. 21 e-mail about a pending press release, Husemann stressed: “This needs to happen ASAP. We need to announce it early next week and be very open and honest.”
Obviously, no one moved on Husemann’s pleadings until last week, when pressure mounted from the press.
On Friday, meetings were being scheduled for tomorrow and Tuesday with various media outlets. The Report was contacted by Sara-Lynne Levine, Davidson’s communications director, requesting to meet Tuesday “to discuss MI-Connection” with Mooresville’s Setzer, BVU’s Bright and Davidson Town Manager Leamon Brice.
I will not meet on Tuesday. Therefore, once news from the meetings begins to be posted online – possibly on newspapers’ online sites tomorrow since that’s apparently when their individual Q-and-A sessions were scheduled – those articles will be linked here. Online-only news sources were apparently scheduled to meet for their individual conferences the following day. As soon as those stories are posted, they will also be linked here. If you find them first, please feel free to post the link in the Comments section.
Monday, June 15, 2009
Criticism is good. Solutions are better.
Yet another interesting debate is being played out online about downtown Mooresville. And (gasp!) it's happening somewhere other than here.
The Mooresville Tribune recently published an article about the downtown commission's new marketing theme, "It's Happening Downtown. Downtown Mooresville." The hope of the commission is to spread the word about what downtown has to offer in an attempt to bring more visitors to the area. (To read the Tribune's article, click here: http://www2.mooresvilletribune.com/content/2009/jun/12/downtown-unveils-new-marketing-theme/.)
One or two comments indicate a belief that the downtown commission needs to focus on attracting businesses, not visitors. But that's a chicken-and-egg argument. Visitors won't come without businesses. And businesses won't come without established visitors. So how does the downtown commission balance attracting both?
Another chicken-and-egg argument being presented: downtown businesses should stay open past 5 p.m.
While I totally agree, it's yet another case of "easier said than done." Downtown businesses are owned predominantly by local folks who are taking a huge risk, and an even bigger leap of faith, trying to provide needed (and oftentimes unique) services to area folks. Staying open late costs those businesses when visitors aren't beating down the doors.
Starbucks might be able to handle that because of the $5 or more a single visitor will pay for one cup of coffee. To the contrary, my mom (who owns a Main Street bakery/boutique/coffee shop) stays open until 10 p.m. every Friday. This past week, she was slammed because of the monthly downtown gallery crawl, and the bakery was hosting a live, young rock band. But the Friday before, downtown was dead. Four people walked through the bakery's front door from 5 to 10 p.m. Of those, two were family friends. The other two came back to visit this past Friday and were greeted by a livelier - and much larger - crowd.
Is downtown's "downfall" truly the lack of businesses staying open past 5 p.m.? Or, is it that downtown lacks a variety of businesses that people want to visit? Is NoDa packed on weekday nights? Or is it typically dead during the week and more lively on the weekends? What downtown stores would you like to see open later? What kind of stores would you frequent if downtown stayed open late? And how often would you frequent those stores? How many post-5 p.m. visitors do you believe justify a business staying open late?
There's the catch. Most small, local businesses aren't going to lose money by paying employees $8 or more an hour to sit on their thumbs with no one to serve.
So, what's the solution? Should the downtown commission try to attract "massive development" that'll charge you more but stay open later? Who's truly paying for that? Is it worth it?
I don't know the answers. That's why I'm asking you. I've always had a lot of hope and faith in downtown Mooresville; I've always believed it has the potential to be a relaxing retreat, worlds away from the busy-ness of the interstate area.
Obviously, it has a long way to go. While a new branding campaign might not be the "answer," it's at least a step in a different direction. But judging from the comments following the Tribune article, some folks vehemently disagree that it's a step in the right direction.
So I'm curious: What are your thoughts on what downtown needs? How do you believe it should be transformed, and what are the steps you would take to lead it there? What kinds of shops and events would you like to see in downtown Mooresville? And perhaps most importantly, what would you be willing to do to help bring it?
The Mooresville Tribune recently published an article about the downtown commission's new marketing theme, "It's Happening Downtown. Downtown Mooresville." The hope of the commission is to spread the word about what downtown has to offer in an attempt to bring more visitors to the area. (To read the Tribune's article, click here: http://www2.mooresvilletribune.com/content/2009/jun/12/downtown-unveils-new-marketing-theme/.)
One or two comments indicate a belief that the downtown commission needs to focus on attracting businesses, not visitors. But that's a chicken-and-egg argument. Visitors won't come without businesses. And businesses won't come without established visitors. So how does the downtown commission balance attracting both?
Another chicken-and-egg argument being presented: downtown businesses should stay open past 5 p.m.
While I totally agree, it's yet another case of "easier said than done." Downtown businesses are owned predominantly by local folks who are taking a huge risk, and an even bigger leap of faith, trying to provide needed (and oftentimes unique) services to area folks. Staying open late costs those businesses when visitors aren't beating down the doors.
Starbucks might be able to handle that because of the $5 or more a single visitor will pay for one cup of coffee. To the contrary, my mom (who owns a Main Street bakery/boutique/coffee shop) stays open until 10 p.m. every Friday. This past week, she was slammed because of the monthly downtown gallery crawl, and the bakery was hosting a live, young rock band. But the Friday before, downtown was dead. Four people walked through the bakery's front door from 5 to 10 p.m. Of those, two were family friends. The other two came back to visit this past Friday and were greeted by a livelier - and much larger - crowd.
Is downtown's "downfall" truly the lack of businesses staying open past 5 p.m.? Or, is it that downtown lacks a variety of businesses that people want to visit? Is NoDa packed on weekday nights? Or is it typically dead during the week and more lively on the weekends? What downtown stores would you like to see open later? What kind of stores would you frequent if downtown stayed open late? And how often would you frequent those stores? How many post-5 p.m. visitors do you believe justify a business staying open late?
There's the catch. Most small, local businesses aren't going to lose money by paying employees $8 or more an hour to sit on their thumbs with no one to serve.
So, what's the solution? Should the downtown commission try to attract "massive development" that'll charge you more but stay open later? Who's truly paying for that? Is it worth it?
I don't know the answers. That's why I'm asking you. I've always had a lot of hope and faith in downtown Mooresville; I've always believed it has the potential to be a relaxing retreat, worlds away from the busy-ness of the interstate area.
Obviously, it has a long way to go. While a new branding campaign might not be the "answer," it's at least a step in a different direction. But judging from the comments following the Tribune article, some folks vehemently disagree that it's a step in the right direction.
So I'm curious: What are your thoughts on what downtown needs? How do you believe it should be transformed, and what are the steps you would take to lead it there? What kinds of shops and events would you like to see in downtown Mooresville? And perhaps most importantly, what would you be willing to do to help bring it?
Thursday, June 4, 2009
Even government grows tired of waiting on government
It's been nearly a year since Mooresville fired its police chief, John Crone, and called in the SBI to investigate his Cops for Kids program.
This week, Town Manager Steve Husemann – who was hired after the Cops for Kids scandal broke last July – promoted Carl Robbins to chief of police. Robbins has served as interim chief since Crone was fired in August.
But while one chapter of the story is now closed, the end is still nowhere in sight.
“We have not received results nor a time table from (the) SBI,” Husemann said this week, responding to Report questions. “The timing of (Robbins’ promotion) has nothing to do with (the) SBI.”
Shortly after Husemann came on board as Mooresville’s town manager in September, he indicated that he wanted to wait for the completion of the SBI investigation before hiring Crone's replacement.
He said this week, however, "I have changed my mind since last December because of the amount of time it is taking for the SBI to conduct its investigation.
"I admitted last December that awaiting the SBI report was somewhat of an excuse to give me time to get a better knowledge of (the Mooresville Police Department), its personnel and issues," he added. "I’ve had nine months now to observe Carl Robbins and the department. I saw no further need, nor advantage in awaiting an SBI report.
"It is time to move forward now and give Chief Robbins full support to manage the department."
It seems Husemann has caught on to what many of us have known for years: waiting on tangible results from the SBI, at least in Mooresville, is like waiting on the Great Pumpkin.
Still, when asked this week if the town would release to the public the results of the forensic audits into Cops for Kids – which were funded by taxpayer dollars and have been concluded for some time – Husemann responded: “This will continue to await the SBI.”
And when asked if the town has reimbursed the federal government for the asset-forfeiture funds that were spent inappropriately by the former police chief and his Cops for Kids program (see http://thegattonreport.blogspot.com/2009/01/feds-to-town-pay-up.html) – and if so, out of what fund the town paid the reimbursement – Husemann responded: “There appears to be a wrong impression about what this is all about.”
While the U.S. Department of Justice “directed the town to reimburse the federal drug funds used for (the) Cops for Kids program,” he said, “this does not require that a check be written and sent to Washington.”
