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Tuesday, March 9, 2010

Nashville's Email Triology Makes National News...Again


Once again, all eyes are on Nashville because of an email. An email! An email has cost Walt Baker, former CEO of Tennessee Hospitality Association his job; his partnership with Mecatus Communications is on the ousts and needs to hire a crisis management team to help its clients; and Mayor Dean who convinced Metro Council to borrow $600 million to build a convention center to persuade tourists to visit is having to explain why the email came from one of his drum majors. If I was a betting person, I would swear this was a cartoon on the Cartoon Network. Damn folks, Nashville is in trouble. This time, folks are really going to pay attention to our piece mill diversity we have here in town because this email got some folks rushing out to find a new black friend. The email, Michelle the chimp, will be in every competing city’s presentation on why one should choose their city over Nashville for convention business.

If you are wondering how an offensive email can hurt convention center business, just browse around the internet. Blogs about the email are on every major website; AOL, Comcast, MSN, New York Times, Washington Post and every cable news outlet. Tennessee is making national news because of a trilogy of emails that had racial undertones hit the World Wide Web. The first email in this disastrous trio was the 44th President Spook email sent by the now infamous secretary Sherri Goforth. The email depicted President Obama’s picture as a black face with only his eyes showing. The President Spook email was explained away with an, “Oops, the wrong list got the email” by Goforth. It was a negative ugly email but the there were no real consequences from it. Other than bad press, business resumed as usual for our state legislative branch and no one lost an election or a paid job. The cost of that President Spook email was mandatory diversity training for all legislative staff which Sherri Goforth did not attend. She was told she could view the training on video at a later day after she returns from paid medical leave.

That incident got media attention but because the sender was a "lowly" government employee that answered the phone of an elected official, the emphasis of the email was diminished. A government employee on government’s time, dime, property, and equipment was allowed to shrink out of sight in her state representative’s office to the firestorm burned out.

We barely digested the actions of Sherri Goforth, when a 2nd email surfaced from a different sector of Tennessee’s government. Tennessee Highway Trooper Brent Gobbell sent an email that said “proud to be white” to 787 recipients. There is nothing wrong with white pride except, he ranted how sick he was of ethnic groups and their ilk. A guy with a badge and gun who looks like he leads a militia hate group one finds hidden deep in the woods, was spouting off racial epithets that even law enforcement could not ignore. The state suspended him with pay for 15 days while they conducted an investigation of Hate-a-Brother email Part 2. After an investigation, the state of Tennessee sent out a press release to make sure everyone knew the State of Tennessee did not support the rantings of Trooper Gobbell.
The investigation determined that at approximately 10:39 a.m., October 9, 2009, Trooper Gobbell sent the external email to himself so he could print a copy. At that time, he inadvertently sent the email to 787 state email system recipients by striking a wildcard key using his GroupWise email account. During an interview, Gobbell told OPR investigators that he intended to forward the email to himself and was not aware he had forwarded it to other state employees.

Unlike State Rep. Diane Black secretary’s “oops” email, his email was not swept under the rug. Trooper Gobbell was reprimanded but he kept his job and ordered to take a mandatory diversity class. His picture and all the details of the investigation were made available to the public. After reading the details of the investigation one can conclude Trooper Gobbell is not the brightest trooper with a badge and his rant fed the national media’s narrative that we are backwards and crazy in the Volunteer state.

With our third national email scandal, the sender comes from Nashville’s pedigree stock. This is not a secretary that many labeled a hick or a prick with a badge and gun who hate color folks. No, this email put millions of dollars on the line. The state’s tourism industry is under scrutiny because of Walt Baker’s itchy finger. Our city leaders’ entire argument around the dearly needed ½ billion dollar MCC was visitors, tourists mind you, flocking to our city in the next two years to save us from the brink of disaster. This is what we were sold/told by our Mayor and our compliant Metro Council. Tourism dollars would come by the plane loads if we signed on the dotted. And with the flick of a switch, our council members voted 29 to 11 to start digging ditches. Walt Baker was one of top drum beaters for the MCC Project; he gave us the tourism viability angle at every opportunity. We were given the do or die scenarios at every turn. The former leader of the state's tourism industry is turning off tourists because of an email. The cost for Baker’s email is already being felt economically starting with the sender himself. He lost his six figure income, credibility, and reputation. The Tennessee Hospitality Association fired him quicker than he could draft an apology letter to anyone who would receive an email from him. There is no mandatory diversity class training this time. Diversity class is for a much lower pay grade and social rank.

