Steve Brown: Addressing McDonoughDawg's comments

Steve Brown's picture

I put together a reply regarding McDonoughDawg's comments. My comments appear in bold below his.

McDonoughDawg said:
As far as this case is involved, you obviously were Mayor, and probably have info we as regular citizens don't have (things are said off hand, I know that certainly everything isn't on record somewhere). I say probably. Fact is, as I stated below, had it gone to court, there is NO WAY any of us could know exactly how it would have came out. We could have gotten off without any obligation, or we (PTC Citizens) could have been responsible for he entire debt. I simply stated that the truth was somewhere in the middle. I simply don't know how to debate that, courts/juries are fickle. Many feel differently, and that's fine. But obviously, these folks didn't come out in the last election, it was made clear that this debt would be settled ( at least it was clear to me).

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:
McDonoughDawg, I read your opinion on the Development Authority lawsuit/settlement. Trust me when I say this thing has been thoroughly researched and then some.

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.

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Submitted by McDonoughDawg on Sat, 12/02/2006 - 10:30am.

The issue has been decided. We need to hold the Council/Mayor accountable for this.

I'm not sure I said anywhere that it was handled in the way I would have handled it. I was simply stating facts as to how they relate to the situation as it is right now. The statement about not raising taxes is silly at best. Unless we have a printing press somewhere at City Hall, the money has to come from somewhere.

It was fairly obvious to me, that IF the Bank had a legit claim to the center, they would have foreclosed on it years ago. So that throws up a red flag right there to me. Being in Real Estate Sales for 25 years tells me that much. The bank obviously didn't have security. At least I never recall them threatening to foreclose.

If, as you say, proper records weren't kept as to the disbursements of the loan monies, then obviously, something was rotten in Denmark. Like I said earlier, we probably agree on this more than we disagree. I don't think I would have voted to make the payment. I still think it's true that we don't know how a jury would have seen it, but we'll never know.

As to the folks who think I'm "connected" in some way, I could only wish. Just a PTC Citizen who reads the papers and talks to folks. My only possible inside is being good friends with a candidate for Mayor in the last election, he seemed to think the debt should be settled, but he didn't win either. For that, I think he's glad.

I'm still think the City should consider pursuing someone to lease the Tennis Center to. I think it could be viable for the City if handled correctly.

Steve Brown's picture
Submitted by Steve Brown on Sat, 12/02/2006 - 1:08pm.

McDonoughDawg made a good point that if the Peachtree National Bank had a legitimate claim on the tennis center they most certainly would have used that option.

Here is something else to think about, the bank was willing to sacrifice 580,000 investor deposited dollars just to get a Logsdon "deal" worked out. Why would they do that? The answer is they would not have stood a chance in court and they knew it. Their claims were not based upon the law.


Submitted by dollaradayandfound on Sat, 12/02/2006 - 3:32pm.

This has been pointed out here before that the bank had no legal claim on the tennis center, nor the amphitheater. You need to credit free speech for that one Mr. Brown.
If one puts up collateral for a loan then the loaner doesn't need to sue to get his money. Banks take homes, cars, etc., every day without a law suit!!!! Since the land belonged to us, the city, and council didn't sign a lean on such land---impossible.
The Peachtree National Bank knew all that, and let's not blame just the Peachtree officer who made the loan, the whole board knew it--it was over a million dollars for goodness sake.
These type of deals between business men, and women these days, is a matter of course.
The hotel tax money was pledged by the authority, not the council, and it appeared to the officers and board of the bank that it was a good way to get some of that hotel tax. Who were the board members of the Peachtree National Bank then? Who owned much stock in the bank? How many?
Surely it must have appeared to the approving bank officers and board that such a venture as a tennis center with the pros making all the money, could't support itself, much less such a loan.
I, myself, once many, many years ago asked a bank for $20,000 to start a small business, with the inventory as collateral, along with my personal signature. I had a good credit rating, but was a corporation, as was the tennis center. I didn't get the loan--I knew no one however and didn't have very deep pockets, in their bank.
It is all so plainly a coverup it is really pitiful. I think the mayor said that if he could see it and feel it then he would pay for it. That immediately brings up a ton of questions but this gets too long. To recall, about 10-20% signatures are needed.

ptctaxpayer's picture
Submitted by ptctaxpayer on Sat, 12/02/2006 - 8:35am.

