Jackson Free Press

Developers say the city may have put a project to fund renovations at the dilapidated King Edward Hotel at risk by lingering too long on an application for a HUD loan.

"Supposedly there was an e-mail from HUD to one of the city people saying they're going to look favorably on the application, but they don't have a corresponding 108 application. This was last month. The 108 application was supposed to have been sent off in September. The Clarion-Ledger story came out last month saying 'we got it,' and we went to a meeting with Jimmy Heidel and, lo and behold, the truth is we don't have any of it," said investor David Watkins.

The Clarion-Ledger reported last month that the Department of Housing and Urban Development had approved a "$4 million piece of funding for the downtown project," and that the first step in handing the money over to developers was soon to be in the hands of council members. The vote never happened as council members learned the city had not submitted the second application required for the loan by HUD. Investors spent nearly $30,000 on the application.

Ward 1 Councilman Ben Allen fried Jackson Mayor Frank Melton on his morning radio show on WJNT for rushing developers, even as the application for HUD money languished within the offices of the city administration.

"What we got here is classic Orwellian doublespeak," Allen told the Jackson Free Press. "Melton is bitching that more has not been done more quickly on the development of the grant and getting this $2 million or $4 million process going, and the reason it's going slowly is because it's gummed up in his office. Administration has to do the work for these grants. It has to work with the developer."

Melton has told the media that he does not have personal faith in the renovation efforts by developers HRI Inc., of Houma, La., and private investors like New Orleans Saints running back Deuce McAllister and Jackson attorney David Watkins. Melton says he wants to demolish the ancient structure, which features a remarkably stable network of support girders, intricate exterior facing and an artesian well beneath the basement.

"(The developers') dreams are wonderful, but the reality, I'm not so sure about," Melton told The Clarion-Ledger. "… I'm still looking into having it destroyed. I have no option if something doesn't happen down there."

The application would have been lost weeks ago if not for Hurricane Katrina, which forced federal agencies, including HUD, to extend countless deadlines. According to Watkins, application inspectors at HUD waived the deadlines on all HUD applications in hurricane-ravaged areas, including Jackson.

"Otherwise, we would have lost all of it," Watkins said, adding that he did not know the new deadline, but had faith that Jimmy Heidel, the new contracted head of the city's Planning and Development department, was working to meet it.

"I honestly don't know how much longer we have. I've been advised by Jimmy Heidel that the timing is not a problem. I think at this point we've been waiting on the city, and hopefully it's going to come to its natural end in the next 45 days," Watkins said.

Melton has sent barrages of criticism and threats against the King Edward to developers through the media in the past. In July, Melton told reporters that he was giving the developers 30 days to get the project moving before tearing down the building, despite hesitation from a majority of council members—who must first vote to approve the demolition. Days later, Melton realized that the paperwork was actually sitting in a city office and not with developers, so he re-issued the same public ultimatum to his own administration.

Since July, Melton has continued hounding developers of both the King Edward and the Farish Street Entertainment district, despite delays seemingly outside the power of those investors.

Watkins said it would be difficult to keep HRI's attention focused on the property if the city mayor comes off as dead-set against renovation.

"We're the ones who've been waiting, and my development team has plenty of other opportunities. It's not like they're hurting for business, and it's been a struggle for me to keep them interested and make sure they don't leave," Watkins said.

Hal Fairbanks, director of acquisitions at HRI, said that, so far, Melton's eagerness to demolish the building was not discouraging the company from continuing its goal.

"I think the mayor either wants something to happen with it or to be rid of the eyesore. I really can't fault him for that, and I believe he knows that the federal funding is one of the crucial pieces to the financing, so hopefully, if that comes through he'll store the wrecking ball back in the closet," Fairbanks said.

He added, however, that "ultimately Melton is the mayor, and it would be hard to do a project in the city that he doesn't want to do."

Previous Commentsshow

How anybody could be more in favor or demolishing the King Ed than restoring it - especially when there's apparently a bona fide plan for it - is beyond me. And that the mayor is one of it's biggest detractors is even more mind boggling. If it can be saved and there are investors willing to give it a go, it's a no-brainer. Simple as that. Downtown Jackson doesn't need another parking lot, like one particulary enlightened C-L interviewee from a few months ago dared to dream of the King Ed.

millhouse

Dec 21 2005

I also cannot understand why Melton has it in for the KEH. The only reason I recall Melton giving is that we (i.e. all of Jackson) have long since heard random investors’ dreams of an epic renovation, with no fruition to date. I for one am not privy to all as seemingly is the case with the all-knowing Melton, but Jackson needs this to be successful in the worst way!

