Loosey Goosey
Part Three in a Three-part Story

CORRECTION 10/11/2023: An auto-correction error placed the word, “billion” in the following sentence, which has been corrected to read: “The primary blame for the creation of this now-$7.7 million project was attributed to lack of communication, lack of oversight, and lack of a clear budget.”

1998-1999: The Aiken Community Playhouse Considers a Move
2000-2001: The Amentum Model: “Corporate Coup”
2002: The Amentum Model: “Loosey Goosey”

In 2002, the headlines began to convey concerns over the real-world cost of the public-private development project between the City of Aiken and the Aiken Corporation.

February 9, 2002 headline: “Council has stage fright – community playhouse seeks $1.5 million to finish theater”¹⁷

Those costs came into sharp focus in February 2002. City Council members seemed blindsided, saying they’d never been consulted on the project’s cost overruns. City Manager Roger LeDuc said, “I just found out with the mayor about a month ago.” ¹⁷

Angie Fitzgerald, president of the Aiken Community Playhouse board of directors, said that the playhouse had been forced to seek additional funding from the City because of the multi-use nature of the building. 

Indeed, the scope of the facility had morphed from being a new home for the Aiken Community Playhouse in 1998 to serving as a combo “center for performing arts,” the headquarters for an international nuclear-industry contractor, and a meeting and events center for the City of Aiken.

Over the prior two years, the Aiken Community Playhouse had not only lost naming rights for the facility, but had seen three name changes — the Westinghouse Performing Arts Theater (2000); the Aiken Center for Performing Arts, (2001), and the Washington Center for the Performing Arts (2002). And they had yet to even open.

The increased costs were due to, among other things, the changed scope of the project and the “design-as-you-go approach” that became necessary to expedite construction in order to meet the Washington Group’s move-in deadline. Juxtaposed with the posh accoutrements, such as expensive, state-of-the-art audio visuals and other technologies to accommodate corporate clients. was the reality that, with funds scraping rock bottom, the work of finishing the interior of the Playhouse side of the building would need to rely on volunteer labor.

Community complaints had been ongoing since the summer of 2001 about the ungainly appearance of the rear side of the Playhouse, which had been sheathed in green metal siding, rather than the brick used on the front facade and the Washington Group’s portion of the building. According to Aiken Corporation meeting minutes, there was discussion over having a mural painted or having the City horticulturist plant some greenery to cover the metal siding on the Playhouse rear.

The February 9, 2002 editorial page of the Aiken Standard featured a letter by local citizen Nancy Wilds, one of the co-founders of the Historic Aiken Foundation (HAF).

This facade, as seen in the October 2023 photos, below, is visible from a number of vantage points, including Park Avenue, Chesterfield Street, the Municipal parking lot, and the AU parking lot off of Park Avenue that also serves Neon Fig and other businesses. The exterior areas of the City-owned Playhouse are unkempt in places.

October 2023: Views of the green metal facade and other exterior features of the City-owned Playhouse side of the Amentum building as seen from the AU Health and Neon Fig parking lot off of Park Avenue

October 2023: Park Avenue view of the green metal facade of the Playhouse side of the Amentum building.

October 2023: The rear views of the Playhouse facade as seen from the Municipal parking lot and Chesterfield Street

February 15, 2002 headline: “Playhouse Now Needs $1.1M”¹⁸

On February 14, Aiken City Council members toured the building. The $1.5 million funding request by the playhouse had been reduced to $1.1 million by a few downgrades, such as limiting the use of carpeting in the auditorium and eliminating a luxury box. 

Aiken Corporation chairman Wade Brodie explained that the playhouse needed additional funding due to “a misunderstanding of the financial terms for the facility,” including $229,620 for land costs, $240,160 for architectural fees, $30,000 in site preparation fees, and an additional $250,000 in ‘soft cost.” ¹⁸

Mr. Brodie also indicated that the cost had ballooned due to change orders associated with the multi-use nature of the facility, which was to be used by “the actors, the Washington Group, and other community groups.”¹⁸

Onlookers to the unfolding saga had difficulty reconciling the various numbers being tossed back and forth like so much Monopoly money.

March 10, 2002 headline: “Arts Center Debate Expected — Aiken City Council to Consider $935k loan to finish downtown theater”¹⁹

With March 2002 also came the realization that the Aiken Community Playhouse — which had started out in November 1998 with the ambitious dream of buying and renovating an old theater for $500,000 — was now deeply in debt. Playhouse members were forced to hold out their hats to finish construction of the Playhouse portion of this elaborate structure, whose cost was now clocking at $4.2 million for a theater that belonged to the City of Aiken, not the theater group.

The playhouse group — which had earlier committed to raising $441,000 through “an aggressive capital improvement campaign,”¹⁹ for the demolish-and-rebuild option brought to their table in March 1999 — saw their commitment jump several times, finally arriving at over $2 million in March 2002. The requested $935k loan to the Playhouse was to be repaid to the City and was not part of the City’s own $2.2 million “commitment” to the cost of the Playhouse side of the structure.

Meanwhile, on the other side of the building, the non-profit Aiken Corporation had inherited the $3.5 million dollar Washington Group building without fronting any money of their own.  Despite a lack of investment, the Aiken Corporation’s newly-created, for-profit arm in this public-private development project, known as LED of Aiken, Inc, would, according to newspaper accounts, receive $29,000 per month in rent from the lucrative SRS federal contractor tenant that the Aiken Corporation had courted two years earlier to locate its corporate headquarters in Aiken.

