Archive for the ‘armchair philosophizin'’ Category

Exit Stage Right

Sunday, August 16th, 2009

nudeonbike2
Previously unpublished photograph of the original SAVE RICHMOND staff. From left to right: Andrew Beaujon, “Eagle Eyes” and Don Harrison. Not pictured and probably hiding: Ewa Beaujon.

Don here. I sat down to write a teary-eyed goodbye and to say how much I’m going to miss everybody and how it was the end of an era and that times are changing and the cow jumped over the moon… blah blah blah.

And then I realized that I’m not really going anywhere.

At any rate, it’s all true. Your humble narrator has accepted a position at Style Weekly — I’m the new Arts and Culture Editor. But it’s not all a kick and a gas. I have to give up posting here at Save Richmond.

That doesn’t mean SR is going away. This web address will live on. “Eagle Eyes” will continue to post here, and bring you his tenaciously-researched overview of Metro Richmond. Yes, he is a skeleton in a top hat (see photo above) but don’t let that shake you.

And, obviously, I’m not going to go away either. I have to assume that, if you read Save Richmond, you also read Style Weekly. If not, get thee to a big newsbox adorned with an S immediately! Or click on this spot right here. Save Richmond has been linking to Style’s excellent arts and news coverage, and discussing their reporting, for years. Now I get to work with these talented people. How cool is that?

A couple of weeks ago, when we celebrated our sixth anniversary, I explained that Save Richmond didn’t start out as a blog. And it would never have been one without the seminal snark of Andrew Beaujon and the early support of his wife Ewa Beaujon. Save Richmond has also been enhanced by the savvy financial forensics work of “Eagle Eyes” — that kid’s a keeper. Basically, all I’ve been trying to do here is to keep up with those folks.

Damn. Now I’m getting teary eyed.

(But I’m cheered by the news that I’m getting my Christmas present early this year. That’s a hint, by the way.)

Thanks everyone. See you at Style.

The Answers From CenterStage

Wednesday, August 12th, 2009

Don here. When Eagle Eyes and I submitted our “Twenty Questions” to CenterStage earlier in the summer, I thought we were being very easy on them.

We didn’t ask about an artists endowment — there isn’t one — or the rumors that ticket sales for the CenterStage grand opening weekend have been slow. And we didn’t ask why there is so little of substance announced on the initial event schedule (BTW: Bringing in The Oak Ridge Boys is actually a good idea. In the context of a full and diverse schedule of events, that is. So where’s the rest? Or is this it?)

We didn’t ask about the parking situation, although there seems to be some problems there too. And we didn’t press too hard on how the Foundation intends to respect the history (ahem!) of the historic Richmond theatres they’ve been handed the keys to, and given considerable public subsidy to oversee and to safeguard. Perhaps, in light of recent events, we should have.

[Incidentally, it's always worth reminding people that this project is, was and will be funded by public tax dollars. So anyone who tries to tell you that CenterStage, or RPAC, or VAPAF — whatever you want to call them — should be able to do with its "history" what it wants — like a private company reworking a new sales brochure — has an awfully broad and somewhat shitty view of both history and what it means to be a leader in the public trust.]

No, we didn’t press Jeff and Jay at Capital Results PR (who officially handled our inquiries about the project — thanks guys!) about such things as the lack of an artistic director — we assumed there would be one. After all, wasn’t there a guy named Joel Katz? And didn’t he run the Carpenter Center successfully for ten years with very little city subsidy? He was fired for truth-telling too.

Why does having an artistic director — a “vision” — matter? Let’s take a look at a reputable arts venue named CenterStage — Baltimore’s CenterStage — which does not take city tax dollars and is overseen by a staff that includes a seasoned artistic director. If you want a good example closer to home, take a look at the diverse international arts programs that the director of The American Theatre in Hampton, Michael Curry, brings to Tidewater each season in a former second-run movie house (click here for the 2009-10 schedule).

