Jackson Free Press

A Texas developer says the city of Jackson is holding up progress on $15 million in development, and she wants to know why.

"I've invested 13 months of time and work in this project, all for the city to go silent on me," said Ann Arnott, of Dallas.

Arnott said she has been working with the city, particularly with Mayor Frank Melton, on securing about 150 vacant or dilapidated lots, so that she can build brick townhouses worth between $80,000 and $120,000 each. The project is dependent upon the city simply bequeathing the lots to Arnott for development.

"Unlike some developers, we are not asking for any tax abatements, tax credits, (block-grant) funds or buy-downs," Arnott said. "This is a partnership with the city of Jackson, who is donating vacant non-tax revenue lots, in exchange for tax revenues for years to come, and neighborhood revitalization."

A new law approved during the last legislative session allows the city to duck mountains of red tape involved in the transfer of abandoned property (claimed by the city through tax debt or eminent domain) to developers for new construction. Rep. John Reeves, R-Jackson, championed the legislation at the city's behest, arguing that it was a means to finally move money-sucking, untaxed property to new owners who could put the property back on the tax rolls.

"The government winds up owning properties when people don't pay the taxes on them or when people do not pay their liens … then when the city ends up owning these properties, we don't have any tax revenue from that," Reeves said. "To combat that, and to encourage putting these properties back onto the tax rolls, we passed that bill, which allows the city to essentially donate the property to a willing developer, who produces a plan to develop the property."

Former city officials, who chose to remain anonymous, claim the legislation had Arnott's name all over it, however.

Reeves said in an interview that he was unaware of the claim and had not heard of Arnott's name until it was mentioned in the interview.

However determined the city may have been to push for the law, it appears to be dropping the ball on the legislation's most profitable virgin flight.

Arnott paints a long, sordid picture of flubbed municipal balls and missed shots.

"The transfer of the property was supposed to go before the council in July. (City Chief Administration Officer) Robert Walker calls me, says he's going to put it before the council on the 17th. Tells me I need to plan to be there. Me and my team fly over from Dallas. I'm walking out the door, and Walker calls and says he couldn't get it done," Arnott said.

Walker told Arnott the administration would present the issue before the council again at the July 31 council meeting, but as the days passed, Arnott said she wasn't getting any confirmation from the city on their agenda item.

"I fax a letter over to (Walker,) asking him if he could call me and tell me if I'm on the agenda. We've been waiting 13 months for this. (Walker) calls me back and says I don't need to come over. I call Frank (Melton). He says he's putting it on the agenda as an emergency item for the 31st. I buy a last-minute ticket to Jackson. I fly over, and the meeting starts. ... It adjourns around 12:20. My item did not come up." Melton down-played Arnott's concerns in an interview.

"We've been working with Ann for over a year, and the legislative law did not go into effect until July 1 … we were waiting for July 1," Jackson Mayor Frank Melton told the Jackson Free Press in a telephone interview Monday. Melton said that Arnott's transfer-of-property request was not an emergency item because Arnott was the only person that the city had negotiated with.

"We also have to take the houses down before she can use that land to build (the townhouses), and we had that discussion last week," Melton said.

Melton also said that there has been one change in the initial agreement between the city and Arnott, which will allow the city to transfer only 35 lots at once. Melton said that this would allow Arnott to receive only as many lots as she can work on at once.

"Mrs. Arnott has made an agreement with the city that if she doesn't perform, then the city can take the property back," Melton said. "That keeps us from tying the property up, and we may find another investor, but she has my full faith and … she has really been a great supporter of Jackson."

"We've come so far with this," Arnott said. "My people came over, they brought their mobile homes over, spent weeks at a time interviewing sub-contractors, checking them out, vetting their records. We had all our sub-contractors lined up, our builders lined up, our construction line of credit with one of your local lenders for $3 million. We had all our take-out mortgages done, we had all our designs done, all our pricing. And now this."

Melton and Arnott have come to a seemingly better agreement since the last city council meeting where her item was not brought up.

"(The mayor) has told me that he is doing everything in his power to make this happen as quickly as possible," Arnott said. "I don't have any reason to believe that it's not going to happen very quickly."