Instead, "It merely requires a re-appropriation to replace drug fund moneys used for Cops for Kids with general fund money while the drug fund money is applied to a clearly permitted use," Husemann said. “Staff will ask that this be done with late FY2009 budget adjustments."
This week, Town Manager Steve Husemann – who was hired after the Cops for Kids scandal broke last July – promoted Carl Robbins to chief of police. Robbins has served as interim chief since Crone was fired in August.
But while one chapter of the story is now closed, the end is still nowhere in sight.
“We have not received results nor a time table from (the) SBI,” Husemann said this week, responding to Report questions. “The timing of (Robbins’ promotion) has nothing to do with (the) SBI.”
Shortly after Husemann came on board as Mooresville’s town manager in September, he indicated that he wanted to wait for the completion of the SBI investigation before hiring Crone's replacement.
He said this week, however, "I have changed my mind since last December because of the amount of time it is taking for the SBI to conduct its investigation.
"I admitted last December that awaiting the SBI report was somewhat of an excuse to give me time to get a better knowledge of (the Mooresville Police Department), its personnel and issues," he added. "I’ve had nine months now to observe Carl Robbins and the department. I saw no further need, nor advantage in awaiting an SBI report.
"It is time to move forward now and give Chief Robbins full support to manage the department."
It seems Husemann has caught on to what many of us have known for years: waiting on tangible results from the SBI, at least in Mooresville, is like waiting on the Great Pumpkin.
Still, when asked this week if the town would release to the public the results of the forensic audits into Cops for Kids – which were funded by taxpayer dollars and have been concluded for some time – Husemann responded: “This will continue to await the SBI.”
And when asked if the town has reimbursed the federal government for the asset-forfeiture funds that were spent inappropriately by the former police chief and his Cops for Kids program (see http://thegattonreport.blogspot.com/2009/01/feds-to-town-pay-up.html) – and if so, out of what fund the town paid the reimbursement – Husemann responded: “There appears to be a wrong impression about what this is all about.”
While the U.S. Department of Justice “directed the town to reimburse the federal drug funds used for (the) Cops for Kids program,” he said, “this does not require that a check be written and sent to Washington.”
Instead, "It merely requires a re-appropriation to replace drug fund moneys used for Cops for Kids with general fund money while the drug fund money is applied to a clearly permitted use," Husemann said. “Staff will ask that this be done with late FY2009 budget adjustments."
Saturday, May 30, 2009
MI-Connection raising rates
The towns of Mooresville and Davidson borrowed $80 million in December 2007 to purchase and upgrade the bankrupt Adelphia cable television system.
About six months later, the cable company - renamed MI-Connection - requested and received an additional $12.5 million from the towns.
About six months later, the cable company - renamed MI-Connection - requested and received an additional $12.5 million from the towns.
Then on Jan. 30 of this year - just after the cable system celebrated its first birthday - the Mooresville Tribune published the following article, titled "Some fees to rise for MI-Connection customers": http://www2.mooresvilletribune.com/content/2009/jan/30/some-fees-rise-mi-connection-customers/news-local/
And hitting the mailboxes of MI-Connection subscribers either today or early next week: a notice that cable rates are going up an average of 9.3 percent, effective July 1, "as a result of the increased costs to MI-Connection" for "programming and other services."
In case you haven't received your notice already, here's a sneak peak of what you'll get:
And for a list of Frequently Asked Questions compiled by MI-Connection, click on these documents:
Friday, April 24, 2009
Wait 'til you hear what I'm willing to do to get your money!
Community events like Relay for Life tend to bring out the best in people. And sometimes, they inspire us to do some pretty off-the-wall things. Like exercising for eight straight hours. On a Saturday. In 88-degree heat.
That’s what my oldest daughter and I will be up to tomorrow, as Mooresville’s Acrofitness holds its first-ever 8-hour “Fit-a-thon” to raise money for the American Cancer Society through Relay for Life.
Cancer has impacted countless people and families, and it hit close to home this year in our local political world when Ward 3 Commissioner Mac Herring was diagnosed with testicular cancer.
I remember when Herring called a couple months ago to tell me about the diagnosis – it was amazing, in that moment, how quickly politics flew out the window. He told me that surgeons, within days, would be removing a suspicious tumor and biopsying it to determine if it was cancer. My heart, of course, immediately went out to Herring and his wife and their two young children. After I asked what seemed like a million questions in about a three-minute time span without taking a breath, Herring – without skipping a beat – simply said: “Well, look at it this way: at least there’ll be one less nut on the town board now.”
Herring’s positive outlook on life – in spite of the challenges he has faced – has always amazed me. From a diagnosis of dyslexia at an early age to being shot while performing a random act of kindness in 1991, Herring has more reason than most anyone I know to be cynical about life. But instead, he turns those experiences around to help others.
He has chosen to be the same way with his cancer. A Hospice nurse, Herring said that his diagnosis and resulting bout with chemotherapy has helped him “have more empathy for the folks I reach out to help through my Hospice calling.”
Herring has even called his cancer “a gift,” albeit an “unwanted one.”
“Just as I have in many other adverse situations I have been in before,” Herring said, “I can turn this into something good and use it to help others.”
And I have decided to help him in that cause, albeit in a different sort of way.
This year, I am on Team Acrofitness for Relay for Life of Mooresville/Lake Norman. And I’ve decided to raise all my funds for the American Cancer Society in Herring’s honor. So far, I have raised $260 of my $1,000 goal, excluding the money I have raised (and will hopefully raise at tomorrow’s Fit-a-thon) through the sale of some really cool purple crocheted headwear:
.JPG)
To see Relay’s flyer about the headwear fundraiser, click here:
http://relay.acsevents.org/site/DocServer/AcrofitnessHats.pdf?docID=83800
The hats – crocheted by Talina Ripper of Ripper Arts in Tennessee (http://www.ripperarts.etsy.com/) – can be embellished with purple flower hair clips, made by, well, me on behalf of my mom’s up-and-coming Main Street shop, The Mad Hatter Bakery & Boutique (which, by the way, should finally be opening within the next couple weeks).
+(Large).JPG)
You can find the purple hats and flowers – and even some little purple fairy tutus and some yummy cupcakes and cookies and such – at tomorrow’s Fit-a-thon, which is open to the public from 10 a.m.-6 p.m. at the Acrofitness studio in the Talbert Pointe business park.
50 percent of the proceeds from the sale of the headwear will be donated to Relay for Life through Team Acrofitness (which, I’m proud to say, is currently the top fundraiser for the local Relay event, with a whopping $6,386 raised so far).
Several other vendors will also be at tomorrow’s Fit-a-thon, including Rita’s, the Pretzel Factory, Hollywood Tans, and more. Each vendor has agreed to donate a portion of their proceeds to Relay through Team Acrofitness. If you or someone you know would like to set up a booth at tomorrow’s Fit-a-thon, come on out. There is no charge; Acrofitness is simply requesting donations, or a certain percentage of proceeds, for Relay for Life. For more information on the Fit-a-thon, call Acrofitness at 704-664-BFIT.
I will continue to raise money for the American Cancer Society through May 29, when the Relay for Life event is scheduled to be held in the Mooresville High School football stadium.
Please consider joining me in raising money for the American Cancer Society through Relay for Life. If you would like to make a donation to my fundraising campaign in honor of Commissioner Herring – or in honor of a loved one who is battling cancer or who has survived ... or in memory of a loved one who lost his or her battle with cancer – here’s where you can do it: http://main.acsevents.org/goto/jaimegatton
That’s what my oldest daughter and I will be up to tomorrow, as Mooresville’s Acrofitness holds its first-ever 8-hour “Fit-a-thon” to raise money for the American Cancer Society through Relay for Life.
Cancer has impacted countless people and families, and it hit close to home this year in our local political world when Ward 3 Commissioner Mac Herring was diagnosed with testicular cancer.
I remember when Herring called a couple months ago to tell me about the diagnosis – it was amazing, in that moment, how quickly politics flew out the window. He told me that surgeons, within days, would be removing a suspicious tumor and biopsying it to determine if it was cancer. My heart, of course, immediately went out to Herring and his wife and their two young children. After I asked what seemed like a million questions in about a three-minute time span without taking a breath, Herring – without skipping a beat – simply said: “Well, look at it this way: at least there’ll be one less nut on the town board now.”
Herring’s positive outlook on life – in spite of the challenges he has faced – has always amazed me. From a diagnosis of dyslexia at an early age to being shot while performing a random act of kindness in 1991, Herring has more reason than most anyone I know to be cynical about life. But instead, he turns those experiences around to help others.
He has chosen to be the same way with his cancer. A Hospice nurse, Herring said that his diagnosis and resulting bout with chemotherapy has helped him “have more empathy for the folks I reach out to help through my Hospice calling.”
Herring has even called his cancer “a gift,” albeit an “unwanted one.”
