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Topic: Smith Village Lawsuit- allegations of fraud
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untanglingwebs
El Supremo

Crain's Detroit - Vol. 26, No. 29

July 19, 2010

For developer Mark DeMaria,the federal Neighborhood Stabilization Program couldn’t have happened at a better time. By the fall of 2008, the private development market had come to a standstill and the downtown loft market in which DeMaria had worked extensively had all but disappeared. But development dollars were beginning to flow through the stabilization program, which has sent billions into communities around the country.

So DeMaria, along with partner Jason Strayhorn, started the Detroit-based Community Improvement Group, a company whose sole purpose is to administer federal housing grant programs for municipal and county governments. To date, DeMaria said, the company has scored stabilization program contracts to administer Wayne County’s $25.9 million allotment, the Detroit Land Bank Authority’s $6.2 million and the city of Flint’s $4.2 million.

DeMaria and Strayhorn — Douglass Diggs, former city of Detroit director of planning and development, is also a company leader — hope to expand the business around the country by year’s end. The community Improvement Group won a contract to administer Wayne County’s stabilization program in more than a dozen communities, and it is looking for business around the country.

“We went as far as San Bernardino County,” Strayhorn said. “We went on the road with this real heavy … and we’re starting to get more interest from communities outside of the area…because they have funds they have to get out the door” by a September deadline. Spending HUD dollars requires rigorous review and documentation, DeMaria said, a process that’s sometimes beyond the capacity of local governments to administer. For DeMaria, it’s all about opportunity. “We’re looking at $100 million in new contracts for the year, that’s our target,” he said. “We’re getting close. I think we can reach it.”

— Nancy Kaffer
Post Wed Sep 14, 2011 9:16 am 
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untanglingwebs
El Supremo

06/14/2010 - City of Flint moves forward on $4M neighborhood stabilization grant under threat from feds – Flint Journal

Earlier this month, The Journal reported that federal officials wrote a letter to Flint Mayor Dayne Walling to express its concerns that Flint is at risk of not meeting the deadline for committing the neighborhood stabilization funds, which are federal grant dollars awarded to fight foreclosures and redevelop housing.

Flint contracted with Detroit-based Community Improvement Group for Program Management for the city of Flint.

Eason said HUD approved and said Community Improvement Group will be hired by the city to manage the grant funds because the city doesn’t have the internal capacity to do it on its own.

“For what we’re getting from them (CIG), we’re getting more than our money’s worth,” Eason said.

“This is a company HUD has 100 percent confidence in.”

Flint Journal
Post Wed Sep 14, 2011 9:19 am 
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untanglingwebs
El Supremo

Raynetta Speed told the North Side group that meets every Tuesday morning (10 am) at the North Side mini-station that Smith Village construction will resume on October 17th. I am told modulars have been ordered to complete the 30 homes by the end of December. They are removing trees there now, presumably to clear sites for foundations and fences.

Last edited by untanglingwebs on Thu Sep 15, 2011 8:36 pm; edited 1 time in total
Post Thu Sep 15, 2011 1:59 am 
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untanglingwebs
El Supremo

When they were County Commissioners, Raynetta Speed and Richard Hammell led the initiative to include the part of Beecher that Charles Young built the Village on included in the Flint Area Enterprise Community, so I am confidant that she and Mr Young know one another.
Post Thu Sep 15, 2011 2:03 am 
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Dave Starr
F L I N T O I D

The plot thickens.

_________________
I used to care, but I take a pill for that now.

Pushing buttons sure can be fun.

When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.

Paddle faster, I hear banjos.
Post Thu Sep 15, 2011 7:32 am 
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ins&out
F L I N T O I D

quote:
untanglingwebs schreef:
Raynetta Speed told the North Side group that meets every Tuesday morning (10 am) at the North Side mini-station that Smith Villaheconstruction will resume on October 17th. I am told modulars have been ordered to complete the 30 homes by the end of December. They are removing trees there now, presumably to clear sites for foundations and fences.