Steve, you are optimistic to suggest that we consider “restoring accountability measures” that you single handedly implemented as Mayor. Steve, with all due respect, REMOVING accountability is exactly why that tremendous amount of money was invested to replace you as Mayor— to that you would NOT make them accountable and that they could go back to the rich history of closed door government. The previous Mayors would always let council go in the back room with a hand written agenda you never saw and they would do it saying “LITIGATION !!!” (meaning they go behind closed doors without the taxpayers).

After Bob Brooks, Lenox and Annie McMenamin and others PROMISED that the World Class Tennis Center would (1) cost the taxpayers nothing and (2) produce a huge ripple effect with hotels [which has never happened] and then seeing a complete failure, they thought that they still had so much control that they could cover it up. The first thing they did was remove any budgeting or accountability. They couldn’t get caught if they didn’t have any records.

Their plan worked....Until Steve Brown came along. Steve Brown actually figured it out. He was elected Mayor. Then the developer/bank crowd had a deep problem.So they hatched a grand plan: (1) Get a law suit started (2) Overwhelm the Mayor’s campaign with an obscene amount of cash and elect some dope that will make it go away (3) have closed meetings with all the lawyers [remember the LITIGATION exception] and (4) just announce the bailout, take the 2 week PR beating and move on.

So accountability is not an option. Accountability came in with Steve Brown and left with Harold Logdsdon.


Submitted by dollaradayandfound on Sat, 12/02/2006 - 7:10am.

I'm bothered that the old development authority could have such terrible "books" and no one caught it until it was too late.
Don't we appoint CPAs, boards, etc., to do this for us?
Is it possible that if the "right people" are in place at the authority, town council, legal council, and in this case, the bank, nothing is ever questioned, or even checked? Rather amazing. Almost as amazing as some of the remnants of those people now paying off the illegal expenses to complete the cover-up!
I'm now worried about the power companies, the credit unions, the bank examiners, the gas companies, and even town budgets.

bad_ptc's picture
Submitted by bad_ptc on Sat, 12/02/2006 - 9:50am.

This might answer some of your questions.

Resignation rocks PTC Auth.

Vice-chairman 'stunned' over bad cash flow info, undisclosed Adidas obligation


Submitted by dollaradayandfound on Sat, 12/02/2006 - 7:01am.

Either the Dawg is connected in someway to the banks or developers, or has friends who are.
No sane taxpayer, otherwise, would want these illegal loans paid in order to perpetuate this sort of thing again.
I hate to see lawyers way over paid to fight this sort of thing too, but under our current system, where lawyers write laws, we have little choice except to put it out for bids.

Submitted by helpful lawyer on Sun, 12/03/2006 - 9:18am.

Would you rather plumbers wrote laws? I understand they charge a lot too. (My plumber used to be a lawyer.)

bad_ptc's picture
Submitted by bad_ptc on Sun, 12/03/2006 - 11:45am.

Why is it that almost all lawyers and "lawmakers" are perceived as money grubbing, power hungry, self centered slime that would sell their mothers and only worships the all mighty dollar?

Could it be they are?

I can't think of another profession, other than maybe "developer", that has that same preconceived stench attached to it.


Submitted by swmbo on Sun, 12/03/2006 - 8:15pm.

Lawyers will never get an even break with the public. The reason is that they are often called upon when someone has made a mess of a situation. The client wants the lawyer to make the problem (which they could have avoided if they sought the advice of a lawyer beforehand) go away and they will, as a matter of course, whine about the cost of cleaning up their mess. As much as people hated Johnny Cochrane and despise Bruce Harvey, if they found themselves accused of a crime and they had the money, they'd pony up without blinking an eye. And if they were acquitted of the crime they wouldn't apologize for having hired the best lawyer they could afford (but they'd probably try to welch on their attorney's fees).

The other reason people resent lawyers is because lawyers know the rules of the game. I mean, let's be honest; if you know the rules of the game (especially the loopholes in the rules), then you know how to win -- or at least, how to keep someone else from scoring higher than you. Lawyers identify legal loopholes for their clients to slip through. That never makes the person who has been outwitted feel good.

