Archived Story

City needs to quit making quick deals

Published 12:01am Sunday, December 9, 2012

Call me a skeptic, it’s OK, I won’t be offended, but I simply don’t trust things that seem too good to be true.

Perhaps it’s in my genes.

If so, that genetic trait apparently may not be shared by some in our city government.

That might explain why city leaders seem to believe practically anyone who comes before them and says, “Have I got a deal for you?”

Several years ago, this came in the form of a handful of “financial experts” who convinced the aldermen that a complicated financial instrument called a bond swap would provide a pot of gold at the end of a debt rainbow.

History now shows us that the $400,000 ceremonial check that was created for the photo op was a bit of a myth.

The amount shown in the giant check shrank to approximately half that figure before it hit the bank due to a number of fees involved in the transaction.

That was in 2006.

Few of the people involved — the then-mayor, the aldermen or the city clerk — seem to understand all of the implications of the deal.

The men in the slick suits left with pockets filled with cash and with smiles on their faces.

They returned earlier this year — many of the same faces, but with newer, nicer suits.

“Have we got ANOTHER deal for you?” they said.

In no time flat, the city essentially refinanced the bond swap deal, replacing it with another arrangement.

The suits left town, again with cash-lined pockets.

Only after they left did citizens begin to realize that both arrangements had prolonged the payoff of the Natchez Convention Center’s construction debt.

More than five years ago, another group came to town and said, “Have we got a deal for you?”

This time the deal involved the management of the Natchez Convention Center, which had previously been managed by City of Natchez employees.

A big contract later and the city has been writing large checks to a New Orleans management firm ever since.

Interestingly, the management firm hired the former city employee who was leading the convention center.

Years later, there’s no telling how many thousands of dollars have headed to New Orleans as part of the deal.

In the latest, “Have I got a deal for you?” scheme, a local radio station is seeking the city to carve up its contract with the convention center management firm. The local radio folks seek to gain control over the Natchez City Auditorium.

Just as the other folks before them have done, they’re merely seeking to make a buck off the city’s own naiveté.

I completely understand the reason the city seeks to streamline its processes for service-related items such as grass cutting. Most of us hire professionals for non-routine, specialty services — dentistry, medical care, legal services, etc.

But basic management and marketing of city assets — or in the case of the bond swaps, city finances — should not be doled out.

Management of the convention center and city auditorium should be operated by those with the city’s — not their own — best interest in mind.

Logically, that would fall under the auspices of the Natchez Convention Promotion Commission.

If city leaders aren’t happy with the current management, why not seek to bring the whole deal back in-house and, perhaps, not make another mistake by letting others profit off taxpayers’ assets?

 

Kevin Cooper is publisher of The Natchez Democrat. He can be reached at 601-445-3539 or kevin.cooper@natchezdemocrat.com.

  • Anonymous

    Fools and their money…

  • Anonymous

    Kevin, sometimes it costs money to make money. As far as I know, the city did not lose any money on those bond swap deals. Do you have a problem with paying those who bring in the money? Or put another way, do you think they should do it out of the kindness of their hearts? How do you expect them to put food on their tables?

  • Anonymous

    Kevin’s point was that the deal resulted in an extension of time for when the convention center would be paid off, thus this deal was a “refinancing” of existing debt, taking money out to pay the consultants and get a check for the city. More interest paid out over time. Legalese sleight of hand. I’d rather see the walnut shells.

  • Khakirat

    I think the city needs to sell the convention center to one of the two casino from the get go that is what should have been done is let the casino build the convention center as I was told but certain people wanted the city to do it on their own and this has been a costly mistake huh”??!! Gosh” I’m glad to I’m in the county!!

  • Anonymous

    I don’t know. I am a fan of refinancing. My ex wanted to refinance for 15 years while our payments went up. I said, let’s refinance for 30 years, keep the same payment with a lower interest rate and get $15k to put back in the house . It was a no brainer to me, even with the cost of refinancing it was well worth it.

  • Anonymous

    Problem here is – they are not putting it back in the house. They give some to the consultants and get about half to blow on pet projects.

  • Anonymous

    They wouldn’t get any of it without the “consultants”.

  • Anonymous

    That is the point, the consultants selling the walnut shell tricks to get themselves some money and the city getting a free portion by extending taxpayer debt is ludicrous. Refinancing if interest rates went down significantly from the original note, without extending the term of the payout, and reducing taxpayer dollars spent (due to a lower note for the same time period) would be highly acceptable. The new form of payday loan escaped the public on this one.

  • Anonymous

    DAVE07DEUCE07

  • Anonymous

    YOU GOT THAT RIGHT, IT’S IN YOUR GENES. SITTING UP THERE WITH THAT AXE HEAD SHARP ENOUGHT TO BURST UP FIRE WOOD. YOU AND YOUR NEWS PAPER CONTINUE TO DIVIDE THIS COMMUNITY. YOU ARE THE RING LEADER. CAN’T GET UP IN THE MORNING AND READ A REFRESH ARTICLE WITH OUT YOUR DIVIDING COMMENTS. WHY DON’T YOU PLAY THE GAME LIKE EVERY ONE ELSE DOES, USE *ONE* USER NAME AND STOP PRENTING YOU ARE THREE OR FOUR DIFFERENT PEOPLE. BE A MAN.

  • Anonymous

    Would you go die already so the collective intelligence of the world will increase? We all know that “07″ in your user name is either your IQ or the number of brain cells rattling around in that coconut you call a skull.

  • Anonymous

    It sure has been quiet around here for the past couple of weeks, without all that screaming!

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