Arnott said that her best guess as to when she will finally be given 35 lots is within a week.

There has been speculation among city officials that A-1 Pallets is one of the dilapidated lots promised to Arnott, or Deion Sanders, whom Arnott represents in separate endeavors. But Arnott says that she is not familiar with the company or the alleged plan to give it to her. Sources close to city government said that the property is a prime location and that it would not be a surprise if the A-1 Pallets land was a potential lot for the development plan.

Previous Comments

ID

67985

Comment

Just wondering why the Deion Sanders connection was held till the last paragraph? Too me that is the story. Why the proxy on his part? Even other cities have taken pause after digging deeper into Arnott and Deion. Who can't make money if the City is willing to give you the land? I know several people that could do this same thing, if they thought it was viable. Also, unless the City grants her properties that are all on one street or next to each other, then it is going to look like crap having one overly nice brick town home next to a shotgun shack. That is not how you develop a City if you want to do it right. Also, it doesn't seem right that the Mayor and the other Council members would be for Ms. Arnott's project, yet they will vote against a $75 million dollar project by a man who actually BOUGHT the land he wants to use! Arnott and Deion's little houses will not transform a whole area that is a big industrial waste land into residential homes, community centers, and retail like the Livingston Place project does.

Author

pikersam

Date

2007-08-08T17:03:41-06:00

ID

67986

Comment

We reported what we could on that, Pike. It's a matter of who we could talk to in time. We're not done.

Author

DonnaLadd

Date

2007-08-08T17:09:06-06:00

ID

67987

Comment

Certainty not criticizing. Sorry if I sounded contentious. It's really hot outside these days! Deion has become somewhat of a false idol in my eyes ever since he 'found' God. I find M. Irving a much more genuine human being. This past Sunday proved it! And to Ms. Arnott's credit from what I've found so far, she has done some really good things in neighborhoods in the Dallas area. I'm not totally against her and Deion, I just have questions based on some things I've read. It may work out really well. But, I'm surprised no one local is willing to try the same thing.

Author

pikersam

Date

2007-08-08T18:24:36-06:00

ID

67988

Comment

I know you weren't, Pike. Believe me, Maggie was working this angle hard yesterday. What's crazy is no one could (or would) tell us exactly where the property is. Regardless, her descriptions of dealing with Melton are pretty amazing, huh?

Author

DonnaLadd

Date

2007-08-08T18:26:51-06:00

ID

67989

Comment

Yeah, he doesn't even treat the people he wants to work with well!

Author

pikersam

Date

2007-08-08T18:36:22-06:00

ID

67990

Comment

And Ann is a woman, lest we forget.

Author

DonnaLadd

Date

2007-08-08T18:45:30-06:00

ID

67991

Comment

There has been speculation among city officials that A-1 Pallets is one of the dilapidated lots promised to Arnott, or Deion Sanders, whom Arnott represents in separate endeavors. But Arnott says that she is not familiar with the company or the alleged plan to give it to her. Sources close to city government said that the property is a prime location and that it would not be a surprise if the A-1 Pallets land was a potential lot for the development plan. PLEASE keep me updated on this. How can you promise someone land that's not even yours? Also, A-1 is not dilapidated. The roof isn't caving in or anything like that.

Author

LatashaWillis

Date

2007-08-08T20:43:33-06:00

ID

67992

Comment

It's Melton, L.W. He always talks first.

Author

DonnaLadd

Date

2007-08-08T20:52:09-06:00

ID

67993

Comment

In a way, it seems like he's trying to force an eminent-domain-type taking on the Reeveses. They are businesspeople; if a rich athlete, or anyone else, wants to buy their property, they need to make them a good big. Of course, there are still the historical issues. At any rate, Melton is clearly meddling where he has no right to be.

Author

DonnaLadd

Date

2007-08-08T20:53:44-06:00

ID

67994

Comment

Yeah, so what else is new?

Author

LatashaWillis

Date

2007-08-08T20:57:04-06:00

ID

67995

Comment

From Wikipedia: In the United States, the Fifth Amendment to the Constitution requires that just compensation be paid when the power of eminent domain is used, and requires that the property be taken for "public use". These requirements are sometimes called the takings clause. Don't see where the mayor has even attempted to do this.