As the tally of these still-mounting costs continued to come into focus, the heat from City Council members, the local newspaper editor, and local citizens reached critical mass. City Council, which had initially been critical of the Playhouse for increasing costs, came to the realization that the Playhouse was the least responsible party for what the newspaper described as “the headlong race to complete the Washington Government office project and the theater without sufficient regard for the mounting cost.”¹⁹

The primary blame for the creation of this now-$7.7 million project was attributed to lack of communication, lack of oversight, and lack of a clear budget.¹⁹

City leaders admitted, “mistakes were made” in the development of the Washington Center for Performing Arts, and “efforts are underway to sort out how they occurred.” ¹⁹

March 12, 2002 headline: “Washington Center for the Performing Arts – Smith: ‘It’s still loosey-goosey’ — Theater funding moving ahead, confusion remains.”²⁰

As the local paper recounted, the only thing that City Council and the Aiken Corporation could agree on in the Monday night City Council meeting was that there was enough blame to go around regarding the confused financing. 

Councilman Richard (Dick) Smith said, “It’s still loosey-goosey. When we start talking about money in a project this large, we need to have that written down.”²⁰

Councilman Smith said that a lack of oversight had left everyone unsure of who was paying for what, and when they agreed on it. He called for a complete audit and said that future projects should call for an overall projects manager responsible to the City.

Council member Pat Cunning remarked, “Nobody ever said, ‘That’s your budget, live with it.’”²⁰

In this same meeting, City Council discussed two different loan proposals before them — one to Aiken Corporation for $3.5 million dollars as a mortgage for the Washington Government office complex; another to the Aiken Community Playhouse for $935k to complete the work on the interior while awaiting outstanding pledges and other anticipated income.

The City also agreed to fund over $700k in land and architectural costs paid by the Playhouse when the group earlier anticipated owning the building. 

Regarding the Aiken Community Playhouse agreement to raise $1.6 million to fund construction of the City-owned building, Council member Mike Anaclerio deemed it “unfair to expect a civic group to bear such a burden in funding the project,” saying, “My main case is that no other organization in the city has ever paid this size of a share for their project.”²⁰

City Council meeting minutes March 11, 2022. Click to view full size.

March 13, 2002: Aiken Standard editorial headline: “Let’s learn from errors downtown.”²¹

An Aiken Standard editorial page piece titled, “Let’s learn from errors downtown,” ascribed the cause of what it termed “consternation” over the project to “the lack of oversight on the construction and an escalation of costs that has apparently caught everyone concerned unaware.” ²¹

“The ensuing confusion has led to requests for loans, bickering over payments, and questions of who is to pay how much for what.” ²¹

Paragraphs later, the piece concluded, “Few will question the worthiness of the project on Newberry Street. It will be a feather in Aiken’s cap for decades. The manner in which the overall project was handled, however, leaves much to be desired.”²¹

March 18, 2002: Special meeting Work Session between the City of Aiken and the Aiken Corporation

Questions and concerns were raised over the terms of the two loans before City Council, as well as the language of the ordinances and the degree of oversight the City might exercise with future Aiken Corporation projects. These questions and concerns would spark, at times, to contentiousness during the later public hearing on March 25.

Note that the minutes for the March 18 special meeting are currently mis-filed under March 11 in the City records. Click this link to view the 5-page minutes of this meeting.

March 25, 2002: Calls for an independent, third-party audit

Before City Council during the March 25 public hearing were the second readings on two ordinances — one authorizing the City to lend the Playhouse $935k, another authorizing the City to lend up to $3.5 million to LED of Aiken, Inc. the newly created, for-profit subchapter S Corporation, to which the Aiken Corporation was the sole shareholder.

Discussions initially centered on the terms of the loan to Aiken Corporation and LED of Aiken, Inc., whose names were used interchangeably in discussion. Concerns also went to the existing language in the ordinance, which had the Aiken Corporation agreeing to “cooperate” with City Council on any new projects using funds derived from revenue on the Washington Group building. Councilwoman Jane Vaughters made a case for changing the language to “must agree” with City Council. Further discussion led to a compromise of “will mutually agree” with the City Council, but this was defeated when put to a vote.

From here, the discussion turned to a call from Councilman Richard Smith for an amendment to the ordinance to to require a financial audit and a management audit of the relationship between the Aiken Corporation and the City of Aiken. His motion was seconded by Councilwoman Jane Vaughters.

According to the minutes, Councilman Cunning expressed concern over the cost of such an audit and pointed out that the city taxpayer would have to pay for such an audit.

Councilman Smith stated a rough cost would be $10,000-$15,000 and said, when you’re talking about a $3.5 million project, this would not be too much to spend to make sure things are done “completely right in the future.”

Mayor Cavanaugh questioned hiring someone to make an investigation of something. Councilman Smith responded that he would not call this an investigation, but an independent management audit. According ot the minutes, Councilman Smith stated that he “did not feel this could be done objectively in-house.”

Deliberation ensued, followed by Councilman Smith withdrawing his motion to require an independent, third-party management and financial audit. Councilwoman Vaughters agreed to the withdrawal. The matter of a management audit was to be discussed at the work session on April 8, 2002. 

This stage of the history is not well-served in this recap. The full text of the March 25 minutes, provided below, must be read to capture the important nuances of these discussions.

Aiken City Council minutes 3/25/2002. 16 pages. Click to view full size.

April 5, 2002 Letter to the editor: “The taxpayer has a right to know what happened.”²²

Letter to the Editor, Aiken Standard, April 5, 2002

April 8, 2002: Independent, third-party audit is off the table and replaced with an in-house management audit.

From Aiken City Council work session minutes, April 8, 2002. Click to view full size.

The April 8 minutes recapped Councilman Smith’s earlier request for independent audits as a requirement of the loan, in order to review the financial, legal and business aspects of the construction and the relationship between the Aiken Corporation and the City of Aiken. Smith had given Council an outline of the various points that he wanted raised in these audits and wanted further discussed with City Council.

In what appeared to be a matter of compromise, Councilmembers Smith and Vaughters agreed that, given Council’s concerns over the cost, an in-house audit would be fine. Councilman Smith said that he wanted the Aiken Corporation, in concert with City staff, to prepare written statements to the questions which he raised, that could be looked at and evaluated. Then they could decide what to do in the future.

