Jackson Free Press

Incendiary remarks recently made by a former city employee regarding the Standard Life Building whittled down to a nod of acquiescence at the Jackson City Council's 4 p.m. work session.

Harold Lathon, the former director of the city's office of economic development, recently tore into the Jackson Redevelopment Authority's decision to award a $1 million bid to HRI Properties, of New Orleans, for the purchase of the Standard Life Building, in downtown Jackson.

Lathon complained that another bidder, The Roberts Brothers Properties, LLC, of St. Louis, offered $3 million for the same property. "We have a financial crisis in this city. The Roberts Brothers offered $3 million in cash, payable (in about) 60 days, but (JRA attorney) Zack Taylor and the JRA people want to give HRI until 2008 to come up with $1 million," Lathon said, as quoted by the Jackson Advocate.

Responding to a request from Ward 4 Councilman Frank Bluntson to rate JRA's competence "from 1 to 10," Lathon handed JRA "a zero."

Staring down $3 million shortfalls in both the 2008 and the ending 2007 budgets, the council agreed to address the reason for JRA's selection of HRI over the Roberts Brothers' proposal.

JRA Chairman Brent Alexander told the council on Monday that the quasi-independent JRA awarded the contract based on preparation and planning, rather than payment amount.

"You have to weigh an up-front lump sum payment with the type of conditions that will go into developing the property over the long run," Alexander said. "The Roberts proposal was a stand-alone project, contingent upon us not providing any conditions on the redevelopment, … Roberts Brothers didn't have a list on the pace of development or a proposal to deal with parking. … The proposal with the largest potential capital investment, the most sophisticated financing package in place and the most comprehensive use of the project, including integrated parking, was HRI, so we picked that developer."

Jackson Free Press information requests reveal that the Roberts Brothers' 30-page proposal consisted of three paragraphs outlining the company's actual plan for the building, with the rest listing company information. The 60-page HRI proposal details construction plans, financing strategies and a development timeline, among other information.

Alexander told the JFP that the upfront payment, be it $1 million or $3 million, would go toward paying off the city's mortgage on the Standard Life Building, which is more than $3 million. The city's groaning budget shortfall would never see the money.

Virvus Jones, vice president of development for Roberts Brothers Properties, showed no hard feelings at JRA's decision on Monday, telling the council that Roberts Brothers Development would be looking forward to "future development in the city."

Previous Comments

ID

68118

Comment

Obviously, they went with the right developers here. I'd like to see the Roberts Group return to Jackson with ideas in their pocket, but choosing Watkins/HRI was the right decision here. By the way, has anyone heard anything about the additional financing for the King Edward/Standard Life project? We should be hearing something soon...

Author

tombarnes

Date

2007-09-26T21:33:55-06:00