The email was sent to select prominent friends. Several of those close friends vouched for Walt Baker’s goodness in message boards on the first few days of the scandal. Upon reading the email that was sent to the press, my immediate thought was what kind of conversations they are having with each other that Mr. Hospitality felt comfortable enough to send a Michelle the chimp email to them. I have plenty friends and I forward different things to different ones. My church folks get the miracles can happen and praying for you emails. My girlfriends who are dealing with cheating men get the nutcracker emails. My political friends that know my love of politics get emails that represent my views and theirs. Some of my emails are good and some are just plain awful, I must admit! A few folks from Walt Baker's chimp email list that initially defended Walt Baker are now defending themselves. The glare of the national media is asking questions not only about Walt Baker but the recipients of the email who are deemed as prominent leaders in our community. Because no matter how the case is being made on the comment section of a website “I don’t think like that” or “an email does not make me or him a racist”, folks are giving the favorite friends from the email the side eye. Yep, I said it. The comment section on the website is damaging but nothing can compare to the comments that are being said over coffee, tea, and margaritas. The public is wondering who sent the original email to Walt Baker and why did Walt Baker select those who received email. Inquiring minds are dying to know.

Now that our state and the city of Nashville is on every “don’t visit” website, how are we going to continue to sell the tourism angle as a meal ticket when we are not willing to accept we got some real diversity issues that we must overcome quickly in order to bring tourists here? I suggest we start with that big ditch downtown that will be the site of the MCC Project. The Mayor needs to make every effort that true diversity contracts are represented in building of the MCC Project. It should not be delegated to folks who have no power. If the Mayor, the leader of our city, became active in building relationships with as many people of color as possible, it would set the tone for others to follow. This may not stop emails from being sent that are viewed as racists but at least people from every background would be willing to come forward stand up for our great city. Real conversations must be discussed among each other and not on message boards.

In a previous post, I have addressed the 'two black friends’ issue that plagues many leaders in this city. Good honest hard working folks from every background and square inch of our city are being painted in broad strokes because we, collectively, are not being the people we want to attract. In order for our national media to stop referencing Nashville when it wants to show an example of ignorance, we must be willing to talk and educate each other first before we can reach out to others. That is the making of a great city that can attract businesses from every corner of the globe.
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Tuesday, January 26, 2010

The MCC Passed...Now What?


Well, the Music City Center (MCC) is a done deal. I reached out to Mike Williams of Alpha Pest Control and said “Mike, when they start to shovel; rats are going to be running. Are your trucks ready?” I am not the one to try to haul off all the rats and critters by myself. Besides, I got to help the city reach the stated 20% goal of women and minority firms.

The construction of MCC still has a ways to go. There are several eminent domain issues that must be settled. I attended as many as the meetings as I could and tweeted and blogged every one of them. Not for fun (Oh, I had fun!). But as I stated in an earlier post, I asked many questions about the MCC Project. Do I believe out city leaders have the taxpayers money and the future of the city in their hearts? Sure, I want to believe that but there are no qualifications for a sound mind to get elected. What I saw and heard at some of the public hearings were long winded, lack luster speeches that did not educate the public on why Metro chose this plan as “the Savior” of the city when three entities of major importance were involved in lawsuits on similar projects, questionable reports, and a public image flawed beyond repair.

Clark Construction Group (CCG) will be the general contractor for the MCC project. CCG, a Maryland based company who touts 4.7 billion in revenues won a contract in a city that has general contractors galore. Interesting. Clark Construction Group created local diversity/minority partnerships to win the bid valued at nearly $350 million for the historical project. It’s hard to understand why our city leaders decided that an outside company was the way to create jobs in our city with so many general contractors starving for work. I looked into the Orlando Convention Center (OCC) project that was built by CCG who formed partnerships with local companies in Orlando as well.

After a few glasses of oranges juice, I learned several of those partnerships ended in disaster for the smaller companies who eventually sued Clark who was dba as Hunt/Clark/Construct Two and have been in litigation for six years after the construction of the OCCC. In October ’09, US Bankruptcy Judge Michael Williamson issued a 6.3 million dollar judgment against the Clark Construction Group, the folks Metro hired to build MCC.

In a 163-page order in a case that has dragged on since 2003, Judge Michael Williamson said the joint venture hired by Orange County to oversee the center's construction was responsible for "an inefficient mess" and "an uncoordinated nightmare" that was completed "in the most unproductive way possible."