May 1, 2002 headline: “Construction process at Washington Complex under review.”²³ 

The in-house management audit by City of Aiken staff attorney, Richard Pearce, was underway. A set of questions, including those earlier provided by Councilman Smith, were reportedly being posed to all parties involved in the project — the members of the Aiken Corporation, Washington Group, and Playhouse, in addition to the builder and the architect of the Newberry Street facility.

June 10, 2002 headline: “Council to Discuss Audit on Downtown Complex.”²⁴

On Monday, June 10, the local newspaper, reported that the City’s in-house management audit had found, “no irregularities in the construction of the Washington government complex on Newberry Street” and that “communications breakdowns were responsible for much of the confusion in the project’s execution.” The total project cost was quoted as $5,441,858.11, not including the costs for land acquisition, demolition and professional services. ²⁴

According to the article, City manager Roger LeDuc stated that City Council would have the management audit “in hand” for that evening’s meeting, and that Council, “may choose to discuss the audit findings in any manner they deem appropriate.”²⁴

According to the meeting minutes, no discussion took place. The only mention of the audit was in the minutes of the work session that took place before the City Council meeting, where it was decided that Council would meet again the following week for a special work session at 7:00 a.m. on June 18 to review and discuss a number of items laid out by City Manager Roger LeDuc. The topic of the management audit was not among the items proposed for discussion. Councilman Smith asked that Council make time to discuss the Management Audit during the June 18 special work session

June 18, 2002: Discussion of management audit missing in 7:00 a.m. special work session

If discussion of the management audit took place during the 7:00 a.m. June 18 meeting — or during any other City Council meeting — that discussion is stubborn to be found in the record. Below is the only mention of the management audit in the June 18 special meeting.

October 10, 2023: Looking Back

Also stubborn to be found in City’s of Aiken records is the report from Richard Pearce’s management audit — something that should be an easily accessible part of the public record. After several attempts by experienced researchers to locate the management audit in the City records, a Freedom of Information Act (FOIA) request was filed on Tuesday, October 3, 2023 for the following:

• A copy of the management audit and financial audit(s) of the Aiken Corporation’s Washington Group/performing art center project as referenced in the April 8, 2002 City Council meeting minutes.
• The list of questions submitted to Richard Pearce for inclusion in the audit.
• A record of any discussions that took place among City Council regarding the completed audits.

The FOIA was completed the next day, on October 4, 2023, with a return of 220 pages of documents, which are available for viewing at the pdf below.

Included in this pdf are Richard Pearce’s management audit report and supporting documents. Not included among these 220 pages of documents is a copy of Councilman Smith’s original questions as submitted to Council and Richard Pearce.

Nor is there any record of discussion among City Council members on the completed audit.

Missing from the 220 pages of documents is the reportedly attached statement of opinion made by Aiken Community Playhouse second vice-president Philip H. Porter, Jr., which was referenced on page 124 (see image below) and again on page 127 of the above pdf.

On Thursday, October 5, 2023, a FOIA request for “the statement of opinion by Philip H. Porter, Jr. regarding project management systems” was filed. This results of this request are still pending. This any any other updates to this story may be published in a future epilogue to this story.

Learning from Our Errors

While the June-July 2002 meeting minutes did not reflect discussion on of the the management audit, the minutes did record discussion on the first and second readings on the Aiken Corporation’s next project — the upcoming 2003 construction of the Willow Run Business Park spec building. This project was a dismal failure. The spec building, completed in 2003, was finally demolished after 20 years of sitting empty.

The Aiken Corporation’s “Amentum model” went on to be repeated, albeit on a smaller scale, in the controversial 2008-2010 Railroad Depot project on Union Street — another public-private development project that promised to draw tourists and bring prosperity to the downtown. Numerous citizens spoke out in protest at the time.

One local resident, who described the Depot as a “boondoggle” in her 2007 letter to the editor, wrote,

“On Monday, the Depot project presenter used the Washington Center and Newberry Street as references. The Washington Center [now Amentum Center] project and the problems that are now glossed over were a big mess — changing designs, not enough money, incomplete business plan. How soon council forgets.”²⁵

Another local resident, who described the Depot project as a “D.C.-style bailout,” wrote in her 2010 letter to the editor:

“Ten years after the mayor and city council told taxpayers that the railroad depot would be privately funded, they have gone back on their promise, and now the pack taxpayer will be on the hook to complete and maintain the newest downtown money pit. I was one of six individuals who expressed concern over the transfer of ownership of the Depot to the city. We were told by the mayor and city council members that the Depot would ‘draw people to Aiken,’ and that ‘we didn’t understand the railroad depot’s benefit to the city….” ²⁶

City Councilman Dick Dewar, in a guest editorial published in the Aiken Standard on November 9, 2011, questioned the Aiken Corporation’s “financial and management acumen.”

Speaking on the Railroad Depot project, Dewar wrote, “Without city Council approval, the Aiken Corporation expanded the scope of the depot project and in the process spent over $2 million and incurred debt of over $800,000.” ²⁷

Mr. Dewar went on to detail the then-latest requests by the Aiken Corporation — the third such request — to change the terms of their original $3.4 million loan to the City for the Newberry project. Mr. Dewar wrote:

“In summary, the Aiken corporation has repeatedly initiated projects for small amounts, or to be funded privately, but has an expanded the size incurring debt and responsibilities they cannot support. They then appeal to the city Council to use taxpayer dollars to meet these responsibilities. Given the history of financial and  management problems With the Aiken corporation, I think the city Council needs to restrict their ability to initiate projects without adequate funding.” ²⁷

Mr. Dewar called on his fellow council members to take the several actions, including to, “prohibit the Aiken corporation from spending money they don’t have. They must agree to stringent cost controls from City Council.” ²⁷

He finished saying that, “If City Council cannot get the Aiken Corporation under control, it should be dissolved.”²⁷

It’s been over two decades since the early lessons of the Aiken Corporation’s so-called Amentum Model went unheeded; it’s been over one decade since the lessons of the Railroad Depot project went unheeded.

