Tag Archives: Project Pascalis

The Project Pascalis “Influencers” Meetings: Yes, the AMDC Violated Open Meeting Laws

The Aiken Municipal Development Commission (AMDC) is the branch of City of Aiken government that has pursued the proposed $100 million plus demolition and reconstruction endeavor known as Project Pascalis. The first eight months of project execution was conducted almost entirely in secrecy. Following announcements of land purchases and the selection of a developer, RPM Development Partners, AMDC officers and its Executive Director planned, organized, and executed illegal meetings between the developer and select members of the public, city council, and other city officials. The meetings were not announced to the public, not open to the public, were referred to as “influencer meetings,” and the scope of the meetings appears to have been strongly influenced by the developer. 

FOIA and Open Meetings 

South Carolina’s Freedom of Information Act (FOIA) exists to prevent wrongdoing by government officials, elected and appointed. The “Open Meetings” aspect of the law specifies that every “meeting of all public bodies shall be open to the public unless closed for distinct reasons.” There are no laws saying a meeting “must be” closed, only that it “may be” closed for reasons including issues of employment, contracts, property purchases and sales, and matters “relating to the proposed location, expansion, or the provision of services encouraging location or expansion of industries or other businesses in the area served by the public body. “

The law directs city and county governments—councils, boards, and commissions; school boards and every other public body — to not circumvent this basic requirement for open meetings, by stating: 

c) No chance meeting, social meeting, or electronic communication may be used in circumvention of the spirit of requirements of this chapter to act upon a matter over which the public body has supervision, control, jurisdiction, or advisory power. (1) 

The Aiken Municipal Development Commission (AMDC) was formed in 2019 by the Aiken City Council under the terms of South Carolina’s Community Development law. (2) The AMDC is legally restricted to addressing areas within the City of Aiken that meet the legal criteria for blighted and near blighted areas, (known as “conservation areas”), and is legally obligated to adhere to the state’s Open Meetings laws. 

In March 2021 the AMDC announced the formation of “Project Pascalis,” and held meetings almost exclusively behind closed-door Executive Sessions for the next eight months. Nearly two-thirds of the commission’s public meeting time during that period was held in these closed-door sessions. The remainder of the meeting time was devoted to issues unrelated to Project Pascalis. (3) By the time preliminary details of the project were publicly announced on November 9, 2021, the City of Aiken had devoted $9.5 million to the purchase of seven downtown properties now forming the project’s proposed demolition zone encompassing nearly half of a city block. 

On December 3, 2021 the AMDC announced the selection of RPM Development Partners, LLC as the Project Pascalis developer; and the existence of a purchase and sale agreement between the AMDC and RPM involving the seven properties. No legal request for proposals had ever been advertised prior to selecting RPM. The AMC actually ran a public notice for a request for proposals on December 13th and 20th, after choosing the developer.

Private Emails and a Zoom Call. 

From December 9th to the 29th, 2021, the AMDC’s three officers and Executive Director Tim, planned and organized illegal, invitation-only meetings in the name of “public input” that were held on January 4th and 5th of 2022.  At least four of the meetings were scheduled for the Aiken Chamber Of Commerce’s offices. One “dinner” meeting was eventually held at Prime Steakhouse in downtown Aiken and involved city officials and developers that eventually featured a $620 dinner and drinks bill for the six City officials in attendance— at taxpayer expense. 

Preliminary, detailed information regarding these illegally closed meetings was reported on May 27, 2022, with an update issued on June 3, 2022.  AMDC Executive Director Tim O’Briant denied the meetings met the legal definition of a “public meeting,” and even denied involvement by AMDC officials in the planning stages. (4) 

A series of recently obtained emails (5) between AMDC Treasurer J. David Jameson, his fellow AMDC officers,  and AMDC Executive Director Tim O’Briant shed light on the real involvement of AMDC officials. Mr. Jameson also serves as the President of the Aiken Chamber of Commerce, and most of the emails originate from his Chamber email account. AMDC Chairman Keith Wood and Vice-Chair Chris Verenes also used email accounts provided by their employers, Amentum and Security Federal Bank, respectively. No AMDC officers used their official government email accounts at the AMDC’s aikenmdc.org domain. 

In fact, it does not appear that a single AMDC commissioner has used their AMDC email account, in spite of a June 2, 2020 warning from City Attorney Gary Smith to never use private email accounts to conduct city business: 

Council and Board members must use their City provided email address for all official City business. [Hillary Clinton]

1. Use of private email for official City business may subject your private email address to be searched pursuant to the FOIA.


 Smith also advised the Commission that day on public meetings: 

All meetings must be properly noticed. I. Four members of City Council/ Boards cannot be together unless they arein a properly advertised public meeting.

1. No phone conferences that involve four or more members on the phone at the same time.

and 

3. No secret meetings. [Sconyers BBQ] (6)

The emails reveal the three AMDC officers and Tim O’Briant initiated, planned, organized, and executed five Project Pascalis secret, “public input” meetings with only select invitees, and in consultation and coordination with Project Pascalis developer RPM Development Partners, LLC. (Agent: Ray Massey). The meetings were labelled “Influencer Meetings” in a few emails. Among the invitees were fellow AMDC commissioners, so any of the meetings easily could have exceeded the four commissioner limit triggering a proper and legal public notice. 

The planning began on December 9, one week after RPM was announced as the project developer, when AMDC Chair Keith Wood wrote to Tim O’Briant: 

Would you mind setting up a meeting with Grey Raines and the AMDC Executive Committee in the next couple weeks? We would like to understand his process for seeking public input and get a schedule from him on this topic. The meeting needs to take place prior to meeting with the DRB in January and preferably in person if possible.

Within two hours O’Briant responded “Will do.” 

Grey Raines is the President of Raines Hospitality, a “development, management, and investment company that develops, operates, and owns the world’s leading hotel brands as well as boutique hotels,” and is commonly referred to as Rainesco (as in rainesco.com). Rainesco is one of three investor and development groups within RPM Development Partners, the other two being Lat Purser & Associates and Ray Massey and his local investors, if any. 

