How many millions will Atlanta favoritism cost us?
If you’ve ever been curious about Atlanta’s spoils system, Monday is your lucky day. A federal jury is slated to begin hearing a lawsuit that claims city officials conspired to steer a lucrative airport contract to an old crony of former mayor Maynard Jackson.
In fact, the big question may not be “if” but “how” — as in how many millions of dollars this funny business will end up costing taxpayers.
The lawsuit, filed by Atlanta businessman Billy Corey (you’ve seen his last name on that old white smokestack across the interstate from Grady hospital), dates to a 2002 bidding process for advertising rights at Hartsfield-Jackson International Airport. But the broader story, which I’ve drawn from case documents, started two decades earlier.
In 1980, the city gave Barbara Fouch, a former model and a friend of Jackson, a no-bid contract to manage advertising displays at the airport. Federal funding recipients, such as our airport, must ensure minority participation in the contracts they let. And, as a black woman, Fouch and her firm qualify as a “disadvantaged business enterprise,” or DBE, under federal transportation law.
Of course, according to the deposition of the city’s head of contract compliance, even Oprah Winfrey would be considered a “disadvantaged” businesswoman under Atlanta’s interpretation of the law.
For 22 years, Fouch and a series of business partners, most recently Clear Channel, operated under an unquestioned arrangement in which the city never re-bid the contract, yet received just half of the ad proceeds. That’s well below what peer airports receive.
In 2002, new Mayor Shirley Franklin decided to open the contract to bids from other vendors, and Corey submitted one of three offers. He came within four points, on the city’s 100-point grading scale, of winning the contract, which went to Clear Channel but was never approved by the City Council.
Yet, Corey claims he actually should have beaten Clear Channel by 12 points because Fouch should not have qualified as a DBE because she’s neither disadvantaged nor a business operator; a judge’s order in the case notes that Fouch’s own DBE application to the city stated that her company owned no business equipment. Curious, huh?
Corey further claims that the city scrutinized his own DBE partner much more thoroughly than it did Fouch. He did receive full credit for his partner, but he portrays this extra scrutiny as part of the city’s efforts to make sure Clear Channel and Fouch retained the contract.
A lot more will come out as the case is tried, but an obvious question is why the city would care so much about just who held an airport contract.
If Corey’s past statements to the AJC are any indication, expect his lawyers to push the idea that the city is run for “the royals” — the insiders, both black and white — at the expense of “the regulars” — the ordinary folks, both black and white, whom the royals ignore between elections.
Should the jury agree and rule for Corey, the decision could cost Atlantans millions of dollars. Already, Corey claims the city’s shenanigans have cost taxpayers millions in forgone ad revenues.
The city might have avoided all this by re-examining the DBE part of the bids or even re-bidding the contract completely. Barring a last-minute settlement of some sort, Atlantans may soon be asking city officials “why” — as in why they’ve fought so hard in a case that looks like a legal loser.
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87 comments Add your comment
curious observer
July 11th, 2010
8:10 am
Maynard Jackson WAS a crook and still is, even from the grave, as his family and friends profit from the criminal enterprise the “Round Mayor of Bribery” established. I suppose you could assert Blacks are not racist since they are equal opportunity thieves – they even steal from each other!
Look into Church’s Chicken sale of 100+ stores to a “minority” group from Atlanta whose leader was Jackson’s law partner and chief of staff. The group claims debt bankrupted the company, an AJC article supported them, but the reality is the two Blacks at the top of the 7 member group were stealing money faster than the chicken stores could earn money.
The “President” or “Chairman”, I do not recall which, divorced his wife and gave her a Lexus SUV in the settlement. Unfortunately the vehicle was leased to the company, ownership being an insignificant detail to this particular crook, so he simply leased another for himself, also in the name of the company.
The Prez and Chair eventually ran the group into the ground and Church’s found a West Coast buyer for the stores.
Gator Joe
July 11th, 2010
8:29 am
Kyle,
Corruption is wrong and should be exposed wherever, and whenever it exists. It is also wrong, and hypocritical, to overlook corruption when one is in favor of the party or group in power. I’ll bet there was little, or no, investigation of, or outrage regarding corruption when Atlanta was government was all white, yet there was as much, or more, corruption then as now, with racism added to the mix.