Gee, let’s get even closer than that. Think of Kathy Panoff and what she accomplished in building UR’s Modlin Center.

Make no mistake, folks. This stuff matters. You can’t pass your programming and your artistic direction off to a hockey arena promoter (in this case, SMG) and expect to have a “world class performing arts center.” It just doesn’t compute.

Anyway, we promised the boys at Capital Results that we would print their official answers “as is” with a very minimum of linking and editorializing. But forgive us for pointing out facts when the answers fail to do so, and please allow us the opportunity to tell you why some of these questions might just be a wee bit important, and especially to those people who say they support this thing and want it to work.

There was also one “followup” question that we are still a little unclear about.

But you’ll read all about it… as you wade through…

[Cue trumpets, or "Elvira" — your pick]

The Answers From CenterStage.

And for those of you coming in late to the CenterStage / Virginia Performing Arts Center story, feel free to plunder our archives. And start asking your own questions. After all, you are paying for this particular “serious fun,” whether you like it or not.

Can’t Rewrite History

Saturday, August 8th, 2009

thank-you

Hilarious article by Will Jones in today’s RTD covering the feud between the Centerstage Foundation and the journalist it hired to write the project’s definitive history. It seems seeing the truth in the printed word was too much for Foundation officials.


The tale of Richmond CenterStage, from its origin as Loew’s Theatre to Richmond’s “most significant — and costliest — arts initiative,” will not be told by the writer originally commissioned for the project.

The CenterStage Foundation killed plans to publish “Richmond CenterStage: A Dream Fulfilled” after author Roy Proctor refused to do additional research and to rewrite his draft to downplay controversies over the $73.5 million project.

“I could not possibly have adhered to those things because I would have been falsifying history on a monumental scale,” said Proctor, who retired in 2004 as an arts writer and critic for the Richmond Times-Dispatch.

The Foundation’s if you can’t make it happen, make it up attitude is summed up by board member Sue Fitz-Hugh who helpfully admits, “We didn’t hire him as a journalist…We hired him as an author.” Perhaps Nick Naylor is available.

You should read the final comments by Proctor twice, because they cut to the heart of this project’s history. How going about things the wrong way can poison what may have started out as a noble effort. Critics of CenterStage are not against the arts or kids or old people or sunshine, but rather how the Foundation’s leadership have comported themselves and wasted public money.


“If you had told me last summer that I had to write a book according to those rules, I would have rejected the commission out of hand,” Proctor responded in an e-mail to Erin Rodman, marketing manager for the CenterStage Foundation. Proctor provided copies of his book draft and e-mail exchanges with the foundation to The Times-Dispatch upon request.

Proctor said he supports CenterStage, and his introduction to the book said it’s a story about “renewed life.”

Other items soon to induce coffee spillage on at least one of the 400 RTDs delivered each morning to 110 Virginia Street (somebody has to keep Media General in business, ya know)…Q2 financial information on First Market Bank and Ukrops Supermarkets from the FDIC.

Photo credit: Fox Searchlight Films
Posted by EE

Go Pete Go!

Friday, August 7th, 2009

Pete Humes, over at Richmond Magazine’s Pop Culture Rodeo blog, has a confession to make:

This might be dangerous, but I’m going to do it anyway.

It’s not really a rant, because I’m not that angry. I wouldn’t call it a commentary, because my position isn’t very well defined. And you won’t be finding any deep background research, because it’s late and I’m lazy.

But I’ve got some things in my brain that need to get out. Either I write them down or I keep chewing them into nothing. There is no other option because my wife gets sick of hearing me talk sometimes. So you, the unfortunate few, will feel my lukewarm wrath.

My beef is with downtown. Specifically this Michael Bay-sized arts complex set to open in September. I don’t get it. I never have and I’m not sure that I ever will. To be honest, it seems silly and a bit over the top. I know that sounds blasphemous and shallow, and there are a hundred different people with a hundred different reasons who would be happy to tell me why I should feel otherwise … but that’s just how I feel.