The “Executive Committee” is composed of the AMDC’s three officers and Tim O’Briant, but its roles and definition cannot be found in the commission’s by-laws or founding ordinance. The schedule of full “Executive Committee” meetings are publicly posted as part of the AMDC’s meeting schedule. 

O’Briant began organizing the Zoom meeting at some point, beginning with RPM Development Partners, LLC investor and agent Ray Massey. In a December 15th email to Grey Raines titled “Zoom Call” and cc’ed to Tim O’Briant’s private tim.obriant@icloud.com account, Ray Massey wrote: 

Grey, is there a time next week that me, you, Tim, and Keith can jump on a quick zoom call? Keith just wants to hear from us how the process is handled with the public, if and when, any meetings might be necessary.

Raines responded to Massey and O’Briant’s private email the same day: 

Sure thing. I have availability on Monday afternoon and Tuesday afternoon.

The email from O’Briant’s private account was forwarded the next day to the private employer accounts of the AMDC officers, ultimately confirming Tuesday, December 20, 2021 for a “call with RPM.” 

The invitees to the December 20, 2021 zoom meeting organized by O’Briant  were AMDC Chair Keith Wood, Vice-Chair Chris Verenes, Treasurer J. David Jameson,  Grey Raines, and lead local investor and agent for RPM Development Partners, Ray Massey. The topic was “Project Pascalis public input discussion.” Conspicuously absent from the proceedings was Lat Purser, the third investor and developer in RPM. The meeting was not publicly posted as an Executive Committee meeting.

Details of the Zoom meeting are unknown at present, but a FOIA request for meeting notes, a copy of the transcript, and the video has been filed.

The Influencers Meetings Invitation List

On December 22nd Jameson emailed his three colleagues with the subject “suggested schedule for January 4/5” and an attachment titled “Influencer Meetings.” The body of the email was headed as “Random Thoughts,” and reveals an inclination to restrict public input to select, elite members of the public, as well as a preference for two exclusive Chamber of Commerce member meetings. Jameson’s random thoughts were: 

I like Ray’s (Massey) list—maybe he should invite them to a session that several of us could also attend. 

The Chamber is available for as many sessions as needed.

I would like one session for the Chamber Executive Committee. 

I suggest that we bring back the Mosaic participant as a session—maybe the 8AM on the ‘s 5th.

I suggest that we have one session with Chamber Past-Chairs. 

We’ll have to scrub the above lists to make certain folks are not invited multiple times

City Council, Some County Council, some Legislative Delegation

These invites would have to go out next week.

Just a starting point for me.

The Attachment titled “Influencer Meetings” shows four meetings scheduled for January 4th, followed by a Design Review Board meeting followed by “Dinner.” Four more meetings were originally scheduled for January 5th. (photo of meetings) 

The email reveals the organization was led by the AMDC, with Jameson operating in a grey zone in his dual role as Chamber President by offering meeting space and seeking a greater role for Chamber luminaries. 

A few hours later Jameson had the invitee list completed. In an email to O’Briant with the subject, “as we discussed,” was an attachment titled,  “Final List with email addresses only.” The body of the email reads:  “this is a good list.” 

The “influencers” list (7) is three pages long and contains 113 names. Remarkably, the list even excluded two elected city officials and included only one County Council member. Although their list does not include the affiliations or title of invitees, among the 113 “influencers” were people who could have and should have raised a flag of concern regarding proper public meeting protocols, including:

  • (Then) Aiken Standard Publisher Rhonda Overbey;
  • Mayor Osbon and council members Lessie Price, Gail Diggs, Andrea Gregory, and Ed Woltz (Ed Girardeau and Kay Brohl are not listed); 
  • Design Review Board, Velice Cummings; 
  • Three members of the Aiken Planning Commission: Jason Rabun, Ryan Reynolds, and Steven Simmons;
  • Two members of the Aiken Housing Authority, Nathanial Dicks and James Gallman;
  • Former Aiken School District Board Chair Levi Green; 
  • Superintendent of the Aiken School District, King Laurence;
  • Former superintendent of schools and current Executive Vice-President and Chief Administrative Officer for Savannah River Nuclear Solutions,(SRNS), Sean Alford;
  • Aiken County Council Vice-Chair Andrew Siders;
  • AMDC Commissioners Catina Broadwater,  Douglas Slaughter, and Philip Merry;
  • Department of Energy Savannah River Site Operations Manage Michael Budney.

The invitation of five city council members indicates the potential for a quorum of members that would trigger a public announcement and notice. No such notice was issued. 

It is unknown at this time if any concerns were raised, but letters of inquiry have been sent, and are still being sent to existing public officials (7). Only Andrew Siders of Aiken County Council has answered, stating he “was not aware of them” and did not attend. 

One person not included on the list was Aiken area resident Christopher Hall, who had written to Commissioner Chris Verenes on November 30th inquiring about a public input schedule for Project Pascalis and offering some suggestions for development, such as bike paths and a “Complete Streets” initiative. Vice-Chair Verenes shared Hall’s one-page email with fellow officers and O’Briant, but there were no comments on any of his suggestions for improving the downtown area. 

On December 28, Jameson wrote to fellow committee members with more refined plans for a new total of seven meetings in an email titled  “Influencer Meetings for January 4/5”:

Tim and I met this morning to work on the influencer meeting for January 4/5. We have placed everyone among 5 groups. Four of the meetings will be at the Chamber. The four of us can attend any or all of the sessions.

This particular email indicates the potential for a quorum of AMDC members, which legally should have triggered a public meeting notice. No such notice was ever issued. 

Four meetings were planned for January 4th, 2022, three prior to an announced, public Design Review Board meeting and a subsequent dinner with select city officials and the developer:

January 4th

11:00 — Ray’s (Massey) group
2:00 — Combined Leadership Group (Chamber Executive Committee, Aiken Corp., ADDA, some AMDC, several elected officials, etc.) 
3:30 —Chamber Past Chairs
5 —DRB
7 —Dinner —Mayor, Stuart, Tim, Chris, Keith, David, and Grey’s group.