The year is 2023, and we’re seven months into the latest Aiken Corporation project — a 3-story Savannah River National Lab complex that the Aiken Corporation is proposing to build on Newberry Street a block north of the Amentum building. Questions have already been raised about the Aiken Corporations’s financial and management acumen and lack of accountability. Promised deadlines have come and gone, and taxpayers are left wondering what was bought with the $250,000 awarded to the Aiken Corporation seven months ago.

Here, it must be emphasized that Aiken Corporation members are  neither elected by voters, nor appointed by elected officials, yet they have been given immense power over public resources. Elected officials no longer serve on the Aiken Corporation board, and there is no opportunity for public comment in Aiken Corporation meetings. What avenue can taxpayers pursue to hold the Aiken Corporation accountable with the power it holds with public resources?

The calls are ongoing for the City of Aiken to dissolve its relationship with the Aiken Corporation. In response, our City Council has been pressing harder still on the accelerator pedal, as if there is a hurry to get someplace before November.

The time for accountability is now — not some decades after the lessons from the latest corporate coup have been swept under the rug.

___________________

17. Daily, Karen, “Council Has Stage Fright – Community Playhouse seeks $1.5 million to finish theater,” Aiken Standard, February 9, 2002.
18. Lord, Phillip; Daily, Karen, “Playhouse Now Needs $1.1 million,” Aiken Standard, February 15, 2002.
19. Lord, Phillip, “Arts Center Debate Expected — Aiken City Council to Consider $935 loan to finish downtown theater,” Aiken Standard, March 10, 2002.
20. Daily, Karen, “Washington Center for the Performing Arts – Smith: ‘It’s still loosey-goosey. Theater funding moving ahead, confusion remains,” Aiken Standard, March 12, 2002.
21. Editorial: “Let’s learn from errors downtown,” Aiken Standard, March 13, 2002.
22. Wessinger, Tommy B., “Playhouse project needs independent audit,” Aiken Standard, April 5, 2002.
23. Daly, Karen, “Construction process at Washington Complex under review,” Aiken Standard, May 1, 2002.
24. City Council to Discuss Audit on Downtown Complex,” Aiken Standard, June 10, 2002.
25. Stoker, Jenne, “Depot Project a Boondoggle?” Aiken Standard, July 17, 2007.
26. Pate, Kathy, “Depot Project a D.C.-style Bailout,” Aiken Standard, August 23, 2010.
27. Dewar, Dick, “Aiken Corp. Needs to be More Accountable,” Aiken Standard, November 9, 2011.

Corporate Coup:
Part Two in a Three-Part Story

1998-1999: The Playhouse Considers a Move
2000-2001: The Amentum Model: “Corporate Coup”
NEXT: 2002: The Amentum Model: “Loosey Goosey”

The super-sized January 28, 2000 Aiken Standard headline was subtitled, “Government Services picks Aiken for HQ” — a development that signaled a paradigm shift in the Playhouse project. Newberry Hall had been the site of an announcement that day, “sure to keep area economic development officials and downtown business owners grinning for months.”¹¹

According to the article, Morrison Knudsen Government Services Group, (GSG) “decided to locate its corporate headquarters in downtown Aiken.” The new building was to be located on Newberry Street at the site of the Mark II theater and other properties purchased six months earlier by the City. 

Governor Jim Hodges, Mayor Cavanaugh and other dignitaries were on hand for the occasion. Governor Hodges said “Today’s announcement reaffirms the long-standing partnership between Westinghouse and the Aiken community… and strengthens that commitment to economic development.” ¹¹

Mayor Cavanaugh said, “It’s a great time here for Aiken,”¹¹ and expressed hope that folks attending meetings and conferences would be inspired to move to Aiken. 

Morrison Knudsen GSG was holder of a number of defense contracts, including the Westinghouse Savannah River Co. contract. Morrison Knudsen GSG’s new corporate headquarters was estimated to cost $3 million dollars and would share the building space with the Aiken Community Playhouse. The expected move-in date was spring 2001. The GSG side of the building was to be funded through private sources, and the playhouse side through public funding. The City of Aiken, (owner of the property) and the Aiken Corporation were to oversee the work, including both the construction and design stages, which were slated to begin immediately. 

Below the fold on the front page with this January 28, 2000 headline was a smaller headline, that read, “Sharing the Stage,” which described the building that would house the new Morrison Knudsen GSG headquarters. Designed by McDonald Law, the structure was described as a “two story brick structure comprised of two 18,000 square foot facilities joined by a 2,500 square foot, two-story lobby and courtyard.” At the top of the article was an architectural rendering of the building that exists there today. 

One can only imagine the amount of work it must have taken behind the scenes over the prior six months to pull together this done deal. Taking center stage was the SRS contractor, whose move-in date was just over a year away.

February 9, 2000: Sub-Chapter S Corporation to own the Westinghouse side of the building

The Aiken Corporation board discussed several key issues in their February meeting, including:

• The logistics of building ownership. Morrison Knudsen GSG, now referred to as Westinghouse, didn’t want to own the building, nor did the City, which desired the ability to collect taxes on the property.
• The logistics of leasing the building and the impact that long-term leasing might have on the Aiken Corporation’s tax-exempt status.
• The possibility of establishing a sub-chapter S-Corporation and revising the organization’s charter to address some of these issues.

Excerpts from the Aiken Corporation minutes 2/9/2000
(Click images to view full size)

March 7, 2000: Aiken Corporation to own the Westinghouse side of the building

The Aiken Corporation met on March 7. In the wake of City Council’s recent vote to sell approximately one half of the Newberry properties at cost to the Aiken Corporation, the board discussed their willingness to develop “the Westinghouse property,” the terms of the loan necessary to doing this, and the proposed leasing agreement with Westinghouse. A motion was made and approved to move forward with the development, ownership and leasing of the Westinghouse property in close cooperation with the City.