“Just as I have in many other adverse situations I have been in before,” Herring said, “I can turn this into something good and use it to help others.”
And I have decided to help him in that cause, albeit in a different sort of way.
This year, I am on Team Acrofitness for Relay for Life of Mooresville/Lake Norman. And I’ve decided to raise all my funds for the American Cancer Society in Herring’s honor. So far, I have raised $260 of my $1,000 goal, excluding the money I have raised (and will hopefully raise at tomorrow’s Fit-a-thon) through the sale of some really cool purple crocheted headwear:
.JPG)
To see Relay’s flyer about the headwear fundraiser, click here:
http://relay.acsevents.org/site/DocServer/AcrofitnessHats.pdf?docID=83800
The hats – crocheted by Talina Ripper of Ripper Arts in Tennessee (http://www.ripperarts.etsy.com/) – can be embellished with purple flower hair clips, made by, well, me on behalf of my mom’s up-and-coming Main Street shop, The Mad Hatter Bakery & Boutique (which, by the way, should finally be opening within the next couple weeks).
+(Large).JPG)
You can find the purple hats and flowers – and even some little purple fairy tutus and some yummy cupcakes and cookies and such – at tomorrow’s Fit-a-thon, which is open to the public from 10 a.m.-6 p.m. at the Acrofitness studio in the Talbert Pointe business park.
50 percent of the proceeds from the sale of the headwear will be donated to Relay for Life through Team Acrofitness (which, I’m proud to say, is currently the top fundraiser for the local Relay event, with a whopping $6,386 raised so far).
Several other vendors will also be at tomorrow’s Fit-a-thon, including Rita’s, the Pretzel Factory, Hollywood Tans, and more. Each vendor has agreed to donate a portion of their proceeds to Relay through Team Acrofitness. If you or someone you know would like to set up a booth at tomorrow’s Fit-a-thon, come on out. There is no charge; Acrofitness is simply requesting donations, or a certain percentage of proceeds, for Relay for Life. For more information on the Fit-a-thon, call Acrofitness at 704-664-BFIT.
I will continue to raise money for the American Cancer Society through May 29, when the Relay for Life event is scheduled to be held in the Mooresville High School football stadium.
Please consider joining me in raising money for the American Cancer Society through Relay for Life. If you would like to make a donation to my fundraising campaign in honor of Commissioner Herring – or in honor of a loved one who is battling cancer or who has survived ... or in memory of a loved one who lost his or her battle with cancer – here’s where you can do it: http://main.acsevents.org/goto/jaimegatton
Friday, March 13, 2009
Langtree: 'Details are important, but this is about jobs'
Developers and contractors filed into Town Hall on Monday in support of Langtree at the Lake’s request for the town to issue up to $46 million in bonds to pay for the development’s infrastructure.
Langtree Partner and Attorney David Parker spent the better part of his presentation to Mooresville commissioners trying to alleviate concerns that there’s some sort of “gotcha” that accompanies the new special-assessment improvement district (SAID) bonds. The SAID bonds were made possible by the N.C. General Assembly in August, and Langtree is the first development group in the state to ask for the new form of financing.
Parker explained that the town is in no way at risk by issuing the bonds. (To read a one-on-one interview with Parker and his explanation of how the SAID bonds work, click here: http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html )
At Monday’s public hearing, Parker asked: “Where’s that gotcha?”
“The weird answer is: there ain’t one,” he said.
Catherine Marshall, who lives in the Langtree development area, told commissioners: “When something sounds too good to be true, it probably is.”
Al Fiore, chairman and CEO of PowerWorks Electric in Mooresville, said “there is a gotcha,” to the SAID bonds. “It’s gotcha jobs,” he said. “We need jobs.”
He told commissioners that the General Assembly had given them a “tool to stimulate employment in your municipality” and that it isn’t going to cost the town anything.
Many of Fiore’s employees were at the meeting, and Fiore told commissioners that PowerWorks has a contract with Langtree for their first phase of electric work and lighting.
“When you’re thinking about the risks, don’t delay too long,” he said.
Langtree developers have touted jobs, along with increasing tax revenues, as their biggest contributions to the local economy. Langtree has said that its development would bring jobs to Mooresville from the very first day work begins on the site.
Commissioner Miles Atkins asked if all the jobs were guaranteed to be local.
Parker said he couldn’t guarantee that the jobs would go to people who had just lost their jobs. “I wish I could say that, but I can’t.”
But one question that hasn’t yet been answered is this: If the town issues bonds on behalf of Langtree, would the Langtree project then be considered a “public project”? Would the developers have to abide by all the requirements of public projects, such as bidding contract work and having to take the lowest bid without regard to the residence of the contractor and his/her employees?
“This is something that is being researched by the town’s bond counsel and me,” said Town Attorney Steve Gambill in an e-mailed response to Report questions this week. “If this is approved by the town board and the LGC (Local Government Commission), we certainly will have a definite answer.”
At Monday’s public hearing, Atkins said that to avoid the appearance of favoritism and “sending mixed signals to developers,” the town needs to develop a policy setting guidelines for the bonds. The policy would identify certain thresholds, such as overall project costs, that the town would set before it would consider issuing SAID bonds.
Town Manager Steve Husemann said town staff is working on that policy and that it could be presented to the board at its April town board meeting.
To read a list of 10 recommendations that a town financial consultant recently provided to commissioners to help them mitigate their risks in issuing the SAID bonds, click on the documents below: .jpg)
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After Monday’s public hearing, commissioners called for a special meeting on Tuesday, March 24, at 6 p.m. in Town Hall to consider voting on a final assessment resolution for the Langtree proposal. Town Attorney Steve Gambill said the word “final” is misleading; if commissioners pass the resolution, that simply opens the door for them to approach the LGC with the Langtree bonding proposal.
Also at the March 24 meeting, commissioners could vote on a “reimbursement agreement” with Langtree, which stipulates that Langtree will pay for all the town’s due-diligence work on the SAID-financing issue.
Responding on Monday to Parker’s statement that he asked “the most piercing questions” of Langtree, Atkins said he isn’t opposed to the project. However, he told Parker, while Langtree has had months to wrap its brain around the new form of financing, “it came pretty quickly for us.”
“I just got introduced to it last month,” Atkins said.
Parker said that the SAID issue may be new to North Carolina, but that tens of thousands of similar projects have been funded this same way in dozens of states since 1736.
Florida is one state that has special-assessment districts. Many of the projects there are apparently crashing under the pressures of the current economy. But Parker – along with Phil Hunt of Gardnyr Michael Capital, Inc., investment banking and financial advisors, who attended the public hearing with Langtree –said the projects, not the financing form, are failing. They said the projects there are failing because of self-governing issues and because Florida doesn’t have stringent processes in place like North Carolina.
But in an interview with the Report in November, when Langtree was negotiating the bonds with Iredell County, Parker said that of all the states with special assessment districts, Florida is the one with the most safeguards in place. He said that’s why Langtree developers “modeled all of (their) findings – and all the information that will be submitted to the (N.C.) Local Government Commission” after the State of Florida. (See http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html.)
Parker also said in the interview that when a special-assessment payment has been missed in Florida, the primary lender (typically a bank) covers the missed payment to avoid default. “The bank doesn’t want to have to come in on foreclosure and buy the whole bond …” said Parker. “For that reason,” he said, “it is impossible to sell the bonds without ‘vertical’ financing in place.”Fortunately for Langtree, Parker said at that time, the developers have “loan commitment letters for further financing from lenders that understand that they may be in behind the special assessments and are comfortable with that.”
But when Atkins asked at Monday night’s public hearing if Langtree has commitment letters from the development’s vertical construction lenders, Parker replied: “They’re all waiting for these bonds. It’s a chicken-and-egg thing.”
He said that Langtree could provide commitment letters from its vertical lenders, showing their commitment to building contingent upon the issuance of bonds, this week. It’s unclear if those letters have been received by the town.
Rick Howard, CEO of Langtree, told commissioners that “details are important, but this is about creating job opportunities. It’s about creating jobs locally. We’re ready to (sign) contracts with them, and they’re ready to get busy.”
“This is an opportunity,” Howard said.
Parker said that Gardnyr Michael Capital, Inc. has closed 13 special-assessment financing deals in the past year and a half – during some of the roughest economic times in memory. The company recently closed on a district in Alabama, which Hunt said was “nothing special compared to Mooresville’s project.”
What if the town decides to issue the bonds but the bonds ultimately don’t sell or are only partially sold?
That’s simple, said Hunt. In that case, the project simply wouldn’t move forward. No skin off the town’s back.
Local resident Diane DePriest asked commissioners: what if the bond issuance is approved and the developers/property owners default on their assessment payments?
Hunt said the property would then enter into foreclosure and the Town of Mooresville would end up with the Langtree acreage and its infrastructure. He agreed with other experts who have approached the board on behalf of both Langtree and the town and say that the SAID legislation was written so that the taxpayers bear absolutely no burden and no risk.