Author

LatashaWillis

Date

2007-08-08T21:01:08-06:00

ID

67996

Comment

I knew Frank was up to something as to why he is obsessed with wanting A-1 Pallets shut down. Of all the rundown and abandoned properties in the city and he thinks this is public enemy #1?

Author

golden eagle

Date

2007-08-08T21:45:33-06:00

ID

67997

Comment

Yep, it's crazy and baffling. Definitely a topic for Sunday's WUJ meeting.

Author

LatashaWillis

Date

2007-08-08T21:53:12-06:00

ID

67998

Comment

We discussed this at the C-L blog about a month ago. The idea that Melton is trying to artificially devalue the property with all of these code violations in order for a private entity or the City to acquire it was obvious, but what wasn't clear was the answer to the question "Who benefits?" Now its really starting to make sense.

Author

Jeff Lucas

Date

2007-08-09T08:06:52-06:00

ID

67999

Comment

Just call it puzzle pieces. Even when we cannot present the final completed puzzle, we strive to give y'all the pieces. The looming question is: Has he already promised the A-1 land to Arnott?

Author

DonnaLadd

Date

2007-08-09T09:01:17-06:00

ID

68000

Comment

I just did a search on Arnott and Sanders and found these documents as part of an Oct. 16, 2006, Irving, Texas, city council meeting—all verbatim: February 27, 2006 Ann Arnott Prime Development Team 9400 N. MacArthur, suite 124-235 Irving, TX 75063 Dear Ann, Thank you for your correspondence dated February 2, 2006 regarding the Prime Development Team. We of course in Fort Myers appreciate and are proud of Deion Sanders. We also greatly appreciate his interest in our community. It is my desire as Mayor to work with you and Prime Development to provide our citizens with affordable homes. During our meeting on January 31, 2006 you explained to me that Prime Development did not want to get started with the program until the City could transfer 25 lots plus assure you of 10 lots each month. I explained the City’s program and stated it could take a long time before 25 lots were available and Prime Development could not be assured they would receive 10 lots per month. I shared with you that we have several local non-profit and for-profit entities interested in lots and I felt confident the City council would want local entities to also have some of the lots as they become available. With this understanding, it is premature for Prime Development to take applications and proceed with approving qualified buyers. The City also needs more information on you and the other members of the Prime Development Team other than Mr. Sanders. As I expressed during our meeting, please provide me with the following: 1. Both your and Prime Development’s experience in constructing homes. Please name some of your projects and provide references that we can contact. 2. Name(s) of the General Contractor with the license numbers. 3. Name(s) of the lenders and their program particularly the interest rate to be charged. 4. The names, addresses and phone numbers of your local agents. 5. Copy of your resume. Mellone Long, the City’s director of Community Development will be in Dallas, Texas in April and I have asked her to visit with you and tour some of your projects. Please contact Mellone and make arrangements to meet with her. Also, let me clarify the City’s Mortgage Assistance program. Staff is still working on the details of the program but it is our desire to provide some financial assistance to qualified buyers through a second mortgage loan program. The affordable home program would assist families at or below 120% of area median income. However, again we have not yet finalized the program for presentation to the City Council therefore please do not make any representations as to what the City will do for each qualified buyer. Thank you again for your interest in providing affordable homes to our citizens and hopefully we can give you a more definitive answer in the near future as to when the City can actually have even 25 lots available for construction. Please deal directly with City staff in the Community Development office. Kind regards, /s/ Jim Humphrey Mayor