Two additional meetings planned for January 5th were devoted to another Chamber of Commerce group plus the singular meeting devoted to “many constituencies”:

January 5 

9 —Chamber Board
11–Diverse group representing many constituencies.

To break it down, the secret “influencer” meetings consisted of five different groups, one led by the lead local investor, two restricted to Chamber of Commerce past and present VIPs, the “combined leadership group,” and a singular meeting devoted to “many constituencies.” 

Jameson also submitted a draft invitation for review that clearly reveals he was acting as an AMDC member, and not in his Chamber role: 

I am contacting you today in my capacity as a member of the Aiken Municipal Development Commission (AMDC) to invite you to a small gathering to meet Grey Raines, the preferred developer for Project Pascalis, and his team. 

In November, the AMDC selected Rainesco for futher negotation and due diligence related to an exciting development project that envisions a hotel, conference center, apartments, and a parking garage on a prominent block downtown.

This is an opportunity for you to meet Grey and hear his development philosophy.

Expect to receive an Outlook appointment to arrive shortly. Please accept of decline the request. I hope that you can attend.

There were no comments on the draft invitation. The next day, December 29th,  Jameson emailed the invitations to an undefined list. 

The Influencer Meetings: Fellowship, Conversation, and a Celebratory Dinner

The City of Aiken has refused two FOIA requests for meeting minutes and attendee lists. The most recent submitted on July 28, 2022 asks for:

1. A listing of all attendees at the AMDC organized ‘influencer meetings’ held on January 4thand January 5th, 2022. The January 4th meetings was also referred to as a “stakeholders meeting” in a July 27, 2022 email from Aiken FOIA Officer Tim O’Briant. 2. Meeting minutes, notes, or other written documentation detailing comments and questions from the select audiences.

In spite of Jameson stating he was acting in his capacity as an AMDC member in the invitation, Tim O’Briant answered the FOIA an hour later by denying the existence of such records and the involvement of the AMDC: 

“The City of Aiken has determined that it retains no records related to these meetings hosted privately by the Aiken Chamber of Commerce and Raines Development. For further information please contact those organizations.”

To date, the only documentation of the meetings remains the week-old recollections of O’Briant, Verenes, and Jameson. According to the AMDC’s meeting minutes (8) for January 11, 2022, fifty-seven people attended five meetings,  so half of the people on the invitation list had not been invited, declined the invitation, or were no-shows the day of the meetings. 

The AMDC meeting minutes of January 11th indicate the January 4th and 5th “influencer” meetings were more about marketing than obtaining public input. Vice Chair Chris Verenes is credited with stating: 

The Executive Committee is part of the Marketing Committee. He pointed out that as a result of the publicity regarding the Pascalis Project, there have been questions. The Committee talked about a process that we can get some feedback and discussions along the way. He noted there was a phone conversation about getting Rainsco to start getting out into the community to talk about the project. Rainsco was contacted and some meetings were set up. He pointed out that they met with the Design Review Board and other groups. He said they were planning to meet with Mark Chostner to get details on the timeline for the Pascalis Project to see how they can couch the marketing plan with some general concepts of when things will be done.

In a subsequent discussion titled “Rainesco Visit Recap,” the January 11 meeting minutes describe some of the “influencer” meetings in general terms, but left out mention of the dinner meeting: 

Mr. O’Briant stated Mr. Jameson was great in putting meetings together. He said Mr. Jameson took the opportunity to gather people together for fellowship and information with Rainsco. He said we tried to include people in different walks of life for diversity so we have people from different thoughts. Mr. Jameson stated there were five sessions, with a total of 57 people attending the sessions over two days. Mr. O’Briant stated there will be more meetings. The Rainsco people, the developers for the Pascalis Project, were in town and introduced themselves to the Design Review Board. He noted the Design Review Board will make very important decisions about the project. They did not show plans at this time, as they wanted to just introduce themselves. He pointed out that Rainsco has handled a large number of public-private partnerships throughout the South. They like to meet in small groups instead of having a large public session. They like to explain what they want to do and then take input and questions. They will be doing more sessions.

Mr. Jameson stated Rainsco was available the Tuesday after Christmas. It was not an ideal time, but people responded very well. The sessions were presented as a conversation with Gray Rains. Mr. Rains introduced himself, talked about his development philosophy, referred to some projects that he had done, what the obstacles were and how he had overcome them, and things that had worked smoothly. It was explained that there were no plans, renderings, and no site plan yet. They are in the beginning stages. Mr. Jameson stated people appreciated the fact that they got to look into the eye of the person that may become the master developer of this project. They got to see him early on and understand his philosophy. He said he received thank you notes from people who appreciated being included.

Since two of the meetings involved Chamber’s Board members and its Executive Committee, and nearly all of these members were on the invite list, it is safe to assume many of the Chamber’s VIPs attended. (9) 

The only publicly announced meeting on the list was closed to input from the general public. The DRB meeting was a public “workshop” that began at 5:30 p.m. and was termed a “pre-application conference.” A discussion between the Board and RPM representatives occurred, with most answers being noncommittal. No questions were accepted from the public.  The list of attendees is incomplete, ending with “other interested parties.” (10)

The 7 p.m. “Dinner Meeting” went as planned, with Mayor Osbon, City Manager Stuart Bedenbaugh, Tim O’Briant, Keith Wood, J. David Jameson, and Chris Verenes enjoying a tax-payer funded dinner with a $620 dinner and drinks bill that included seven orders of premium whiskey and dinners that started at $46 apiece. According to Tim O’Briant, the RPM representatives dining with the city officials. but paying for their own dinner and drinks, were Ray Massey and Raines executives David Tart and Brandon Graham. O’Briant most recently described the day’s events in a FOIA response as a:

business social gathering following a day of stakeholder meetings held by RPM, LLC and Raines, and followed by the AIken DRB meeting earlier in the evening. (11) 

Conclusions

Ample evidence now exists illustrating that the AMDC “Executive Committee” planned, organized, and conducted meetings deemed illegal under SC FOIA law. Even though the meetings clearly had the potential for a quorum of AMDC members, no public notice was issued. The “Executive Committee,” whose meetings are routinely publicly posted (11), participated in a ZOOM conference organizing call that was not publicly announced. While the meetings were deemed “influencer meetings,” one intent behind the meetings was to gain “public input.” 