Ron Johnson, head of Mooresville’s Convention & Visitors Bureau, spoke in support of the SAID bonds for Langtree. He said the project will significantly increase Mooresville’s tax base and bring additional sales tax to the area. Also, Johnson added, John Q. Hammons’ hotel/convention center would give the town board a place to meet in-town for its annual planning retreat. That comment was followed with laughter and clapping by the board and members of the public at the meeting.
But on a more serious note, DePriest asked: what is the “doomsday scenario” for the Town of Mooresville taxpayer if the project fails?
“There isn’t one,” said Mayor Bill Thunberg. “If the infrastructure is in place, the town still owns it anyway. That’s the doomsday.”
Wednesday, March 11, 2009
Town officials to meet with billionaire hotelier John Q. Hammons
Mooresville officials are scheduled to meet today with Langtree at the Lake developers and billionaire hotelier John Q. Hammons.
The lunch meeting with Hammons -- who Langtree says is planning to build a hotel/convention center in the planned Langtree at the Lake development in Mt. Mourne -- was mentioned by Langtree CEO Rick Howard and Attorney David Parker at Monday night’s public hearing.
Town Manager Steve Husemann, in an e-mail to the Report today, said that the purpose of the lunch is "to talk about procedures for building permits, utilities etc.
“Obviously,” he added, “a show of support from the town and community is important as well. I would not expect any SAID (special assessment improvements district) bond discussion; in fact, none of the right people to discuss that issue will be present."
Husemann said he expected that town planners Tim Brown and Craig Culberson would attend the lunch, as well as Ryan Rase from engineering. Mayor Bill Thunberg and Commissioner Chris Carney were apparently the only two elected officials invited to attend. Carney told the Report that he had a scheduling conflict and would not be able to attend the lunch; he said today that he had asked that Commissioner Miles Atkins – who Parker said Monday night had been asking “the most piercing questions” of Langtree – be invited to the lunch in his place. Atkins was unable to be reached for comment at lunchtime today.
Husemann also said that he, as town manager, planned to attend the lunch. “I will be there to smile and shake hands,” he said. And “no,” he added – even without being asked the question – “Langtree will not be buying lunch for any city employees or commissioners.”
He said the meeting “is likely to be today, but I don’t believe that has been confirmed.”
More details on Monday night's discussion will be posted later ...
The lunch meeting with Hammons -- who Langtree says is planning to build a hotel/convention center in the planned Langtree at the Lake development in Mt. Mourne -- was mentioned by Langtree CEO Rick Howard and Attorney David Parker at Monday night’s public hearing.
Town Manager Steve Husemann, in an e-mail to the Report today, said that the purpose of the lunch is "to talk about procedures for building permits, utilities etc.
“Obviously,” he added, “a show of support from the town and community is important as well. I would not expect any SAID (special assessment improvements district) bond discussion; in fact, none of the right people to discuss that issue will be present."
Husemann said he expected that town planners Tim Brown and Craig Culberson would attend the lunch, as well as Ryan Rase from engineering. Mayor Bill Thunberg and Commissioner Chris Carney were apparently the only two elected officials invited to attend. Carney told the Report that he had a scheduling conflict and would not be able to attend the lunch; he said today that he had asked that Commissioner Miles Atkins – who Parker said Monday night had been asking “the most piercing questions” of Langtree – be invited to the lunch in his place. Atkins was unable to be reached for comment at lunchtime today.
Husemann also said that he, as town manager, planned to attend the lunch. “I will be there to smile and shake hands,” he said. And “no,” he added – even without being asked the question – “Langtree will not be buying lunch for any city employees or commissioners.”
He said the meeting “is likely to be today, but I don’t believe that has been confirmed.”
More details on Monday night's discussion will be posted later ...
Sunday, March 8, 2009
Closed Doors and Conflicts
Though very little has been discussed publicly about Langtree at the Lake’s request for the Town of Mooresville to issue millions in bonds to pay for the massive mixed-use development’s first phase of infrastructure, much has been said behind closed doors.
E-mail exchanges over the past month between Langtree Attorney David Parker and town administrators provide a more thorough glimpse into the discussions – sometimes quite heated – between the development group and the town.
Langtree: ‘The vultures are circling’
When Langtree asked Iredell County late last year to issue $46 million in bonds, Parker said that Langtree would continue building even if Iredell didn’t approve the deal, but that the developers would likely wait at least a year, until the recession is over. But in a Jan. 29 e-mail from Parker to Mooresville Town Attorney Steve Gambill, Parker said: “We cannot go forward without the infrastructure financing.”
In a Jan. 30 e-mail Parker appears to beseech Town Manager Steve Husemann: “Although I cannot tell you how much time is of the essence in this for us because of the tone that my voice would take, I do understand that our need does not control your requirement of vigilance. That being said, the number of developers that go under daily is astounding and the vultures are continually circling in the sky over all of us.
“We would very much like to survive to build this project,” Parker said.
He went on to state that Langtree “suffered a 120 day delay” trying to negotiate the bond deal with Iredell, only to discover that the county “has no interest in getting into the infrastructure business in any fashion and would have had to take the infrastructure as part of its deal according to their bond counsel.
“Had we known that the County would back off,” Parker continued, “we would have pursued the annexation (with credit against the Utilities payments) months ago and not been in such a state.
“Please help us,” Parker pleaded.
But in previous e-mails – and those written the week leading up to the Feb. 2 town board meeting – Parker’s disposition wasn’t as conciliatory, as exchanges between him and town administrators turned heated.
Biting the hand that could feed you
On Jan. 29 – just days before the February town board meeting, when Langtree was scheduled to request that the Town of Mooresville annex 143 acres of the Mt. Mourne development – Parker e-mailed Gambill and Husemann, discussing the addition of a preliminary-assessment resolution to the Feb. 2 town-board agenda.
The resolution, which was given to commissioners just before they were expected to vote on it, set a public-hearing date for March 2. The resolution passed 5-1 (Commissioner Miles Atkins opposing), but the public hearing was postponed until tomorrow, March 9, because of last week’s inclement weather.
A final-assessment resolution – a document that requests the Local Government Commission to look at the proposed special-assessment financing between Langtree and the town – would be brought up for consideration at a later date, Parker explained in the Jan 29 e-mail. “Bear in mind that the notice only goes out to the Benefitted Property owners and a version is published in the newspaper,” Parker wrote. “NO one other than the Benefitted property owners have legal standing to protest the Notice and we will waive protest if you would like.”
Also, Parker wrote to town administrators, “I do not think that you realize that we cannot keep on having delays and avoid splitting up this property.
“We ask for no special consideration, but after over a year of delays due to slow down by (town) Staff, it would appear that further delays only damage the Town’s reputation for encouraging a higher quality of life.
“We are asking for annexation solely because we have to be annexed in order to ask the Town to ask the LGC (Local Government Commission) to allow the Town to issue the bonds which the Town does not back but are rather secured solely and completely by our property as improved,” Parker said to Gambill, adding, however: “You are now saying that you do not think that we are an ‘Economic Development’ project where a tax check swap will work. Steve Husemann is apparently saying that he cannot think of a way to offset our taxes, hold them in abeyance, or do a swap.
“Being lulled into asking for annexation on a bait-and-switch is not a very appealing situation for us,” Parker said.
Husemann responded on Jan. 30 (the Friday before the Monday, Feb. 2 town board meeting): “Just to be very clear! There is absolutely no agreement at this time that we will defer, waive, credit or in any way credit Langtree for taxes that they will pay after annexation.
“I recall about a 30 second discussion on this topic in which I said that I did not believe that what you were asking for was legal,” Husemann said. “That is certainly not a bait and switch.
“If you were going to pursue this further, you should have done so before the last minute,” Husemann said. “Any discussion on this matter needs to be presented to the entire Board in public session. I have never even suggested to the Board that such a move was pending.
“If you proceed with the annexation with the expectation that some future swap will be approved, you do so at your own risk,” Husemann added. “There is absolutely no commitment or promise from me or any other staff member at this time.”
Parker responded to Husemann that same day, copying Gambill and Mayor Bill Thunberg: “I do not ask for things, considerations, or agreements that cannot stand the twin tests of both public and judicial scrutiny.” Parker said he is “happy to conduct business in the bright light of day, as people that know me will attest.”
It was about four hours later that Parker sent an e-mail to Husemann individually, pleading for help on behalf of the developers.
Closed Doors and Conflicts
After the regular session of the February town board meeting, Mooresville commissioners went into closed session to discuss economic incentives for Langtree.
Though the details of that discussion are unknown, continuing e-mails between Parker and town administrators after the February town-board meeting indicate that things quickly went sour behind closed doors.