"Somehow, in what appears to this court to be a state of chaos, a convention center was built," Williamson wrote. The Orlando Sentinel

Who interviewed these folks at Clark Construction Group? Did CCG reveal the problems that were STILL in the news during their interviews? How could multiple lawsuits for not paying subcontractors been over looked or explained away? Seriously, this is scary.

According to many of the subcontractors, the project stayed in budget simply because many of them were not paid. Note to Metro accounting department, please do not give Clark Construction Group a check to pay the vendors. Just saying.

Furthermore, Judge Williamson’s order stated the project plans were "bogus" and the city of Orland maintained a public relations front to show that everything was okay when in actuality the OCC project was tragic for the subcontractors. Metro launched a PR campaign for the MCC and it bit Metro on the butt when the fees for the PR firm were revealed. Flags from the Sunshine State were waving for some time to taxpayers and to our compliant Metro council.

If disclosure about Clark Construction Group is starting to make you feel queasy, then HVS, the hotel consulting firm, should have you looking for a bottle of Pepto Bismol. HVS was hired to do the feasibility study for the MCC. HVS was referenced several times at January 19, 2010 council meeting as a company that could not be trusted and not worth the money that was spent on them. Does that mean the taxpayers get a refund for the “work” done on behalf of the MCC? HVS's feasibility study is mired in controversy because HVS believes strongly in recycling reports. HVS gave the same report to other cities that it gave to Metro. HVS blamed that on a “computer” that spit out the same information to different clients. Side note…if I count ten roaches in the offices of 9 different clients and report that each roach was the exact same size, color, and breed; please feel free to be skeptical of my business ethics and qualifications as a pest control operator.

HVS’s feasibility studies have come under scrutiny in Albany, New York; Baltimore, Maryland; and Dalton, GA. Councilman Mike Jameson raised concerns in one meeting prior to the final vote that the analyses HVS completed for the metropolitan cities of Santé Fe, N.M; Milwaukee, Wis.; Columbus, Ohio and Omaha, Neb. were verbatim in each report that a dependence on local event business “provides a partial buffer against economic cycles and continued concerns with air travel.” He went on to single out a study commissioned for Sante’ Fe in which HVS appeared to accidentally provide information addressed to Milwaukee. HVS’s managing director, Tom Hazinski, defended the company’s work.


We did not have to go outside of Tennessee to find HVS in the news for their inferior work. In 2007,the Chattanooga Times reported:
“Word on whether a developer will build a hotel next to the Northwest Georgia Trade and Convention Center may be delayed after trade center officials got back the first draft of a feasibility study and found multiple errors…”


Councilman Jameson came with the theatrics,but he raised legitimate concerns about HVS.Some council members say they sought other analyses when they made their decision to vote in favor of MCC. No companies were given when asked. If one of the primary factors for going forward was analyses by a hotel consulting group, would it not have been in the best interest of Metro to reassure the taxpayers that the figures used for the forecasting of the MCC were not completed by the sloppiest consulting company that existed. We can’t please every client, could be HVS’s argument. But when many municipalities are complaining about consulting work that resembled a port-a-potty after Bonnaroo, that consulting work should have been dismissed and a second or third company should have been asked to do the work. The
delay would have been worth the effort if it eased the concerns of the taxpayers and the blatant sloppy work of the consulting firm would not have been in question.

Paying attention now? If Clark Construction Group makes one queasy and HVS got you reaching for Peto Bismol, Goldman Sachs (GS) should have you running to the toilet with diarrhea. Goldman Sachs whose name is synonymous with Sodom and Gomorrah was chosen to work on the MCC Project. This should have taxpayers picketing the home of that person who made that decision. Goldman Sachs helped lobby for deregulation by Henry Paulson then Chair of the GS. Before 2004, the SEC required banks to carry a debt ratio of 12 to 1. With the lobbying efforts of Paulson during the Bush Administration, investment banks were allowed to carry a debt ratio of 40 to 1. The five investments banks were Goldman Sachs, Morgan Stanley, Lehman Brothers, Bear Stearns, and Merrill Lynch. How many are still standing?

This very high debt-to-reserves helped lead to the financial crisis of 2008 by weakening the ability of these institutions to recover from losses incurred when the risky CDO and CDS bets failed. Goldman Sachs, a former investment bank, now a holding bank company practically defrauded our country and is now involved in one of the riskiest ventures in the history of our STATE and no one is sounding alarms. Goldman Sachs which is cloaked in secret dealings, helped undermined our financial standings around the world, has their hands in MCC. They will make money if MCC is a deal with the devil or manna from heaven. There is no incentive for them to do what is in the best interest of the city or the taxpayers. When Goldman Sachs puts greed above our country’s well being, should a local community believe GS will look after the interest of that local community and its taxpayers. Especially, a community that is a tier two city that is depending on tourists to visit and hoping they will spend money. That’s a tall glass of weak tea with no sugar to swallow.

