/$52 million Clarksdale sports complex raises questions

$52 million Clarksdale sports complex raises questions

At the April meeting, key questions were raised about the proposal to bring tourists and income to Clarksdale. The Quality of Life Commission was established by the city officials to oversee the venture and prevent the city from being involved in its development. Some residents weren’t happy with the city’s promise that the project would not cost them or the taxpayers one penny. Clarksdale native Carla Kyle, a retired accountant, said that “that’s what they always tell.” But eventually, it’s going to cost the taxpayers someplace. I don’t get how they could spend so much money on one facility, and not do anything to beautify the area and fix problems. Clarksdale does need something like this. It’s clear. They shouldn’t spend that much money, I don’t think so. They could spend half that money and still do a lot of good for the town.” Clarksdale is well-known for being the birthplace for the Blues. It’s also home to many renowned musicians, including Sam Cooke, Morgan Freeman, an Academy Award-winning actor, and Rick Ross, an entrepreneur and artist. The population of Clarksdale has declined from nearly 18,000 in 2008, to just over 16,000 in 2016. According to Mississippi Labor Market Data Coahoma County’s unemployment rate is 7 percent. This puts it among the top 10 most jobless counties in Mississippi. The Mississippi unemployment rate is 4.3 percent, compared to the national rate of 3.9%. According to Data USA, the top three employers in Coahoma county are retail trade, health care, social aid, and educational services. Mayor Chuck Espy sees the complex being a once-in-a-lifetime project that will bring jobs and revenue to Clarksdale. “Everything is publicly available for anyone to verify, and that’s exactly where you do these things. There is no secret. This means that transparency is key to success. Espy stated that this is what they have done with the project. Espy said, “I’m proud of where it’s at with everything on the table, as well as the model of using best practice and proven methods… The team members are highly qualified minds from the U.S. on this project, and to be able to come to Clarksdale to do one of the largest projects in Clarksdale’s history is just a testimony that we pulled out all the best people.” Dwan Brown, the founder of American Resort Management, told the commission that the water park would be operated by Sports Facilities Management, an Illnois-based facility manager firm. Brown founded P3 Group, Inc., which is a development consultancy firm and serves as co-developer. Brown stated that a private solar developer indicated that it would enter into a memorandum with P3 Group in order to finance the solar farm using private dollars, and not urban renewal bonds. Brown stated that they would do this and enter into an agreement to supply power to the facility at a lower cost with the operator. The hotel will however be the “backbone”, of the project’s revenue source. Similar-sized hotels are being built in the state. The Scion at West End is a $18 million, 95-room hotel located in Cleveland, approximately 40 miles south from Clarksdale. It will open in fall 2018 and include a meeting room, restaurant, spa, and a pool. Trump Hotels will manage the hotel in partnership with Chawla Pointe LLC (a Mississippi-based company). The $60 million, 203-room Westin Hotel Jackson opened last year. The $2.3 million Travelers Hotel is a smaller facility. It features 20 rooms and is modeled after 3B in Brooklyn. This co-op hopes to stimulate job creation and community development. The Travelers Hotel is being built on Third Avenue in downtown Clarksdale and will open in early 2019. Chuck Rutledge is one of the developers of the Travelers Hotel. He has previously been involved in several development projects that cost $400 million, including seven hotels in New Orleans and Houston. He said that financing is the most important and difficult part of any project. You can always find someone to design them. It’s possible to find someone to build them. But finding somebody to finance them can be a challenge, especially in Clarksdale, which has excellent tourism trade and is well-known internationally. We need to increase that exposure and expand our tourism. Rutledge spoke to Mississippi Today by phone. Rutledge stated that convincing equity investors and financing lenders how strong the market is is always difficult. The Travelers Hotel is in the planning stages for three years. It is funded by a traditional loan from Southern Bancorp Community Partners and historic tax credit investments from First National Bank of Clarksdale, as well as a grant from Walton Family Foundation. After five years of operation, Coahoma Collective will take over the hotel. This non-profit organization has the mission to revitalize downtown Clarksdale through arts-driven and community-inclusive revitalization. The nonprofit will receive the hotel’s profits to finance community activities and events. Rutledge and two of his partners are the principals and will guarantee the debt. They also take personal risks. The Sunbelt Industrial Park was chosen as the location for the Clarksdale sports and recreation facility. It is located behind the Clarksdale/Coahoma County Chamber of Commerce. It is owned by the Economic Development Authority. The Quality of Life Commission recently entered into a land purchase contract for 76.12 acres along Highway 61. Hopson-Nance, LLC., is the owner of the property, located near Sunbelt Industrial Park. Brown stated that the sale contract for the property had been completed. Brown stated that the seller had agreed to donate the land to the city for roads and streets once they are completed at no extra cost. DWAN BROWN WHO? Brown is the one who will answer the community’s questions. Brown is a Clarksdale resident and has been a developer since 1994. Although this is his first time working in a recreational and sports complex, he says he has experience in subdivision development, hotel development and commercial real-estate development in Florida, Illinois and Tennessee. Brown also has to deal with questions and concerns regarding his past. Brown was indicted by a federal grand jury in the Western District of Tennessee on December 18, 2002 for 72 bank scheme charges. Federal prosecutors dropped all remaining charges. Brown pleaded guilty only to bank fraud and conspiracy defrauding the United States. Brown was sentenced for two years and served his time in a Millington, Tenn. Even though it was many years ago, some still doubt Brown and the project. Some people were skeptical about Brown’s involvement in the project because of the controversy surrounding Brown’s past. Jamarlon Fair, a Friars Point native and business owner, stated that he does not see the reason people are making this all up. “Talking about a past or someone’s past is a prime example of how your future doesn’t depend on your past. Everybody makes mistakes,” Fair said. Fair said, “I must say that he’s one the most dominant people I have seen come out of a crisis and make it better. So if anything, they should be looking at him, and everyone associated with him, as motivation. Brown said that he does, and that he runs two businesses. I won’t continue to rehash it, and I don’t see the purpose of it because I don’t have the authority, ability or license to do anything. It distracts from what would otherwise be a very successful project. “So, I don’t have any answer to that.” Part II of the proposal is here: