by Don Moniak January 28, 2023 Updated February 19, 2023
According to the South Carolina Secretary of State’s office, the registration for the Aiken Corporation, which functions as a not-for-profit, charitable subsidiary of the City of Aiken, has been expired for two months; and the mandatory financial report for the previous fiscal year is more than two months late. The organization is now subject to fines of up to $2,000 and can be “enjoined from further solicitation of funds” in South Carolina if the Secretary of State’s office brings an action against the organization.
South Carolina state law requires non-exempt, charitable organizations to “file an annual report of its financial activities” within four and one-half months of the close of the organization’s fiscal year “ unless a written extension has been granted.” (1)
According to the South Carolina Secretary of State’s office:
“This organization is expired, (as of) 11/15/2022, Every year all charities need to renew the registration for the current year and provide us a financial report for the previous fiscal year. They need to renew the registration and file the financial report for fiscal year ending 06/30/2022. We have the report for 06/30/2021.” (2)
The Aiken Corporation consists of its property management entity, LED Aiken, and the Aiken Downtown Development Association (ADDA), which has a separate Board of Directors and bylaws.
According to its bylaws, the Aiken Corporation is “organized exclusively for charitable purposes,” and its purpose is “to further economic development and job opportunities in the City of Aiken and the area served by the City of Aiken Utility Systems; to promote and assist in the growth and development of downtown Aiken; to promote and assist in the development of affordable housing in the City of Aiken; and toengage in those activities which are in furtherance of, or related to, these purposes.
The Project Pascalis Connection
The CEO of the Aiken Corporation, Arthur “Buzz” Rich, has also served as an ex-officio, non voting member of the nearly defunct Aiken Municipal Development Commission (AMDC) since May, 2021. During that time, he attended numerous closed-door, Executive Session meetings of the AMDC, the AMDC and City Council, and the December 12, 2022 City Council Executive Session. He was the only lawyer in the room during many AMDC meetings, but was not named as a defendant in Blake et al vs City of Aiken et al.
The Aiken Corporation owns a one-acre property, purchased July, 2022, $650,000, comprised of three undeveloped, vacant lots in the 100 block of NW Newberry Street. These lots were identified as part of the plan for the proposed Savannah River National Laboratory office complex and employee development center in downtown Aiken. That proposal was announced at the State of the City address on Monday night (3). A parking lot with ninety-five parking spaces is proposed for the now vacant lots.
Aiken Corporation properties and approximate location for proposed Savannah River National Laboratory office complex.
Current Status of Registration and Filings
Upon request, the Secretary of State’s office provided a copy of the last 990 financial report, filed for the period of July 1, 2020 to June 30, 2021—the same fiscal year as the City of Aiken. Perhaps due to funding allocated to the AMDC, the Aiken Corporation’s revenues declined from $574,000 the previous fiscal year to $130,400 in FY 2021. The City of Aiken was its largest donor, having contributed exactly $60,000. Its largest source of revenue is from the rental of its 17,324 square foot office building at 106 Newberry Street to the Savannah River Site (SRS) contractor Amentum Corporation.
The Aiken Corporation’s last filing identified a Board of Directors consisting of sixteen members— although the bylaws call for a minimum of twenty. The members included City Council members Lessie Price and Gail Diggs, several members of the Aiken Chamber of Commerce (as called for in the by-laws), then USC-Aiken Chancellor Sandra Jordan, AMDC member Philip Merry, Planning Commissioners Sam Erb and Jason Rabun, and former City Councilman Pat Cunning.
UPDATE:
According to the SC Secretary of State’s Office, two days after this story was published, the Aiken Corporation re-registered and requested an extension on their 990 form submission:
“Our records indicate that the extension request was received on Monday (January 30th). Also, the organization submitted a registration online on that same day, and it just was processed this afternoon. I apologize for overlooking that we had received the online registration form when I responded to you earlier today. The organization is now actively registered.” (Shannon Wiley, SC Secretary of State General Counsel and Public Information Director).
When asked about any future compliance issues, Ms. Wiley responded:
“Mr. Moniak:
Thank you for reaching out to our office. Under S.C. Code Section 33-56-60, a charitable organization is required to file an annual financial report within 4 ½ months of the end of its fiscal year. Charities can request a 6 month extension to file their annual financial reports. If a charity misses the deadline, our office will issue a notice of violation to the organization. Upon receipt of the notice of violation, it will have 15 days to file the late report. If it fails to do so, a fine of $10.00 per day begins to accrue, up to $2,000.00. Our records indicate that the Aiken Corporation of South Carolina requested an extension for its FYE 2022 annual financial report and the filing deadline is now May 15, 2023.
Our office has not opened a violation for delinquent registration (as provided under S.C. Code Section 33-56-30) because we cannot determine whether the organization is soliciting contributions at this time. If our office determines that a charity is soliciting while not registered, we will issue a notice of violation to the organization, and it will have 15 days to comply with the registration requirements following receipt of the violation. If it does not, it will be subject to a $2,000.00 fine.
Ms. Wiley added, in regard to a question about donations from government, including grants:
“Under the Solicitation of Charitable Funds Act, the definition of ‘contribution’ includes ‘the promise, grant, or pledge of money, credit, assistance, or property of any kind or value.’ Thus, grants would be considered a contribution. If a charitable organization is seeking grants from governmental entities, then that would be considered solicitation.
Footnotes.
(1) SECTION 33-56-60. Report of financial activities; filing requirements; contents; filing IRS Form 990, 990-EZ, or 990-PF as an alternative; exemption; penalty for failure to file.
A charitable organization that has filed a registration statement with the Secretary of State pursuant to Section 33-56-30, or that is soliciting contributions in this State, whether individually or collectively with other organizations, shall file in the office of the Secretary of State an annual report of its financial activities, on forms prescribed by the Secretary of State or on Internal Revenue Service Form 990, 990-EZ, or 990-PF, certified to be true by the organization’s chief executive officer and chief financial officer. The report must cover the preceding fiscal year and must be filed within four and one-half months of the close of the organization’s fiscal year unless a written extension has been granted by the Secretary of State. To receive an extension, the organization must file with the Secretary of State a written request for an extension or a copy of the extension request submitted to the Internal Revenue Service.”
In 33-56-60(E) defines penalties for noncompliance.
“An organization which fails to file a timely annual financial report required by this section may be enjoined from further solicitation of funds in this State in an action brought by the Secretary of State and is ineligible to renew its registration as a charitable organization until the required financial statements are filed with the Secretary of State. An organization which fails to file a timely annual financial report required by this section may be assessed by the Secretary of State administrative fines of ten dollars for each day of noncompliance for each delinquent report not to exceed two thousand dollars for each separate violation.”
(2) The information was provided in an email from Laura Balaban, Office of the Secretary of State, Charities Division, in response to a query regarding the charitable organization status of the Aiken Corporation. During a search for the Aiken Corporation on the SC Secretary of State’s public database search, the organization was found to be “expired.”
(3) Following is a transcript of Councilman Ed Woltz’s description of the proposed facility, slightly edited for clarity from archived City of Aiken’s You Tube transcript. Mr. Woltz was incorrect in stating the alternative location was “outside the gate” of Savannah River Site. The $20 million dedicated to an SRNL facility was originally intended for a University of South Carolina at Aiken campus location.
“Councilman Ed Woltz: Thank you Mr Mayor. Well ladies and gentlemen this is the first time I’ve ever used these things so I’m going to do my best on it. We’re going to do this together ladies and gentlemen. Over the last several weeks I’ve been asked to take the lead for Council and exploring a plan that I think is a great one that will be one of those major win-wins the Mayor has mentioned.
As as you may know Governor Henry McMasters and our legislative delegation have committed to investing in a new Workforce Development Center for the Savannah River National Laboratory. This new building is to be located more centrally than the lab’s aging and remote facilities that’s at the Savannah River Site now. This is so important that the state has set aside 20 million in plutonium settlement funding to get it built. That’s 20 million dollars that’s in addition.