People resent lawyers for the kind of money they make and, while some lawyers make an obscene amount of money, given the number of lawyers there are, today, the pie is being divided in smaller and smaller pieces. So, the practice isn't the gold mine it used to be. Many lawyers (especially the ones who graduated with heavy student loan debt) are struggling to own a home and raise a few kids. Also, because lawyers don't produce a tangible thing, people have a hard time seeing the value of what they do. A plumber fixes pipes that you can touch and see. A lawyer's stock in trade is his time and his knowledge. The public never sees that as valuable (especially when they are fending off a self-inflicted lawsuit). Try to keep that in mind before approaching a lawyer at a cocktail party with the handy phrase, "I have this case I'd like to ask you about . . . ."

Oh and a dirty little secret about legislation today is that the lawyers who write the laws are often not the actual lawmakers. These days, lobbyists have their lawyers draft the laws (which, coincidentally, favors the industry for whom the lobbyist works) that lawmakers don't bother to read and, in exchange for a campaign contribution or a contribution to The Party, the lawmaker quarterbacks the legislation into law. That's right; the taxpayer has no legitimate representation in that process. If the taxpayers want better lawyers than the lobbyists have, the taxpayers will have to pay a competitive salary AND pack the polls at election time. Otherwise, you got what you paid for so, kwitcher beefin'.

Finally, I'm glad you said it's a profession that has a "preconceived stench" attached to it. It's easy to see lawyers as "money grubbing, power hungry, self centered slime that would sell their mothers and only worship the all mighty dollar." Which ones get all the media attention? The ones who are money-grubbing, power-hungry, self-centered slime that would sell their mothers and only worship the almighty dollar. I submit to you that the percentage of lawyers that gets any attention is maybe 10% of the total lawyer population. The rest are regular people trying to advocate for their clients and trying to encourage their clients to do the right thing. Try not to paint them all with the same broad brush.

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If you and I are always in agreement, one of us is likely armed and dangerous.

Git Real's picture
Submitted by Git Real on Mon, 12/04/2006 - 10:05pm.

GO GIRL !!!!!

Oh and a dirty little secret about legislation today is that the lawyers who write the laws are often not the actual lawmakers. These days, lobbyists have their lawyers draft the laws (which, coincidentally, favors the industry for whom the lobbyist works) that lawmakers don't bother to read and, in exchange for a campaign contribution or a contribution to The Party, the lawmaker quarterbacks the legislation into law. That's right; the taxpayer has no legitimate representation in that process. If the taxpayers want better lawyers than the lobbyists have, the taxpayers will have to pay a competitive salary AND pack the polls at election time. Otherwise, you got what you paid for so, kwitcher beefin'.

You are soooo "right on the money" my dear litigator blogger. There is nothing more to add there other than to reinforce that lawmakers don't bother to read the very laws they pass. It would be nearly impossible to understand the text and intent of the massive amounts of laws being run through on a daily basis. The solution for them? Vote the party line.

I would say that 70% of the lawyers out there give your profession the much deserved reputation it has and it has nothing to do with incomes. I wouldn't trade my income for that of probably 95% of your peers. As for me.... I love my two lawyers Smiling and they are indeed an evil necessity in my biz. I am truly grateful for the jobs they do for me. So nope....I won't paint with a broad brush as 70% of one will Hi-Lite the bad ones. Evil


Submitted by swmbo on Mon, 12/04/2006 - 10:39pm.

You are, if nothing else, persistent (in a good-natured way). Laughing out loud I'm not a litigator. I DO, however, have a government lawyer in the family. So, I hear all about the ugly under-belly of life as a civil servant (the crappy pay, the long hours, the ingrate politicians, the even-less appreciative constituents). They can't possibly rip off the public but they get the ugly criticism, all the same.

As for lawmakers making laws, you're right about the party line (or, more accurately, the donor party line) being the primary impetus for recently-enacted laws. And the thing that should really keep you up at night is the way referenda are presented. Think about it . . . there's a "summary" of the proposed law on the ballot. You, the voting public, never get a chance to read the actual bill before it becomes law (don't worry, your elected representatives won't read it, either). So, you have no way to know what kind of loopholes the lobbyists' attorneys build into it until they use those loopholes to stick it to the taxpaying public. Doesn't that give you the warm, kitty fuzzies? Eye-wink

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If you and I are always in agreement, one of us is likely armed and dangerous.