Buzz Rich was to develop a lease with Westinghouse and an agreement between the City of Aiken and the Aiken Corporation. Speed was of the essence, as Westinghouse desired occupying the facility by this same time next year.

The wisdom of establishing a subchapter S corporation was raised, and agreement was reached to seek a second opinion.

Excerpt from Aiken Corporation minutes 3/7/2000
(Click image to view full size)

April 12, 2000: City of Aiken to own Westinghouse side of the building. Also: Project costs exceed original estimates.

Discussion in the April 2000 Aiken Corporation meeting focused on the the updated construction costs for the Playhouse, which had exceeded original estimates. Discussion ensued on additional funding sources.

It was also determined that, due to the requirement for a “firewall” to separate property owners, the Aiken Corporation would not own the Westinghouse building, after all, but would instead lease the property from the City and lease the building to Westinghouse.

May 2, 2000 newspaper headline: “Westinghouse deal discussed by City Council”¹²

Aiken City Council held a special meeting to work out the logistics of the planned  home for Westinghouse and the Playhouse. Counsel passed two memorandums of understanding (MOUs) regarding the new building to be constructed where the “abandoned” Mark Twin Cinema and the Whittle Building currently stood. One MOU was to specify the role between the City and Aiken Corporation regarding ownership of the Westinghouse side of the building. 

The second MOU concerned the Playhouse side of the building. The shell of this portion of the building would be constructed by the City, but the Playhouse would be responsible for finishing the interior. The City’s expenses were not to exceed $1.5 million for the construction.

Importantly, the second MOU also addressed concerns over the Playhouse’s inability to raise sufficient funds to relocate. It was decided that, if the Playhouse didn’t have an operational theater in the new building by January 1, 2003, the city had the right to terminate the MOU and/or lease. 

Lease arrangements on the building were formalized. The City owned the land; the Aiken Corporation would hold the lease on the WGSG side of the building which it would, in turn, lease to WGSG; the City would lease the other side to the Aiken Community Playhouse for $1 per year. 

According to Aiken Corporation’s May 2000 meeting minutes, the organization entered into a MOU with Westinghouse for a 10-year lease. They agreed to form the Subchaper S Corporation, LED. This would resolve issues over activities that were not included in the Aiken Corporation’s charter and/or could threaten their tax-exempt status.

Excerpts from Aiken Corporation minutes May 10, 2000
(Click on image to view full size)

June 14, 2000: The $3.5 Million Westinghouse Property

Aiken Corporation was working on finalizing the MOU for a 99-year lease with the City of Aiken, with discussion and agreements being forged on costs for the mortgage, maintenance, and parking. All area banks, except Wachovia, signed a commitment letter for permanent financing for the Westinghouse building.

Motions were made and passed for Aiken Corporation to:

• Purchase part of the lot with the blue house (on Chesterfield) for Westinghouse parking, with the cost of the land, demolition and paving to be rolled into the Westinghouse lease payment.
• Purchase steel outside of the contract for General Contractor.
• Enter into a circulated loan agreement with the City of Aiken for a mortgage of, at a maximum, $3,500,000 for the construction of the Westinghouse property .
• Open a checking account for construction, plus another account for lease payments.

Excerpts from Aiken Corporation minutes 6/14/2000
(Click image to view full size)

June 29, 2000 headline: “Building set to begin for new ACP location.”¹³

The low bid for the construction had been submitted by local contractor H.G. Reynolds. The demolition of the Newberry Street buildings was scheduled for July, pending the signing of the final lease agreements. The winner of the contract was to build the shell of the building, and complete the interior on the Westinghouse Government Services Group (WGSG) side of the building. The “up fitting” of the playhouse side would be determined at the conclusion of the ACP’s 2001 fundraising campaign. 

July 12, 2000 headline: “Contributions pouring in for ACP campaign”¹⁴

With the demolition of the Mark II Theater and the next door Whittle bulding underway, donations began pouring into the Aiken Community Playhouse, which was tasked with raising $1.2 million to move into the building. Bechtel Savannah River and Weldon Wyatt each pledged $50,000, and Westinghouse pledged $400,000 to the campaign. The Subchapter S Corporation, LED, was now a major player in the Westinghouse project.

Excerpt from Aiken Corporation minutes 7/12/2000
(Click image for full-size view)

August 8, 2000: “Groundbreaking for ACP complex to be held Aug 21.”¹⁵

Ground was broken for what was now being described as a $6 million dollar project. Mayor Cavanaugh, called the project “the most diverse and most interesting public private partnership in perhaps the history of Aiken.”

It was thought that the visibility of the playhouse would be boosted by the presence and shared lobby with the SRS contractor, whose name had recently morphed again, this time from “Westinghouse GSG” to “Washington Government.”

The Playhouse had so far raised $250,000 to fund their half of the two-story building. By April 2001, the earlier-quoted $1.2 necessary to fund their half of the building would jump to $1.6 million.

Excerpt from Aiken Corporation minutes 8/9/2000
(Click image for full-size view)

August 2000-December 2001

For the following 18 months, from August 2000 onward, the hardworking playhouse group would hold numerous fundraisers and benefits, which included joint efforts with the larger community. With the help of the equestrian community, the playhouse held a series of benefits, including polo matches, a carriage parade, and a dinner dance. A champagne brunch was held at Whitney Field and Ford Conger Field.

The Women of Woodside held a garden party and a home tour. Numerous Aiken homes were opened to tour and events to benefit the playhouse, including Joyce Cottage and Nancy Wilds’ 18th century Zahara Plantation. In May 2001, a large donation by Mr. and Mrs. R. Dale Phelon put the fundraiser over the $1 million mark. The new auditorium was to be named in their honor. A “design house event” was held in a Kalmia Hills home in September 2001 to benefit the playhouse. During the December 2001 holidays, the playhouse held a dinner theater benefit.

