| Should the City of Flint just cut its loses and stop this fedral project? |
| yes |
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| no |
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| Total Votes : 1 |
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whiteknight
F L I N T O I D
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| Has anyone heard any updates on the Smith Village project? I have been driving by and it doesn't look like the required homes will be completed by the deadline. So if not has there been a extension? and if not are we on the hook for the money already spent? |
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Mon Dec 05, 2011 6:24 pm |
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untanglingwebs
El Supremo
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We are on the hook for so much i don't know where to begin.
Remember to save $1.2 million, we committed to spend the $16 million plus in the budget and all infrastructure costs. Now we have a contract with Champion Homes, Fenton Poured Concrete and other contractors and we will still owe the $1.2 million.
We also promised HUD we would build a Center for the Performing Arts, and a Child Development Center. I have no idea where this money was coming from and I don't believe Walling did either. |
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Mon Dec 05, 2011 6:39 pm |
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untanglingwebs
El Supremo
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| Champion Homes placed a video on the internet showing how the homes were to be constructed. But when I drove by after the rain and snow, I saw holes in at least one roof and missing windows in one unit on Williams. |
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Thu Dec 08, 2011 7:09 am |
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untanglingwebs
El Supremo
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| Since the plans being used for the homes belong to champion, what happened to the designs created by Shannon White's architectural firm? |
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Thu Dec 08, 2011 7:24 am |
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untanglingwebs
El Supremo
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Just who is Brett Russell? There is remarkably little information about him out there.
In 2009 he was featured in a story about buying homes for little in the Detroit are and renting them out. In his story for the Denver Post, Al Leeis of the Dow Jones Newswires said "lanlords, like Russell of SE Metro Properties, are the new subprime lender,"
Russell was said to be a former Navy pilot with an an MBA and an engineering degree. Russell purchases homes to rehab and rent out. In the interview he said he wanted to buy whole neighborhoods so he can control them and bring up their values.
The majority of his clients are families that have gone through foreclosure or bankruptcy. the article states he finances his acquisitions throuhgh private investors and they were offered a 5 to 7 percent return from the rental of the homes.
Ian mason of the Bearing Group real Estate Brokerage is the realtor used by Russell in the story.
Russell has pulled permits under the name of S.E. Metro Properties LLC in Smith Village. The company wa organized under the name of Michigan Ukranium Capital International LLC on 2/21/08. The name was changed twice that year: tri County Properties on 11/4/08 and SE Metro Properties on 12/29/08.
Russell, who only recently obtained a builders license, pulled the building permits for the Land Bank lots the Urban Builders were to work on under the name of a corporation that had not been incorporated.
Now Russell signed the contracts for the modular homes for Champion Homes. Was the contract bid out or is it a no-bid cobtract. |
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Thu Dec 08, 2011 8:49 pm |
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untanglingwebs
El Supremo
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Bret Russell pulled building permits under this name before it was incorporated.
Searched for: NSG DEVELOPMENT & BUILDING GROUP, LLC
ID Num: D6459A
Name:NSG DEVELOPMENT & BUILDING GROUP, LLC
Type: Domestic Limited Liability Company
Resident Agent: BRET RUSSELL
Registered Office Address: 31000 TELEGRAPH RD #260 BINGHAM FARMS MI 48025
Mailing/Office Address:
Formation/Qualification Date:
9-6-2011
Jurisdiction of Origin:MICHIGAN
Managed by: Members
Status: ACTIVE Date: Present
These are the permits that the Urban Builders worked under and were not paid for their labor. According to the bank letter sent on October 31,2011, Russsel has over $500,000 in the bank and a line of credit. The question is who will pay the Urban Builders for their work. I don't believe the company should have to take a 1.3 cut in their invoice. |
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Thu Dec 08, 2011 11:38 pm |
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untanglingwebs
El Supremo
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WHO IS THE RUSSELL BUILDING GROUP AND WHY ARE THEY CONTRACTING FOR SMITH VILLAGE?
Champion Home Builders and Russell Building Group Sign ...8 Nov 2011 ... Champion Commercial Structures today announced in partnership with RussellBuilding Group that the company will build a series of 83 ...http://www.businesswire.com/news/home/20111108005178/en/Champion-Home-Builders-Russell-Building-Group-Sign - 81k - Cached - Similar pages
I have searched Michigan Corporations and no company under this name exists. There are 492 corporations starting with Russell so I checked all of the obvious to no avail.
On November 8, 2011 Champion Home Builders announced their partnership with Russell Building Group for the construction of 27 homes using 7 custom designs of Champion. Delivery of the homes began on October 18,2011. They indicate Brett Russell is the CEO of Russell Building Group. |
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Thu Dec 08, 2011 11:46 pm |
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untanglingwebs
El Supremo
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There is another issue here and that one directly involves mismanagement by the State and MSHDA. Capital Assets has had embedded staff in the Department of Community and Economic Development. They knew or should have known how to operate the program. I recognize the basic outline of the contract used as being one that was designed for use by HUD grantees. However, there were some strange additions and other changes to the contract.
MSHDA had an obligation to ensure federal compliance with the federal NSP2 money and they should have been monitoring on a regular basis. Recently a second embedded staff person was said to have been hired.
So if the Smith Village is as riddled with violations and conflicts-of-interest as I believe it is, will the State have to bear the financial blow for any posssible HUD violations if the City is unable?