Git Real's picture
Submitted by Git Real on Tue, 12/05/2006 - 10:39am.

SWMBO Said:

Think about it . . . there's a "summary" of the proposed law on the ballot

(don't worry, your elected representatives won't read it, either)

Right on. Take our congressman for an example. With his 3rd grade edumacation do you really think he has the congnitive skills to decipher and comprehend the complex details of the mountains of text that supposedly runs across his desk on a daily basis? Heck he has little 20 something wet-behind-the-ears weasels summarize his agenda for him. Remember the one that threatened to sue Cal because of a blog made by a poster? Priceless. Not to get off subject but he even had some Atlanta lawyer threaten Cal in writing and and Cal slapped it online. How funny was that. Oops...I digress. But the point is that Lynn wasn't even bright enough to ignore it. Kind of like he's not bright enough to remember where he placed his checkbook when his invoices are way past due in his business. Yuck, yuck, yuck. But again dittos to you on slamming that nail right on the head.

Oh....back to the other point. Come on...we know you're really a lawyer. I understand your aprehension is admitting such. Pedophiles never admit to being pedophiles and it is known that most lawyers are hesitant to admit that they are lawyers.

It's kind of like you're at a Christmas Party you see. Some one comes up to you and says: "Hey Frank! What do you do for a living?" How do you think he feels when he grumbles out that he's a sanitation engineer. Same thing with a lawyer. Example: "Hey Susan! What is your profession?" The timid reply is: cough, cough... "I'm an attorney".

Plus only an attorney would fight and bleed for a liberal Georgia Supreme Court Judge like you did.

Keep up the good postings! Love you man! Smiling


Submitted by swmbo on Tue, 12/05/2006 - 10:03pm.

Talk like that could get you drummed out of the He-Man Lawyer Haters' Club. LOL!

It's okay, though. My denials are a viable defense -- even if you get a liberal judge. Laughing out loud

Much love back at 'ya!

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If you and I are always in agreement, one of us is likely armed and dangerous.

bad_ptc's picture
Submitted by bad_ptc on Sun, 12/03/2006 - 8:58pm.

The world in which I make a living is very much concerned in what the public "perceives".

Our standard of conduct requires us to operate within the boundaries of what the "public perceives" us doing.

Not necessarily what we really do.

I have found that there is a widening gap in what the law is allowing and what the public "perceives" as in their best interest.

Please be assured that I don't dislike all lawyers. We employ several in my company and I even have 2.5 in my immediate family. (One is still in school)

The basic problem I have with the current state of the law is that the axiom of "he who has the most money wins" or "he who blinks first loses", seems to be the rule.

The hard working stiff that is wrongfully accused has little chance of justice as the law is stacked against him/her by only economics.

What people seem to lose sight of is the fact that, "law isn't fair", just absolute.


Submitted by swmbo on Mon, 12/04/2006 - 11:24pm.

The average "David" cannot afford to take on the Goliaths of the world in court. If he's lucky, Dave may be able to afford the best in town for a short while but Goliath will simply drag things out long enough to economically strangle Dave into going away. It isn't fair but it also means that the Davids of the world aren't likely to bring the cases that end up being the poster-children for tort reform.

And if you think justice is hard-won for the average working stiff now, just wait. Fulton County has started a "business court" pilot project reserved only for business cases. No one has yet disclosed what the measuring stick will be for determining what cases go to "business court". And, if litigants are entitled to a jury of their peers, how do you define "peers" in business court? What if the case involves a small business? Do they get a different court or do they get shoved in with the regular people? What if the case involves a consumer and a business? Does it go to business court where the business gets a jury of its peers or to "regular" court where the business will complain that it cannot get a jury "sophisticated" enough in business? Where will the Davids of the world stand in that environment and how will they afford legal representation?

2.5 lawyers in the family, huh? That's too bad. I have one, too. Thank God for golf. Eye-wink

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If you and I are always in agreement, one of us is likely armed and dangerous.

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