[Applause]
That’s in addition to 25 million the Mayor just mentioned. That’s 45 million dollars of investment. It’s important to mention at this point that I may be up here leading this charge, but the credit is not mine the idea belongs to others. Former Aiken Municipal Development Corporation members chairman Keith Wood, Vice chairman Christopher Verenes, and Chamber of Commerce president David Jamerson really identified this as an opportunity more than one year ago. Thank you David.
They have worked tirelessly to get the funds for it and to have it located here in Aiken, my hat’s off to them for teeing this up when it was needed. Even when the the funds seemed like a done deal last year, the question is where would it be built stayed up in the air. Could it be downtown Aiken or would it be just outside the Gated SRS. What a night I am pleased to say that downtown Aiken has been selected as SRS’s overwhelming preference
[Applause]
It doesn’t hurt that while all this was taking place at about the same time it became clear that’s a very nice downtown properties that he owns right across the street just might be available for a new and better idea. Sometimes a better plan comes along just when you least expect it. First, let me be clear none of this is finalized and city council has just hadinitial discussions about it and so we’re not close to finalizing.
In fact I’m asking tonight the city staff within schedule a public forum within the next two weeks to gather input thoughts and concerns as we begin looking at the possibilities that as a city and Council so look for that in two weeks. Let me share with you some of the thoughts Council has had about initial discussions and we’ll begin exploring fully over the next few months.
We have a picture I hope yes of the building the proposed building. {points to screen behind him with photo of downtown area in question] I can’t see it you can. So this will provide for a 40 to 45 000 square foot office and exhibition space requested by SRNL between Bee Lane, Newbury Street and Richland Avenue. The building will house approximately 100 or more paid SRNL workers with a rotating group of faculty and students from SRNL’s University collaborative. That group of universities includes the University of South Carolina, Clemson University, South Carolina State University, University of Georgia andGeorgia Tech. The building would also have a dedicated space for USC Aiken and provideeducation and Outreach downtown.
49:01
[Applause]
The plan is to preserve the existing businesses on the Block leaving Newbury Hall untouched, relocated relocate Warneke Cleaners to the buildings at front of Richland Avenue. These retail buildings on Richland Avenue will be renting and upgradedas part of the project and the Thai [Taj Aiken, which features Indian cuisine] restaurant would remain on Richland Avenue.
The Proposal allows for the Johnson drugstore here on the corner of Richmond Newbury to undergo historic renovation and preserve it and return the exterior to more of its original look. So now the only anticipated demolition would be the dry cleaning building, the motel strip along B Lane that was built in 1981, and perhaps the old gun shop/finance company on Richland Avenue.
The next big question what about parking? We need to plan ahead for parking the demand created by this project. We do that through creating a surface parking lot across from St John’s Church on Newberry and that would provide dedicated workday parking for SRNL employees, and that would be available to the public and the church goers nights and weekends. We’d also be looking for the possibility of more parking behind the room we’re in right now which would be a structured facility that would be a lot next to the new Municipal Building providing between the two spaces somewhere between 250 and 300 parking spaces.
Now, I’ve just outlined it but I want to bring someone up here who knows a lot more about this than any of us, Dr. the director of the National Laboratory.”
——————————————
More notes on Aiken Corporation
Since the ACorp’s number one donor is the City of Aiken, these minutes are available in the City’s document repository. Go this site, click document repository, and then click home.
Following are more stories published subsequent to the story above:
Three Missing Pages covers the Aiken Corporation contract with the City of Aiken
Project Labscalis Annual Operating Costs covers the total estimated costs for demolition and site prep, construction, and annual maintenance costs for the proposed SRNL building.
One year ago yesterday, the Aiken Municipal Development Commission (AMDC) announced its intention to “acquire significant property in the downtown area,” and a planned vote on the proposed purchase during its November 9, 2021 meeting. The announcement came less than three months after Aiken City Council had approved a $10 million municipal bond issuance in support of the AMDC purchasing properties in the “Parkway District,” an arrangement City Manager Stuart Bedenbaugh described at the time as a “land bank.”
The AMDC did not identify the properties in its news release, leaving those details to the Aiken Standard by providing the paper with advance copies of meeting agenda materials; most notably the Purchase and Sale agreements. On the same day as the AMDC announcement, Standard reporter Colin Demarest described the properties to be purchased for $9.5 million as:
“the languished Hotel Aiken and neighboring motel, businesses on Richland Avenue, the former Playoffs Sports Bar, Warneke Cleaners, Newberry Hall and three shops on Laurens Street.”
The Standard did identify by name the three existing shops on Laurens Street, and the four businesses operating on Richland Avenue–of which only the Taj Aiken Restaurant remains today. But not until July 2022, in an article examined in “The Project Pascalis Evictees,” did the paper report again on the nine businesses being forced by their local city government to close or relocate.
Demarest did manage to report, deeper within the article:
“The Aiken Chamber of Commerce intervened in May, documents show, and salvaged contracts critical to the redevelopment effort.”
That single sentence was the first time the Aiken Standard mentioned the involvement of the Aiken Chamber of Commerce. It was also the last time the Chamber’s role was mentioned for more than eight months. The paper has never provided details of the Chamber’s deep involvement in salvaging the land deal in May, 2021 (1); a move that bailed out the first Pascalis project developer Weldon Wyatt.
Two days after his first story Demarest quoted J. David Jameson, not as an AMDC Commissioner who was instrumental in the furtive May 2021, dealmaking, but as the Chamber of Commerce President. This pattern continued with a December 3, 2021 article announcing the selection of RPM Development Partners, LLC as the AMDC’s “preferred developer” for its $100 million plus demolition and redevelopment effort originally code-named Project Pascalis in March 2021.
Whether the self-censorship was related to Aiken Standard publisher Rhonda Overbey’s role as a Chamber board member is unknown. As reported in “The Influencer’s Meetings,” Overbey was also one of 113 people on an “influencers” list who were invited to private, invitation-only meetings with the second Pascalis project developer in early January, 2022.
What is known is the the November 4th announcement was also accompanied by an op-ed by the Standard’s editorial board, titled “Downtown Aiken Entering the Age of Enlightment.” The board was all in for Project Pascalis, before any significant details were known:
“This is no joke and there isn’t a punchline; we think it’s going to happen. And happen huge. The marketing buzz words seem to be bold action. We like it…It’s time for triumph.”
This editorial praising the project ran the same day the story broke.
Project Pascalis was not the first major project during which the Aiken Standard’s news coverage appeared distorted by its editorial position. The city’s hospitality tax and Aiken School District bond referendums enjoyed the same journalistic approach. But the Pascalis coverage lowered the bar for minimizing scrutiny of a megaproject involving tens of millions of dollars of public funds.
For example, not until August, 2022, did the Aiken Standard file a Freedom of Information Act request to the City of Aiken for Pascalis related records. And, during a public Zoom meeting in late June, 2022, the lack of investigative zeal was reflected when Standard staffers repeatedly employed the phrase “the City says,” while avoiding the phrase “We asked the City.”
“The first Pascalis project collapsed in early May (2021) when Weldon Wyatt withdrew from the deal. As part of the negotiations to salvage the deal, Mayor Osbon met with Weldon Wyatt and Greenville based developer Andy Cajka, President of Greenville, SC based Southern Hospitality Group. A memorandum from Tim O’Briant to AMDC members Jameson, Chris Verenes, and Chairman Keith Wood described the meeting:
The Mayor and Weldon met with Andy on Monday, I was out of town, apparently shg hotels will possibly deliver a LOI (letter of intent) regarding the hotel this week. The mayor agreed the meeting went well and Andy was engaged in making a deal that would be privately funded based on the public dollars and incentives driving the project. Mayor indicates he deferred question about Friday negotiations and City’s position on deal points citing my absence and his lack of information on the subject.
A day later O’Briant and AMDC Treasurer and Chamber of Commerce President David Jameson had lunch with Weldon Wyatt, his investment and development partner Thomas “Chip” Goforth, and GAC Management Services employee Ryan Bland, who two weeks earlier had still held the position of City of Aiken Planning Director. O’Briant described that meeting as follows:
David Jameson and I went to lunch with Weldon, Ryan, and Chip. Weldon continues to promote the benefits of 100 percent public funding of the entire project, but now says he doesnt’ intend to participate in the cost or the proceeds—just wants a fee/commission for the project to be successful. This despite bringing in a potential private partner with money to spend just yesterday. He is somewhat cagey and defensive and says he believes I have conveyed messages not representative of the City’s position. Indicates he believes there is some possibility the city council would accept the deal that I rejected Friday. Indicates Lessie (Price) is setting up the Thursday meeting to get everyone in one room to verify my position does not reflect that of leadership.
