PDK Watch
P. O. Box 49325
Atlanta GA 30359

March 12, 2001

The Honorable CEO Vernon Jones
DeKalb County Government
1300 Commerce Drive
Decatur, GA  30030

Re:   Request for immediate action by CEO to:

1) order County employees to cease and desist the practice of giving away the use of county land to private citizens or other special entities.

and, 

2) demonstrate by establishing policies, procedures and internal controls that assure the County’s interest will come before that of  political  supporters or other “special” entities.  

Dear Mr. Jones:

As you know, in the past DeKalb County’s lack of policies, procedures and internal controls may have contributed to an atmosphere that fostered abuse of authority by County Officials. As a result of a limited review of several DeKalb County contracts, PDK Watch discovered alarming irregularities raising many issues of concern.  These concerns, recently discussed with you, were presented to former CEO Liane Levetan several months before her term expired.  However, very regrettably, she left office before responding to questions about such important matters as favoritism shown to special interests to the detriment of the County and the questionable legality of certain administrative “authorizations”.   A summary of significant irregularities follows in Attachments A, B, C, and  D.  Also included is a DeKalb County Ethics complaint and a related Bar complaint, which was recently filed.

The County would benefit by hiring a forensics accountant/attorney to investigate and determine the degree of harm done to the County’s interests.  The number of irregularities found per contract is staggering.   As our investigation has progressed and various county officials’ misdeeds have been made known, the County’s tactics under the previous administration have become obstructionist, and it has become almost impossible to obtain records from county officials.  Ms. Shannon McNeal, a county attorney, presented us a prepayment demand of nearly $3000 to obtain correspondence related to a Flightserv.com/PDK Properties contract under the Open Records Act.

Thank you for your commitment to take on the enormous task of turning around and improving what was previously an exploited community, abused by prior administrations..  If the County can do anything to mitigate damages it should do so as quickly as possible.  We would very much appreciate being updated as you make your determinations on the questionable authority issues. You may reach us by e-mail at www.PDKWatch.org.  Thank you for your public service.

Respectfully submitted,

David Green                  Charles Feltus                Evelyn Brethour
PDK Watch Coordinator           Member                    Member

ATTACHMENT A

Contract No. 97-6921

Development Plan No.  99019N         

Hotel/Conference Center/Travel Agency/Restaurant/Bar Land Option

Mr. Beverly Lance, Ms. Amy Lance, Lance Children’s Trust Fund/PDK Properties, Inc./Flightserv.com (Formerly Proactive Technologies, now trading on AMEX as RCG)

There was an improper agreement for the permanent use of additional land.  The approved project’s plans for the lessee significantly exceeded the actual property lines of the leased property.  Approval from the Board of Commissions was not obtained for use of the additional land.  Neither the County nor the Airport was remunerated for the additional land. 

No evidence exists that required zoning setback variances were issued or that the necessary public hearings were held.  Please note how close the proposed hotel was to the property line (see the Director of Planning’s statement September 9, 2000, attached).

CEO Levetan unilaterally issued an extension of the lease option deadline date, without the approval of the Board of Commissioners, despite the facts that no zoning variance had been legally issued, that the required FAA approval for uses inconsistent with Federal Grant Assurances had not been obtained, and that the County’s Master Plan cited alternative uses which would have been consistent with the Federal Grant Assurances.

In order to exercise the land option by the extended deadline date, on April 22, 1999, Mr. Beverly Lance, on behalf of Flightserv.com, reported to the Airport Director “DeKalb County delivered to this firm all required permits to begin construction on April 20, 1999”.   The Airport Director, apparently without any further inquiry whatsoever, confirmed officially for audit and SEC reporting purposes that the Flightserv.com Contract was in full compliance.   However, in fact, the Chief Permit Administrator determined that the DeKalb Public Works Department had not issued a building permit, nor a heating, plumbing or electrical permit (see her statement dated May 3, 2000, attached). 

Ms. Levetan was asked by a member of Congress to respond to a March 10, 2000, Atlanta Journal-Constitution press release, about Flightserv.com and comments made by its CEO, Mr. Beverly Lance.  In, her response, Ms. Levetan assures Congresswoman McKinney of the following:

“It [Flightserv.com] is not business based at DeKalb Peachtree Airport.  It appears to be an Internet only business¼”.

