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Steve Brown: Addressing McDonoughDawg's commentsI put together a reply regarding McDonoughDawg's comments. My comments appear in bold below his. McDonoughDawg said: I also agree, debate is very healthy. If you want to debate an issue, I would think the existence of the Tennis Center/Amphitheater (in the current state of being owned by the City) is unwanted by some in PTC. This debt somewhat gets at the core of those things. I for one enjoy these amenities. I get more use out of the Amphitheater for sure. If it's open, I'm almost always there. I'm not sure the Tennis Center would be in existence without this said loan. I could be wrong. Some would say it's not the proper use of Govt resources (having such facilities being owned by the City). I would say to them, PTC is probably not for you. I have guests that enjoy coming to PTC and spending their money using our facilities. I also think we more than likely come down on the same side of this issue. Steve Brown's reply: We brought in municipal attorney Drew Whalen to assist with the matter. He is one of the best municipal attorneys in the state, and he fought and won a similar case in the Georgia Supreme Court. This is what we knew for certain: (1) The Development Authority never had the legal authority, according to state law, to run the tennis center and amphitheater (illegal); (2) The Development Authority never had the legal authority, according to state law, to receive the hotel/motel tax funds (illegal); (3) The Development Authority never had the legal authority, according to state law, to borrow funds for either of the venues (illegal); (4) In all instances but one, the Development Authority acquired funds from the local bank in a manner not allowed by state law (illegal)and ; (5) Not only did the City Council not approve the change orders which were outside the scope of the tennis center expansion plan, but the Development Authority did not approve them either (a real problem). Another serious problem was that much of the borrowed funds could not even be accounted for. The accounting was beyond bad as cited by the vice chairman of the authority. Regarding your comments on the lawsuit, it appears that there is never an appropriate time you feel we should use the judicial process. By what you said, if someone sues us, we should just cave in because there is risk involved. The law was definitely on our side, and the people in the know on both sides knew that to be true. The bank kept citing a “moral obligation” on behalf of the city. The only problem with that argument is it was not the city who was acting. In fact, since a majority of the loans were done under the table with no votes and no mention in the minutes, the city had no clue what they were doing. A second problem with that argument is a top executive with the bank was also the authority’s chairman, so the bank had full knowledge of the situation (Councilwoman Rutherford alluded to this at Wednesday’s meeting). Also keep in mind that the tennis center was ALWAYS sold to the public as a project that would be self sufficient and would require no tax dollars (that is why they circumvented the normal recreation bond referendum process). The homeowners and businesses were misled to the tune of $1 million. Mayor Logsdon said the bailout would not require a tax increase and then he hedged a bit later in the Citizen article. Only three things can happen with that bailout: (1) You steal from the reserve fund (they are already pulling from reserves for FY07); (2) You raise taxes or; (3) You slash services somewhere. Either way the local taxpayers take a beating. As far as the need for the tennis center, I addressed that in my letter to the editor on this site. In short, if it were up to the public, the venue would not be here - that is why it got routed through the Development Authority with promises of no taxpayer funding. The amphitheater, for the most part, has been a profitable venture. There is a wild history with that venue also that only a hand full of people (I am one of them) in the whole city knows. All in all, everyone agrees that this has been a very expensive lesson on accountibility and how a governmental authority can run amok. The sad part to me is that the current City Council voted 4-1 to remove the accountibility measures that we installed on the Tourism Association (they now run the venues). The door was opened to more trouble in the future. What do you think about restoring the accountibility measures? Appreciate the dialog. Steve Brown's blog | login to post comments |