K RHODES

Dec 22 2005

I part company with most of the posters here in that I wouldn't mind seeing the King Ed imploded, as do a number of my friends, because we have no sentimental attachment to this former local icon, and we're skeptical that renovating a building that has been abandoned for 40 years and has significant environmental hazards and costly modernization issues is a sound investment, architectural value not withstanding. It appears to us layfolk to be a financial black hole, and many of us are just sick and tired of looking at it day in and day out as a home for vagrants and pigeons, bringing down that side of the downtown area. More important, the condition of the structure and the many broken promises to renovate it by other private investors over the years as the Da Mayor indicated has left a lot of us jaded and cynical. Having said that, I believe Da Mayor has an obligation to honor the efforts of the previous adminstration and council to secure private investors who have made a good faith effort and commitment to renovate the building, and be supportive of it in the local media, who he treats as his personal bully pulpit (except the JFP). It sends a bad message to the business and developer community to keep flip flopping and talking out of both sides of his mouth on this issue...let David Watkins' group proceed with their work and more power to them, and if at the end of the day if they can make this thing work, we will all breath a sigh of gratitude that an seemingly impossible task has become a reality, resulting in hopefully be a top-shelf, world class project that would probably garner national attention. And if it doesn't materialize, tear the damn thing down once and for all.

Jeff Lucas

Dec 22 2005

"And if it doesn't materialize, tear the damn thing down once and for all." I agree that this needs to be the last stand for the King Ed. I certainly hope it can be renovated, but if it can't it needs to be gone ASAP. Have any of the past projects come as close as this one to being done? This one really has legs if they can get the grant.

millhouse

Dec 22 2005

It cannot be renovated if the city doesn't do the work necessary to launch the project. Why do certain leaders in Jackson have to be so backwards - a$$ when it comes to development? Remember how our City Council screwed up and MCI went to Clinton over some minor changes in the building. How come in Memphis or B'ham or Atlanta when a developer wants to build something or renovate old warehouses the city council and mayors bendover backwards to make it happen? Here they want the developer to bendover so they can do a full exam before they tell you no or at best maybe! I guess they don't have any old buildings in Tyler, TX? I can take anyone here to several cities and show you buildings that were in far worst shape then the KEH and are now top notch apartments or offices or retail. Anyone got friends in the Cabbage Town Lofts in Atlanta? That place was a dump. Let's face it, Melton has some kind of personal issue with the KEH and whoever is developing it. Must be a Dallas Cowboys fan or something to reject one of Jackson's newest developers - Deuce McA. - when they are willing to risk so much. The guy is buying car dealerships when we can't even keep a grocery store in town. Melton shops at the Kroger on I-55 and the shops nearby, so he probably doesn't give a flying flip that everyone north of him on Old Canton is going to the Kroger or the Walmart (yes walmart) in Ridgeland, thus the sales tax is going to Ridgeland too! The Brookshires is a pain because you have to go down Atkins to get there and at 5 oclock that is near impossible. But, the Kroger is right there sucking tax dollars from Jackson. Where are our grocery stores Mayor Melton? Where is our downtown development? Where are our safe streets? Not to mention smoother! Oh, that is right you gave the money back to help with the jails... Oh, that is right you hate the KEH, so you are going to tear it down! Oh that is right, you can't get a handle on crime so why should any new businesses move to Jackson. sigh!

pikersam

Dec 22 2005

"Have any of the past projects come as close as this one to being done? This one really has legs if they can get the grant." I don't have a vivid memory of ALL of the proposals I've heard rumors about dating back to the 70s, but I remember at least a couple in the last few years which almost happened. The first was during the heyday of the WorldCom telecommunications bubble, when it was suggested that KEH be converted to the Telecom Center. The former mayor was also given promises early in his first term by one of the former owners I think to renovate it which never happened, which is one reason the City later made an effort to acquire the property thru JRA. Some group out of Wisconsin (I can't remember the name) was going to renovate it and ended up walking away in a dispute about the parking garage. I also seem to remember Wyndam Hotels being very interested a couple of years ago before HRI put their proposal in. Like I said earlier, I think Melton needs to really get on board with this project and actively push for the renovation work to move forward (and not demonizing them in the media) and do everything he and his staff can to meet the deadlines required for funding and keep the project moving along its "critical path". That requires that he quit dangling the wrecking ball option in their faces unless it becomes clear that the project has hit a major impasse and it's clearly not going to happen (and by no fault of the City's). My fear is that when the all of the "unknowns" are discovered (as with any renovation project), change orders and design modifications start rolling in, this thing is going to become a money pit that we may end up having to finance for the developer.

Jeff Lucas

Dec 22 2005