After that point the known paper trail ends, and the outcome of any meeting set up by Council member Lessie Price is unknown. What is known is:
On May 10, 2021, Aiken City Council met in closed door Executive Session for nearly two hours to discuss a range of topics, including “a possible purchase of real estate” and “a possible contractual arrangement with a real estate developer.” The outcome of that meeting was not summarized during the subsequent public session.
On May 14, 2021 the Aiken Chamber of Commerce took assignment of the purchase and sale contract for the Shah’s suite of properties; and then on June 3rd took assignment, of the Anderson (Newberry Hall) contract. In all, the Chamber reimbursed Wyatt’s firms $135,000 of otherwise nonrefundable earnest money managed by City Attorney Gary Smith’s law firm. From that point, the AMDC secretly referred to the properties as “AMDC controlled.”
In August 2021 Aiken City Council approved a $10 million bond issuance in support of AMDC property acquisitions in the “Parkway District,” with the AECOM Plan’s reference to “fragmented property ownership” a key justification in the supporting bond documents.
AMDC Chairman Keith Wood, whose letter to City Council urging the bond passage included citations from the AECOM plan, also wrote in a July 26, 2022 letter to the Historic Aiken Foundation: “The AMDC first pursued the purchase of the property in question and those adjacent to it at the behest of Aiken City Council.”
There is no record of Aiken City Council asking the AMDC to purchase the Pascalis project properties. Any such request made in closed-door, Executive Session would constitute a serious violation of Open Meetings law, which dictate that no votes are to be taken in Executive Session.
When questioned about the origin of this unsubstantiated statement, neither Chairman Wood nor Tim O’Briant have offered any reply.”
False Premises, Misdirection, and Dismissal of Public Input Characterize Aiken’s Master Economic Development Plan.
Recently obtained information (1) has revealed that the City of Aiken’s Master Economic Development Plan, also known as “The AECOM Plan,” (2) was formulated, in part, on the basis of a “stakeholders workshop” that involved a single non-governmental group: The Aiken Chamber of Commerce.
The only other participants in the February 24-25 “stakeholder workshop” conducted by the AECOM Corporation’s Planning and Consulting Division were city employees. One City Council member attended each day; Mayor Osbon attended on the first day, but not the second. No local media were invited and there was no public notification of any meeting to discuss Aiken’s economic future.
The AECOM Plan, formulated in the total absence of public input, was eventually approved and adopted by Aiken City Council under a false premise, and the report provided to City Council lacked eighty percent of the information found in today’s complete edition. Adoption and pursuit of the AECOM plan eventually led to the cascade of costly decisions and the current fiasco known as Project Pascalis.
I. The AECOM Presence in Aiken
The AECOM Corporation is a Fortune 500 company with nearly $20 billion a year in revenues. It is self-described as “the world’s trusted infrastructure consulting firm, partnering with clients to solve the world’s most complex challenges and build legacies for generations to come.” According to its 2021 Annual Report, AECOM’s urban planning division “continues to shape the growth of the world’s major cities, while envisioning entire new urban areas to meet future needs.”
AECOM’s Urban Master Planning/Design sector provides “strategic planning and master planning services for new cities and major mixed-use developments in locations such as India, China, Southeast Asia, the Middle East, North Africa, the United Kingdom and the United States.” AECOM’s urban vision is largely devoid of historical preservation, and focused on eliminating “fragmented” property ownership from landscapes that can impede redevelopment into glittering, shining new landscapes. (3)
In April 2019, the AECOM corporation’s subsidiary Management Services group, a $4.5 billion per year government services contractor, was the lead contractor in the consortium known as Savannah River Remediation, LLC (SRR, LLC) — the Department of Energy’s (DOE) primary contractor handling the massive Cold War nuclear weapon materials production legacy of dangerous, unstable, radioactive liquid waste at the agency’s vast Savannah River Site (SRS). The consortium employed nearly 2500 workers, about one quarter of the entire SRS workforce. Since 2009, SRR, LLC’s cost-plus-fee contract has been worth an average of a half billion dollars a year, and its bonuses ranged from $15 to $20 million per year.
Partners in the consortium were other powerhouse government contractors: Bechtel National, CH2M, and BWX Technologies, Inc.; and subcontractors Orano, Atkins, and AECOM N&E Technical. When the consortium signed an eighteen month, $750 million contract extension (4) in April, 2019, AECOM Management Services’ executive workforce included future Aiken Economic Development Commission (AMDC) member and Chairman, Keith Wood, and AECOM Manager of Governmental Affairs, Lessie Price — also a longtime City Council member.
AECOM maintained a prominent presence in downtown Aiken beginning in 2015, following its multi-billion dollar acquisition in 2014 of former SRR, LLC lead contractor, URS, Inc. The upper management team from URS transferred to AECOM.
Next to its downtown office on Newberry Street, leased from the Aiken Corporation, was the city-owned AECOM Center of the Performing Arts, home to the nearly seventy-year old Aiken Community Theatre, which had been lured to its new downtown location in 2002 after decades of operating in Virginia Acres park. Across the street is a public art display in the parkway involving an empty, ten foot high, half-ton radioactive waste canister from the liquid radioactive waste operations, which was unveiled on November, 15, 2016.
In February of 2020, AECOM sold its Management Services Division to private equity firms, who renamed the new company Amentum. Within a year the AECOM signs on Newberry Street were replaced by Amentum. Once again, the executive management team transferred to the newly conceived firm. Amentum-owned AECOM Energy & Construction, Inc took the place of AECOM Management Services on the waste contract.
SRR, LLC relinquished the radioactive waste contract in early 2022, when DOE selected a new firm, Savannah River Mission Completion, LLC, to work on the tens of millions of gallons of legacy waste remaining. AECOM Energy & Construction remains a lead contractor in the new consortium. While the Amentum name is now dominant, AECOM’s presence is only slightly diminished.
II. AECOM Takes the Economic Planning Lead in Aiken
The City of Aiken’s “Strategic Economic Development Action Plan,” also known as “the AECOM plan,” was developed between April 2019 to March, 2021 and is now considered the city’s “Master Economic Plan.” The AECOM plan subsequently provided a nebulous justification for much of the City’s $100 million dollar plus downtown demolition and redevelopment endeavor effort known as Project Pascalis.
A key passage in the AECOM plan reflected the company’s preference for property consolidation, and would be recited in the necessary steps towards funding Project Pascalis property purchases, particularly the $10 million, August, 2021 municipal bond issuance:
One of the major barriers to new development/redevelopment in downtown Aiken are the small parcel sizes and fragmented property ownership. This makes it difficult for both public and private entities to assemble land for larger-scale redevelopment.
According to the AECOM plan, in April, 2019 the City of Aiken “engaged” its Urban Planning and Consulting Division “to assist in the development of this strategic economic development strategy.” However, according to the newly updated document, made available via a FOIA request, the effort does not appear to have begun in earnest until December of 2019. In the newly released Appendix C, AECOM’s project leader Marcia Tobin wrote:
As described in the opening statement and ‘Project Scope of Services’in the December 12, 2019 Economic Development & Master Planning Services, ‘The City of Aiken (Client) wants to forge a path forward for its growth and development, and to this end, is seeking the services of consultants to create a roadmap that leads to this goal.’ As an initial due diligence step in the AECOM Master Planning team’s process, the team has reviewed applicable material from numerous documents. Each of the 21 documents was reviewed and high-level goals, themes, conclusions, and recommendations were outlined. Specific, actionable vision statements were pulled out of each of these documents and organized into overarching themes.