The Friday before Monday’s town board meeting, Husemann wrote in an e-mail to Parker: “It is my feeling that our willingness to proceed with this very complicated bonding process is sufficient incentive. I know that you are concerned about additional taxes but we are going to incur costs as well. We need to get a fire station built before that 1st building is occupied. Then we will have to man it.”
Husemann told Parker that if Langtree wanted to negotiate an agreement with commissioners at the Feb. 2 board meeting, then the developers would likely want to contact Russ Rogerson – executive director of the Mooresville-South Iredell Economic Development Corporation (MSIEDC) – “and ask him to present it to the Board.”
Rogerson did in fact approach commissioners in closed session on behalf of the MSIEDC. He apparently asked for economic incentives for Langtree, which is a top financial sponsor of the MSIEDC’s Partners in Progress campaign. Additionally, Rick Howard – Langtree’s CEO – is on the MSIEDC board of directors.
In closed session, Rogerson apparently broached a subject that he wasn’t allowed to discuss in closed session, per the Open Meetings law – and his request for incentives for developers apparently wasn’t well received by all the commissioners.
The day after the Feb. 2 town board meeting, Parker clarified in an e-mail to Gambill: “We are not asking for incentives. It is possible that (John Q.) Hammons will ask for incentives, but Langtree has never asked for any – Russ was not correct.”
In an e-mail to Husemann, Parker said: “I will take the blame for the conversation about incentives not being stopped immediately – I did not foresee that possibility. I fully concur with Steve Gambill that under the Open Meetings law, the SIAD (sic) could not be discussed under the Motion for Closed Session.”
The Open Meetings law allows commissioners to meet behind closed doors to discuss a limited and specific list of confidential matters such as personnel, litigation, economic incentives, etc. The board must provide to the public the subject of what they will be discussing behind closed doors and the accompanying statute that allows them to discuss that particular subject confidentially. Additionally, the law clearly states that the discussion cannot stray from what was advertised as the subject matter. Minutes of closed-session discussions must be released to the public once their release would no longer compromise the matters at hand.
“Russ apparently thought that he was going to talk about the bonds (in closed session) and when he found out that he could only talk about incentives, he did his best,” Parker said in the e-mail to Husemann. “We have not asked for those in the past.
“The tax issue should have never been raised with the Board by Russ the other night,” Parker stated. “I wanted this to go away and merely be looked at later inside the context of the Utilities Agreement. Our understanding was that we would not withdraw the Voluntary Annexation Petition and that we would not be involuntarily annexed until we had a CO (Certificate of Occupancy) – I was simply trying to preserve the original understanding in this new context of having to be annexed now in order to be considered for bond issuance.”
In an e-mail on Feb. 3, Parker wrote to Gambill: “The only thing we wanted on the taxes was to keep our agreement under voluntary annexation that we would not start paying taxes until we had a CO – just trying to keep the same deal that we had before.
Agreement? What agreement? With whom?
The “agreement” to which Parker referred in several e-mails prompted a response from Gambill and Husemann, both of whom said that such an agreement seemed illegal.
“I was not a party to any agreements concerning taxes and annexation,” Gambill wrote in a Feb. 4 e-mail to Parker, “(and, as I have stated before, I do not believe that property taxes can be abated per NC Constitution). I say this to be clear that I have not been involved in any agreements, formallyl (sic) or informally, where I have in any way stated that property taxes would be abated,” Gambill added. “I realize you are not saying that I have been but I have an obligation to be clear on this point.”
A clearly frustrated Husemann jumped into the e-mail discussion, responding to Parker: “I just read your E-mail that you sent to Steve Gambill and once again fear that you are trying to imply that some type of agreement exists or existed that has never existed,” Husemann wrote. “I made it very clear to you last week that we never agreed that you ‘would not start paying taxes until you had a CO.’ I said I thought it was illegal and Steve (Gambill) sent you information to that effect.
“If you ever intend to make such a claim,” Husemann added, “please send me such information immediately. I am uncomfortable with an inference that such an agreement exists when in my opinion there has been no agreement and would like to put this matter to rest before we move forward with discussions about the special assessment bonding process.”
In an e-mailed response on Feb. 4 to Gambill and Husemann, Parker said: “There has been no agreement on tax abeyance, rebates, or anything else – only discussions at a hypothetical level.”
So why, then, the repeated references to an agreement? Who, on behalf of the Town of Mooresville, led Langtree to believe that a potentially illegal agreement regarding taxes could be reached?
The answer to that question was made clear in a Jan. 28 e-mail from Parker to Gambill. The answer? Mayor Bill Thunberg.
“We did not discuss this this AM,” Parker said in the e-mail to Gambill, “but my agreement with the Mayor and others is that we will not pay Town taxes until we get a CO.”
Mayor gives public the finger
It is unclear if Thunberg documented any such agreement with Langtree in e-mails. He has ignored repeated requests over the past few weeks from the Gatton Report to provide any and all e-mail correspondence with any Langtree at the Lake official. Those e-mails, according to the N.C. Public Records Law, are documents that belong to the public. By ignoring the Report’s request for those records, not only is the mayor violating law, he is also giving his constituents the proverbial middle finger.
As soon as he has decided to comply with the law, I will post any relevant e-mails here.
Click on each document below to read the e-mails that were sent to the Report by Husemann; I have placed them in chronological order (except for the first one):
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Jan. 28 e-mail exchange:
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Jan. 29:
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Jan. 30:
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Feb. 2:
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Feb. 3:
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Feb. 4:
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Feb. 18:
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E-mail exchanges over the past month between Langtree Attorney David Parker and town administrators provide a more thorough glimpse into the discussions – sometimes quite heated – between the development group and the town.
Langtree: ‘The vultures are circling’
When Langtree asked Iredell County late last year to issue $46 million in bonds, Parker said that Langtree would continue building even if Iredell didn’t approve the deal, but that the developers would likely wait at least a year, until the recession is over. But in a Jan. 29 e-mail from Parker to Mooresville Town Attorney Steve Gambill, Parker said: “We cannot go forward without the infrastructure financing.”
In a Jan. 30 e-mail Parker appears to beseech Town Manager Steve Husemann: “Although I cannot tell you how much time is of the essence in this for us because of the tone that my voice would take, I do understand that our need does not control your requirement of vigilance. That being said, the number of developers that go under daily is astounding and the vultures are continually circling in the sky over all of us.
“We would very much like to survive to build this project,” Parker said.
He went on to state that Langtree “suffered a 120 day delay” trying to negotiate the bond deal with Iredell, only to discover that the county “has no interest in getting into the infrastructure business in any fashion and would have had to take the infrastructure as part of its deal according to their bond counsel.
“Had we known that the County would back off,” Parker continued, “we would have pursued the annexation (with credit against the Utilities payments) months ago and not been in such a state.
“Please help us,” Parker pleaded.
But in previous e-mails – and those written the week leading up to the Feb. 2 town board meeting – Parker’s disposition wasn’t as conciliatory, as exchanges between him and town administrators turned heated.
Biting the hand that could feed you
On Jan. 29 – just days before the February town board meeting, when Langtree was scheduled to request that the Town of Mooresville annex 143 acres of the Mt. Mourne development – Parker e-mailed Gambill and Husemann, discussing the addition of a preliminary-assessment resolution to the Feb. 2 town-board agenda.
The resolution, which was given to commissioners just before they were expected to vote on it, set a public-hearing date for March 2. The resolution passed 5-1 (Commissioner Miles Atkins opposing), but the public hearing was postponed until tomorrow, March 9, because of last week’s inclement weather.
A final-assessment resolution – a document that requests the Local Government Commission to look at the proposed special-assessment financing between Langtree and the town – would be brought up for consideration at a later date, Parker explained in the Jan 29 e-mail. “Bear in mind that the notice only goes out to the Benefitted Property owners and a version is published in the newspaper,” Parker wrote. “NO one other than the Benefitted property owners have legal standing to protest the Notice and we will waive protest if you would like.”
Also, Parker wrote to town administrators, “I do not think that you realize that we cannot keep on having delays and avoid splitting up this property.
“We ask for no special consideration, but after over a year of delays due to slow down by (town) Staff, it would appear that further delays only damage the Town’s reputation for encouraging a higher quality of life.
“We are asking for annexation solely because we have to be annexed in order to ask the Town to ask the LGC (Local Government Commission) to allow the Town to issue the bonds which the Town does not back but are rather secured solely and completely by our property as improved,” Parker said to Gambill, adding, however: “You are now saying that you do not think that we are an ‘Economic Development’ project where a tax check swap will work. Steve Husemann is apparently saying that he cannot think of a way to offset our taxes, hold them in abeyance, or do a swap.
“Being lulled into asking for annexation on a bait-and-switch is not a very appealing situation for us,” Parker said.