You and the Right, may continue to point out misconduct, though you didn’t during white administrations, it is your right, but please withhold the phony outrage
Road Scholar
July 11th, 2010
9:01 am
Kyle, while I agree that the administration of DBE programs are biased to the “insiders”, I have seen some benefits from it. When a fledgling company is given the ability to grow, and does so withintegrity and hard work, the program is a success. But when it is clouded by continued awards to the “insiders”, then it should be investigated.
Gator Joe has a valid point above. Where was the media investigation into the Richardson affair before his wife exposed him? Why are the Oxendine hearings been canceled repeatedly? If he is innocent/guilty then let it be shown. Oh, these, and other items, are ruled over by white powerful officials. So this is OK?
Tyler Durden
July 11th, 2010
11:50 am
Road Scholar and Gator Joe:
Looking for logic or balance from Kyle is a task akin to that fella rolling a rock up a hill that never ends. But it’s kinda fun to hold his feet to the fire, if for no other reason than to remind him how pathetically biased he is…
One day, young Kyle, you might learn. But no one’s holding their breath
Lottery Insider
July 11th, 2010
11:54 am
Great report and analysis, Kyle.
If you are looking for rampant corruption, and for abuse of the poorest and most powerless of Georgians, I hope you will dig into and take on the Georgia Lottery Corporation. Unfortunately, the AJC and Cox/WSB receive huge amounts of advertising from the lottery, so I doubt your bosses would let you dig in. Two angles: (1) why are the poorest and most hopeless among us tricked into “playing” these lottery “games” to provide college money for upper-middle-class college students? (2) why does the Georgia Lottery Corp pay six-figure salaries to so many people? Any monkey could run the lottery – it’s a state-sanctioned monopoly.
No More Progressives!
July 11th, 2010
1:34 pm
Greg in the Highlands
July 10th, 2010
4:03 pm
Atlanta is Black owned and operated. That’s why it’s such a mess. When the new census come out and shows that whites are the minority, things will then change.
Well said. The trouble is I don’t know how much credibility I’ll give the 2010 census, due to all the shenanigans. Democrats see the census as an opportunity to add Congressional seats & waste more of other peoples money, plain & simple. And yes, I know that the census is Constitutionally called for. Look up gerrymandering: done on both sides, I know.
Angus
July 11th, 2010
1:38 pm
Thanks for bringing this story back to light, Kyle.
Hopefully, cronyism is on the way out in Atlanta. (However, looking at Reed’s appointments/hires so far, maybe not fast enough.)
If you can fight your way through the web of bureaucracy in APS, you can probably find enough bad money to make the Corey suit look like a drop in the bucket – and I encourage you to do so.
killerj
July 11th, 2010
3:17 pm
Good old boy politics? This city has been run by black mayors seems like forever and your saying none of them are crooked?Seems like one was just put in jail?Lets forget this article and go take a good look at marta”good old black boys”politics, more money has been wasted there than any place in Georgia! Man,what a joke!
Scott
July 11th, 2010
4:13 pm
@Jillian
I pull permits all the time in Atlanta. Thats a bunch of BS. I’m white and have never had any kind of problem due to my skin color
DebbieDoRight
July 11th, 2010
4:16 pm
I like to read Kyle’s blog — mainly because it exposes all the “tolerant” and “new” southerners at their best!
killerj: Lets forget this article and go take a good look at marta”good old black boys”politics, more money has been wasted there than any place in Georgia! Man,what a joke!
Killer seems to have conveniently forgotten that Marta was run by Whites just 8 short years ago, and they still had budget worries, (because, unlike any other major city US Transportation system), Marta has to beg the GEORGIA LEGISLATURE to use its own money!! Savannah doesn’t have to, nor does Rome or Athens Trans. Auth.
greg: Atlanta is Black owned and operated. That’s why it’s such a mess.
sigh…..Georgia is run by a bunch of white guys…………lately they passed a bill so that no one could implant microchips in your brain. And what about the Go Fish Georgia! initiative? OR Sonny buying and selling his land illegally to GA Power? What about Oxedine, etc. he’s a white guy, so I guess he’s a pure as driven slush. I guess that’s ok since the white guys thought it up…..
As to the rest of the anti-black this and that comments, they don’t even need a response, nor deserve one – they, the posters, must be dying a little everyday that they now have a (horror upon horror!!) black man as President!! Hee hee heee……
Grob Hahn
July 11th, 2010
4:22 pm
Most of the workers at the airport are black. Where’s the “diversity” in that? Or is it just another example of “Justifiable Payback”? How long can this REALLY continue?