III. The “Stakeholders Workshop” and the Four-Hour Trolley Tour
Following the document review (which produced a 45-page summary that escaped final publication), the second key basis for the AECOM plan occurred: a “stakeholders workshop” held on February 25-26, 2020. The importance of the workshop was highlighted on Page One of the plan’s Executive Summary:
In February of 2020, AECOM held a two-day workshop with Aiken City officials and key stakeholders to discuss the City’s past, present, and future. AECOM was given a tour of the City’s historic downtown, many unique neighborhoods, key gateways, and commercial and employment nodes. Representatives discussed what they see as key impediments to the City’s future growth and development, as well as areas of opportunity. These discussions provide the framework for this Strategic Economic Development Plan.
Even though the final document repeatedly refers to a “stakeholders” meeting, implying a wide range of attendees with diverse viewpoints and interests, there was in fact only one non-governmental group represented: The Aiken Chamber of Commerce. The full listing of workshop attendees identified in the AECOM workshop summary, recently obtained via a Freedom of Information Act request, were:
Two Aiken Chamber of Commerce employees: President J. David Jameson and Business Vitality Manager Mandy Collins.
Mayor Rick Osbon and Council Member Ed Woltz (Council member Gail Diggs replaced Woltz on Day Two)
Six City of Aiken employees (5)
Five AECOM urban planners, designers, and economic analysts. (6)
According to the newly released Appendix E, Meeting Materials, the workshop occurred over a two-day period. Day One involved a meeting with “core group (including Mayor),” followed by a half-day Trolley tour of key sites: “Downtown, Eastside, I-20 corridor, Aiken Regional Airport, USC Aiken, Southside, Westside, Aiken Mall, etc;” and finishing with a wrap-up of the day’s findings.
The sign-in sheet shows representation by the Chamber of Commerce, Mayor Osbon, Council member Ed Woltz, and six City of Aiken employees.
Click image to view full size.
The second day of the workshop, which included “core group checks” and “meetings with key stakeholders,” was even less well-attended, with only four employees, Council member Gail Diggs, and AECOM Urban Planner and Project leader Marcia Tobin signing in that day.
Click image to view full size.
By the end of the workshop, a vision for Aiken was articulated that included “Continue to build its employment, both with small businesses/entrepreneurs, and with larger employers;” and “Diversify its economy, building on its strong technical and scientific professional community.” Yet, of the five “Identified Opportunities and Catalysts,” two involved major efforts for Savannah River Site, two involved other major governmental initiatives, and the remaining opportunity was the twice-annual Steeplechase event at its new property whose purchase was funded by a million dollars of City funds:
Eighty percent of the opportunities and catalysts were predicated entirely on government funding. No small business opportunities were identified and no major private industry initiatives were envisioned.
IV. Followup to the Workshop
Appendix E also contains a page of “interview” subjects, but there is no indication these interviews were completed. When AECOM project manager, Marcia Tobin, spoke four months later to the newly formed AMDC at its June 20, 2020 public meeting, she only referenced feedback from the workshops. According to the meeting minutes (7), she cited the “workshop” eight times in her discussion, including this relevant passage insinuating the workshop was well attended and the community was well represented. From the minutes:
She said they took that information and used it in the Goal Workshops on February 25 – 26, 2020. The purpose there was to get people together who know the area– residents, city employees, volunteers and leaders within the community who understand what has been done and where they would like to go.
On October 8th and October 27th, 2020, two more “working meetings” were held, but the meeting attendees were not noted. By this time the AECOM plan was already on the minds of AMDC members. Two days prior, at its October 6, 2020 meeting, newly appointed commissioner Philip Merry, a real estate investor and former City Council member, cited the work in the context of reworking the City’s stormwater ordinance to allow higher density housing. From the minutes:
He thought the vehicle of the AECOM Economic Development Plan might be a good place to give credence to those concerns. He noted one example is the city’s mandate for stormwater retention. He pointed out that he thought Aiken has the highest stormwater retention requirements of anyone in the state. He pointed out this requires the developer to buy more land in order to do their project, or do the project smaller, or not do the project at all. (8)
A major new dynamic in the mix, unrecognized by the AECOM planners, was the $600 million Plutonium Settlement between the State of South Carolina and the U.S. Department of Energy. The AMDC, however, was already lobbying for a major cut of the settlement pie for Aiken County, including $15-20 million for downtown redevelopment. For the next three months, the issues of plutonium money and the AECOM Plan merged at AMDC meetings.
V. The Final Plan
The final plan, condensed into 43 pages, was complete by March 2021. After the AMDC passed a resolution to adopt and approve the plan, the next step was City Council approval. What amounted to a Reader’s Digest version of the AECOM Plan was included in the agenda packet for Aiken City Council’s March 22, 2021 meeting. Omitted were Appendices C, D, and E — the document review, maps and graphics, and presentation material. In fact, even the blank cover sheets for the appendices found in the final, subsequent, published edition were omitted. Less than twenty percent of the document was provided to City Council and for public viewing.
Whereas the terms “public perception” or “public misperception” occurs six times in the original 43-page document; the term “public input” is absent. Also absent from the final report are:
the word “plutonium,” despite the prospect of SRS fabricating new nuclear explosive components called “plutonium pits” being identified as an original economic “catalyst.”
the term “radioactive waste,” even though the report states “the largest industry in Aiken County remains waste remediation.”
“Plutonium” did not appear in the final product.
Despite the absence of any significant “stakeholder” presence and local media, Tobin and her fellow project members cited the Feburary 2020 “stakeholder workshops” nine times within thirty-five pages of discussion as a validation of its work and recommendations:
AECOM’s key takeaways from this (document) review can be found in Appendix C, Aiken Document Review. This information was reviewed and discussed with City representatives at the February 2020 workshop, to ensure that this Strategic Plan would be thorough, well-informed, and not duplicate efforts. (Page 10).
During the two-day February 2020 workshop that AECOM held with City of Aiken stakeholders, several key issues for the City rose to the forefront of the discussion. (Page 14)
As was discussed during the February workshop, the City is in the fortunate position of being within a reasonable commuting distance of several major employers; however, they have struggled to attract and retain young professionals/young families in recent years.” (Page 15)
With the exception of AECOM planning staffers, no major employers were present at the workshop, and no major employers or small business owners were subsequently interviewed.
During the February 2020 workshop, City stakeholders discussed a need for more housing/mixed-use residential development in the downtown area. (Page 17)
No property owners, business owners, developers, builders, or realtors were present at the workshop.
The Hotel Aiken redevelopment project was cited by City stakeholders as another ongoing challenge(Page 18).
The Hotel Aiken’s owner was apparently not invited to the meeting.
During the February workshop, participants noted that, although there is some programming downtown in the form of festivals and events, there are opportunities to better activate the downtown area and make it a more vibrant, lively space. (Page 18)
No center-city merchants, residents, or property owners were present at the workshop to address the “live/work/play, 18-24-hour downtown” vision that emerged.
During the February workshop, it was noted that outside of the annual Aiken Steeplechase event, the City has not been able to leverage its renowned equine heritage into any other significant economic development opportunities. Aiken’s horse community, many of whose members live in the historic Horse District section of the City, has a reputation for being somewhat insular. As previously noted, the City is also home to a 2,100-acre park, Hitchcock Woods, that is a popular location for trail riding, but is not well utilized by the rest of the community. (Page 24).
No representatives from the equestrian community were present at the workshop. Despite larger discussion of equine activities and industries during the October workshops, the final report only contains references to Hitchcock Woods and the Aiken Steeplechase. The word “Polo,” for which Aiken is renowned, is missing from the final document. The highly successful Bruce’s Field equestrian center is only referenced in the context as the “former home” of the Aiken Steeplechase — and one in need of development.
The AECOM plan failed to recognize the “old Steeplechase site” is a thriving equestrian park funded entirely by private enterprise.
In meetings with stakeholders and during the February 2020 workshop, desire was expressed to identify and celebrate key entrances to Aiken.
This list of projects is based around key areas of focus discussed during the February workshop. (Page 31)
Although the AMDC had yet to meet by February, 2020, it figured prominently in the list of projects within the final report, including
Explore options for property acquisition by the City/Aiken Municipal Development Commission of parcels that can be acquired, assembled, and developed for medium-to- high-density mixed-use, mixed-income residential development….Work with the Aiken Municipal Development Commission to increase awareness of available incentives for downtown development/redevelopment.