And if Oprah taught me anything, it’s that feelings count for something.

Let’s forget for a moment where the money is coming from, who promised what and how many arts committees it takes to screw in a light bulb. That’s all crazy city politics. And I’m dumb, but I’m not dumb enough to pretend I know the first thing about city politics. There are people much smarter than me who aren’t afraid to read long documents and make phone calls who can sort that kind of stuff out. Me, I’m just the guy who wants to make fart noises in a crowded elevator.

I think CenterStage is a bad idea.

Read the rest by clicking right here.

These are the money grafs:

Downtown doesn’t need high culture. Downtown needs more low culture. We need bowling alleys and blues bars and rooftop paintball. We need coffee shops and video arcades and miniature golf.

If you find me a working time machine, I promise I’ll go back in time and steal the money raised for CenterStage and spend it on go-kart tracks and outer-space theme bars. Seriously. I wish I was kidding about this, but I just created the downtown of my dreams … without even really thinking about it. How can dozens of people meet for years and raise millions and come up with just another giant building that 98 percent of Richmond will never enter?

CAPS Blue Ribbon

Sunday, July 26th, 2009

We’ve been blasting CAPS — forgive the pun — a lot in the last few months. But the city’s “code enforcement squad” also does good, no make that great, work that shouldn’t go unnoticed.

From a recent city news release:

Code Enforcement Wins Case Against Blight

A judge found one of the city’s largest vacant property and blighted property-owners guilty on 16 violations on Thursday, July 16. The City’s Code Enforcement squad has worked diligently in concert with the City Attorney’s Office and the Police Department on this case.
 
Here is an excerpt from the Times-Dispatch article:
“Richmond General District Judge David Eugene Cheek Sr. found Oliver Lawrence guilty and told him to correct those violations that pose safety hazards by Aug. 14, the day Lawrence is to be sentenced.
 
City officials said yesterday’s convictions stemmed in part from three properties in downtown Richmond that are so damaged that one business owner calls the area “Little Baghdad.”
 
Before yesterday, Lawrence already had been convicted of at least 152 misdemeanor property violations, fined $357,050 and sentenced to 270 days in jail, all suspended. Those charges stem from problems at more than 30 properties owned by Lawrence.
 
Code Enforcement Division also served Lawrence with 152 “show cause” documents because they contend he has not met those conditions… that hearing is scheduled for Aug. 20.

Make no mistake — Richmond’s Community Assisted Public Safety program may have come down with a serious case of “mission creep” of late, but this is the kind of stuff that really helps our city: Holding vacant landlords accountable.

Good on them.

Not On Our Block

Friday, July 24th, 2009

Bill Goodwin and “Booty” Armstrong to award-winning VCU School of the Arts:

Take your modernistic science fiction nuclear arts reactor somewhere else!

Amy Biegelsen reports in the latest Style that the original site for the school’s new art gallery was nixed recently by Goodwin and Armstrong, who just so happen to own the swanky historic Jefferson Hotel across the street from where the new VCU facility was to be built.

I guess that Bill and “Booty” can well remember the example set by the three little pigs. They’d prefer something made out of brick, thanks.

Biegelsen reports:

Originally planned for a parcel across the street from the Jefferson Hotel next to the new Brandcenter headquarters, architects are redesigning for a location at the southwest corner of Broad and Belvidere streets.

“Somebody in my office likened [the design] to a nuclear plant,” says Beverley W. “Booty” Armstrong, part-owner of the Jefferson. He and William H. Goodwin Jr. own the hotel and have donated land in the immediate neighborhood to the school, including the locations where the new engineering, business and advertising buildings are, and where the gallery would have been.

Armstrong can appreciate the design — just not at that address. As a condition of the land donations, Armstrong and Goodwin reserved the right to review the architecture of the buildings that went up there.