Grobbbbbbbbbbb
Hillbilly Deluxe
July 11th, 2010
5:21 pm
Where was the media investigation into the Richardson affair before his wife exposed him?
Billl Shipp was writing about it 3 years ago. Here’s just one example.
http://www.onlineathens.com/stories/010707/opinion_20070107038.shtml
Brad Steel
July 11th, 2010
6:15 pm
… a judge’s order in the case notes that Fouch’s own DBE application to the city stated that her company owned no business equipment. Curious, huh?
For an ad services company, it doesn’t seem all that curious.
But that insignificant observation aside, it seems obvious that the reason HJ Airport has all the efficiency and ambiance of a Greyhound station is the cronyism and poor management history from city hall.
Favoritism and self-dealing from local petty politicians? No. That can’t be. That has certainly never happened!
Red November
July 11th, 2010
6:21 pm
Well, at least Joe Gibbs is starting to see reality:
“WASHINGTON — President Barack Obama’s chief spokesman says it’s possible that Democrats could lose their majority in the House this fall. Press secretary Robert Gibbs says there’s no doubt that enough seats are in play for Republicans to take control. Gibbs says the outcome of the fall vote will depend on whether Democrats wage strong campaigns.”
Well that makes sense. According to Gallup, only 1/3 of independent voters continue to approve of the Obama administration. That number is even lower for the the Democrat-run Congress. We’re tired of the failed economic policies, failed response to terrorism, and failed response to the Gulf disaster. Don’t look now but Obama is going on another vacation!
DebbieDoRight: I’m still waiting for one of you liberals to chastise or even comment on that black panther who said that crackers and their babies should be killed. We already know Attorney General Eric Holder won’t do anything about it.
Halftrack
July 11th, 2010
7:01 pm
Kyle, You are on the right track. Please keep digging into this mess. DBE should be for the real disadvantaged to get start in a business. This system should have a sunshine drop date to make start ups comply with normal competition. As it is now it’s a shame system for the Royals. Keep on digging.
Willie
July 11th, 2010
8:46 pm
Bernard nailed the truth. Set asides mean that a qualified, presumably competent contractor, gives a large slice of the profits to a front who is paid for his skin color or her gender. What a stupid system?
Mark
July 11th, 2010
10:16 pm
I paid my dues for living in the City of Atlanta almost 15 years … I am so glad to have moved away to the Savannah area. Savannah is not problem free but its a nice alternative to the cesspool called the City of Atlanta.
Uncle Billy
July 12th, 2010
7:08 am
Thus hath it has ever been. Thus will it ever be. “Cato acts as if we lived in The Republic of Plato instead of amidst the scum of Romulus.”-Cicero
Willie
July 12th, 2010
7:23 am
You mean corruption like Joe Heckstall and his brother, Cornelius? The democrat legislator who seems to have pressured the mortage company to change the terms of the mortage for his brother?
Horrible Horrace
July 12th, 2010
8:06 am
Atlanta is just a big Cesspool.
neo-Carlinist
July 12th, 2010
8:10 am
maybe they should name a couple prisons after Maynard Jackson, instead of airports and high schools.
Grand Forks
July 12th, 2010
9:17 am
Looks like I have me one of them there stalkers from Bookman’s page.
Grand Forks
July 12th, 2010
9:23 am
Good news for America.
Liberals analyze their Obama ‘despair’
For many liberals, this is the summer of their discontent.
Already disappointed with President Barack Obama’s ability to deliver on campaign promises, they now contemplate a slowing economic recovery and a good chance of Republican gains in November — two developments that could make enacting Obama’s agenda even more difficult.
Two recent essays framed the debate raging within the progressive community over why the promise of Obama’s candidacy has not lived up to their expectations — and how liberals should proceed in what they fear will be difficult months ahead.
http://www.politico.com/news/stories/0710/39565.html
Horrible Horrace
July 12th, 2010
9:26 am
Oblunder never had an intention of delivering on most of his campaign promises. The progressives and dems will be surprised when and if this HCare mess is funded. ObiCare can deny individuals from coverage…and there is much more yummy goodness coming for this idiots that voted in this nightmare.