VI. The AECOM Plan Approval: No Hearings and a False Premise
A week after the March 15, 2021, announcement of a stealthy, vaguely defined AMDC-led redevelopment effort called Project Pascalis, during its meeting on March 22nd, Aiken City unanimously passed:
A RESOLUTION ADOPTING THE AECOM ECONOMIC DEVELOPMENT ACTION PLAN AS RECOMMENDED BY THE AIKEN MUNICIPAL DEVELOPMENT COMMISSION, AND MATTERS RELATED THERETO.
This was a resolution, not an ordinance, and as such was not subjected to two public readings that require hearings. Instead, the meeting agenda merely listed a one page item under new business:
3) Approval of AECOM Strategic Economic Development Action Plan.
The document provided in Council’s agenda packet did not include the final three appendices. If any Council members had read the document, they did not raise this point.
Paragraph three of City Manager Stuart Bedenbaugh’s supporting memorandum presented Council with the false premise that the AECOM plan was a Redevelopment Plan:
This Redevelopment Plan is prepared pursuant to Section 31-10-100 of the South Carolina Code of Laws.
Section 31-10-100 is the subsection of SC Community Development law that specifies ten requirements for a legal redevelopment plan. The AECOM plan addressed a few of these requirements but did so only in a general manner that does not comply with redevelopment law. At no time does the plan’s authors state it qualifies as a legally valid redevelopment plan.
In fact, City Council had already approved a downtown Redevelopment Plan in June, 2020, called the Redevelopment 1 plan, and this is the only redevelopment plan presently approved by City Council.
In spite of this grave oversight by Bedenbaugh and City Attorney Gary Smith, who is responsible for preparing and signing off on ordinances and resolutions, the AECOM plan was approved under this false “redevelopment plan” premise, one that Bedenbaugh argued would authorize the AMDC:
to acquire property, to execute contracts for clearance and preparation of land for resale, and to take other actions necessary to carry out redevelopment plans, in accordance with the provisions of this chapter.
Bedenbaugh and City Attorney Smith also failed to inform City Council that a redevelopment plan under Section 31-10-100 required a public hearing by the AMDC, followed by two public readings and hearings by City Council. This lack of diligence precipitated, in part, the lawsuit filed against the City of Aiken by nine plaintiffs on July 5, 2022, seeking an injuction against Project Pascalis.
The following table illustrates the legal requirements for any redevelopment plan under the SC Community Development Act; and whether the AECOM plan and the Redevelopment One plan are compliant; While the Revelopment 1 plan meets legal requirements for a plan, it does not qualify as a legally valid plan for Project Pascalis, as the boundary is substantially different, no street changes are proposed, and no demolition is proposed.
The boundaries of the redevelopment area, with a map showing the existing uses of the real property therein
No
Yes
Land use plan of the redevelopment area showing proposed uses following redevelopment;
No
Yes, but nochanges in use proposed
Standards of population densities, land coverage, and building intensities in the proposed redevelopment;
No
Yes
A preliminary site plan of the redevelopment area;
No
Yes, but much smaller than Pascalis project
A statement of the proposed changes, if any, in zoning ordinances or maps;
No
Addressed, but no major changes ID’ed
A statement of any proposed changes in street layouts or street levels;
No
Addressed, but no changes identified
A statement of the estimated cost and method of financing redevelopment under the redevelopment plan;
No
Rough cost estimates, but no definitive finance methods
A statement of such continuing controls as may be deemed necessary to effectuate the purposes of this chapter;
No
Yes.
A statement of a feasible method proposed for the relocation of the families displaced.
No.
Addressed, but no relocations proposed.
The commission shall hold a public hearing prior to its final adoption of a redevelopment plan. Notice of such hearing shall be given fifteen days prior thereto in a newspaper of general circulation in the municipality.
No public hearing, no readings and hearings; only passed as a resolution by City Council.
No public hearing by AMDC, two readings and hearings by City Council.
A redevelopment plan may be modified at any time by the commission; provided, that if modified after the sale of real property in the redevelopment area, the modification must be consented to by the redeveloper of such real property or his successor, or their successors in interest affected by the proposed modification.
N/A
No modification since June 2020.
The AECOM Plan vs. the Redevelopment One Plan: SC Community Development Act compliance
There was minimal discussion about the resolution prior to its passage. Only eleven citizens attended, as the meeting minutes describe COVID concerns and prevention guidelines as having limited attendance.
VII. The AECOM Plan In Action: Misdirected and Misapplied
The day after the meeting, AMDC officials signed a “Cost Sharing Agreement” with Weldon Wyatt’s development firm GAC, LLC to move forward on the initial Project Pascalis effort — an agreement that would collapse within forty five days. Within the agreement was an option for the AMDC to purchase any property GAC or its affiliates purchased, or held by contract. By this time, Wyatt’s WTC Investments, LLC had already signed a $7.5 million purchase and sale agreement with Hotel Aiken owner Neel Shah involving the hotel and five other downtown properties owned by his family—The Berkman Building on Laurens Street (housing Ginger Bee, Vampire Penguin, and Beyond Bijou), the vacant Holley House, the Taj Aiken Restaurant, the historic McGhee Building (housing the vacant former CC Johnson Drug Store and three service businesses), and Warneke Cleaners.
On March 29, 2021, building on Council’s resolution, Mayor Rick Osbon penned a letter to the AMDC:
We appreciate the efforts the economists, planners and other experts from AECOM put into crafting it for us, but, from here on out, it becomes the AIKEN Economic Development Action Plan. It’s up to every resident of Aiken, the AMDC, the Aiken Corporation, the City Council and countless stakeholders throughout the community to join together and make this document more than a plan for the future. We need to make it our present and our reality as soon and as successfully as we possibly can. (7)
Among Osbon’s key requests were:
immediate attention to the Parkway District;
the “expedited redevelopment of the stalled Hotel Aiken project;”
a “conference/convention facility….adjacent to sufficient first-class lodging to accommodate as many as 500 overnight and multi-night attendees.”
“package and market sufficient acreage and appropriate sites” to help create more “urban-scale residential condo and apartment inventory within the downtown area.”
a “structured parking solution.”
Efforts to meet all these goals were already underway with Project Pascalis, although no details would be released to the public until eight months later.
The first Pascalis project collapsed in early May when Weldon Wyatt withdrew from the deal. As part of the negotiations to salvage the deal, Mayor Osbon met with Weldon Wyatt and Greenville based developer Andy Cajka, President of Greenville, SC based Southern Hospitality Group. A memorandum from Tim O’Briant to AMDC members Jameson, Chris Verenes, and Chairman Keith Wood described the May 3rd meeting:
The Mayor and Weldon met with Andy on Monday, I was out of town, apparently shg hotels will possibly deliver a LOI (letter of intent) regarding the hotel this week. The mayor agreed the meeting went well and Andy was engaged in making a deal that would be privately funded based on the public dollars and incentives driving the project. Mayor indicates he deferred question about Friday negotiations and City’s position on deal points citing my absence and his lack of information on the subject.
A day later O’Briant and AMDC Treasurer and Chamber of Commerce President David Jameson had lunch with Weldon Wyatt, his investment and development partner Thomas “Chip” Goforth, and GAC Management Services employee Ryan Bland, who two weeks earlier had still held the position of City of Aiken Planning Director. O’Briant described that meeting as follows:
David Jameson and I went to lunch with Weldon, Ryan, and Chip. Weldon continues to promote the benefits of 100 percent public funding of the entire project, but now says he doesnt’ intend to participate in the cost or the proceeds—just wants a fee/commission for the project to be successful. This despite bringing in a potential private partner with money to spend just yesterday. He is somewhat cagey and defensive and says he believes I have conveyed messages not representative of the City’s position. Indicates he believes there is some possibility the city council would accept the deal that I rejected Friday. Indicates Lessie (Price) is setting up the Thursday meeting to get everyone in one room to verify my position does not reflect that of leadership.
After that point the known paper trail ends, and the outcome of any meeting set up by Council member Lessie Price is unknown. What is known is:
On May 10, 2021, Aiken City Council met in closed door Executive Session for nearly two hours to discuss a range of topics, including “a possible purchase of real estate” and “a possible contractual arrangement with a real estate developer.” The outcome of that meeting was not summarized during the subsequent public session.