Various excerpts from Aiken Corporation minutes¹⁶ during construction provide a glimpse into the scramble of activities between financing, fundraising, leasing agreements, and creating parking spaces for what was now being called “The Washington Group/Playhouse.”

Two Asides: Willow Run and the Railroad Depot

Among the items of interest in the 2000-2001 Aiken Corporation minutes was the Aiken Corporation’s purchase of the “Willow Run” property on Beaufort Street to build a spec building — a private-public development project that promised to lure industry to the site. The spec building was completed in 2003. Afterward, it stood unoccupied and unsold for almost 20 years before the property finally sold, and the building was demolished. The year is 2023. A readily-accessed financial accounting of this venture, from start to finish, should be made available to the public.

Excerpt from Aiken Corporation minutes 10/10/2001
(Click image for full-size view)

Also among the 2000-2001 Aiken Corporation minutes were ongoing, early negotiations with Friends of the Railroad Depot regarding the “reconstruction” of a railroad depot on the grounds of the former Southern Railway passenger station that the City demolished in 1954. The Railroad Depot would finally be constructed in 2008-2010, drawing even more controversy then the Washington Group/Playhouse project.

Excerpt from Aiken Corporation minutes 11/8/2000
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A Mammoth Yard Sale

In late January 2002, the Aiken Community Playhouse capped off their 18-month fundraising efforts with a “mammoth yard sale.” Two weeks later, the Aiken Corporation’s chickens would come home to roost.

Next: The Amentum Model: “Loosey Goosey”

11. Burton, Adam, “Corporate Coup,” Aiken Standard, January 28, 2000.
12. Burton, Adam, “Westinghouse Deal Discussed by City CouncilAiken Standard, May 2, 2000
13. Burton, Adam, “Building Set to Begin for New ACP Location,” Aiken Standard, June 29, 2000
14. Burton, Adam, “Contributions Pouring in for ACP Campaign,” Aiken Standard, July 12, 2000
15. Burton, Adam, “Groundbreaking for ACP Complex to Be Held Aug 21,” Aiken Standard, August 8, 2000.
16: Excerpts (below) from various Aiken Corporation minutes from Nov 2000-Dec 2001. Click to view full size.

How the Aiken Corporation Transformed a $500k Project into a $7.7 Million Boondoggle

The Playhouse Considers a Move:
Part One in a Three-Part Story

1998-1999: The Playhouse Considers a Move
2000-2001: The Amentum Model: “Corporate Coup”
2002: The Amentum Model: “Loosey Goosey”

Advocates for the Aiken Corporation spent the summer of 2023 extolling the virtues of the “Amentum Model” which, we are to believe, represents the gold standard for public-private, mixed-use development projects in downtown Aiken. In reality, the Amentum Model — which should rightfully be called the Aiken Corporation Model — serves as a cautionary tale, whose lessons went unheeded 20 years ago.

What Does the Aiken Corporation Do?

Ask five people to explain the Aiken Corporation and its relationship to the City, and you will likely get five different answers. Back in 2002, a City councilman described the Aiken Corporation as a “child” of the City. Last week, during a City Council meeting, Mayor Rick Osbon described it as, “almost like a cousin to the City.”

In this same meeting, Aiken Corporation Board Chairman Buzz Rich described the relationship as simply, “a public-private partnership.”

Earlier that same day, in an Aiken Corporation Executive meeting, Aiken Corporation Secretary Sam Erb described the organization as a “Community Development Corporation.”

Most people, if asked — including those who have been following the stories on Aiken Corporation over the years — would likely answer with variations of, “It’s convoluted,” or “It’s confusing,” or, “I don’t understand.”

Even City Council members had difficulty during a March 13, 2023 City Council meeting discussion on the approval of a “Resolution Authorizing the City of Aiken to Enter into a Professional Services Agreement with the Aiken Corporation” explaining what the Aiken Corporation does and doesn’t do. 

In simple terms, the Aiken Corporation is the development arm of the City of Aiken — a 501(c)3 organization “organized in 1995 exclusively for charitable purposes,” which include, according to its bylaws, “to promote and assist in the growth and development of downtown Aiken” and “to create a prosperous and sustainable future for the City and its citizens by diversifying and expanding its economy and to assist building Aiken as a distinctive and special community.”

Enter the Aiken Community Playhouse

When the Aiken Corporation approached the Aiken Community Playhouse in November 1998 about helping the theater group move downtown, it seemed the Aiken Corporation was serving its stated purpose. 

Up until this point, the Aiken Corporation had driven innovative development of unused and eyesore downtown properties to create in-town housing. This Playhouse project emerged as part of a larger vision to create a downtown arts district. The Playhouse project was, in fact, the genesis of the so-called Amentum Model — a project that went from costing an estimated $500,000 in 1998 to a towering $7.7 million in 2002, leaving everyone including City Council members, the local theater community, newspaper editors, and everyday citizens, grappling to explain what just happened. 

Explanations were peppered with terms like confusion, boondoggle, loosey-goosey, and fiasco. The emerging consensus blamed a lack of oversight and an absence of a clear budget for the cost overruns that were shelled out like so much Monopoly money. As the reality of the $7.7 million price tag settled in during the spring of 2002, calls were made for an independent, third-party audit to prevent another such boondoggle. This audit never happened.

That the “Amentum model” is now being used to promote the construction of another mammoth public-private, mixed-use development project in downtown Aiken — and with the same cast of characters at the helm — should cause alarm bells to ring. A review of the history is in order.

November 18, 1998 newspaper headline: ‘Playhouse may move to downtown theater.”¹

On Tuesday, November 17, 1998 the members of the Aiken Downtown Development Association (ADDA), a committee which functions as a subsidiary of the Aiken Corporation, voted unanimously to become involved in helping the Aiken Community Playhouse move downtown. The decision was made for the the Aiken Corporation to place  an option to purchase the Mark II movie theater and an adjoining Newberry Street property to give the Playhouse board time to study and consider the idea. 