The implications of these secret meetings extend beyond their illegalities. Although there is no attendee list publicly available at present, the fact is the invitation list included elected and appointed city officials tasked with making legally binding decisions based on an objective review of the facts regarding Project Pascalis and related matters. 

While the City of Aiken Planning Commission is not scheduled to hear any Project Pascalis requests, that could change, as Project Pascalis is frequently described by Tim O’Briant as an “evolving process.” The presence of three members on the list indicates the potential to taint any future commission hearings. Even if he did not attend any meetings, Chamber of Commerce Executive Board member and Planning Commissioner Jason Rabun has already expressed his “full support” for the project, which should disqualify him from any future proceeedings. 

If five members of City Council were invited to a single meeting, that would constitute a public meeting and the need for a public notice. An effort to separate the members into different meeting groups could indicate illegal intent to circumvent the quorum requirement. Because there was no notice, there was the potential for “ex-parte” communications  that are prohibited among public officials and which taint and undermine the public input process.  

In May 2022, Aiken City Council has already passed one ordinance related to the project — the privatization of a part of Newberry Street, a proposal originating in March, 2021 before any conceptual designs were commissioned. These meetings call into question the legitimacy and credibility of the Newberry Street ordinance. 

The meetings also raise credibility issues for the AMDC and its Executive Director, who is on the record denying involvement by AMDC members. On May 27, 2022, O’Briant wrote in an email disputing the first full story on these meetings: 

The small group introductions you reference from January of 2022 we’re organized by the chamber at the request of Raines to meet with various stakeholders in the community. These were not AMDC meetings and none of the sessions were attended by or conducted by the AMDC or its staff.

O’Briant later repeated this assertion in a May 31 email: 

What I wrote, copied here verbatim, was “these were not AMDC meetings and none of the sessions were attended by or conducted by the AMDC or its staff.”

______________

REFERENCE

(1) SC Freedom of Information Act. Sections 30-4-60 through 30-4-90 pertain to open meetings law. https://www.scstatehouse.gov/code/t30c004.php

(2) SC Community Development Law specifies all legal aspects of Community Development Commissions. https://www.scstatehouse.gov/code/t31c010.php

(3) “The Project Pascalis Transparency Index.” by Don Moniak. 

(4) “Did the AMDC Violate Open Meetings Law” by Don Moniak was first posted on May 27th, 2022 on the Do It Right! public Facebook page: https://www.facebook.com/groups/550766946465448/?multi_permalinks=613473893528086&comment_id=613653766843432&notif_id=1653694800539955&notif_t=feedback_reaction_generic&ref=notif

and later published at The Aiken Chronicles website at: 

“An Update to Did the AMDC Violate Open Meetings Law” by Don Moniak was originally posted to the Do It Right! Facebook page and a version with complete email correspondence between Tim O’Briant and Don Moniak was later published at The Aiken Chronicles website: 

(5) July 11, 2021 Freedom of Information Act Request: 

Copies of all emails to and from AMDC Commissioner J. David Jameson involving AMDC related business between May 1, 2021 and June 15, 2021 and then for the month of December 2021, including but not limited to the following topics: Project Pascalis, WTC Investments, LLC, Weldon Wyatt, RPM Development Partners, LLC, Raines Company, Smith Massey et al Law Firm, and Newberry Street. The official email address djameson@aikenmdc.org (if that is correct) as well as the email addresses listed in City of Aiken board memberships (attached) should be searched. The two other emails identified with Mr. Jameson are djameson@aikenchamber.net and jdavidjameson@gmail.com. While Mr. Jameson was a commissioner at the time of the AMDC’s June 2, 2020 AMDC, he should have been briefed on Mr. GAry Smith’s thorough presentation of state FOIA and ethics law when he became a Commissioner, and should be aware that private email accounts are subject to FOIA.” 

The City responded on July 18th with a $192 bill for search, retrieval, and review costs. 

After a 25% deposit was made, the city released 238 pages of responsive records, and considers the response complete. The response was not complete, as there are major gaps in the timeline of events. 

A link to the series of emails is at: https://drive.google.com/file/d/1HPUMA4t6h1gRF_7JHWf6fIVPKC5Ks3nK/view

(6) June 2, 2020 AMDC Meeting Agenda. https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=519868&dbid=0&repo=City-of-Aiken-LF&cr=1

Page 3 from the June 2, 2022 AMDC meeting agenda

(7) The ‘influencers list” is not being released for the simple reason that the parties listed did no wrong. However, emails have been sent to many of the present day officials, including the entire City Council, Andrew Siders, and Michael Budney asking if they had received invitations and their responses to them. No responses have been forthcoming to date. 

However, one comment made during the real public input process on the entirety of the project that formally began on April 20th is important to note. During the evening meeting, Chamber Executive Committee vice-chair and Aiken Planning Commission member Jason Rabun wrote to the city’s Zoom call moderator: 

“I am very much in support of this project.” 

Mr. Rabun did not identify any of his affiliations, most notably his role on the planning commission. 

(8) https://aikenmdc.org/wp-content/uploads/2022/03/2022-03-15-Municipal-Development-Commission-Agenda-Packet.pdf contains the minutes for the January 11, 2022 AMDC meeting. 

Mark Chostner was an invitee to the “influencer meetings” and is referenced in the minutes in regard to the Project Pascalis schedule, owns and operates “Capstone Services.” https://www.postandcourier.com/aikenstandard/sundays_best/mark-chostner-businessman-focuses-on-stewardship-encouragement/article_fbecaace-4a4c-11ec-9b27-2f61c18dc705.html

According to the AMDC’s “transparency page,” Capstone Services has earned more than $10,000 for undefined “professional services” from the AMDC. The invoices for these services were removed from the website in mid-July due to the presence of copies of AMDC checks with bank routing and checking account numbers not redacted. Today, only the checks remain. 