On May 14, 2021 the Aiken Chamber of Commerce took assignment of the purchase and sale contract for the Shah’s suite of properties; and then on June 3rd took assignment, of the Anderson (Newberry Hall) contract. In all, the Chamber reimbursed Wyatt’s firms $135,000 of otherwise nonrefundable earnest money managed by City Attorney Gary Smith’s law firm. From that point, the AMDC secretly referred to the properties as “AMDC controlled.”
In August 2021 Aiken City Council approved a $10 million bond issuance in support of AMDC property acquisitions in the “Parkway District,” with the AECOM Plan’s reference to “fragmented property ownership” a key justification in the supporting bond documents.
AMDC Chairman Keith Wood, whose letter to City Council urging the bond passage included citations from the AECOM plan, also wrote in a July 26, 2022 letter to the Historic Aiken Foundation: “The AMDC first pursued the purchase of the property in question and those adjacent to it at the behest of Aiken City Council.”
There is no record of Aiken City Council asking the AMDC to purchase the Pascalis project properties. Any such request made in closed-door, Executive Session would constitute a serious violation of Open Meetings law, which dictate that no votes are to be taken in Executive Session.
When questioned about the origin of this unsubstantiated statement, neither Chairman Wood nor Tim O’Briant have offered any reply.
VIII. Conclusion
The AECOM plan was formulated by a subsidiary of a major contractor for the largest employer in Aiken County and the entire Central Savannah River Area (CSRA). It was commissioned by a newly formed City of Aiken Economic Development Department, despite the company’s relative absence of experience in planning for small Southern towns like Aiken, whose primary draw includes the charm of its historic downtown area dominated by small, locally owned businesses, a vibrant equestrian community, and a lack of traffic jams.
The plan was pursued in a stealth fashion with negligible public input. A “stakeholders workshop” was dominated by City of Aiken employees, many of whom did not reside in the City of Aiken at the time. The Chamber of Commerce was the only nongovernmental entity attending, and only attended the session dominated by a four-hour Trolley tour.
Yet, AECOM staff, most notably AECOM Urban Planner and Project Leader Marcia Tobin, consistently misrepresented the workshop as a diverse “stakeholders” meeting, when in reality it was at best a small, subjectively chosen, private focus group. Moreover, AECOM staff were absent when City Council approved adopting the plan, and have not issued any concerns publicly that Council and the public received less than twenty percent of the final product for review. No Council members appear to have detected the omission or registered any concerns if they had.
While the AECOM plan does not purport to be a redevelopment plan, it was blatantly misapplied as one by the AMDC and Aiken City Council, and repeatedly used to justify huge expenditures of tax dollars to establish what City Manager Stuart Bedenbaugh openly referred to as a “land bank.” Again, AECOM planners have registered no concerns publicly over this gross misrepresentation of their work product.
Less than two months after the AECOM plan was approved and adopted under a false pretense, the first Project Pascalis failed. Undeterred, Aiken City Council and the AMDC doubled down, plowed forward, and then spent the next year compounding the failure to the tune of nearly $10 million of taxpayer money. The obvious alternative of regrouping and publicly reporting the status of downtown redevelopment efforts appears to have escaped the thought process of city officials.”
________________
References
(1) Freedom of Information Requests and Responses:
FOIA Request #191-2022. Filed on 8/2/22 by Donald Moniak.
Request: “Attendee list and meeting notes or minutes for the workshop described in the AECOM authored Aiken Economic Master Plan: ‘February of 2020, AECOM held a two-day workshop with Aiken City officials and key stakeholders to discuss the City’s past, present, and future. AECOM was given a tour of the City’s historic downtown, many unique neighborhoods, key gateways, and commercial and employment nodes.’ Since this is the master economic development plan, the requested information should be readily available. Posting this information to the City’s website and providing that link would constitute a sufficient FOIA response.”
Response: The summary for the February 25-26 workshops; and the Presentation to AMDC at its June 20, 2020 meeting.
FOIA Request #225-2022. Filed on 8/23/22 by Donald Moniak
Request: “A copy of the AECOM contract and/or agreement to prepare and develop the “Strategic Economic Development Master Plan” for the City of Aiken, which states that “AECOM was engaged by the City of Aiken, beginning in April of 2019, to assist in the development of this strategic economic development strategy.” 2. A copy of all invoice statements for work completed by AECOM in relation to this contract, and payments for the work. 3. A copy of the following items in the report’s Appendices C, D, and E ( which are empty in the document): City of Aiken Document Review, Maps and Graphics, and Meeting Materials. This information is in the public interest, as illustrated by an abundance of references to the document by City of Aiken officials since March, 2021. Therefore, all fees should be waived and in the interest of government openness, the documents should be made available on the City of Aiken’s website. This information should also be readily available as this document forms the basis of the city’s economic plan.”
Response: On September 5, 2022, an updated version of the AECOM plan that included Item 3 of the request, Appendices C, D, and E, was posted to the AMDC website at:
The 43 Page document approved in March 2022 by Aiken City Council now was 247 pages.
This document was posted surreptitiously by the AMDC, and without proper notification as required by SC FOIA.
(2) AECOM Plan. The original document with three empty pages of appendices was removed sometime after August 23, 2022, and replaced on September 5, 2022 with the following:
(4) In April 2019, AECOM led Savannah River Remediation, LLC was awarded a $750 million extension of the Savannah River Site liquid radioactive waste processing contract. In a news release about the award, AECOM described itself as:
“AECOM (NYSE:ACM) is built to deliver a better world. We design, build, finance and operate infrastructure assets for governments, businesses and organizations. As a fully integrated firm, we connect knowledge and experience across our global network of experts to help clients solve their most complex challenges. From high-performance buildings and infrastructure, to resilient communities and environments, to stable and secure nations, our work is transformative, differentiated and vital. A Fortune 500 firm, AECOM had revenue of approximately $20.2 billion during fiscal year 2018. See how we deliver what others can only imagine at aecom.com and @AECOM.” https://www.businesswire.com/news/home/20190402005391/en/U.S.-Department-Energy-extends-AECOM-led-joint-venture
(11) Memorandum from Tim O’Briant to AMDC Executive Committee. May 5, 2022.
(12) Based on the Memorandum, Andy Cajka’s proposal is believed to be second from the bottom on the redacted review of bidders to the secretive May 2021 Solicitation for Proposalstitled “Pascalis offers comparison_Redacted.
A “very complete letter of intent”
A proposal to “contribute $1.5 million to property purchase but requires that incentives equal to any purchase price be equaled by the City incentives for a zero sum gain.”
a group with “considerable experience in all aspects of project pascalis.”
What would happen if the $100 million plus downtown Aiken demolition and reconstruction endeavor known as Project Pascalis were to come up before the Aiken Planning Commission? How many of its members would have to recuse themselves due to conflict of interest, or abstain because any perception of neutrality was compromised by past endorsements of the project?
On November 9, 2021 the Aiken Municipal Development Commission (AMDC) passed a resolution “authorizing the acceptance of certain options to purchase real property from the Greater Aiken Chamber of Commerce in connection with Project Pascalis and other matters related thereto.”
According to the meeting minutes for that November 9, 2021 meeting, AMDC Executive Director Tim O’Briant described the process leading to that point:
Mr. O’Briant stated that as we moved through the early process of negotiating with an initial developer who held contracts for the purchase of real estate that we (were) considering the purchase of, negotiations with that group broke down. We had a cost sharing agreement where we were doing pre-development explorations. In exchange for that agreement the developer had granted the Commission the right to maintain those options and contracts on the project to keep the project alive. The developer pulled out so late that it was impossible for the AMDC or Council to act in time to save the contracts by the deadline. The Greater Aiken Chamber of Commerce and their Executive Committee stepped in and agreed to hold those options and make available the sum of $135,000 to pay the earnest money on the contract. Today this resolution will repay the Chamber of Commerce for their advance for the options to purchase the property.
The resolution passed unanimously, although two AMDC members, Vice-Chair Chris Verenes and Treasurer J. David Jameson (better known as President of the Aiken Chamber of Commerce) abstained from the vote. According to the minutes:
The motion was approved by the Commission, with Mr. Verenes and Mr. Jameson abstaining from participating in the discussion and voting on the resolution.