Champion Homes (Indiana) is fast at work on the homes.
No contractors have signed contracts as of today
NSG is collecting all bids via their website www.nsgbuild.com
NSG is really the head of the Project & all permits at site verify this.
Landbank has a (NSP Crew) working on site cutting grass & trees while being paid well under NSP required pay
Post Thu Sep 15, 2011 2:52 pm 
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untanglingwebs
El Supremo

Federal projects require prevailing wages.
Post Fri Sep 16, 2011 7:23 am 
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untanglingwebs
El Supremo

Who is the "we" that made the decision Young references and how did Young get to make the decision. Must have been when Eason changed the developer. Wonder how many members are in the limited Liability Corporation?



Smith Village saga grows with lawsuit against city of Flint
Published: Friday, September 16, 2011, 8:33 AM Updated: Friday, September 16, 2011, 8:43 AM
By Kristin Longley | Flint Journal The Flint Journal

FLINT, Michigan — Even as progress is made on the controversial and long-delayed Smith Village housing project, the $16 million development is plagued by yet another potential obstacle.

Two Detroit-based contractors are suing the city, the project developer and other key players for more than $1 million, alleging the city and the developer conspired to cut them out of the picture after they invested time and money to help get the project off the ground.

The new developer, Charles Young, said the allegations are “trivial” and that the project is on track to have 25 homes up by the end of the year — a crucial deadline so the city does not have to risk repaying $1.3 million in federal grants it received for the project.

But this latest lawsuit is another snag for a project that’s been repeatedly off and on for 13 years.

“We’ve been dealing with this Smith Village project for so long,” City Councilman Delrico Loyd said. “Let’s complete this project and move on to other areas of the city.”

The lawsuit was filed in June in Genesee Circuit Court by Community Improvement Group LLC and two of its agents, N. Jason Strayhorn and Mark DeMaria.

Among other allegations, the pair are suing the city, Young and City Administrator Gregory Eason for breach of contract and conspiracy.

They say they approached the city last year with plans for the development and reached an agreement with the city that they would act as builder contractor. The pair later formed Smith Village Development Group LLC and connected with Young, who acted on their behalf in many of their dealings with the city, according to the lawsuit.

Community Improvement Group’s plan called for building 25 to 43 homes by December. To meet the Dec. 31 deadline, the plan was to build modular homes.

Last May, there was a flurry of activity in getting the project moving, and the pair submitted a timeline and financial model for completing the development, said attorney Brian Akkashian, who is representing the partners.

“Shortly after that, everything went silent,” Akkashian said. “It’s our position that there were discussions going on behind the scenes ... that ultimately resulted in our involvement in the project being terminated.”

Young, on the other hand, said the partners were not brought on as builders for Smith Village because they didn’t meet the selection criteria.

“They fell out (of the running) for a variety of reasons,” Young said. “We have more than enough to document why we made the selections we made.”


City Attorney Peter Bade issued a statement on behalf of the city and Eason, saying, “We are reviewing the allegations made in the complaint and will respond accordingly.”

Smith Village has been billed by Flint Mayor Dayne Walling’s administration as the only new housing development to be built in Genesee County this year.

Akkashian said it’s “possible the project could be impacted” as the lawsuit progresses.

“We believe we have more than sufficient evidence to prove the claims,” he said.

Loyd said he’s concerned about the lawsuit, but that the City Council has been told the project is being monitored closely.

“The administration assured us the process has been vetted by a company selected by HUD (U.S. Department of Housing and Urban Development),” he said. “I’m confident they’re going to do what they need to do, and if not, they’ll be held responsible.”

The project is not using Community Improvement Group’s plans for the development, Young said.

Young said some of the pieces, namely the framing and some wiring, of the 25 houses will be pre-engineered elsewhere and then sent to the site, where local workers will put the pieces together and also finish the homes, taking care of the brick work, garages and other amenities.

Young said 50 percent of the work will be done locally by area people. Officials are evaluating whether the balance of the 83 homes at the site will be built the same way.

Currently, contractors are clearing trees from the site, on the west side of Saginaw Street just north of downtown, and will be followed by excavators digging holes for the foundations.

The first home is expected to be completed in mid-October, he said. The project has 17 preapproved homebuyers, and officials hope to have the first 25 homes sold even before they’re built.

“At the end of the day this has been a large project, a long time coming,” Young said. “I’m not surprised at anything at this stage, but irregardless, we’re going to build those homes.”
Post Fri Sep 16, 2011 8:06 am 
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untanglingwebs
El Supremo

In the Federal Procurement there is a process that must be documented. From reading the documents there was no adherence to the process. Metro Housing as a Developer makes sense as they have built projects for federal programs and there requirements wee thorough.