Husemann responded on Jan. 30 (the Friday before the Monday, Feb. 2 town board meeting): “Just to be very clear! There is absolutely no agreement at this time that we will defer, waive, credit or in any way credit Langtree for taxes that they will pay after annexation.
“I recall about a 30 second discussion on this topic in which I said that I did not believe that what you were asking for was legal,” Husemann said. “That is certainly not a bait and switch.
“If you were going to pursue this further, you should have done so before the last minute,” Husemann said. “Any discussion on this matter needs to be presented to the entire Board in public session. I have never even suggested to the Board that such a move was pending.
“If you proceed with the annexation with the expectation that some future swap will be approved, you do so at your own risk,” Husemann added. “There is absolutely no commitment or promise from me or any other staff member at this time.”
Parker responded to Husemann that same day, copying Gambill and Mayor Bill Thunberg: “I do not ask for things, considerations, or agreements that cannot stand the twin tests of both public and judicial scrutiny.” Parker said he is “happy to conduct business in the bright light of day, as people that know me will attest.”
It was about four hours later that Parker sent an e-mail to Husemann individually, pleading for help on behalf of the developers.
Closed Doors and Conflicts
After the regular session of the February town board meeting, Mooresville commissioners went into closed session to discuss economic incentives for Langtree.
Though the details of that discussion are unknown, continuing e-mails between Parker and town administrators after the February town-board meeting indicate that things quickly went sour behind closed doors.
The Friday before Monday’s town board meeting, Husemann wrote in an e-mail to Parker: “It is my feeling that our willingness to proceed with this very complicated bonding process is sufficient incentive. I know that you are concerned about additional taxes but we are going to incur costs as well. We need to get a fire station built before that 1st building is occupied. Then we will have to man it.”
Husemann told Parker that if Langtree wanted to negotiate an agreement with commissioners at the Feb. 2 board meeting, then the developers would likely want to contact Russ Rogerson – executive director of the Mooresville-South Iredell Economic Development Corporation (MSIEDC) – “and ask him to present it to the Board.”
Rogerson did in fact approach commissioners in closed session on behalf of the MSIEDC. He apparently asked for economic incentives for Langtree, which is a top financial sponsor of the MSIEDC’s Partners in Progress campaign. Additionally, Rick Howard – Langtree’s CEO – is on the MSIEDC board of directors.
In closed session, Rogerson apparently broached a subject that he wasn’t allowed to discuss in closed session, per the Open Meetings law – and his request for incentives for developers apparently wasn’t well received by all the commissioners.
The day after the Feb. 2 town board meeting, Parker clarified in an e-mail to Gambill: “We are not asking for incentives. It is possible that (John Q.) Hammons will ask for incentives, but Langtree has never asked for any – Russ was not correct.”
In an e-mail to Husemann, Parker said: “I will take the blame for the conversation about incentives not being stopped immediately – I did not foresee that possibility. I fully concur with Steve Gambill that under the Open Meetings law, the SIAD (sic) could not be discussed under the Motion for Closed Session.”
The Open Meetings law allows commissioners to meet behind closed doors to discuss a limited and specific list of confidential matters such as personnel, litigation, economic incentives, etc. The board must provide to the public the subject of what they will be discussing behind closed doors and the accompanying statute that allows them to discuss that particular subject confidentially. Additionally, the law clearly states that the discussion cannot stray from what was advertised as the subject matter. Minutes of closed-session discussions must be released to the public once their release would no longer compromise the matters at hand.
“Russ apparently thought that he was going to talk about the bonds (in closed session) and when he found out that he could only talk about incentives, he did his best,” Parker said in the e-mail to Husemann. “We have not asked for those in the past.
“The tax issue should have never been raised with the Board by Russ the other night,” Parker stated. “I wanted this to go away and merely be looked at later inside the context of the Utilities Agreement. Our understanding was that we would not withdraw the Voluntary Annexation Petition and that we would not be involuntarily annexed until we had a CO (Certificate of Occupancy) – I was simply trying to preserve the original understanding in this new context of having to be annexed now in order to be considered for bond issuance.”
In an e-mail on Feb. 3, Parker wrote to Gambill: “The only thing we wanted on the taxes was to keep our agreement under voluntary annexation that we would not start paying taxes until we had a CO – just trying to keep the same deal that we had before.
Agreement? What agreement? With whom?
The “agreement” to which Parker referred in several e-mails prompted a response from Gambill and Husemann, both of whom said that such an agreement seemed illegal.
“I was not a party to any agreements concerning taxes and annexation,” Gambill wrote in a Feb. 4 e-mail to Parker, “(and, as I have stated before, I do not believe that property taxes can be abated per NC Constitution). I say this to be clear that I have not been involved in any agreements, formallyl (sic) or informally, where I have in any way stated that property taxes would be abated,” Gambill added. “I realize you are not saying that I have been but I have an obligation to be clear on this point.”
A clearly frustrated Husemann jumped into the e-mail discussion, responding to Parker: “I just read your E-mail that you sent to Steve Gambill and once again fear that you are trying to imply that some type of agreement exists or existed that has never existed,” Husemann wrote. “I made it very clear to you last week that we never agreed that you ‘would not start paying taxes until you had a CO.’ I said I thought it was illegal and Steve (Gambill) sent you information to that effect.
“If you ever intend to make such a claim,” Husemann added, “please send me such information immediately. I am uncomfortable with an inference that such an agreement exists when in my opinion there has been no agreement and would like to put this matter to rest before we move forward with discussions about the special assessment bonding process.”
In an e-mailed response on Feb. 4 to Gambill and Husemann, Parker said: “There has been no agreement on tax abeyance, rebates, or anything else – only discussions at a hypothetical level.”
So why, then, the repeated references to an agreement? Who, on behalf of the Town of Mooresville, led Langtree to believe that a potentially illegal agreement regarding taxes could be reached?
The answer to that question was made clear in a Jan. 28 e-mail from Parker to Gambill. The answer? Mayor Bill Thunberg.
“We did not discuss this this AM,” Parker said in the e-mail to Gambill, “but my agreement with the Mayor and others is that we will not pay Town taxes until we get a CO.”
Mayor gives public the finger
It is unclear if Thunberg documented any such agreement with Langtree in e-mails. He has ignored repeated requests over the past few weeks from the Gatton Report to provide any and all e-mail correspondence with any Langtree at the Lake official. Those e-mails, according to the N.C. Public Records Law, are documents that belong to the public. By ignoring the Report’s request for those records, not only is the mayor violating law, he is also giving his constituents the proverbial middle finger.
As soon as he has decided to comply with the law, I will post any relevant e-mails here.
Click on each document below to read the e-mails that were sent to the Report by Husemann; I have placed them in chronological order (except for the first one):
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Jan. 28 e-mail exchange:
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Jan. 29:
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Jan. 30:
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Feb. 2:
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Feb. 3:
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Feb. 4:
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Feb. 18:
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Monday, March 2, 2009
Langtree's public hearing postponed due to weather
The first public hearing on Langtree at the Lake's request for the Town of Mooresville to issue millions in bonds to help with infrastructure costs will not be held tonight, after all.
Due to the inclement weather -- and the expectation that much of today's melting snow will freeze on roads later this evening -- Mooresville commissioners will continue all of tonight's scheduled public hearings, including Langtree's, to Monday, March 9, at 6 p.m.
The town board does, however, plan to meet tonight at 6 p.m. to discuss consent-agenda items. After that, the meeting will be recessed until March 9.
Due to the inclement weather -- and the expectation that much of today's melting snow will freeze on roads later this evening -- Mooresville commissioners will continue all of tonight's scheduled public hearings, including Langtree's, to Monday, March 9, at 6 p.m.
The town board does, however, plan to meet tonight at 6 p.m. to discuss consent-agenda items. After that, the meeting will be recessed until March 9.
Wednesday, February 25, 2009
Could taxpayers be left holding the bag for Langtree?
If town commissioners approve Langtree at the Lake's request to help bond millions of dollars in infrastructure costs for Langtree's $800 million development, could Mooresville taxpayers ever be left holding the bag if the project ultimately flops?
That's the question everyone wants an answer to -- and it's the one that commissioners were able to ask bond experts at Monday night's informational meeting on the special assessment improvement district (SAID) bonds. What information did commissioners take away from that meeting? Click here for the Mooresville Tribune's coverage: http://www2.mooresvilletribune.com/content/2009/feb/25/weak-economy-langtree-bonds-are-likely-tough-sell/news-local/
And don't forget: a public hearing on the matter is scheduled for March 2 at the town's regular monthly board meeting. It begins at 6 p.m. in Town Hall.