(9) The Chamber of Commerce staff members are listed at: https://www.aikenchamber.net/our-team.html

Chamber President J. David Jameson is also Treasurer of the AMDC. On May 9th, 2022 he spoke at an Aiken City Council meeting during the second hearing of an ordinance to privatize part of Newberry Street, part of the Project Pascalis plan. Mr. Jameson did not identify himself his dual role as an AMDC commissioner during those comments. 

Chamber Vice President for Administration Diane Philips also expressed support during the Zoom meeting portion of the April 20th public meeting, although she did not mention her affiliation with the Chamber. 

Executive Committee members and Board Members are listed at: https://www.aikenchamber.net/board-of-directors.html

The Chamber’s Executive Committee has been active in promoting Project Pascalis. Charlie Hartz wrote a letter to the Aiken Standard, Jason Rabun spoke in favor at the April 20thmeeting, and Norm Dunagan spoke at the April 20th meeting and May 9th public hearings. Van Smith was featured in a WRDW story speaking in support of the project. 

(10) The DRB Workshop meeting minutes for January 4, 2022 are at: https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=2735900&dbid=0&repo=City-of-Aiken-LF

Attendees were “City Manager Stuart Bedenbaugh, Assistant City Manager Mary Catherine Lawton, Planning Director Marya Moultrie, Planner Mary Tilton, Zoning Official Mike Dennis, Economic Development Director Tim O’Briant, Erica Sanders, Ray Massey, Grey Raines, Brandon Graham, Stephen Overcash, Susan French, David Blake, Mandy Drumming, Mark Chostner, Philip Merry, David Jameson, Christopher Verenes, Martin Buckley and other interested parties” 

Stephen Overcash is the lead architect at ODA Architecture, which is a contract firm for RPM working on the designs of various parts of Project Pascalis—specifically the Hotel and Conference Center. 

(11) “Toast of the Town: The January 4th Social Business Gathering at Prime Steakhouse.”  Don Moniak. July 28, 2022. 

The City’s Management of the Hotel Aiken:  All “Reasonable Measures” taken to ensure safety, except inspections and alarms. 

In a July 26,  2022 letter to the Historic Aiken Foundation (HAF), Aiken Municipal Development Chair (AMDC) Keith Wood attributed a slowdown in the “tireless” work to “find a suitable permanent solution that would elmininate any and all” fire risks associated with the Hotel Aiken and surrounding properties to three week old litigation involving the HAF and eight other plaintiffs. (1) 

The AMDC bought the Hotel Aiken and six other properties for $9.5 million in November, 2021, and intends to demolish its investments and remake the area into a complex of new apartments, parking garage, hotel, retail, and conference center. Apparently, litigation filed eight months after the purchase is a cause for an absence of fire inspections and an alarm system. 

Wood’s letter was in response to a July 22, 2022 letter from the HAF requesting specific maintenance and safety measures by the AMDC due to a concern “that adverse conditions at the hotel lead to further deterioration of its condition.”

Sapling-sized tree in the second story window above Beyond Bijou. This sapling was in the window in November 2021 when the AMDC bought the property, and is still there today.

The letter named six specific actions ranging from monthly inspections to fire monitoring and sealing of hatches and other access points; and asked the AMDC to “remove debris around the exterior of the building both for safety and to improve the general character of the area.” 

In his response,  Mr. Wood committed to no changes from the status quo and assured the HAF that “all reasonable measures are in place to ensure” the integrity and security of the Hotel Aiken.  He then proceeded to falsely infer ownership of the existing fire detection system, failed to acknowledge an unauthorized intrusion into hotel last week, and implied a part-time caretaker constitutes a full-time fire watch. The AMDC’s confident demeanor is  further undermined by the fact that no fire inspections have occurred since the commission purchased the building. 

Wood did not comment on the HAF’s request for monthly fire inspection system. According to Aiken Public Safety records, the last inspection by the City of Aiken was on February 17, 2021; and a freedom of information act (FOIA) request for all fire inspections since March 2, 2021 yielded no documents. March 2, 2021; Aiken Public Safety fire marshalls conducted three thorough inspections between early 2019 and February of 2021. 

Click image to view full size

The existing fire detection system involves more than 100 heat detectors. It was installed by ADS Security for the previous owner, Historic Hospitality, LLC (Agent: Neel Shah) to meet criteria for city approval of an interior demolition permit issued in 2018. While describing the system as a “robust set of smoke, heat, and fire sensors placed throughout the structure,” Wood failed to acknowledge the system was in place when the AMDC bought the property and signed a contract with ADS to continue the system.  The commission is only paying $65 a month for the basic service and has not incurred any installation charges. 

The hotel “fire watch” involves a single “APS Cadet” who receives free rent from the AMDC in return for the following work services: 

  • General public safety and fire watch works; 
  • to monitor the area of the adjacent city properties on a regular basis and report any suspicious activity to public safety for further investigation; 
  • other duties as assigned.  (3) 

The fire watch/caretaker is not assigned to assist with cleanup behind that hotel that contributes to a blighted appearance the AMDC is chartered to address. City of Aiken officials will not respond to specific questions pertaining to the percentage of time the property caretaker is on site, or to what other duties have been assigned. 

The extent to which an APS fire cadet, who is also being trained elsewhere on critical emergency response procedures, is monitoring the area “on a regular basis” is unknown, as city officials have not responded to such questions.  It is now known that it is clearly not regular enough to prevent unauthorized intruders from entering the hotel. 

While Mr. Wood did not cite any recent intrusions, AMDC Executive Director Tim O’Briant has acknowledged an intrusion last week, just a few days after HAF President Linda Johnson reported “the gate in the rear chain link fence was wide open.” The intrusion was noted only after the fact during a “routine security check by staff.” 