Intown
July 12th, 2010
9:46 am
Kyle – I would hope in your reporting you would note that the allegations in this case stem from alleged actions 8 years and 3 Mayors ago. Lest we cast Atlanta once again in the stereotypical negative light and hear more calls for a bunch of rednecks to take over the BUSIEST AIRPORT IN THE WORLD — built and operated by THE CITY OF ATLANTA. If Corey’s allegations are true, then certainly things need to change. But, the benefits to the region brought by this airport far outweigh any waste there. This airport, along with 3 interstate highways converging here, are the largets reason why Atlanta is a major metropolitan area today.
Kyle Wingfield
July 12th, 2010
10:42 am
Intown: Eight years, yes; three mayors, no — the allegations in the case stem from Shirley Franklin’s administration. The airport is certainly a huge key to our economy, but that’s all the more reason why it needs to be run as cleanly as possible.
No More Progressives!
July 12th, 2010
1:03 pm
As to the rest of the anti-black this and that comments, they don’t even need a response, nor deserve one – they, the posters, must be dying a little everyday that they now have a (horror upon horror!!) black man as President!! Hee hee heee……
Ummmmmmmmmm…….he’s not black. He’s half-white.
And clearly not executive material.
Edward Morgan
July 15th, 2010
9:36 am
Spare me the outrage white folks, when you investigate the Governor’s office, the Lottery, and Gwinnett County, Cobb County, and cherokee and Forsyth County you have not credibility. Oh but they are run by whtie people and that is ok. Please give me a Damn Break.
No More Progressives!
July 16th, 2010
1:03 pm
Edward Morgan
July 15th, 2010
9:36 am
Give you a break? For what? What did you do?
Black corruption + conviction = jail.
White corruption + conviction = jail.
I don’t care what color you are.
Intown
July 16th, 2010
1:12 pm
the atlanta airport doesn’t cost state and local property taxpayers ANYTHING. It is funded by the airlines (airline passengers) and tenants (factored into the cost of that magazine you buy before you hop on the plane).
Alan Paulk
July 22nd, 2010
12:09 pm
One must be careful to not project their own race bias (unintentional, unconcious racism) into this issue. There are bad things going on in Atlanta, for sure. I have dealt with the city in a variety of contexts. But if you meet a kind soul or two down there, you won’t be able to see this is as simply us vs. them. Corruption is a human problem, not a racial problem. Cronyism dictates that officials give their friends special deals. The friends of black leaders are likely to be black. This doesn’t make them racists. On the other hand, if they prefer a black stranger over a white stranger, then you have racism.
Mike Bloomberg for Atlanta 2014
July 26th, 2010
7:14 pm
I’m happy that Billy Corey had the fortitude and money to fight city hall and win. In addition to the monetary settlement, Maynard Jackson’s name should be removed from the airport or an asterisk should be placed after it to remind people about this case.
CuriousGreta
July 26th, 2010
9:14 pm
Did anyone ever further investigate the No-Bid Contract given to Bunnie Jackson-Ransom by Grady Memorial Hospital for providing barely any PR services? This “friends of friends” contract was featured in Cretive Loafing and then apparently “hushed up”. Looks like what is happening at the airport is similar to the No-Bid contracts that were given by Grady before they “cleaned house”.
Still Corrupt in 2010
July 26th, 2010
9:32 pm
Wake up Atlanta, this airport is still so corrupt it will make you sick ! Seems as if they sit
around everyday trying to find ways to jack up their revenue. Parking has went through the roof ! Dont be fooled, it is as corrupt as ever. And those rude screaming APD Officers….they should try and be nice every now and then. Always heard the bad apples get sent to the airport…sure seems so.
todd
July 27th, 2010
3:41 am
“After 300+ years of brutal, truly inhuman treatment of people of color by whites, it’s amazing to me that all people of color aren’t either homicidal maniacs or too depressed to get out of bed.”
In case you haven’t noticed many of them ARE homicidal maniacs Michael. Treatment of people of color by whites? What about at the hands of their own people in Africa? This region has seen the most brutal dictatorships and worst human rights violations the world has ever known! None of us was alive 150 years ago so there isn’t any “payback price” and nothing was done to THEM. It’s about time we stop using that as an excuse.
How many millions Atlanta favoritism will cost us, answered | Kyle Wingfield
July 27th, 2010
6:11 am
[...] asked the question earlier this month; yesterday, we got the answer: A federal jury on Monday awarded $17.5 million in [...]
That smokestack is an eyesore
August 10th, 2010
10:56 am
Tear it down. Today.