Author

DonnaLadd

Date

2007-08-09T09:38:49-06:00

ID

68001

Comment

(More from the minutes) Mayor Humphrey stated that it was relayed to Prime Development Team that the City was not in the position at any time to agree to provide ten (10) lots per month. Mayor Humphrey stated that a letter was sent to Ann Arnot as follows: March 31, 2006 Ann Arnott 9400 N. MacArthur Suite 124-235 Irving, TX 75063 Dear Ann, I regret I was unable to attend the groundbreaking ceremony with Deion yesterday and I understand it went well. I did have the opportunity to see the TV coverage where the reporter and Ms. Pope both said she would be moving into the house by July 2006. This date seemed unrealistic and could have a negative impact on the program. I checked with City staff only to learn no permit has been applied for nor have any plans been submitted. Please let us know when a permit is applied for so staff can be sure to follow through and avoid any delays. Please do not disappoint the families who are so excited about having an affordable home. Sincerely, /s/ Jim Humphrey Mellone Long, Director, Community Development Department, stated that Prime Development applied for a master permit on the building in May 2006. Ms. Long stated that when the same house is built many times a master permit is used to expedite permitting. Ms. Long stated that the master permit was issued within six (6) week which was very quick. Ms. Long stated that Prime Development had not picked up the master permit which has been ready since June 2006. Ms. Long stated that Prime Development would have to make application for a site permit. Ms. Long stated that all permits for affordable housing are expedited and Prime Development did not receive special treatment. Ms. Long stated that Prime Development could not build on any specific site until the site permit was issued. Ms. Long stated that many of the lots that the City gave away for the construction of affordable housing were fifty (50) feet wide which would require a variance from the Board of Adjustments. Councilman Wright stated that the City was going beyond what was required to be fair in distribution of lots for affordable housing. 23 Page 24 MINUTES October 16, 2006 Councilman Wright stated that one developer should be selected and given the total amount of lots available to the City. Ms. Long stated that it was not the responsibility of the City to provide developers with enough lots on which to build. Ms. Long stated that the lots were supplemental and most developers purchased lots for development. Ms. Long stated that the program was not to assist a developer in starting a business to provide affordable house. Mayor Humphrey stated that Prime Development was a for-profit entity. Mayor Humphrey stated that the non-profit entities that have received lot have built houses. Mayor Humphrey stated that public input was needed from the contractors who were performing in trying to provide affordable homes. Mayor Humphrey stated that a decision should be made if the lots would be given to a non-profit entity or a for-profit entity. Councilman Simms stated that there were a minimum number of lots available to give to developers for construction of affordable housing. Councilman Simms stated that the City did not have enough lots to provide Prime Development Team with ten (10) lots per month. It was moved by Councilwoman Shoemaker to pursue foreclosure action on the above listed fifteen (15) vacant and with structures property with City liens for the purpose of infill redevelopment, seconded by Councilman Henderson and unanimously carried.

Author

DonnaLadd

Date

2007-08-09T09:43:31-06:00

ID

68002

Comment

During our meeting on January 31, 2006 you explained to me that Prime Development did not want to get started with the program until the City could transfer 25 lots plus assure you of 10 lots each month. I explained the City’s program and stated it could take a long time before 25 lots were available and Prime Development could not be assured they would receive 10 lots per month. 10 lots a month??????

Author

LatashaWillis

Date

2007-08-09T09:44:24-06:00

ID

68003

Comment

Actually, those minutes from Fort Myers, Fla. Here's the PDF.