As a result, “an additional intrusion security is being added to the contract with design of the sensor layout taking place this week and installation in the near future.” However, in Mr. Wood’s version of events, any time the rear gate was open “an authorized key holder is present on the property.” 

So Wood provided no reason for the AMDC to engage ADS Security to “add motion and intrusion alarms to the system;” while O’Briant admitted that a break-in was the reason. 


But the saddest part of this story is that the AMDC loves to tout Aiken’s Economic Master Plan when it is convenient to do so. The plan (2) was prepared by the AECOM Corporation (Now part of Amentum, Mr. Wood’s employer) and adopted by City Council in March, 2021, about the same time that Project Pascalis began mostly in secrecy. In the plan that commissioners love to cite and discuss is this passage: 

“Aiken also has the unique challenge of preserving its notable historic architecture, while making room for new growth, so the City will need to partner with the Historic Aiken Foundation and other stakeholders to ensure that the downtown’s charming historic character is preserved, while also encouraging new growth and development and higher densities where appropriate.”

Yet, the Historic Aiken Foundation has never been invited to an AMDC meeting, and this week the AMDC chair stiff-armed the concerns of the foundation and chose antagonism over cooperation. 

________________

(1) 7/22 letter from HAF to AMDC : https://aikenchronicles.com/wp-content/uploads/2022/07/HAF-to-AMDC-072222.pdf

7/26 letter from AMDC to HAF: https://aikenchronicles.com/wp-content/uploads/2022/07/AMDC-to-HAF-072622.pdf

July 5th Lawsuit: 

(2)

Hotel Aiken rear lot
HEADER IMAGE: Rear lot of Hotel Aiken, May 2022. (Photo courtesy of Jacob Ellis)

Toast of the Town: The January 4th ”Social Business Gathering” at Prime Steakhouse

Project Pascalis is the name for a proposed $100 million plus demolition and redevelopment project targeted for downtown Aiken. The project is being directed by the Aiken Municipal Development Agency (AMDC), which in December 2021 officially announced RPM Development Partners, LLC (agent: Ray Massey) as the project developer. RPM represents the three primary investors and developers:  Raines Company, Lat Purser and Associates, and Ray Massey. 

Toast of the town

Information obtained yesterday regarding an extravagant taxpayer funded dinner featuring shots of premium whiskey reveals that the Mayor of Aiken, the City Manager, the city’s Economic Development Director, and three Aiken Municipal Development Commissioners participated in a “social business gathering” with three members of RPM Development Partners. A separate check was provided to the latter group. Most of the participants also attended a City of Aiken Design Review Board (DRB) workshop just prior to the gathering. 

On July 13, 2022 I emailed (1) Aiken City Manager Stuart Bedenbaugh with concerns and questions regarding two issues on the “transparency page” of Aiken Municipal Development Commission’s (AMDC) website: 

  1. The existence of copies of AMDC checks within invoice and billing files with routing number and account number not redacted; and 
  2. A January 10th check from the AMDC to the City of Aiken for a $620 bar and dinner bill dated January 4, 2022 from Prime Steakhouse in downtown Aiken. On that bill were seven orders of premium whiskey worth $130, four orders of steaks, one order of short ribs, one order of veal piccatta, and an appetizer of Calamari. 

Within a few days, all files containing copies of compromised AMDC checks were removed from their “transparency page,” and have yet to be returned.

In regard to the Prime Steakhouse bill, one question posed was:

Can you identify the people in the party who dined on fine steaks along with premium whiskey that afternoon?

After two weeks without any further response, on July 25th I filed a Freedom of Information Act (FOIA) request for the expense report, the meeting notes, and a listing of all attendants including those on a referenced second check.(2) 

On July 27th Aiken Economic Development Director and FOIA officer Tim O’Briant responded with another copy of the dinner and bar tab and a copy of the AMDC check, with banking information redacted.

In an emailed response, Mr O’Briant explained that the City’s purchasing card was used “because the restaurant does not accept checks as the AMDC intended to pay;” and the city was later reimbursed by its commission. O’Briant also explained the following regarding attendees and meeting notes: 

Those from the City of AIken present were Stuart Bedenbaugh, Rick Osbon and Tim O’Briant. From the AMDC, attendees were Keith Wood, Chris Verenes and David Jameson.

There was no record of discussion and no agreements were made during this business social gathering following a day of stakeholder meetings held by RPM, LLC and Raines, and followed by the AIken DRB meeting earlier in the evening

Neither the City nor the AMDC maintains a record of those attending from RPM or Raines, but by memory it included David Tart, Ray Massey and Brandon Graham. Ticket number two was for their meals and the City of Aiken nor the AMDC maintain a record of the charges paid by RPM/Raines.

David Tart is a managing partner of Raines, Brandon Graham is a project manager for Raines, and Ray Massey is a lead investor and agent for both Project Pascalis developers RPM Development Partners and Aiken Alley Holdings. 

Prior to the Prime Steakhouse dinner and drinks, Stuart Bedenbaugh, Tim O’Briant, David Jameson, Chris Verenes, Ray Massey, and Brandon Graham all reportedly attended the City of Aiken’s Design Review Board Workshop (DRB), but not its monthly public meeting.(3) Mayor Osbon was not listed as an attendee at that important workshop. 

The following two questions posed to Mr O’Briant at 4:30 p.m. today went unanswered: 

If this was not a meeting, why was it paid for with city funds? 

Under what city procurement authorization is this type of party of six allowed? 

___________________

Next:  The “Stakeholders Meetings.” 

__________________

(1) The email read: 

“Mr. Bedenbaugh, 

I have some questions and comments regarding two issues: 

1. I suddenly realized that the Aiken Municipal Development Commission (AMDC)  has been published sensitive city financial information online. Specifically, the AMDC has published copies of its checks to various consultants, vendors, utilities, etc that contain the routing number and account number of the checking account. 

1a. Can you explain why this routing and account number information was not redacted? Even with a banking executive on the commission? 

1b. If this information was released via a Freedom of Information Request (FOIA)  before being placed on the AMDC site ( as it appears to have been since no recent payments are posted) did the failure to redact violated any city or state FOIA rules or policies? 