Was the Champion Homes deal a no-bid contract and if so, why Champion? After all Champion went through bankruptcy last year.
I am told that Michigan has modular home companies and we did not have to go to Indiana for homes. John Carpenter sugggested some methods using local companies that could have hastened the construction process. Not a builder so some of his terms went right over my head.
When I heard the builder was advertising for subcontractors to apply at a Smith Village fun day, I was worried. The change in developers seems to have things moving at too fast a pace.
CIG advertised they had a working knowlege of the necessary HUD rules. The City had a monitoring finding against a contract using Young. And yet we continue to use Young just like Kwame kilpatrick promoted his friend Bobby Ferguson in the illegal water and sewer contracts in Detroit.
Operation Unification received a CHDO designation from the City when they did not qualify. Young is CEO and operates the nonprofit Operation Unification conjoined with two for-profits to form the OU GROUP.
The OU GROUP tells the IRS in their 990's reports they have one set of Board of Directors and tells local governments here they have a second set of Directors. In the records I have from the City and Genesee County there is an obvious interlocking directorate with one board of directors and combined meetings. In their minutes they added housing to their misson, but not in a resolution, so they get federal money and become solvent.
The recent 990 submitted by Operation Unification does not have the required board of directors and highest paid staff portion completed. The amount of revenue from a federal source should have triggered a required audit, but the City did not forward one in responce to a FOIA request.
Young got a loan through the City EDC to have a meat market and grocery on Lippincott and that store closed within months. The Village cafe, one of the for-profits has contracts with both the City and the County despite tax leins .The revenues from the rentals of the apartment complex on Lippincott goes to the bank and at one time the taxes were 2 years behind. The list of past due taxes and other issues goes on and on and yet this individual keeps getting contracts.
So where is there any "due diligence" in the dealings of the City with Young?. Even Metro Community development indicated they were going to use him and their information requests looked like reliable predictors for solvency. |
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Fri Dec 09, 2011 11:02 am |
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untanglingwebs
El Supremo
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White knight- Perhaps the better question is whether the City of Flint department of Community and Economic Development survive?
With no experience and institutional knowledge left in the department, even if brown brings in an experienced department head there is noone with any experience to work with. In the City hearing Temporary Director Tracy Atkinson was said to be a big part of the failure of the Department of Energy (DOE) grant. I have seen nothing to change my opinion that she is totally incompetant. Many in City hall want to know why she is still there.
The DOE grant was terminated and money will have to be paid back. The HOME program is suspended and other pay backs are pending with HUD. Now with the problems surrounding Smith Village, The list of HUD problems keeps growing.
Employees cannot be blamed for the majority of these problems as the supervisors have the final say. Eason micromanaged the department and I believe the warts in the programs are his and his alone. |
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Fri Dec 09, 2011 11:48 am |
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untanglingwebs
El Supremo
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After the City failed to provide proof of bond and other insurance, that should have been part of the construction file, as required under the Freedom of Information Act. lawler claims he has copies of the bonds.
Young claimed he had proof of $8 million, but Lawler claimed two documents for $5 million apiece and one for $1,5 million. There was no mention of who received the bonds and what the dates were. Sounds like subcontractors, because all the City made available as of October 31,2011 was the bank letter for Bret Russell showing a bank balance of over $500,000 and an unspecified line of credit for Russell's business.
And did the City have the right to go into executive discussion to discus whether Smith Village was covered. This should be public information. |
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Sun Dec 11, 2011 4:33 pm |
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untanglingwebs
El Supremo
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Lawler waving document and claiming he had proof Flint is covered for liability on Smith Village.means nothing. This is as bad as Eason announcing he was saving the City $1.2 million on Smith Village after committing the city to multi-millions in costs to meet the new obligation he made to washington.
What this might mean is that pressure from the community forced the City DCED to start to perform their job.
1. If these documents were in the Smith Village Construction File as required by HUD and MSHDA, why were they not disseninated during a FOIA request.
2. More importantly, why were they not disseminated to the Urban Builders so they could get paid the $71,000 owed to them by Smith Village Construction and Charles Young Jr. Why isn't the City of Flint requiring adherence to the Davis Bacon Act on prevailing rates paid on federal projects and why are they trying to reduce the payment to the Urban Builders by 1/3rd.
3. Why didn't Lawler name the companies that allegedly provided the bonds? Were they subcontractors? Does Smith Village Construction have one and what happened to the $8 million bond Charles Young Jr claimed to have.
4. There should have been a bond for Fenton Poured Concrete, Kennedy Excavating and this Russell Building Group as well as any other contractor with a contract for over $150,000. Lawler claims he held three bonds, 2 for $5 million and 1 for $1.5 million.
We may never know as the city refuses to name the subcontractors or the principals involved in the project, contrary to HUD and MSHDA rules.
What happened to the wonderful TRANSPARENCY that Walling and Brown promised us. Going into executive session to discuss Smith Village bonds is not an approved reason for executive session. |
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Mon Dec 12, 2011 8:19 am |
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JCARPENTER
F L I N T O I D
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| white knight- If you have been following my comments on Smith Village you will see that it was unessary to build this project in order to save the $1.2 million in the first place. The answer to your question is,NO and anyone who knows anything about construction will tell you the same thing. The cost over runs and relays have just begun. We got rid of one of the big problems (Eason) now lets get rid of the other big problem (Walling) and we will all be better off. |
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Wed Dec 14, 2011 3:17 pm |
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