Author

DonnaLadd

Date

2007-08-09T09:45:51-06:00

ID

68004

Comment

Interesting. Arnott and Sanders have fought with cities before over their housing plans: From the News-Press in Ford Myers: Here's a replay of events: June 3, 2005: Sanders and Humphrey, all smiles for the cameras, announce plan to build affordable housing. Nov. 27, 2005: Jamie Dukes, chief operating officer for Primetime Development, LLC, says Sanders' company expects to build the first home in January or February. Jan. 29, 2006: Sanders says starting in March, he will build 10 quality homes a month. "We're not going to build any boxes. We're going to build something special.'' Feb. 22, 2006: Sanders says three-bedroom, two-bath homes will start at $149,000. March 19, 2006: Primetime approves 68 applicants for homes, which Humphrey says is premature. City Spokeswoman Jennifer Hobbic: "They haven't given us any designs or financing plans. We don't want cookie-cutter houses.'' March 30, 2006: Demetria Pope cries as she breaks ground on a lot she's owned for 30 years. Primetime's price ($159,000) is a bargain compared with the average home cost (about $300,000) in Fort Myers. Pope's groundbreaking is the last time Primetime officials smiled about their deal with the city. The mayor didn't attend the groundbreaking, which is a harbinger of lack of communication to come. Humphrey, who didn't return a telephone call Friday and wasn't available for comment Saturday, never misses a photo op. "The mistake we made was not having everything in writing with the city,'' says Dukes, 42, a Sanders' teammate at Florida State and with the Atlanta Falcons. Ann Arnott, Primetime general manager, says the city gave her a list of six vacant foreclosure lots in December. "I was told they were put on the consent calender for Jan. 17,'' Arnott says. "That was the last I heard from them.'' Arnott says in order to make an impact, Primetime wants to build 10 homes a month, but the city gave it one lot and a woman asked the company to build on her lot. The city lot was nonconforming. Too small. She says Primetime spent $8,400 to make it right. "I have spent almost nine months working on this project and countless airplane rides to build two houses,'' Arnott says. "(The city) hasn't been a very good business partner.'' Mellone Long, city director of community development, says the city's foreclosure program has 400 vacant lots, but that's deceiving. "At anytime, somebody can come in and pay off the liens and get back the lot,'' she says. Long also says it takes 18 months for a foreclosed lot to clear red tape. Long says Primetime, a for-profit company, joins a rotation of nine nonprofit and for-profit companies who want lots. "We put Deion in the rotation and gave him two lots in February,'' Long says. Why not more lots? "We asked for pictures of the houses and they didn't get them to us,'' Long says. She says because the city hasn't seen Primetime houses, it's a risk to give it more lots. "We know what other (rotation builders) can do,'' she says. "We don't know what (Primetime) can do.'' Dukes and Arnott say Primetime isn't yet two years old. "We told the city Deion hasn't built a house,'' Dukes says. "That was the plan. We would hire local builders and keep the dollars in Fort Myers.

Author

DonnaLadd

Date

2007-08-09T10:05:04-06:00

ID

68005

Comment

I can't link to that story, but it's dated Oct. 15, 2006.

Author

DonnaLadd

Date

2007-08-09T10:06:02-06:00

ID

68006

Comment

I wonder if Primetime Development has built any houses yet.

Author

LatashaWillis

Date

2007-08-09T11:00:33-06:00

ID

68007

Comment

I don't know. But we'll try to find out.

Author

DonnaLadd

Date

2007-08-09T11:05:41-06:00

ID

68008

Comment

Sure makes you wonder about their efforts.

Author

pikersam

Date

2007-08-09T11:17:34-06:00

ID

68009

Comment

I found this snippet in the Ft. Myers News-Press about Deion's plans to build affordable housing in Ft. Myers. Given that he is from the areas, I'm sure a lot of people will be disappointed if he doesn't follow through.

Author

golden eagle

Date

2007-08-09T13:43:20-06:00

ID

68010

Comment

L.W. -- As I understand it, the city has taken title to the land by virtue of unpaid tax liens. So the land is now city property, not private property. Which means the takings clause of the Fifth Amendment would not bar giving the land away. Or, if you're talking about the initial "taking" --i.e., the city taking title-- the former owners are compensated insofar as they no longer have to pay their property tax bills. This is not to say the legislature or the city necessarily thought about these points before the fact. But even a blind squirrel finds a nut once in a while.

Author

laughter

Date

2007-08-17T11:11:25-06:00

ID

68011

Comment

Well, lets see Primetime build some houses back home before we just throw free money at him. Cause we all know it's must be the money!

Author

pikersam

Date

2007-08-18T12:47:51-06:00

ID

68012

Comment

Am I the only one who has such a dirty mind and finds the title of this article so sextastic?? [img]http://www.smileyarena.com/emoticons/Emotions/Laught/laught16.gif[/img]

Author

LambdaRisen

Date

2007-08-18T13:32:46-06:00

ID

68013

Comment

Something must be wrong with me. I pictured tennis.

Author

LatashaWillis

Date

2007-08-18T17:24:55-06:00

ID

68014

Comment

I'm with you pikersam. As my GM always said, "good things start at home and spread abroad." Let Primetime show us Mississippians their track record first.

Author

justjess

Date

2007-08-20T11:00:51-06:00