Editorial: An Argument for Funding Local Newspapers 


Some say the pandemic was to blame for the closed doors and the lack of public scrutiny. Could be. But it was ultimately the absence of sunlight that created fertile ground for Project Pascalis to take root. 

It was the absence of a critical media eye that allowed this public-private development scheme to grow into a $100 million boondoggle so riddled with wrongdoing that — once finally brought into the open — it drew an immediate and well-organized citizens’ opposition that culminated in two lawsuits alleging wide-ranging violations of ethics and state law, with the larger of the two naming the City of Aiken, the Mayor, the developers, and over two dozen members of City Council, the Economic Development Commission, and the Design Review Board, among others.

In the absence of media spotlight over the past two years, it was ordinary people, not local media, who ultimately brought this story to the public this spring. It was ordinary people who raised questions of ethics and law. It was independent writers who volunteered their time and skills to research and to independently publish their findings about Project Pascalis, reducing the Aiken Standard’s coverage to irrelevance and mere fodder for criticism.

To be fair, the Aiken Standard has been flailing against its own demise for years, between declining circulation, falling ad sales, worker shortages, and even carrier shortages, which left many daily papers, including ours, frequently undelivered for a string of months last winter. We kept our subscription, but others no doubt didn’t. Those looking for ways to cut corners in this difficult economy likely welcomed the excuse to cancel their subscriptions.

The evidence of the newspapers’ struggles is plain to see. The State newspaper out of Columbia, for instance, has resorted to high pressure sales tactics not unlike those used by car-warranty robocallers. The Aiken Standard in recent months appears to have resorted to using budget ink, or to thinning the ink to the extent it’s all but invisible some days.

So who’s left to afford the price of sunlight these days?

Keeping an eye on government, business and industry takes money. Keeping qualified staff takes money. Keeping the presses running takes money. Producing quality, investigative journalism isn’t cheap, and the cost of ink to uncover corruption in high places can run especially high — all the more when a newspaper’s revenue flow depends on the very wrongdoers in need of scrutiny and investigation.

So how are newspapers to afford sunlight, when it’s a challenge just to keep the lights on in the newsroom?

My 94-year old mother, who’s lived long enough to know a few things, recently told me she started donating to the Post and Courier’s ”Uncovered“ project, which funds investigative journalism. I initially pooh-poohed the idea, arguing, ”Why should we pay newspapers to do what they’re already supposed to be doing?”

Then I read an “Uncovered” investigative report titled, “News Deserts and Weak Ethics Laws Allow Corruption to Run Rampant in SC,” which more or less answered my question. As the “Uncovered” report explained in its introduction:

Corruption festers when people aren’t looking, when the spotlight doesn’t shine. Without fair scrutiny, public officials with weak ethical backbones bend the rules. They help themselves to public money. They help their cronies instead of people they represent. Like a virus, corruption mushrooms, and so do the costs to you and other members of the public. Sunlight can disinfect, but South Carolina has lost some light.

So maybe my mother is right. Even as the local newspaper persists in ignoring or downplaying the groundswell of public opposition to Project Pascalis, the answer is not to turn out the lights, but to make sure they stay on. Those of us who have been working in the vacuum left by an absent media are hoping the Aiken Standard, The Post and Courier, and their parent company, Evening Post Publishing, will give some thought to our local newspaper’s role in Project Pascalis. 

A good place to start would be the front page article, “Impact of Pascalis,”  in today’s Sunday paper. Somewhere between the hollow efforts to put a positive spin on this project, and the wall of photographs of the buildings slated for the wrecking ball looms the question, ”Whose interests are served by this article?” 

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More links here: 

The Uncovered Project

Post and Courier’s Uncovered project wins National Headliner Award

Report from the Hussman School of Journalism and Media: News Deserts and Vanishing Newspapers: Will Local News Survive?

Barely Insured: The City of Aiken’s Management of the Historic Hotel Aiken

Recently obtained documents reveal the City of Aiken has declared no insurance value for the historic Hotel Aiken, and is paying an annual insurance premium of only $441 on the hotel. (1) The City of Aiken has provided no reason for the decision to leave the hotel nearly uninsured. 

Hotel Aiken: No Value, Barely Insured 

The City of Aiken’s Municipal Development Commission (AMDC) purchased seven properties at a cost of $9.5 million in early November, 2021. The purchase was funded by a bond issuance approved by Aiken City Council three months earlier. (2). Two of the properties, the Hotel Aiken and the adjacent Holley House Motel, were vacant at the time of the purchase. The combined purchase price for these two properties was $4.25 million. 

The properties form a substantial portion of the proposed, but evolving, demolition and redevelopment endeavor in downtown Aiken called Project Pascalis.  The project is promoted and led by the AMDC, which was formed in 2019 and has no prior, largescale institutional development experience. 