Contrast that with the new developer. Young is a developer in name only as he does not have the builders license or experience. Russell from Detroit has the experience and license. However, Russell pulled the permits before the contract went to council and now the local contractors (Josiah Curry, Joe King, and Duane Holley )have been told they will not get paid.

Did Eason get approval from HUD for a new developer?
Eason is said to be in Florida, so he was not available for a comment.
Ins &out-If there are no contracts why is Sl walker and sons, LLC working? Will they get paid. I know Walker and he gets a contract for everything he does.
Post Fri Sep 16, 2011 8:22 am 
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Demeralda
F L I N T O I D

Don't know if this means anything to anyone, but if you look up the case, the address of Young, you get this

http://www.cityofflint.com/propertytaxes/display.asp?parcel=P-83036-4

P-83036-4
Address:

2050 WARNER AVE




Owner:

VILLAGE SHORE PROPERTIES I


2050 WARNER AVE


FLINT, MI 48503
Classification:

Commercial Personal
Zoning District:

Lot Size:

Front: 0 Depth: 0

Legal Description

Sale Information

Ward/Precinct Information

Current Year (2011)

Previous Year (2010)

State Equalized Value

8000
Taxable Value

8000
Homestead%

100

_________________
I'm no model lady. A model's just an imitation of the real thing. - Mae West
Post Fri Sep 16, 2011 6:48 pm 
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Demeralda
F L I N T O I D

oh, and this:

Parcel #:

41-18-485-020
Address:

2050 WARNER AVE




Owner:

BURKS, JOANN


734 NATALIA DR


DAVISON, MI 48423
Classification:

Commercial Improved
Zoning District:

B
Lot Size:

Front: 50 Depth: 125.01

Legal Description

Sale Information

Ward/Precinct Information

Current Year (2011)

Previous Year (2010)

State Equalized Value

45100 12100
Taxable Value

34905 12100
Homestead%

0 0
2011 Taxes
Summer Taxes

Winter Taxes

Original Tax

$2,076.42 Not Available
Penalty

$6.92
Water Lien

$0.00
Special

$0.00
Paid To Date

$0.00
Balance Due

$2,083.34

_________________
I'm no model lady. A model's just an imitation of the real thing. - Mae West
Post Fri Sep 16, 2011 6:50 pm 
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Dave Starr
F L I N T O I D

Hey, Reperelda! What have you been up to lately?

_________________
I used to care, but I take a pill for that now.

Pushing buttons sure can be fun.

When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.

Paddle faster, I hear banjos.
Post Fri Sep 16, 2011 6:50 pm 
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Demeralda
F L I N T O I D

I have been learning to play the Super Mario Bros theme on a crwth. Smile

Still hanging around. Glad to see you out and about!

_________________
I'm no model lady. A model's just an imitation of the real thing. - Mae West
Post Fri Sep 16, 2011 7:17 pm 
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Dave Starr
F L I N T O I D

Well, I survived surgery last year, so maybe I'll be around for a while. Had the lower lobe of my right lung removed.

CORRECTION- I survived 5 days of hospital food.

_________________
I used to care, but I take a pill for that now.

Pushing buttons sure can be fun.

When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.

Paddle faster, I hear banjos.
Post Fri Sep 16, 2011 7:28 pm 
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ins&out
F L I N T O I D

Go to any landbank site & ask anyone in a safety green shirt how much they make a hour. While you are at it ask them who cuts and issues their checks.
85% of the workers on site DO NOT work for Landbank. They paid not a single laborer MB wages it city/county prevailing wages. Many homes reno'd in carriage town & other sites by them where done by unlicensed workers, including electrical and plumbing work!
Walker us working on site and has been since Curry was GC. Question is who did he sign his contract with? If with Curry it means nothing. Maybe "if" hr has one its with landbank or directly with city like Burnash Wrecking and the work is defined as work prior to the plots being deeded over to the development.

The checks you referred to paid to Mr Young were for NSP work off of Dupont & Ruth. No one on those projects are making prevailing or MB wages either.
Post Sat Sep 17, 2011 3:18 pm 
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