First of all, let’s stand and applaud Armstrong and Goodwin for donating the land to VCU in the first place. But this doesn’t seem to be what they had in mind. Modernist design akin to George Clinton’s Mothership… an edgy New York architect… an arts complex run by a nationally-ranked educational program that will have actual arts educators and administrators in charge … Yeah. I can see where something like this moving in across the street would spook a coupla old-school Republican business dudes like Goodwin and Armstrong. Might be homosexuals involved too — perhaps even NEA-funded pornography and lefty political statements. Not on our block, artsy-fartsy types.

At the very least, this episode gives us some insight into the artistic sensibilities of the business community’s self-appointed gatekeepers of the arts.

Art is just fine… in its place.

[Geez... more stories like this and I'll start to believe that this city is a censorious backwater run by tight-assed fuddys who hate modern art or something.]

No, this is really only news because Mr. Goodwin and Mr. Armstrong have been two of the main backers of a performing arts center a couple blocks away from the area in question. Since this arts center (CenterStage a.k.a “The Boondoggle”) will have no artistic director to guide its mission, one can only assume that board members and big donors like Bill and “Booty” will have a big say on what happens on stage there. If so, I’m sure that we can expect a lot of, er, challenging work in the years to come.

To my mind, this is a huge opportunity lost. Just imagine... a distinguished downtown neighborhood that visually reflects both the Richmond of the past and the Richmond of the future — our complex history on one side, the mysteries of the modern world on the other. What a signal this pairing could have sent to visitors and city residents alike. It would have shown that we can actually hold two different thoughts in our heads at the same time — on a single city block — and not be confused, frightened or intimidated.

This is Richmond, of course. Screw that noise.

But, beyond a lack of vision and inclusion, what is really happening here? I can’t help but wonder if there might be another reason why these two wily lords of commerce would rather have a new state-of-the-art VCU School of the Arts building somewhere other than near their designated snatch of downtown; after all, this distinctive facility would have been near certain publicly-funded arts venues that they control. Now it has been pushed closer to the Fan.

Hmmm… I’m thinking, I’m thinking.

Back to Style [emphasis mine]:

The current design envisions 8,000 to 9,000 square feet of space for visiting exhibits and shows from the gallery’s permanent collection and a 200-seat auditorium designed to handle things as varied as film festivals, chamber music concerts, and dance and theater performances.

Oh. Wait.

Save Richmond: Six Years Later

Sunday, July 19th, 2009

Save Richmond didn’t start out as a blog. No, this web address was originally snagged so that its founders could circulate an “Open Letter” that asked for Richmond’s leaders to reconsider the city’s toxic relationship with its creative community.

That happened almost exactly six years ago. But it might as well have been six days ago.

Among the things we asked for in the letter:

- A reduction in the city’s admissions tax.

- No hike in the city’s meals tax.

- Assurance that an independent feasibility study would be commissioned of a proposed downtown arts center… and that oversight of this facility would be governed by proven local arts administrators, including representatives from the city’s grassroots arts scene.

- Increased support for the city’s grassroots arts scene, including First Fridays, with less resources spent on publicly-funded downtown rehab projects.

- An end to restrictive ordinances and restrictions that served as financial and regulatory drains on nightclub and restaurant owners.

An editorial that I wrote for Style Weekly further explained the absurdity of the city’s stance towards its “creative class,” emphasizing the then-recent eviction of artists from the Shockoe Bottom Arts Center (these Richmond artists eventually found a home in Petersburg, which offered them sanctuary — our own town fathers did nothing to keep them here).

Other issues such as tolerance, inclusion and accountability were also addressed in Save Richmond’s “Open Letter.” And hundreds of people ended up signing it — from well-known musicians to respected visual artists, from soccer moms to advertising execs, all of them fed up with the city’s clueless and often thoughtless dealings when it came to Richmond’s burgeoning creative community.