After the original developer GAC, LLC (agent: Weldon Wyatt) exited from the project in May, 2021 for unknown reasons, the AMDC eventually selected RPM Development Partners, LLC (agent: Ray Massey) as its replacement in December 2021.  The AMDC signed a conditional purchase and sale (PSA) agreement for the seven properties, pending a final master cost-sharing and development agreement. That PSA remains confidential and exempt from a Freedom of Information Act request. The AMDC has stated that it will offer “a discounted price for the property upon which they will build the hotel and apartments.” (3) 

A request for proposals (RFP) leading up to RPM’s selection occurred in May, 2021 and was not publicly advertised as required by South Carolina Community Development laws. A legal advertisement for RFP’s was placed ten days after the selection of RPM. As a result, the legitimacy of RPM’s status as the developer has been challenged in court. (4)

The Hotel Aiken was placed on the city’s historic register in 2018. The designation remains despite the city’s Design Review Board (DRB) approval on March 1, 2022 of a demolition application from RPM for the hotel and the adjacent building titled 106 Laurens St, SW. The permission to demolish, approved by a vote of 6-1, is conditional, and demolition will not occur until RPM has a final agreement to purchase the property, has a final master agreement with the AMDC, and final designs are approved by the DRB.

In a document titled “Property Schedule,” attached to the first page of the property declarations portion of the city’s property insurance policy, no value is assigned to the Hotel Aiken. This zero value was assigned months prior to the demolition application being filed. 

The annual insurance premium for the hotel is only $441, less than the premium for the average 1200 square foot home. The total insurance value is only $284,060, even though in 2021 the Aiken County Assessor appraised the market value of the land at $562,000 and the hotel improvements at $987,000 for a total appraised market value of $1.549 million. 

Another way of looking at the value of the Hotel Aiken is by examining the offers the AMDC received in 2021. According to a redacted review of bidders (5) involved in the May, 2021 RFP process, one developer was rejected for only offering $1 million for the hotel property, described in the review as a “deeply discouted (sic) price.” 

In contrast, the adjacent Holley House motel, which is also vacant and part of the Project Pascalis demolition zone, has an assigned value of  $2.25 million and an annual policy payment of $3493. Every other building in the demolition zone also has an insurance value matching the AMDC’s purchase prices. (See Property Declarations Table). 

When asked about the lack of insurance value for the Hotel Aiken, city officials declined to comment. The question as to why the AMDC spent more than $2 million on land and improvements, describe a $1 million offer as a “deeply discounted” value, and then chose not to insure the improvements against fire or other losses also remains unanswered. 

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Coming Soon: Part 2: Less Protected: A before and after comparison of fire protection programs for downtown AMDC properties.

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(1) A Freedom of Information Act (FOIA) request was filed on July 11, 2022. The request was for: 

“Copies of the Property and Building Insurance Policies for the following AMDC owned properties 121-21-09-001: 106 Laurens St 121-21-09-002 : Hotel Aiken 121-21-08-001 Holley House 121-21-08-002: Taj Restaurant + 121-21-08-003: Old Johnson Drug Store 121-21-08-004: Warneke Cleaners 121-21-08-004: Newberry Hall. These commercial property and building insurance policies should be readily on hand and retrievable within fifteen minutes.”

The City of Aiken responded on July 18 with a $16 charge for 1.25 hours of search and retrieval labor. After receiving payment on July 18th, the city waited until July 21st to release three documents: 

File name Document Description
insuranceinfo.pdf The Property Declarations page and the “property schedule.” 
Property Schedule – Pascalis Project.pdfA January 19, 2022 table of insurance values
SCMIRF-Property Coverage Contract 2022.pdfThe City’s Insurance Policy for city property. 

The insurance policy is titled “SOUTH CAROLINA MUNICIPAL INSURANCE and RISK FINANCING FUND COVERAGE CONTRACT 2022.” 

Only a portion of this document, the “property declarations” chapter, was provided in the FOIA response. The city claims that the remaining portions do not apply to AMDC owned properties. Chapters detailing coverage declarations for liability, crime, and casualty coverage were considered unrelated to the request for entire insurance policies. 

The issue is presently under appeal to Aiken City Manager Stuart Bedenbaugh. 

The documents are are available at: 

Hotel Aiken Fire Information – https://drive.google.com/file/d/1krYZVK5MrOVDOGxr_cAWzUpdyBhSmhJk/view?usp=sharing

Hotel Aiken et al property declarations – https://drive.google.com/file/d/1LGsW1ZOpzCD7vimEoEnepygtmQ2kf4nh/view?usp=sharing

Hotel Aiken et al and city insurance policy – https://drive.google.com/file/d/1Y29OaSyUmtBmUheZ-iq3BfME7_JM4kHs/view?usp=sharing

(2) A table showing the seven properties, the purchase values, and the county’s assessed values, can be viewed at: https://i0.wp.com/aikenchronicles.com/wp-content/uploads/2022/07/d117f8c8-47de-42c9-b18e-c928155e1e07.jpeg?ssl=1

“A Timeline for Project Pascalis” can be viewed at: https://aikenchronicles.com/2022/06/29/a-project-pascalis-timeline/

(3) https://aikenmdc.org/2022/05/16/just-the-facts-why-pascalis-how-do-we-pay-for-it/

(4) A lawsuit filed on July 5, 2022 challenging nearly all aspects of the Project Pascalis proceedings can be found at: 

https://publicindex.sccourts.org/Aiken/PublicIndex/PIImageDisplay.aspx?ctagency=02002&doctype=D&docid=1657032061451-750&HKey=1225510198105101819811411111368116736686988811779851011126650118568710782105981141011085499115100111699969

(5) https://aikenmdc.org/wp-content/uploads/2022/03/Pascalis-offers-comparison_Redacted.pdf