Last year when the housing and financial markets were going to hell in a hand basket, many people had to choose between paying for utilities and buying medicine. However, Goldman Sachs folks received billions in bonuses. Let’s review their bonus payments from 2008-2009.

• Tarp funds received: $10 Billion
• 2008 Earnings: $2.3 billion, or $4.47 a share.
• 2008 total bonuses: $4.82 billion (includes $2.24 billion in cash)
• The top four received a combined $45.9 million
• The next four received a combined $40.81 million.
• The next six received a combined $56.40 million.
• Number of individuals that received more than $10 million: 6.
• Number that received more than $8 million: 21.
• Number that received more than $5 million: 78.
• Number that received more than $4 million: 95.
• Number that received more than $3 million: 212.
• Number that received more than $2 million: 391.
• Number that received at least $1 million: 953.
• Total work force: 30,067.

In the first and second quarters of 2009, the Goldman Sachs earned $5.3 billion in net income, the most profitable six-month stretch in the company’s history. By August of 2009, Goldman's stock had more than tripled since its low in November of 2008, to more than $160 per share. Goldman Sachs set aside $11.36 billion in the first eight months of 2009 in total compensation and benefits for its 29,400 employees. In 2008, while Goldman earned $2.3 billion for the year, it paid out $4.82 billion in bonuses, giving 953 employees at least $1 million each and 78 executives $5 million or more (although Goldman's top five officers, including Blankfein, made a public show of declining to take bonuses).


The company who gave 953 employees at least $1 million each was attending our local
council meetings and no one had them arrested? Insane!

As for the community of color, stop rolling over and playing dead with Metro. Our council members folded like lawn chairs at the end of a picnic with the MCC project. Several of the Black Caucus members, who questioned the intentions of May Town, did not show out about MCC. The May Town development never made it from the planning commission. The only two folks of color on the planning commission voted against May Town. Wait, wasn't May Town going to benefit the North Nashville community? If that is not using your own to kill you, then I don’t know what to call it.

Since I mentioned color folks, the community of color must speak truth to power and address how the majority trots out a few good black folks as the voice of reasoning for the entire community of color. It’s insulting and belittles folks with sound mind and judgment who can think for themselves. Metro must stop using folks only when Metro wants to show “diversity and unity” in Nashville. We have come too far to continue playing that game. When people are used in that manner, they are devalued and not respected behind closed doors by the very majority that pulls out their two Black friends when they need to be escorted into a room full of black folks.(My two Hispanics and three Kurdish friends made me write that paragraph!)

I am saying all this for what you may be asking? Get involved. Open your minds and your mouths. Do your research and ask legitimate questions. It does not mean you are against Metro Gov’t, the Metro Council, or the Mayor. It means you are not stupid. No one speaks for me. If you speak to me, I will answer you back. The MCC project has passed. Now what? We all must be watchful that mistakes, miscues and bad business practices do not plague this project. Political mind games with taxpayers money got us into the national debt crisis that we are in now, we must hold one another accountable to do what is right. And sometimes what is right may not sound popular. It is going to take rolling up sleeves and elbow grease to help this city do better by being better to all of its citizens not just a few selected individuals. I am praying for the success of MCC. May this project rise above political agendas and everyone involve work for the greater good of all the people of this great city.

At this point, we need to stand strong together, listen to each other, speak up to be heard and join in to be counted. If you a business owner looking to do services with Metro, by all means get on the vendor list. If you are minority contractor wanting to work with the city as a minority vendor, get your business affairs in order and work to build genuine relationships that can led to real partnerships with majority companies. Study, study, and study the plans, meet with members of MDHA, and attend any meetings that are being held for public. Often times, attending a public meeting can lead to a private meeting to discuss business goals or employment opportunities.

This was long. See what happens when you spend too much time blogging council meetings…one starts to ramble on and on and on. Be good and pray for Haiti.

For more info on MCC go to www.nashvillemusiccitycenter.com

Credits:
The Wall Street Journal
The Bloomberg Report
Time Magazine
The City Paper
The Orlando Sentinel
The Chattanooga Times
Rolling Stone
Business Week
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