Questions regarding Embassy project grant app.


by Elissa Yount

The City of Henderson is holding a public hearing at a meeting of the City Council on Monday evening, November 24, 2008, at City Hall on Rose Avenue.

Here are just some of the disturbing facts found in the application followed by questions. Maybe you have better questions. If so, attend the hearing and ask your city council representatives.

Page 3 – “Recipients shall request prior Division approval for all program amendments…(recipients) shall hold one public hearing…”

Question: Has DCA given prior approval to this amendment to the David Street project and if so when, and will this be the only opportunity for public input?

Page 18 – “The Embassy Square Foundation has raised $10 million dollars and is currently in partnership with the City of Henderson to raise the needed funds to complete the performing arts component of the Project.”

Question: What is the city’s obligation in this partnership for the performing arts component?

Page 34 – “WHEREAS, the City desires to aid and assist the Foundation in the provision of artistic and other educational services to the community and toward that end hereby relinquishes to the Foundation any and all of the City’s ownership rights (including certain re-conveyance rights) to said property, subject to the provision herein set forth, for use in the construction of the Performing Arts Building; and

Page 36 – “Any provisions of any and all other contracts and agreements between the City and the Foundation relating to the subject hereof are hereby repealed to the extent that the same are inconsistent herewith.”

Questions: Was this agreement written by John Zollicoffer and if so is he still a board member and attorney for the Embassy Foundation. Has the council approved this agreement? What exactly are the complete and specific holdings of Embassy South? Has Variety Wholesalers given a clear title to the City for all the property? How much money does the city have invested that they are giving? What else can be inferred from this agreement?

Page 40 – Letter from Sam Watkins: “Though (sic) are goals and objectives remain the same as in the 2002 document, there are some differences reflected in the revised budget attached. The most notable being the creation of a future endowment (in excess of $1 million) to replace the original expenses thought to be covered by the city. Due to the tough economic circumstances in our community, the city cannot at this time commit any funds to the operating budget of the future performance hall nor commit to the ownership of the building.”

Question: How is the city going to insure that the legal requirements of this grant are carried out so that the city does not become obligated to pay this grant back? What will the annual proceeds of an endowment of $1 million? What percentage of the operational expenses will this cover for the next 5 years?

Page 43 – Letter from Curtis Tyndall BB&T dated August 22, 2008 – “Our initial review of the project is favorable and we should have a decision within a couple of weeks. I believe our decision will be favorable in terms of funding the project with a few contingencies that will include a loan guarantee from the USDA.”

Question: When this response comes, and if it is not favorable, has the city prepared a CDBG application for other vitally needed neighborhood assistance projects?

Page 46 – “Embassy Square Foundation, Inc. Fund Raising Strategy – $3,000,000 New Market Tax Credits

Question: Exactly how is it proposed to acquire these tax credits?

Pages 172-192 – Solicited letters of supports from public

Question: Why were none of the materials that were asked to be made part of the official record including the signed petition letters presented at the previous public hearing on the Embassy Square amendment not included as opposition to this grant?

If you are as concerned as I am that the city is about to take its hard working tax paying citizens into another quagmire of expense, then you need to act.

Page 3 of the application says: PERSONS WISHING TO OBJECT TO THE APPROVAL OF AN AMENDMENT BY THE DIVISION SHALL MAKE SUCH OBJECTION IN WRITING TO THE DIVISION.

Question: Does this mean that any opposition at the hearing will not be submitted?

If this is the case, then the public should send its opinions to Ms. Gloria Nance-Sims, Director Division of Community Assistance, 4313 Mail Service Center, Raleigh NC 27699-4313.