While our message got some play in the local press, the letter and its contents were completely ignored by city movers and shakers — we might as well have been pissing in the wind.

In response to those who thought we were being too negative in our assessment of the situation, we gathered up much of what our signees had to say, noted what other communities were doing, and fashioned a general policy paper of arts-based solutions in late 2003 based on the problems outlined in the Open Letter. It was called “Boats Against the Current.”

Around the same time, Church Hill artist Lisa Taranto began lobbying then-councilman Bill Pantele to hold a series of meetings that included city planners and representatives from the arts and music scene, from gallery owners to rock drummers to sculptors. The objective was to brainstorm solutions to many of the arts-based issues Save Richmond (and others) had been writing about. Alas, despite a well-rounded plan of action, nothing ever happened with any of these proposals, devised charrette-style by a diverse crossection of Richmond’s indigenous arts community. Bill Pantele soon turned his attention to other urgent artistic endeavors — like funding a censorious war on fun through “the Party Patrol.”

I often stop to think where we might be if the city had listened back in 2003.

Six years and two mayors later, these same issues — from draconian city codes to high taxes to conservative censorship — are still with us. Many of them have reached a boiling point.

The Admissions tax remains, but…

As Terry Rea reports at SlantBlog, there is finally some movement on an ordinance that would abolish or severely lower the city’s crippling admissions tax. But it may come too late for some. At this writing, this tax may be directly responsible for the closing of one of Richmond’s true arts success stories, Gallery5. Read more about that here.

The city’s meals tax rate remains one of the highest in the region.

This, despite assurances from City Council in 2003 that the rise in the meals tax would be a “temporary” hike. The money from this regressive tax — which disproporately affects low-to-middle income people — went to fund a performing arts foundation that used the money to fund a multi-million dollar hole in the ground. A city auditor later determined that city council basically wrote the private foundation a blank check, and did not adequately define how it could spend the people’s money.

The performing arts center has still not been independently studied or treated to a single officially-sponsored public meeting.

Contrast this with the reams of paper and face time allotted to the recent Shockoe Stadium proposal and ask yourself why. Worse, the arts foundation has cited statistics and projections for their project that they can’t provide proof for — and that supportive city politicians have never adequately explained to their constituents.

Local arts voices are still shut out… along with the larger community.

Aside from those 2003 meetings initiated by Lisa Taranto, there has still yet to be a single official public meeting that invites artists, taxpayers and city officials to discuss arts-based problems and issues, including what kind of an arts center we want to have built with our tax money. Instead, we’ve been treated to a few “limited seating,” “exclusive,” “invitation-only” discussions that normally bring together the same old voices spouting the same old meaningless platitudes. This is not how you have a community dialog, this is how you throw a Tupperware party.

Six years ago, the Carpenter Center had a director (Joel Katz) with arts administration experience. He was eventually fired for disagreeing with the arts foundation. His real crime was in reaching out to groups like Save Richmond. Six years ago, under his management, the Carpenter required no public subsidy. Today, the planned Carpenter Theatre (CenterStage) will have no artistic director, will have very minimal representation from area arts authorities, will delegate programming to an out-of-town entity, and will cost taxpayers up to $500,000 a year.

So, in short, the future of Richmond’s performing arts scene will consist of theatres operated by people who have no experience in the field of the performing arts, and managed by a firm (SMG) that has been accused in the past of over-charging the city and gaining sweetheart city contracts over more capable competitors; a company that mainly manages hockey arenas and convention centers, not performing arts facilities.

Contrast this with another CenterStage — Baltimore’s premier performing arts center. It not only has an experienced artistic director guiding its creative mission, it requires no funding at all from the city of Baltimore. Baltimore’s arts patrons also didn’t need to hire an expensive consultant to steal someone else’s name.

No support for what works — grassroots arts and culture

After decades of failed “build it and they will come” projects — dependent on public financing and pushed by county dwellers in the metro business community — downtown is in the process of revitalizing itself. For that, you can largely thank the city’s grassroots arts and music scene.