On the table at that time was the possible purchase and renovation of the Mark II Theater (also called the Mark Twin Theater) by the Aiken Community Playhouse for $137,000 plus a small parking area in the back, owned by Margaret Holley. The preliminary estimate for the cost of purchase and renovation of the Mark II theater came to about $500,000. 

This was no small price for an entirely self-supporting theater group that, for the past 50 years, had been delivering theatrical productions to the local stage through the all-volunteer efforts of a dedicated, hardworking theater community.

Mayor Cavanaugh supported the move and floated the idea of creating “tourist packages”² which would include an evening of dining, theater, and accommodations in a local hotel.

Wade Brodie, ADDA board member and chairman of the Aiken Corporation, described the endeavor as part of a larger plan to build an entertainment district that would draw tourists to the downtown to eat in restaurants and stay in hotels.²

At the same time, Mr. Brodie cautioned that the Aiken Corporation might not be in a position to repay the loan to the City, should the theater group opt not to buy the property. According to Brodie, Aiken Corporation funds were already earmarked for other projects. 

November 24, 1998 newspaper headline: “Playhouse has time to consider move to downtown theater.”²

In late November 1998, Aiken City Council voted unanimously to lend the Aiken Corporation $12,500 for a pair of three-month options to hold the $137,000 Mark II property and the adjacent lot. The Aiken Corporation and the Aiken Community Playhouse (referred hereafter as either ACP or simply “the Playhouse”) were to work together to study the issue and develop a proposal within 90 days.

According to the Aiken Corporation’s November 20 meeting minutes, below, “Should the City get involved, the Playhouse has stated that they want autonomy and would want to own the building and retain control over the building and they type of plays they produce. “

Playhouse board member Thurmond Whatley was quoted in the November 24 newspaper article as saying, “We don’t want to move in and in two years be totally bankrupt. We would like to be a part of (downtown) if at all possible, but we are also quite content where we are.”²

During the Aiken Corporation’s executive meeting on November 20, 1998, various revenue sources were discussed for the half-million dollars needed to purchase and renovate the Mark II, including increased hospitality and accommodations taxes, Tax Increment Financing (TIF), Aiken 20/20 funds, donations and fundraising.

From the Aiken Corporation minutes 11/20/98
(Click for full-size view)

In a mere 3 months, the project’s $500,000 estimated cost would quintuple, and the Playhouse’s stated wishes to own and retain control of the building would go to the wayside.

December 9, 1999 A Feasibility Assessment.

Aiken Corporation chairman Wade Brodie stated in the Aiken Corporation’s December 9 meeting that a subcommittee of Aiken Corporation Executives and the Playhouse were meeting to assess within 90 days the feasibility of the theater making a downtown move.

March 9, 1999 newspaper headline: “Possible move draws applause”³

The Playhouse Committee met with Aiken City Council in a work session to discuss the findings of their feasibility assessment. It had been decided that, in order to remain viable, the building would have to be owned by the City. The Playhouse would take over operation of the theater, which could double as a conference center. The City could book conferences, while the theater took care of entertainment. 

According to architect McDonald Law, “a conceptual plan of the new playhouse would require the (Mark II Theater’s) existing 7,500 square feet be expanded to 15,000 square feet to make space for a backstage and workshop space .” He gave a conservative estimate of the cost at $2.5 million. 

The question then became, “How to pay for this project?”

March 9, 1999 newspaper headline: “Council votes on three taxes in one night.”⁴

The news that City Council was pushing to raise taxes through a 5% franchise fee on SCE&G customers, a 3% accommodations tax, and a 2% hospitality tax drew hot response in a March 8, 1999 City Councilmeeting. Citizens who came prepared to speak were asked to hold their comments until a planned public hearing to take place during the March 22 City Council meeting.

March 10, 1999 letter to the editor: “Voices concern over playhouse proposal” ⁵

Veteran Playhouse board member, volunteer and actress, Ginger Ingram — one of the pillars of Aiken’s theater community — wrote a letter to the editor of the local paper expressing concern among Playhouse supporters over the lack of communication being received on the downtown proposal. She also pointed out that the existing Playhouse at the corner of Price Avenue and Two Notch Road was entirely self-supporting; their building was paid for, and they had plenty of parking — claims that could not be made of the proposed downtown location. 

March 22, 1999: Public hearing and second readings on the “triple tax” proposals; ordinance to amend the City Code to adopt a a local Accommodations Tax and local Hospitality Tax.

Over 275 citizens were in attendance at the Monday night City Council meeting to voice their positions on two new taxes:

• A proposed 3% Accommodations Tax to be imposed on any business providing accommodations with 6 rooms or more and would be placed on any rental providing lodging for 90 days or less, and
• A proposed 2% Hospitality Tax imposed on the gross sales from the sale of prepared meals and beverages sold in local restaurants, fast food establishments, grocery stores and convenience stores in the City of Aiken.

All proceeds from these taxes were to be used for the promotion of tourism and cultural related projects. The purpose was to finance nearly $12 million worth of specific projects, including $1.5 million for the theater project.

From the Aiken City Council meeting minutes 3/22/1999
Click for full-size view.

The public was assured that, once these projects were fully paid and their debts satisfied, the tax would be repealed by ordinance.

After a series of statements from Aiken Community Playhouse veterans, board members and other citizens — a more or less even mix of pro and con viewpoints, with Playhouse leadership largely in support of the new taxes — the discussion was turned over to council members.

Councilman Skipper Perry offered the lone voice of dissent. He pointed out that, when the above-listed projects had been prioritized in 1997, the city had been thinking about issuing bonds, not raising taxes. He was also concerned about the lack of specificity in the budgets for the projects and the absence of end date for the taxes. He asserted that that the proposed tax would affect the people who could afford to pay it the least. The motion passed with a 6-1 vote, with Councilman Skipper Perry opposed.

From the March 22, 1999 Aiken City Council meeting minutes.
(Click to view full size).