That's the question everyone wants an answer to -- and it's the one that commissioners were able to ask bond experts at Monday night's informational meeting on the special assessment improvement district (SAID) bonds. What information did commissioners take away from that meeting? Click here for the Mooresville Tribune's coverage: http://www2.mooresvilletribune.com/content/2009/feb/25/weak-economy-langtree-bonds-are-likely-tough-sell/news-local/
And don't forget: a public hearing on the matter is scheduled for March 2 at the town's regular monthly board meeting. It begins at 6 p.m. in Town Hall.
Saturday, February 21, 2009
Feeling left out? Monday meeting will give Mooresville residents first glimpse into proposed Langtree financing
Langtree at the Lake – the $800 million mixed-use development in Mt. Mourne – was announced a couple years ago with much political and public fanfare.
But earlier this month, Langtree developers approached the Town of Mooresville, asking commissioners to consider issuing millions of dollars in bonds to pay for Langtree’s first phase of infrastructure. The request, unlike the original announcement of the project, slipped quickly and quietly onto the town board’s agenda.
Just a few months ago, Langtree was asking Iredell County to issue the bonds. (See http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html and http://thegattonreport.blogspot.com/2008/11/county-to-langtree-too-many-questions.html and http://thegattonreport.blogspot.com/2008/11/tice-says-she-voted-with-group.html and http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html .) Langtree's proposal was met with some resistance at the county level, but it is unclear exactly why negotiations ended; the county took no official vote that definitively rejected Langtree's proposal.
The first public mention that Langtree intended to seek the issuance of the Special Assessment Improvement District (SAID) bonds from Mooresville instead of Iredell County was made just three weeks ago at the February town board meeting. Still, a public hearing on the matter will be held in just over a week from today, on March 2.
Langtree was scheduled to appear before Mooresville commissioners at the February meeting, but only to request annexation of about 143 acres in its development. Just before that meeting, however, a resolution was put before commissioners to call for a March 2 public hearing to determine if the town wants to move forward with helping Langtree form a SAID, which would allow the town to issue $15 million to $20 million in bonds to pay infrastructure costs related to the first phase of the project. If bonds are needed for the infrastructure of future phases, that number could jump to $46 million.
The resolution request apparently took at least one commissioner by surprise. “I appreciate the sense of urgency here, but it feels like a freight train is bearing down on us,” Commissioner Miles Atkins said at the board meeting, according to the Mooresville Tribune. “I think it’s incumbent upon us to not just drop the document (bearing a brand new resolution) down on the desk.”
Still, commissioners voted 5-1 that night (with Atkins opposing) to adopt the resolution, which set the public hearing for March 2.
But this Monday, Feb. 23, commissioners and the public will have an opportunity to learn more about the SAID financing that allows developers and municipalities to work together on infrastructure costs for private developments.
The N.C. General Assembly passed the SAID financing tool into law in August to help stimulate the economy. In essence, the law allows municipal governments to issue bonds on behalf of private developers. The bonds are sold, and the developers’ property is designated a SAID and put up as collateral. The developers – and eventually the benefitted property owners and merchants – repay the debt through property assessments. While SAID financing has been used for years in other parts of the country, Langtree developers are the first to take it for a spin in North Carolina.
This Monday’s meeting, which is open to the public, will be held at 6 p.m. in the Charles Mack Citizens Center. Commissioners are expected to hear presentations about SAID financing from several third-party participants at the meeting. Langtree will be on hand to answer questions but does not plan to make a presentation, according to a press release issued by the town this week.
Members of the public will not be allowed to comment or ask questions at Monday’s meeting. Instead, "This meeting is for town commissioners to hear presentations concerning the proposed SAID being requested," states the town's press release. "Scheduled presenters will discuss the legal framework associated with SAID and the financial investments associated with the designation."
Town Manager Steve Husemann said Monday's meeting "is an effort to make as much information as possible available to both the town board and the citizens.
"This is entirely new legislation," he said, "and we will all be learning about it together."
The public will be able to comment on the proposal at the public hearing, which is scheduled during the town’s regular monthly board meeting on March 2 at 6 p.m. in Town Hall.
But earlier this month, Langtree developers approached the Town of Mooresville, asking commissioners to consider issuing millions of dollars in bonds to pay for Langtree’s first phase of infrastructure. The request, unlike the original announcement of the project, slipped quickly and quietly onto the town board’s agenda.
Just a few months ago, Langtree was asking Iredell County to issue the bonds. (See http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html and http://thegattonreport.blogspot.com/2008/11/county-to-langtree-too-many-questions.html and http://thegattonreport.blogspot.com/2008/11/tice-says-she-voted-with-group.html and http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html .) Langtree's proposal was met with some resistance at the county level, but it is unclear exactly why negotiations ended; the county took no official vote that definitively rejected Langtree's proposal.
The first public mention that Langtree intended to seek the issuance of the Special Assessment Improvement District (SAID) bonds from Mooresville instead of Iredell County was made just three weeks ago at the February town board meeting. Still, a public hearing on the matter will be held in just over a week from today, on March 2.
Langtree was scheduled to appear before Mooresville commissioners at the February meeting, but only to request annexation of about 143 acres in its development. Just before that meeting, however, a resolution was put before commissioners to call for a March 2 public hearing to determine if the town wants to move forward with helping Langtree form a SAID, which would allow the town to issue $15 million to $20 million in bonds to pay infrastructure costs related to the first phase of the project. If bonds are needed for the infrastructure of future phases, that number could jump to $46 million.
The resolution request apparently took at least one commissioner by surprise. “I appreciate the sense of urgency here, but it feels like a freight train is bearing down on us,” Commissioner Miles Atkins said at the board meeting, according to the Mooresville Tribune. “I think it’s incumbent upon us to not just drop the document (bearing a brand new resolution) down on the desk.”
Still, commissioners voted 5-1 that night (with Atkins opposing) to adopt the resolution, which set the public hearing for March 2.
But this Monday, Feb. 23, commissioners and the public will have an opportunity to learn more about the SAID financing that allows developers and municipalities to work together on infrastructure costs for private developments.
The N.C. General Assembly passed the SAID financing tool into law in August to help stimulate the economy. In essence, the law allows municipal governments to issue bonds on behalf of private developers. The bonds are sold, and the developers’ property is designated a SAID and put up as collateral. The developers – and eventually the benefitted property owners and merchants – repay the debt through property assessments. While SAID financing has been used for years in other parts of the country, Langtree developers are the first to take it for a spin in North Carolina.
This Monday’s meeting, which is open to the public, will be held at 6 p.m. in the Charles Mack Citizens Center. Commissioners are expected to hear presentations about SAID financing from several third-party participants at the meeting. Langtree will be on hand to answer questions but does not plan to make a presentation, according to a press release issued by the town this week.
Members of the public will not be allowed to comment or ask questions at Monday’s meeting. Instead, "This meeting is for town commissioners to hear presentations concerning the proposed SAID being requested," states the town's press release. "Scheduled presenters will discuss the legal framework associated with SAID and the financial investments associated with the designation."
Town Manager Steve Husemann said Monday's meeting "is an effort to make as much information as possible available to both the town board and the citizens.
"This is entirely new legislation," he said, "and we will all be learning about it together."
The public will be able to comment on the proposal at the public hearing, which is scheduled during the town’s regular monthly board meeting on March 2 at 6 p.m. in Town Hall.
Tuesday, February 10, 2009
Atkins resigns from Lake Davidson Working Group
Not long after Mooresville Commissioner Miles Atkins walked out of a Lake Davidson Working Group meeting because it was closed to the public and press, the commissioner has resigned from the group.
Be sure to check out tomorrow's Mooresville Tribune for further details...
Be sure to check out tomorrow's Mooresville Tribune for further details...
Mooresville "greenway" meeting scheduled for tonight
Interested in a greenway for Mooresville?
Be sure to join the discussion tonight at 7 p.m. in the Peddler Room of the Charles Mack Citizens Center.
Here's some information that was passed along to me today regarding a potential greenway for the Town of Mooresville. I haven't had time to verify all the information, but if it's all accurate, it's very interesting:
The Town of Mooresville has a 2008 Greenway Comprehensive Master Plan. Almost 100 percent of people surveyed said they'd like a greenway in Mooresville. In the master plan, one mile of greenway is proposed to be built within the next four years. Four more miles could be built from 2013 to 2020.
The four-mile stretch is projected to cost $1 million.
The proposed greenway would begin at Liberty Park and follow Dye Creek. The proposal also recommends a total of 22 miles of greenway that would connect downtown to Brawley School Road, but that is not part of the 2009-2020 projections. Eventually, the Carolina Thread Trail could connect to Mooresville's greenway, which could tie together the greenways of more than 15 counties.
Be sure to join the discussion tonight at 7 p.m. in the Peddler Room of the Charles Mack Citizens Center.
Here's some information that was passed along to me today regarding a potential greenway for the Town of Mooresville. I haven't had time to verify all the information, but if it's all accurate, it's very interesting:
The Town of Mooresville has a 2008 Greenway Comprehensive Master Plan. Almost 100 percent of people surveyed said they'd like a greenway in Mooresville. In the master plan, one mile of greenway is proposed to be built within the next four years. Four more miles could be built from 2013 to 2020.