It is disturbing that on February 22, 1999, Ms. Levetan personally had extended the land option of the Mr. Beverly Lance/PDK Properties/Flightserv.com Hotel Complex Project, without the approval of the FAA or the Board of Commissioners.

The multi-year, multi-acre land option was issued for only  $250 a month. No competitive bids were solicited.  Public records show the value of such a land option to be well in excess of ¼ million dollars, see attached from the Kellet hangar file and audiotape of August 2, 2000, DeKalb Ethics Hearing.  You may also want to look at the FAA Federal Grant Assurances (No. 24), for requirements for setting fees, FMV, etc.

ATTACHMENT B            

Contract No. 96-6714                                                        Hangar Land Option

Development Plan No.98189N

Mr. Beverly Lance/Ms. Amy Lance/Aviation Properties/HTG Corp. (Holcomb T. Green)

Construction plans submitted to the county on September 28, 1998, by Mercer Dye (formerly the Chair of DeKalb County’s Airport Advisory Board), exceeded the property lines of leased area, the plans called for exceeding the physical boundaries of the airport, basically going outside the fence lines, into Federally funded buy-out property, and actually incorporating an entire residential lot (2003 West Hardee) and a portion of the street into the project, which gave the “appearance” that the project  conformed to zoning set-backs and transitional buffer requirements under the law.  Please note, the Limits of Construction far exceed the actual property lines on the plans.

There was no evidence of any contract amendment or any other written agreement for the “permanent” use of the additional land, (2003 West Hardee and West Hardee Avenue, the street itself).  Approval from the Board of Commissions was not obtained for use of  “additional” land.  Neither the County nor Airport was remunerated for the additional land. 

No zoning set back variances had been sought.

Despite a stock purchase agreement, dated July 23, 1998, between Mrs. Beverly Lance and HTG Corp., which warranted “the zoning classification of the Premises permits the use of the Premises for the operation of an aircraft hangar” and another document on file which stated the Planning Department was expected to receive an application for rezoning by July 26, 1996, based on statements made by Mr. C. B. Lance, the airport director indicated that no one knew, not even the county that zoning was not proper for the lessee’s intended use and the lessee should be granted a two or three year extension.

Most disturbing is that after almost a year of denying knowledge of who authorized the use of “extra” land for the Lance projects and failing to provide a copy of the legal authorizations requested time and time again under the Georgia Open Records Act, Mr. Thomas Black, Director of Public Works and Mr. Remmel, Director of the Airport, now deem that between the two of them, they had and have the authority to give away the use of land of county land, in question here. Please see the letter dated November 29, 2000, attached, to Mr. Charles Feltus, Commissioner Scott’s appointee to the Airport Advisory Board, where Mr. Black stated the following:

                “Since the property in question is under the authority of the Airport Director and the ability to issue a development permit is under my authority, no further authorization is required.”

ATTACHMENT C

Contract No. (Could not be identified)                              Globe Corporate Center-Office Building

 Mr. Edgar Neely (deceased) appears to have been tenant at will, or assignee          

Nearly two months after the death of Mr. Edgar Neely, on or about August 15, 1999, the former CEO, Ms. Liane Levetan, signed a Consent to Assignment from Mr. Edgar Neely, (personally, not the estate of Mr. Neely) to Globe Corporate Center, LLC (registered agent Mr. Beverly Lance, per Secretary of State’s Office).   Note, Mr. Lance’s request for “Open Records” for this file was paid by Flightserv.com  

To date, no evidence has been located that Mr. Edgar Neely actually assigned the contract for the office building.  As far as we know, the Consent to Assignment has not been declared invalid or terminated.

Dr. Michael Bell, Director of Finance and Clerk to the Board of Commissioners could not locate the County’s official contract currently in effect.

Flightserv.com’s occupation of the Globe Corporate Center occurred without prior approval required under the terms of the contract according to Mr. Carl Remmel, the Airport Director (audio tape of AAB meeting available)

According to the terms of the lease the Airport does not generate any income from the office space rental.  The original contract apparently called for the building to have a different purpose, one that would have generated income for the airport.  As the structure was built, the county would only generate $218 an acre per year with a very restricted inflation provision (3% annum).  The building doesn’t even become the property of the county unless the contract is found to be in default.

A review of the Globe building office lease and related correspondence indicates the lease by its terms is in default.  Yet no default notice has been issued and Flightserv.com has not been evicted.