Mr. O’Briant was referring to the chain of events that began around May 1, 2021, a literal “May Day” for the AMDC. On March 17, 2021, the AMDC announced it had “identified and recruited an “experienced” and “well capitalized” developer. That developer was not revealed at the time, but it was Weldon Wyatt, and he was backing out of the deal less than forty days after signing the cost sharing agreement cited by O’Briant (see Project Pascalis Property Acquisition Timeline below) .
March 2, 2021: $7.5 million purchase and sale agreement (PSA) signed by WTC Investments, LLC* for “Shah Property” on Laurens St, Richland Ave, and Newberry St.
March 15, 2021: Aiken Alley Holdings (Agent; Ray Massey) purchases 210 and 200 The Alley for $2.025 million.
March 23, 2021: Aiken Municipal Development Association (AMDC) and GAC, LLC (Agent Weldon Wyatt) sign cost-sharing agreement with options for AMDC to buy properties obtained by GAC, LLC and its affiliates (WTC Investments)
April 4, 2021: Smith, Massey, Brodie, Guynn, and Mayes, LLC (Agent Gary Smith III) send $6800 Invoice for property acquisition work to WTC Investments*
April 15, 2021: $2.0 million PSA signed by WTC Investments* for “Anderson Property”
May 1-10, 2021: GAC, LLC withdraws from cost-sharing agreement. AMDC, Aiken Chamber of Commerce (the Chamber) and WTC Investments, LLC* negotiate “assignment” of Shah and Anderson properties to the Chamber allowing WTC Investments to recover $135,000 in nonrefundable earnest money held by Smith, Massey et al.
May 12, 2021: The Chamber Aiken takes assignment of “Shah Property” from WTC Investments, LLC (Agent Ray Massey).
June 3, 2021: The Chamber takes assignment of “Anderson Property” from WTC Investments, LLC
June 3, 2021: Email from WTC Investments to Mary Guynn and Ray Massey requesting release of $35,000 Earnest Money for “Anderson Property.”
June 7, 2021: Aiken Alley Holdings, LLC purchases 121 Newberry St, SW for $675,000.
August 23, 2021: Aiken City Council authorizes $10 million in general obligation bonds for AMDC to purchase unspecified properties in the city’s Parkway District.
October 27, 2021: RPM Development Partners, LLC (Agent Ray Massey) registers with SC Secretary of State.
November 9, 2021: AMDC “accepts assignment” of Shah and Anderson properties from the Chamber for $9.5 million.
December 3, 2021: AMDC signs PSA for Shah and Anderson properties with RPM Development Partners for unspecified sum, pending demolition approvals and a final development agreement.
May 16, 2021: AMDC reports it will sell properties at a discount as a “one time incentive.”
*WTC Investments, LLC dissolved on January 4, 2021 and re-registered with the South Carolina Secretary of State on May 11, 2021. Ray Massey was agent for both entities.
__________________
In order to preserve the option to purchase the seven properties in the proposed Project Pascalis demolition zone, the AMDC and the Aiken Chamber of Commerce struck a deal with Wyatt’s WTC Investments, LLC that allowed Wyatt to recover $135,000 in earnest money deposited with the law firm of Smith, Massey, Brodie, Guynn, and Maynes.
As Tim O’Briant described, the Chamber essentially advanced the AMDC $9.5 million, also known as taking “assignment” of the properties, while the AMDC hustled the Aiken City Council for its own $9.5 million to buy the properties. The council obliged in August, 2021 with a $10 million general obligations bond issuance prepared by the law firm of Pope-Flynn. The AMDC finalized the deal on November 9, 2021 by purchasing the properties.
The Aiken Chamber of Commerce Executive Committee is currently composed of Norman Dunagan, Jason Rabun, Charlie Hartz, Joe Lewis, Van Smith, Ryan Reynolds, and J. David Jameson. Both Rabun and Reynolds also serve on the Planning Commission:
Planning Commission Chair Ryan Reynolds is the “Immediate Past-Chair” of the Aiken Chamber of Commerce Executive Committee. Reynolds was the Chamber’s Executive Committee Chair during the Wyatt-AMDC-Chamber of Commerce deal.
Planning Commission Vice-Chair Jason Rabun is the “Chair-Elect & Membership Services” officer for the Aiken Chamber of Commerce Executive Committee. Rabun was a newly elected Chamber Board member in 2021.
Jason Rabun also submitted a brief comment during the second of two April 20, 2021 Project Pascalis public meetings. (3) While not identifying his affiliations, he wrote:
“I am very much in support of this project.”
GIven the deep involvement of the Aiken Chamber of Commerce and Chamber President Jameson’s abstention from a key vote involving the Project, are Planning Commission members Rabun and Reynolds also obliged to recuse or abstain if any Project Pascalis issues come before their purview?
A sunny Saturday afternoon in downtown Aiken, July 2022 (Photo courtesy of Michael Aiken)
Three recent Freedom of Information Act (FOIA) requests to the City of Aiken regarding the ongoing downtown demolition and redevelopment endeavor known as Project Pascalis yielded either no documents or incomplete documentation. But the paucity of documentation functions, in these cases, as good information shining more bad light on the vagaries of Project Pascalis.
The following information is good to know:
The City of Aiken has not compiled an account of questions and answers from its Project Pascalis public meetings of April 20th, 2022, and one of its meeting transcripts (which it has yet to release) omits all public comment. (1)
An offer was made to purchase the Aiken Antique Mall in March, 2021 as part of a larger land consolidation effort during the earliest stage of project development (2). The Aiken City Attorney’s law firm billed Weldon Wyatt’s investment and development firm WTC, Investments, LLC for the effort.
There is no contract yet between the City of Aiken and Newberry Hall’s operators for the management and operation of the proposed city-owned conference center. (3)
The City’s Listening Skills Are Not on Display
The City of Aiken’s website includes a five year old page titled “City of Aiken Revitalization Project.” This was the “Downtown Renaissance” project that included some elements found in the Project Pascalis proposal, but was more dispersed and did not involve demolishing a substantial portion of downtown Aiken. On that page, the City declared:
Downtown revitalization takes initiative, courage, and vision to look at what makes for a vibrant, walkable, livable center that fosters community vibrancy while creating economic opportunity. Aiken is no different. Our history of downtown revitalization is strong and the City stands ready to face the next chapter of downtown development. (4)
Although the “Downtown Renaissance” plan became mired in controversy and faded into recent history, the city did document citizen concerns in great detail. The revitalization project website features twenty pages of “Questions submitted from the public,” and links to other documents containing more than one hundred pages of comments and questions.
In contrast, the City of Aiken has no similar record of public input for Project Pascalis. The two transcripts from the April 20, 2022 public meetings, when the city promised to have transcripts the next day, are poor and incomplete records of that event:
a. The morning meeting “You Tube” transcript is painfully difficult to read and does not identify speakers; and b. The evening meeting transcript ends when public comment begins.
Until now, no transcript has ever been released to the public.
When asked for a copy of a question and answer document similar to the one found for the “Downtown Renassaince,” the city came up empty. No efforts to document citizen questions and comments has occurred. Listening is not on the city’s agenda for Project Pascalis.
The Antique Mall Was Targeted as Part of the Original Project Pascalis
Aiken Antique Mall, July 2022 (Photo courtesy of Michael Aiken)
The ownership of the Aiken Antique Mall has not changed hands, and there is no proposal to demolish it. But it was part of the aggressive effort to consolidate downtown property ownership to facilitate a major demolition and redevelopment project.
This consolidation effort is encouraged by the city’s “master economic development plan” completed by AECOM corporation in 2021, which cites “fragmented property ownership” as one of the “challenges for large-scale redevelopment.” This “fragmented property ownership” issue was cited by City Council in August, 2021 as a key justification to issue $10 million in bonds for the AMDC to purchase Parkway District properties.