You all really should go back through and redact that account number before somebody goes out and buys some premium whiskey online; which provides a segue to item 2. 

2. Pertaining to the $620 bill from Prime Steakhouse on January 4, 2002, identified as “City of Aiken payment for Prime 011022” on the AMDC “transparency page” of its website: 

2a. Can you identify the people in the party who dined on fine steaks along with premium whiskey that afternoon? 

2b. Was this considered a meeting under state open meetings law? 

2c.  Was the dinner and drinks related in any way to the structural assessment of the Hotel Aiken also conducted that day by a consultant for RPM Development Parters, LLC, or is that pure coincidence? 

Thank You, 

Don Moniak

Eureka Fire Protection District

Aiken County, SC.” 

Mr. Bedenbaugh responded that day: “I will review.” 

The AMDC transparency page is located at: https://aikenmdc.org/2022/03/29/project-pascalis-public-records/

(2)A FOIA request was submitted on July 25, 2022 for: “1. The expense report that was submitted for the steak and whiskey dinner at Prime Steakhouse on January 4, 2022; as required by City of Aiken statutes and policies governing reimbursement of expenses. 2. The memo for record (or other document) that recorded the discussion and agreements reached at the Steak and Whiskey dinner, and a listing of all attendants at the meeting, including those on the second check cited on the dinner and whiskey tab.” 

(2) From the DRB January 4, 2022 Workshop Meeting Minutes, the following people were listed as present: “City Manager Stuart Bedenbaugh, Assistant City Manager Mary Catherine Lawton, Planning Director Marya Moultrie, Planner Mary Tilton, Zoning

Official Mike Dennis,Economic Development Director Tim O’Briant, Erica

Sanders, Ray Massey, Grey Raines, Brandon Graham, Stephen Overcash,

Susan French, David Blake, Mandy Drumming, Mark Chostner, Philip

Merry, David Jameson, Christopher Verenes, Martin Buckley and other

interested parties”

Although the meeting minutes state the workshop began at 5:30 p.m and ended at 6:30. The bar and dinner bill time appears to be 19:55 (7:55 p.m). 

https://edoc.cityofaikensc.gov/WebLink/DocView.aspx?id=2735900&dbid=0&repo=City-of-Aiken-LF

The Project Pascalis Evictees 

Omissions, Distractions, and Inaccuracies Plague Latest Aiken Standard Report

A front page story in the Sunday edition of the Aiken Standard (“Aiken businesses in footprint of Project Pascalis share reactions to redevelopment plans,” by Matthew Christian, July 23, 2022) (1) devoted considerable space to discussing the private business information of eight businesses still operating within the proposed Project Pascalis demolition zone. 

Project Pascalis is the name for the City of Aiken’s $100 million plus endeavor to demolish and redevelop more nearly half of a major downtown block (2) and the businesses are being compelled to relocate. The businesses are located on five of the seven properties purchased by the Aiken Municipal Development Commission (AMDC) in November, 2021 for $9.5 million and each property is proposed for demolition and redevelopment. 

The issues with the story include: 

  • It is unnecessarily littered with guesswork about the private business information regarding individual rent schedules; 
  • Omits the fact that one business, On Board Realty, also operates as property manager; which one citizen’s investigation has revealed to be a no-bid contract; 
  • Failed to recognize a separate leasing arrangement held by another business, Newberry Hall; 
  • Did not report on the non disparagement clause in the proposed relocation agreement between the AMDC and the demolition zone tenants. 
The Distraction of Rent Payments 

The July 24th Aiken Standard story contains unnecessary and intrusive speculation based on a single document, which Standard reporter Matt Christian defines as “a redacted document on the transparency page” on the (AMDC) website. This document can be found at: 

The Standard is apparently unaware the actual rent information was available prior to July 13th, contained within several files involving the property manager. These files are no longer available for a good reason: unlike the redacted lease list, the names of businesses were not redacted from the document on file. 

On July 13, 2022, I emailed City Manager Stuart Bedenbaugh with concerns and questions regarding the security of AMDC checking account data and the $620 bar and dinner tab at Prime Steakhouse amassed by the AMDC on January 4, 2022. I made that email public on the Do It Right! Facebook page, but did not make this subsequent email public: 

Mr. Bedenbaugh,

Along the same lines, the checks at the AMDC transparency page have the info redacted, but the invoices do not. The City also needs to go through and redact the important business information related to AMDC tenants. The names of tenants are redacted on one document but they are not in the invoices from On Board Reality.

Now maybe it is time to find a new FOIA officer for the city?

Within a few days of these two emails, the documents containing the routing and account numbers on copies of AMDC Security Federal checks, and the documents containing the names of AMDC tenants were properly removed from the its “transparency page.”  Unfortunately, the documents, with properly redacted information, have not been restored. 

There is one rent that is of public interest, as it does involve a city contractor. On Board Realty pays $450 a month. 

An Undisclosed, No-Bid Contract 

The AMDC’s property manager for the Pascalis properties is On Board Reality, a fact that the Standard either did not uncover or chose not to disclose. 

The Standard did disclose that On Board Realty is “another business owner operating under a month-to-month arrangement with the Aiken Municipal Development Commission.” Its owner, Patricia Lucas, was the only person interviewed to express pleasure with Project Pascalis. 

On Board Realty handles the property management under contract to the AMDC, including collecting more than $19,000 a month in rent payments; a fact easily discernible by viewing the commission’s bank statement, located at the same AMDC “transparency page” as the redacted lease list: 

This contract was not obtained via a competitive bid, as required by the city’s municipal code. This lapse in procurement compliance was uncovered by Aiken resident and concerned citizen Kelly Cornelius. On July 15, 2022 Ms. Cornelius filed a FOIA request for, “the RFP or bid proposal notice that went out for the position that On Board Realty now holds as the collector of rent for the Pascalis Properties.” 

Two days later, one of the city’s FOIA officers, Economic Development Director Tim O’Briant, replied: 

The AMDC selected the firm for property management based on prior experience managing the same properties. The firm is also one of the tenants impacted by the purchase of the properties. There was no RFP or bid.