The four-mile stretch is projected to cost $1 million.
The proposed greenway would begin at Liberty Park and follow Dye Creek. The proposal also recommends a total of 22 miles of greenway that would connect downtown to Brawley School Road, but that is not part of the 2009-2020 projections. Eventually, the Carolina Thread Trail could connect to Mooresville's greenway, which could tie together the greenways of more than 15 counties.
Thursday, February 5, 2009
Town approves Langtree annexation; Lake Davidson Working Group releases draft agreement
- Mooresville's town board agreed to annex about 143 acres of the Langtree at the Lake property, which opens the door for developers of Langtree -- the $800 million mixed-use development in Mt. Mourne -- to ask the town to back bonds to pay for the development's infrastructure. For more on that, read the Mooresville Tribune's article here: http://www2.mooresvilletribune.com/content/2009/feb/04/town-approves-langtree-annexation/news-local/
- The Lake Davidson Working Group has released a draft interlocal agreement. Here's the article, by the Lake Norman Times: http://thelakepaper.com/articles/2009/02/04/news/news001.txt
And here are other articles from the Times that you may be interested in:
- MI-Connection board gets revised budget figures for 2008-2009 fiscal year http://thelakepaper.com/articles/2009/02/04/news/lake_business_news/biz003.txt
- MI-Connection board OKs fee increases http://thelakepaper.com/articles/2009/02/04/news/lake_business_news/biz004.txt
Sunday, January 25, 2009
Will Mooresville back bonds for Langtree?
Developers of Langtree at the Lake, the $800 million mixed-use development in Mt. Mourne, will ask the Town of Mooresville on Feb. 2 to annex 142 acres in their development. It's a move that, if approved, could pave the way for the town to back the issuance of millions of dollars in bonds to pay for Langtree's infrastructure costs.
Langtree asked Iredell County in November to back $46 million in bonds. But the developers "ran into resistance ... partly because Langtree would be the first in the state to use the new financing method," the Charlotte Observer reports today. Click here for the Observer's full report: http://www.charlotteobserver.com/275/story/491835.html
The Report covered this story extensively when the proposal was before Iredell County's board of commissioners. For that coverage -- including an explanation of the new type of "special assessment district" financing -- click on the links below:
http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html
http://thegattonreport.blogspot.com/2008/11/county-to-langtree-too-many-questions.html
http://thegattonreport.blogspot.com/2008/11/tice-says-she-voted-with-group.html
http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html
In other news...
The Lake Norman Times continues to closely follow the Lake Davidson Working Group meeting that was closed to the public and press last week. For the latest on that story, follow the links below:
WAS LAKE DAVIDSON MEETING ILLEGAL? Expert says closing meeting to public violated law; officials say rule doesn't apply:
http://thelakepaper.com/articles/2009/01/21/news/news001.txt
BOAT HORSEPOWER OFF INTERLOCAL AGREEMENT? Working Group comes to consensus on land-based section, still pushing for water-use restrictions:
http://thelakepaper.com/articles/2009/01/21/news/news002.txt
Members of Lake Norman Marine Commission oppose restrictions on Lake Davidson:
http://thelakepaper.com/articles/2009/01/21/news/news003.txt
Langtree asked Iredell County in November to back $46 million in bonds. But the developers "ran into resistance ... partly because Langtree would be the first in the state to use the new financing method," the Charlotte Observer reports today. Click here for the Observer's full report: http://www.charlotteobserver.com/275/story/491835.html
The Report covered this story extensively when the proposal was before Iredell County's board of commissioners. For that coverage -- including an explanation of the new type of "special assessment district" financing -- click on the links below:
http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html
http://thegattonreport.blogspot.com/2008/11/county-to-langtree-too-many-questions.html
http://thegattonreport.blogspot.com/2008/11/tice-says-she-voted-with-group.html
http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html
In other news...
The Lake Norman Times continues to closely follow the Lake Davidson Working Group meeting that was closed to the public and press last week. For the latest on that story, follow the links below:
WAS LAKE DAVIDSON MEETING ILLEGAL? Expert says closing meeting to public violated law; officials say rule doesn't apply:
http://thelakepaper.com/articles/2009/01/21/news/news001.txt
BOAT HORSEPOWER OFF INTERLOCAL AGREEMENT? Working Group comes to consensus on land-based section, still pushing for water-use restrictions:
http://thelakepaper.com/articles/2009/01/21/news/news002.txt
Members of Lake Norman Marine Commission oppose restrictions on Lake Davidson:
http://thelakepaper.com/articles/2009/01/21/news/news003.txt
Thursday, January 15, 2009
Atkins walks out of meeting that may have violated state law
Mooresville Commissioner Miles Atkins refused to attend a Lake Davidson Working Group session this morning after the group shut the public and the press out of the meeting, the Lake Norman Times reports today.
The group maintains that it does not fall under the requirements of the state's open-meetings law. But at least one legal expert disagrees. To read more, click here: http://thelakepaper.com/articles/2009/01/15/news/news001.txt
To read North Carolina's Open Meetings Law (NCGS 143-33C), click here: http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_143/Article_33C.html
The group maintains that it does not fall under the requirements of the state's open-meetings law. But at least one legal expert disagrees. To read more, click here: http://thelakepaper.com/articles/2009/01/15/news/news001.txt
To read North Carolina's Open Meetings Law (NCGS 143-33C), click here: http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_143/Article_33C.html
Tuesday, January 13, 2009
Feds to Town: Pay up.
The U.S. Department of Justice has told the Town of Mooresville and its police department to repay $4,862 in asset forfeiture funds that former Police Chief John Crone used to pay airfare costs for a Mayor’s Youth Council trip to New York City.
Also, the town received the results of its outside forensic audits into Crone's Cops for Kids program today - more than six months after commissioners ordered the probes. The audit results will not be released until the State Bureau of Investigation has reviewed them and determined that their release will not compromise the state's ongoing criminal investigation.
In an e-mail to commissioners today, Town Manager Steve Husemann said that the town recently received a letter from the Department of Justice, "asking the town and MPD ... to reimburse (the local asset forfeiture) account and provide (the Deparment of Justice) with confirmation of said repayment.
"This really does not have a financial impact on the town," Husemann said. "Drug Forfeiture funds can be used only for certain purposes, and we will pick a clearly eligible purpose to fund with this money."
Husemann also said that the town has requested that Crone write a check for the entire amount from the Cops for Kids bank account.
For the complete story on Crone's use of the federal money, click here: http://thegattonreport.blogspot.com/2008/09/former-police-chief-violated-federal.html
Husemann, in today's e-mail, said that town staff "had been waiting to announce the Department of Justice request with the results of the accounting study." However, he said, "we just received the accounting study today."
Husemann said he decided to release the information about the federal request when the Mooresville Tribune asked for an update on the Cops for Kids situation. "I don't want to withhold any information," said Husemann, adding, however, that "we do not plan to release the accounting study until the SBI determines that it has no relevance to their investigation and until (Town Attorney) Steve Gambill determines that any personnel information is redacted."
Continued Husemann: "We have no desire to hold up the release any longer than we have to. I have not yet seen the accounting report and have made this decision without knowing the content."
Also, the town received the results of its outside forensic audits into Crone's Cops for Kids program today - more than six months after commissioners ordered the probes. The audit results will not be released until the State Bureau of Investigation has reviewed them and determined that their release will not compromise the state's ongoing criminal investigation.
In an e-mail to commissioners today, Town Manager Steve Husemann said that the town recently received a letter from the Department of Justice, "asking the town and MPD ... to reimburse (the local asset forfeiture) account and provide (the Deparment of Justice) with confirmation of said repayment.
"This really does not have a financial impact on the town," Husemann said. "Drug Forfeiture funds can be used only for certain purposes, and we will pick a clearly eligible purpose to fund with this money."
Husemann also said that the town has requested that Crone write a check for the entire amount from the Cops for Kids bank account.
For the complete story on Crone's use of the federal money, click here: http://thegattonreport.blogspot.com/2008/09/former-police-chief-violated-federal.html
Husemann, in today's e-mail, said that town staff "had been waiting to announce the Department of Justice request with the results of the accounting study." However, he said, "we just received the accounting study today."
Husemann said he decided to release the information about the federal request when the Mooresville Tribune asked for an update on the Cops for Kids situation. "I don't want to withhold any information," said Husemann, adding, however, that "we do not plan to release the accounting study until the SBI determines that it has no relevance to their investigation and until (Town Attorney) Steve Gambill determines that any personnel information is redacted."
Continued Husemann: "We have no desire to hold up the release any longer than we have to. I have not yet seen the accounting report and have made this decision without knowing the content."
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