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PAGE 4, DECEMBER 22, 2008, THE ISLANDER
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Part 2
Jekyll Island State Park
By Senator Jeff Chapman, Dist. 3
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2008
A State Senator writing about the
practices of an Authority entrusted
with stewardship of public proper
ty may seem a bit unusual, how
ever, in the case of Jekyll Island State
Park, there are issues involved which
demand the attention of elected offi
cials who have been given the honor
to serve the public good. Transpar
ency and accountability in govern
ment, responsible management of
publicly-owned assets, and respect for
the public trust are all wrapped within
the Jekyll issue, as is the principle of
eminent domain, not in the traditional
form but in an upside down way with
the taking of publicly-owned land and
using it for private profit—a kind of
eminent domain in reverse.
The following article is the second
of two prompted by my concern for
the issues stated above. The focus
will be on the terms of the contractual
agreements worked out between the
Jekyll Island Authority and compa
nies involved with the State Park.
The message is a clear one — when the
facts and figures are considered, the
Authority’s fiscal practices are in need
of official review.
Jekyll Partnering Agreement:
Who got the Real Deal?
Recently, I issued a press release
describing the Jekyll Island Authority
(JIA) Board’s practice of providing mil
lions of dollars of ‘incentives’ for pri
vate development on publicly-owned
oceanfront land within Jekyll Island
State Park. I also requested that the
Department of Audits examine this
practice, with the recommendation
to halt further JIA contract signings
Big labor is tired of the private bal
loting that workers currently enjoy
when deciding whether to unionize. The
unions want to get rid of such balloting.
By law. There’s a bill floating around in
Congress that would do this.
Is a President Obama going to sign
it?
The unionized share of the work
force has shrunk in recent decades.
Many employees don’t see the benefit
of joining a union. Because voting on
whether to certify a union is done by
private ballot, one can’t claim that they
are scared of retaliation from the boss.
So what would unions gain from a
law that bans private balloting?
Well, if union organizers know how
people are voting, and people voting
know that the organizers know how
they are voting, there would be much
more opportunity to pressure and even
intimidate employees into voting the
“right” way.
Unions hope this would help turbo
charge recruitment efforts. As colum
nist Donald Lambro puts it, passage of
until the investigation is completed.
While a response to my request was
pending, the JIA Board announced,
on the day after Thanksgiving, an
emergency telephone conference meet
ing for the following Monday morn
ing to approve the long-term contract
with its private partner, Linger Lon
ger Communities. The contract, which
has a 50-year term, was approved by a
seven to one vote, despite the fact that
it is grossly unfair and includes the
same inexplicable financial incentives
that I have previously questioned.
Originally, the public-private part
nership was based on the idea that
the JIA would contribute either public
land or pay for infrastructure costs
to facilitate Jekyll’s redevelopment,
not both. The partnership agreement
recently approved, however, has the
JIA doing both in the Jekyll town
center project - Linger Longer takes
ownership of the profitable parts of the
project (two hotels and a time-share
complex) while the JIA assumes $25
million in bond debt to pay for a new
convention center and project-related
infrastructure needs.
Adding insult to injury, the bond
debt will be paid off through revenue
generated by Jekyll's visitors, mean
ing the public foots the bill for project
components that benefit the private
partner.
Furthermore, Linger Longer’s time-
share complex will displace Jekyll's
most heavily- used beachside parking
area, yet the JIA has accepted the
financial responsibility of rebuilding
this facility elsewhere while handing
Linger Longer this valuable ocean-
front public land free of cost.
the bill would make it “easier to union
ize workplaces without the bother of
the private ballot to protect workers in
a free and democratic election.”
This anti-democratic bill has been
around for a while. But now the chanc
es of passage have increased dramati
cally. Candidate Barack Obama, at
least when addressing union crowds,
often promised he would push to make
it happen. Will he do so?
You can bet the unions are watching.
So should we. “I
The timeshares alone can generate
Linger Longer roughly $100 million in
net revenue, thanks to the JIA’s agree
ing to accept a mere 1% cut of time-
share sales, even though much of the
time-shares’ value is based upon their
location on prime, state park land.
The partnership contract continues
to tilt to the advantage of Linger Lon
ger through a 10-year, multi-million
dollar rent reduction for the develop
er’s two hotels, courtesy of a JIA Board
that has handed out a massive ‘start
up incentive’ for a private project on
beachfront public land.
Of particular interest is the fact
that in the contract negotiated in
December of 2006 for the replacement
of the Holiday Inn by —the operators
of the Jekyll Club Hotel—annual rent
was reduced by a modest 2% of gross
receipts for only the first 3 years of the
hotel’s operation and set at 4.5% there
after. That lease was drafted with the
intention of establishing a model for
future hotel development contracts,
according to former JIA Board Chair
Richard Wood, who helped negotiate
the agreement, yet the JIA Board,
under new leadership, turned its back
on that contract and gave away the
farm to Linger Longer.
If Georgians must see prime ocean-
front acres of their state park priva
tized through commercial partnership,
they should expect a partnership that
is fair for both parties. Fairness, how
ever, is not the word that comes to
mind when looking at the partnership
contract. Sweetheart deal, giveaway,
and corporate welfare are more accu
rate descriptors, none of which have
any place in a true public-private part
nership.
Responsibility for this lopsided rela
tionship, and for the JIA’s giveaway of
millions of dollars of visitor-generated
revenue, does not rest with the pri
vate partner, who is simply trying to
maximize his profits, but rather falls
squarely on the shoulders of the JIA
Board appointees who have failed the
people of Georgia.
The Georgia Code states that
Authority appointees should “never
engage in conduct which constitutes
a breach of public trust.” By depriving
the people’s park of millions of dollars
of needed revenue while enriching
a private partner, and by jamming
through a critically important contract
without public review, the JIA Board’s
leaders have violated the public’s trust
and compromised their standing as
park stewards. Jekyll Island State
Park and the people of Georgia deserve
better. □
A Safeguard Worth Noticing
In this country, politicians understand that the more you
know about government, the better off we all are. So, they
created public notices to be printed in the newspaper.
Georgias newspapers go one step further and also make
public notices, from all 159 counties in the state, available
free and searchable database online. It s fast. It s easy.
It Serves The Public’s Right To Know.
GeorgiaPublicNotice.com
Georgia Statewide Database of Public Notices
Common Sense
Voter intimidation you can believe in
By Paul Jacob