But, despite this success, the city and its satellite business consortiums continue to do little or nothing for Curated Culture’s “First Fridays” — which has now been forced to close its downtown office because of a lack of money. Ah, but you’ll notice that these same folks have no problem touting the success of this monthly artwalk and the city’s resulting downtown renaissance on the city website and in promotional materials. What’s wrong with this picture?

Our city’s war on nightlife has, if anything, intensified.

New burdensome fees for nightclubs, midnight curfews and suspicious feuds with “undesirable” venue owners are why Richmond has earned the monicker, “The City That Fun Forgot.”

The recent busts by the city’s Community Assisted Public Safety (CAPS) program comprise yet another chapter in Richmond’s unfair targeting of music and cultural attractions. See the aggregated coverage of that here.

But all you really need to know about the bureaucratic arrogance of CAPS and its overseers can be found in this highly revealing Style Weekly report of a July 9 CAPS community meeting at the Visual Arts Center. An excerpt:

The Visual Arts Center of Richmond on Main Street seemed an ideal neutral setting for a meeting between Richmond’s arts community and the city’s Community Assisted Public Safety program.

The pristine, nonprofit facility was newly renovated with modern, brushed-metal interior architecture. It’s a friendly place for local gallery owners, and had passed its recent city construction and occupancy inspections with flying colors.

So it was no surprise to see the shudder that went through the meeting’s organizer, Curated Culture director Christina Newton, when one of the city officials in attendance stood up to call attention to a lack of marked exits in the second-floor conference room where the July 9 meeting was held.

“Tomorrow I’m going to send my inspector over,” said A.R. Abbasi, the city’s acting building commissioner — a half-serious joke that earned uneasy laughs from the already-nervous assembly of about a dozen and a half arts community leaders.

The group was gathered to seek answers about what many people perceive as a crackdown on code enforcement targeting the city’s arts and culture venues, including the Broad Street galleries that make First Fridays happen each month.

The punchline of the article comes from Mayor Dwight Jones:

“We’re going to take a look at it and see what’s going on with CAPS… I’m thinking there are some more serious issues that might [need] our attention.”

No offense, Mr. Mayor, but considering your administration’s decidedly mixed record of supporting the city’s arts and music scene, we won’t be holding our breath.

When we started Save Richmond six years ago, I was confident that town fathers and elected politicans could be reasoned with on the subject of the arts. That all one would need to do is identify the obvious problems, to document the inequalities and to present the evidence to the proper authorities, and our leaders would be only too happy to help the quite visible creative renaissance occurring under their noses. After all, it is only in their best interest. Right?

More than a half-decade later, I’m now disabused of that notion. As the last lap of the Downtown Master Plan process has shown, the powers-that-be in Richmond are utterly disinterested in the will of the people.

And this especially includes the artists and musicians that have made up one of the city’s few genuine success stories in recent years. As SR pointed out in our “Richmond Arts Flashback” series, this is nothing new — Richmond politicians and business community has traditionally shown little but contempt for its artistic community.

Gallery5’s Amanda Robinson is currently soliciting feedback from citizens that she wants to incorporate into her own contemporary “Boats Against the Current” document. She hopes to submit it to city council in the near future. We wish her luck but hope she has a lot of patience and a strong stomach. Go and share your thoughts with her here.

And — surprise, surprise — we are about to be treated to yet another “private” discussion about the arts. This one on Tuesday night at Morton’s Steakhouse. [Side note: With all due respect to the distinguished and noteworthy participants who will be involved in this discussion, having a conversation about the arts in such a conservative bastion is not unlike holding a vegetarian convention at Fuddruckers.]

At what point are we going to realize that we are talking in a vacuum? The problem isn’t that people in the arts and music communities haven’t been making suggestions and acting in good faith to brainstorm answers and offer up compromises and solutions. The problem lies in our leaders, who seem utterly disinterested in listening. All they have to offer up is empty lip service and sick jokes.