April 1, 1999 newspaper headline: “Theater closes suddenly”⁶

The Mark II Theater suddenly closed without notice or explanation, disappointing local parents, who looked forward to the wildly popular, annual children’s film festivals in summer, with tickets costing only 50-cents each.  While the theater is sometimes depicted in modern lore as an abandoned building, this was not the case.

May 12, 1999 Aiken Corporation discusses the Whittle Building; the Playhouse project changes shape.

According to the May 12 Aiken Corporation minutes, “The current thinking about the Playhouse is that it could be a t-shaped building and sell/lease land for commercial purposes in front of the playhouse. To do so requires entering into an option for the Whittle Building. Mr. Brodie and Mr. Brodie (sic) will work to enter into an option using interest money to secure the option. Mr. LeDuc encouraged the group to write the sale of the land into the business plan for the theater.”

Also:

A motion was made by Mr. Tim Simmons, then seconded by Sam Erb to authorize Wade Brodie and Buzz Rich to negotiate with Mr. Lewis Whittle to purchase the Whittle Building for the development of the Playhouse. Mr. Brodie indicated that the option should not exceed $1,000. Motion passed.

From the Aiken Corporation minutes 5/12/1999
(Click to view full size)

June 10, 1999 newspaper headline: “Playhouse project remains on track for moving to downtown Aiken.”⁷

On June 9, the Aiken Corporation held a meeting during which the capital cost estimates were reviewed. According the June 10 story in the local paper, funding would be “derived from a $1.5 million investment from the city, $80,000 from the sale of two lots once the project is completed, $12,500 from the sale of half of the Holley lot, $175,000 from the existing playhouse location, $75,000 from existing playhouse equipment, $75,000 from three years of accommodations tax revenue, $12,000 from continuance of Whittle Building rent, and a $441,086 capital campaign” for a total of $2,370,586. “⁷

Committee member Skipper Perry appeared to be the lone voice of skepticism, saying that he wanted to see “more evidence that the project will succeed, and not create undue hardship on the playhouse or other entities involved.”⁷

The now-$2.37 million plan called for the purchase and demolition of both buildings. The Aiken Corporation board voted to recommend that City Council proceed with the project. The motion passed, with member Skipper Perry abstaining.

From the Aiken Corporation minutes 6/9/1999
(Click to view full size)

June 13 letter to the editor: “Voices concern about playhouse move.”⁸

On June 13, 1999, another letter from Ginger Ingram appeared in the local paper. She questioned a recent front page story that had called the downtown move a certainly, when the decision had yet to be approved by council. She said there’d never been a poll of the Playhouse membership, nor Aiken citizens. She urged a poll and offered her opinion that the same level of citizen participation that had recently been given to a downtown statue should also be given to this decision on the theater. She urged concerned citizens to attend the June 14 City Council meeting. 

On June 14, 1999, notice was mailed from the ACT Board of Directors to Playhouse members outlining the plans to relocate to downtown by 2002.⁸ Aiken City Council was scheduled to vote that same day on approval for the downtown theater project as a capital project. 

June 14, 1999 newspaper headline: “Playhouse relocation on City Council Agenda.”⁹

Discussion among Council grew contentious during the work session, with Councilman Skipper Perry — who would be the sole dissenting vote that evening — said to be incredulous over the numbers presented. He also said of he Playhouse, “This is a group that didn’t ask to go downtown.” ⁹

The mayor and another council member volleyed back in support of the project. Input among citizen attendees was mixed, with Ginger Ingram again making a call for more input. “Something this important needs to go to the membership.”

The details of discussion from the City Council meeting minutes provide important perspective on events to that were to unfold over the next year.

Excerpts from June 14, 1999 City Council meeting minutes.
(Click to view full size).

The vote was 5-1 for the City to buy the property.

As the local paper would relate the next day, the proposal to move downtown had been in the works for two years and was jointly encouraged by the ADDA and Aiken Corporation, who described the move as an economic shot in the arm. 

August 1999: Aiken Corporation encourages SRS contractor to locate in Aiken.

According to an August 12,, 1999 newspaper headline, “Playhouse moving forward – Aiken Corp. paving way for downtown location,”¹⁰ the ADDA met with Aiken Community Playhouse members for about two hours in August. Afterward, ADDA chairman Sam Erb reported, “Other than a few people who might not be for it, I think the consensus is they can’t afford to let it (the opportunity) go by the wayside.” 

From the Aiken Corporation minutes 8/11/1999
(Click to view full size)

According to the Aiken Corporation’s August 11, 1999 meeting minutes, on the topic of SRS, “it was agreed that the Aiken Corporation should write a letter of support to encourage the location of the government division of Morrison Knudsen to locate in Aiken.” The impact of this move on the Playhouse project would soon become clear.

COMING TOMORROW: Corporate Coup

_____________

1. Smith, Thomas. “Playhouse may move to downtown theater,” Aiken Standard, November 18, 1998.
2. Smith, Thomas, “Playhouse has time to consider move to downtown theater,” Aiken Standard, November 24, 1998.
3. Nidiffer, Nina J., “Possible move draws applause,” Aiken Standard, March 9, 1999.
4. Nidiffer, Nina J., “Council votes on three taxes in one night.” Aiken Standard, March 9, 1999.
5. Ingram, Ginger, “Voices concern over playhouse approval,” ” Aiken Standard, March 10, 1999.
6. Nidiffer, Nina J., “Theater closes suddenly,” Aiken Standard, April 1, 1999.
7. Smith, Thomas, “Playhouse project remains on track for moving to downtown Aiken,” Aiken Standard, June 10, 1999.
8. Ingram, Ginger ,”Voices concern about playhouse move,” Aiken Standard, June 13, 1999.
9. Nidiffer, Nina J., “Playhouse Relocation on City Council Agenda,” Aiken Standard, June 14, 1999.
10. Smith, Thomas, “Playhouse moving forward – Aiken Corp. paving way for downtown location,” Aiken Standard, August 12, 1999.