Aiken Antique Mall, July 2022
An offer (or offers) was made on the Aiken Antique Mall, and Weldon Wyatt’s investment and development firms had enough confidence the property would be obtained to include it in the first concept plans completed in April, 2021 by The Boudreaux Group. (5)
In response to a FOIA request for the Antique Mall purchase and sale offer, the City of Aiken declared there is no responsive document. In response to a follow-up question, Aiken Economic Development Director and designated FOIA officer Tim O’Briant wrote:
WTC/GAC made an offer on the referenced property in the same timeframe that the firm(s) secured contracts on the other adjacent parcels. These discussions and agreements were in place prior to them approaching the City/AMDC about a public-private partnership and before the parties entered a cost-sharing agreement.
Since the contract on properties collectively referred to as “the Shah property” was secured on March 2, 2021 and the cost-sharing agreement was finalized on March 23, 2021, an offer on the Antique Mall was made during that period. It was then included in the planning process. Whether the developers had the consent of the owner to include their property in any plans is unknown at this point.
What is known is that the Aiken City Attorney’s law firm billed WTC Investments, LLC for $6,800 to “prepare contracts and negotiate contracts for purchase of hotel, purchase of Mrs. Anderson’s property and purchase of Antique Mall.” (6)
Another unknown is the status of the land consolidation effort that attempted to encompass the Antique Mall. The City of Aiken’s official economic growth strategy discourages “fragmented property ownership patterns.”
Aiken Antique Mall, July 2022 (Photo courtesy of Michael Aiken)
Aiken Antique Mall detail, (Photo courtesy of Donald Moniak)
The Aiken Antique Mall property with its facade of flaking paint could be portrayed as crumbling and blighted by another slick public relations campaign targeting more properties for demolition and redevelopment. What is to stop it?
Newberry Hall: No Contract, Yet.
Newberry Hall is a private business catering to conferences, meetings, and weddings. It is a common venue for groups hosting political leaders. The influential Aiken Republican Club holds its monthly breakfasts there, which in June 2022 featured U.S. Congressman Joe Wilson.
Newberry Hall’s website includes numerous favorable reviews, such as this one from City of Aiken public information officer Chris Ceasar:
Newberry Hall is one of the premiere catering facilities in Aiken County. Whatever your dining pleasure, they can and will accommodate. The staff is very professional. The cuisine is most delectable. The facility is gorgeous. Try Newberry Hall. You will be pleasantly surprised!
Newberry Hall accurately describes its property located at 117 Newberry Street, SW as follows:
Newberry Hall is on a tree-lined and beautifully landscaped city street in the heart of downtown Aiken. Walk through the front doors of Newberry Hall and enter the perfect environment for your social or corporate event.
Newberry Hall, July 2022. (Photo courtesy of Michael Aiken)
In March 2021 the development team led by Weldon Wyatt and Ray Massey sought to demolish this fixture of downtown Aiken life and the surrounding landscaping and replace it with a larger conference center connected to a new hotel. Eventually they signed a contract with the owner, Myrtle Anderson, to purchase the property for $2 million.
This negotiation was no cakewalk. Newberry Hall collectively negotiated favorable terms for the owner/operators of the Newberry Hall business, Patrick and Natalie Carlisle, and an “Agreement for Regarding Lease and Option” was added to the purchase and sale agreement and signed by Ms. Anderson and Weldon Wyatt. This agreement, first finalized on April 15, 2021, was retained by the Aiken Municipal Development Commission after the contracts were transferred to it via the Aiken Chamber of Commerce, which took “assignment” of the property from WTC Investments, LLC on June 3, 2021.
The lease and option agreement included options for Newberry Hall to purchase the new building, operate the new city owned conference center, and be compensated for lost income during the construction period. The agreement states:
C. The development of the Project contemplates that the improvements on the Property would be demolished and replaced with a larger conference center and kitchen and that Carlisle would be compensated for loss of income during interruption of Carlisle’ s business and would lease the replacement conference center and kitchen pursuant to a replacement lease and operating agreement, the terms of which are under discussion but are not finalized (the “Operating Agreement”).
D. Section 5 of the Lease provides Carlisle with a purchase option (the “Option”) that would be triggered by the closing of the Purchase.
E. Anderson and Carlisle desire to that Commission close the Purchase without triggering the Option and have requested that Carlisle grant a one-time waiver of the Option to allow Carlisle and Commission more time to attempt to finalize an Operating Agreement.
In its response to the FOIA request for the contract to operate the future conference center, the The City of Aiken “determined that no contract as described has been considered for approval by Aiken City Council or the AMDC and to date no such instrument has been executed by the parties referenced.”
The city did not provide any more information, yet, no followup questions have been posed. The fact that “no such instrument has been executed” implies that such an instrument is still under negotiation, and would arguably be exempt from disclosure by SC FOIA law due to being a contract under negotiation and not a final product.
Newberry Hall, July 2022. (Photo courtesy of Debbie Traves Brown)
If Project Pascalis survives legal challenges and citizen outcry, downtown Aiken will endure a minimum of three years of major demolition followed by construction. By comparison, reconstruction of The Alley took sixteen months and the Hotel Aiken has been vacant for four years. The Wedding parties, meetings, conferences, breakfasts, and other events routinely held at Newberry Hall will be held elsewhere. How much of a loss to downtown businesses will this inflict?
Commentary
Prying information from any government body that selectively spoon feeds the people its version of the truth can bring to mind former Secretary of State Donald Rumsfeld’s famous musing about information, a series of concepts so complex that even he tripped over them during later interviews.
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“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. There are things we don’t know we don’t know.”
— Donald Rumsfeld
The secrecy and intrigue surrounding the $100 million downtown Aiken demolition and redevelopment endeavor known as Project Pascalis pales in comparison to the world of international nuclear insecurity that Rumsfeld was in part referring to that day. But the concept of information confusion is relevant to any process plagued by secrecy.
The details of Project Pascalis were kept secret for eight full months in 2021, and the AMDC met in closed door executive session more than fifty percent of the time since the project was announced in March, 2021, primarily to discuss the project. (8)
My wife describes ‘transparency’ as “something you can see through,” while ‘openness’ means “listening to and talking about what people see on the other side.” The City of Aiken likes to talk about being transparent, but continues to disregard the more important character trait of openness during this process.
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(1) A FOIA request was filed on July 6th for “1. A transcript of both April 20, 2022 public “design workshop” meetings held at 214 Park Avenue W. The meetings were also was held on Zoom, and during the 530-700 pm meeting, and during this Zoom call participants were asked if they wanted a transcript of the meeting. 2. All comments and questions submitted to the Zoom moderator. 3. Any compilation of questions and answers by City of Aiken and/or AMDC staff from the April 20, 2022 meetings. If they exist, these documents should be readily available with minimal search time.”
The City responded the same day with three documents:
No compilation of questions and answers from the meetings were provided, and none exist.
(2) A FOIA request was filed on July 11th for a “copy of the purchase (agreement) of the Antique mall referenced in the attached invoice. Since this was a part of the public-private cost sharing agreement between the AMDC and GAC, LLC, this should be available from the City of Aiken.”
The city replied there was no “responsive record,” meaning the record may exist but they do not possess it. The city did confirm “discussions” to purchase the property:
“The City replied determined the invoiced charge was related to initial discussions with the owners of the referenced parcels by GAC, LCC. No agreement was struck, the property was never placed under contract with nor purchased by GAC, LLC, the City of Aiken nor the AMDC. Therefore, there is no responsive record.” (1)
In a subsequent answer to a followup question, the city replied:
“WTC/GAC made an offer on the referenced property in the same timeframe that the firm(s) secured contracts on the other adjacent parcels. These discussions and agreements were in place prior to them approaching the City/AMDC about a public-private partnership and before the parties entered a cost-sharing agreement. Therefore, no documents related to the earlier unsuccessful offer on the referenced property were ever shared with either the City or the AMDC. If such a record were available within the City’s possession and control, I’d be happy to provide it. There simply isn’t one.”
(3) A FOIA request was filed on July 8, 2022 requesting:
“A copy of The contract between the City of Aike or AMDC and the owners and operators of Newberry Hall for Rental and operation of the proposed City of Aiken conference center.”
The city responded:
“The City of Aiken has determined that no contract as described has been considered for approval by Aiken City Council or the AMDC and to date no such instrument has been executed by the parties referenced.”