Mr O’Briant did not cite an existing lease agreement assigned to the AMDC during the sale closures to justify the no-bid contract, and tenants at the 106 Laurens property paid their rent directly to Shah Enterprises, LLC prior to obtaining the city as their new landlord. It is possible, though unlikely, that property manager Neel Shah would hire a property manager to manage his monthly rental properties. 

City of Aiken’s municipal code requires bids on “purchases of or contracts for supplies, materials, equipment, or services” exceeding $2500: 

  • if between $2,500 and $5,000, “oral bids from at least three suppliers on the bidders list, whenever possible, should be obtained.” 
  • if greater than $5,000 but not exceeding $25,000, “bids from at least three suppliers on the bidders list, whenever possible, must be obtained in writing.”:
  • if greater than $25,000 a written contract is mandated and a more complex set of rules apply.

The Aiken Standard devoted considerable efforts guessing at the rent payments of each business, information that is exempt from disclosure under FOIA. The redactions in the document cited was proper. The lack of redactions in documents removed was not proper.

Newberry Hall 

Newberry Hall is the only affected business whose owners were involved in negotiating a lease arrangement during the early phases of Project Pascalis, when the only meetings being held were behind closed doors in executive sessions. This information was made public on the AMDC “transparency” page only after another FOIA request by Ms. Cornelius. 

That request yielded the signed, closing purchase and sale agreement between the Wyatt family’s WTC Investments, LLC and Newberry Hall’s owner, Myrtle Anderson; and the “agreement regarding lease and option” between WTC and Newberry Hall’s business owners, Patrick and Natalie Carlisle. (3) This lease agreement remained in effect when the Aiken Chamber of Commerce took “assignment” of WTC’s purchase contracts on June 3, 2021, and when the AMDC finally purchased the properties on November 9, 2021 (4). 

The lease agreement included options for compensation for lost income, purchase of a new building, and taking over operations of the new conference center. As reported in The Aiken Chronicles on July 16th, the status of negotiations between the AMDC and Newberry Hall are unknown; but in response to a FOIA request for a contract to operate the new conference center, the city has declared that no such contract exists.(5) 

While the Aiken Standard devoted considerable energy and space to the issue of compensation to businesses formerly paying rent to Shah family enterprises, the AMDC’s lease agreement with Newberry Hall received scant attention. 

The No Disparagement Clause

The Standard interviewed most of the business owners, but either failed to recognize or decided not to report an important clause in the proposed relocation assistance agreement the city has offered tenants. Section three of the clause reads: 

“Section 3 Non-Disparagement. The Tenant agrees not to make any negative, defamatory, disparaging, or derogatory public comments about the Commission concerning the termination of the Tenancy.”

This may be standard boilerplate legal language, but in this case the landlord is not a private property owner, the landlord is currently a branch of city government that is responsible for pursuing and managing Project Pascalis. How does a tenant agree to not disparage the project without disparaging the project’s commission seeking to terminate the tenancy? 

Commentary

On June 13th I also wrote the following to Aiken City Manager Stuart Bedenbaugh: 

“I have always accepted some exemptions to FOIA. We do not need to know what day Tenant x paid their rent and how much they paid.

I think it was 21 years ago that I encountered a travel report for a Nuclear Regulatory Commission staff member on its cumbersome ADAMS web site. It included his passport information. I informed him right away and the agency took down the letter and redacted the sensitive information.

There are many stories just like that. In fact we have one here on the AMDC website, in which info we have little right to, and no need to know, is posted, but information that may be released that we have a right to know is redacted or withheld.

Obviously I am referring to the list of developers who submitted proposals in response to the May 2021 AMDC RFP; as well as the entire body of that request.

This serves as another appeal for the full release of those documents.” 

The City of Aiken has yet to release these documents that, under SC FOIA law, they “may” release but can also withhold. The redacted document referred to in that email is here: 

This story illustrates how we are often treated to information we do not need to know and is even generally exempt from FOIA requests; while important information pertaining to the common good is routinely withheld from public view. 

At the April 20, 2022 Project Pascalis public meeting, moderator Tim O’Briant took offense to a question posed by Aiken resident and concerned citizen Lisa Smith: “How many businesses have been evicted?”

Mr. O’Briant correctly noted that no businesses had been evicted, but did not elaborate on the legal meaning of eviction or the possibility of future evictions. It is this kind of disingenuousness that earns government the wrath of its citizens. 

The Aiken Standard yesterday devoted considerable space to discussing the private business information of the Project Pascalis Evictees, as I now sometimes refer to the businesses that are being compelled (subject to legal interventions) to relocate and make way for the Mayor and City Council’s idea of progress. While nobody has faced any legal eviction proceedings, the fact is that threat does loom in their future unless they play ball with the city. 

In yesterday’s story, the Standard treated people to what they did not need to know while neglecting issues of much greater importance.  The Standard owes its readers and the businesses a correction pertaining to its speculation, and an apology for its omissions of known information and a general failure to investigate using all the tools at its disposal. 

_____________

(1) https://www.postandcourier.com/aikenstandard/news/local-government/aiken-businesses-in-footprint-of-project-pascalis-share-reactions-to-redevelopment-plans/article_5a161a48-083b-11ed-a238-87866c0e6316.html

(2) A Project Pascalis Timeline 

(3) https://aikenmdc.org/wp-content/uploads/2022/06/Anderson-Contract.pdf

(4): https://aikenmdc.org/wp-content/uploads/2022/03/2021-11-09A-Municipal-Development-Commission-Agenda-Packet-Updated.pdf

(5) https://aikenchronicles.com/2022/07/16/when-no-info-is-good-info-a-city-not-listening-the-antique-mall-and-newberry-hall/

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

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

Hotel Aiken: No Value, Barely Insured 

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

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

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

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

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

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

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

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

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

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

____________________

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

____________________

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

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

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

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

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

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

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

The documents are are available at: 

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

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

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

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

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

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

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

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

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