It’s pretty obvious that, six years later, our city is as clueless as ever when it comes to the arts. Sadly, for all of the “progress” made, Richmond’s creative community might still just as well be contemplating Petersburg.

Ukrops to Sell Out - You Heard it Here First

Tuesday, July 14th, 2009

As reported at RichmondBizsense, Food World’s Best-Met Publishing and last but most certainly least, the TimesDispatch, Ukrops Supermarkets is officially for sale. From Best-Met:


Now it appears that Richmond’s oldest and most distinguished retail organization, Ukrop’s Super Markets, may be looking to sell its 28 units. Officially, the company wouldn’t address those reports specifically, noting that it doesn’t comment on rumors, but multiple industry sources confirmed to us that a prospectus has been issued detailing vital Ukrop’s store data and seeking interest in a potential sale. Those retailers who have reportedly responded to the prospectus include Supervalu (Ukrop’s principal supplier), Ahold and Harris Teeter (Ruddick Corp.). Several sources believed that Harris Teeter remains the frontrunner and that Supervalu (which currently has many issues on its plate) has dropped out the potential acquisition process.

Readers of our humble site have been aware for several weeks that the sale was in the works. Disclosures in SEC filings for Ukrops Supermarkets’ affililiate First Market Bank, as well as loose lips at Virginia ABC had tipped us off. The question now becomes how much is it worth?

While SaveRichmond has not obtained a copy of the Ukrops prospectus, our general thought is that the grocery operation has little residual value. Information disclosed in the bank’s most recent FDIC filing shows that the supermarket had net profit of only $465,000 in the first quarter of 2009 while crushed with a debt load of about $100 million. Ukrops has so far failed to answer the first challenge in its history from higher end operations like Whole Foods, Trader Joes, Fresh Market and an invigorated Ellwood-Thompson’s. For decades Ukrops had been able to use the political aparatus to withold incentives from competitors and limit their incursion. While this remains the case today in the city, the counties have grown too far too fast to remain captive. And this is where the competition has made the most inroads.

We believe that revenue and net profits going forward will come under increasing pressure from better funded, alchohol-selling, open-on-Sundays rivals. While there may be real estate and other assets of some value, why would anyone pay up for a struggling local grocery chain?

In addition, we believe any supermarket sale could threaten the proposed sale of First Market Bank to Union Bankshares. Many of First Market Banks branches, and a significant amount of its deposits are located in the grocery stores themselves. The financial condition of the bank is deteriorating. Without the Ukrop name and the symbiotic bank/grocery relationship, will the bank’s business remain with Bowling Green-based Union Bankshares?

This could turn into a big, big mess where neither sale goes through.

Door Hangings vs. Reality

Wednesday, June 24th, 2009

Thinking about thinking about changing. That’s Richmond.

How many years have we been talking about the Richmond school administration’s wasteful and potentially corrupt procurement division? It’s been compared to everything from a cesspool to a black hole. Now another audit, this one conducted by the school board’s own auditor, confirms (one more time) the waste and abuse by the department, and the serious lack of oversight by high-ranking school officials.

In short, if this is a “re-do,” it looks like Richmond Public Schools has failed the test again.

If you’ll recall, “Auditors were denied access to detailed procurement records” during a 2007 investigation of the schools. Despite the in-house stonewalling, the final version of this report by the City Auditor detailed a system where fund allocation was largely unsupervised (that’s your money, by the way). It also made numerous recommendations for change.

More than a year later, after much teeth-mashing, the city finally released a full audit of the Procurement and Accounts Payable division. As was predicted by many, the April 2008 report uncovered a host of irregularities and outright scandals.

First of all, the auditor was kind enough to explain why examining and closely monitoring school procurement practices is necessary:

Traditionally, procurement and accounts payable functions are targets for fraudulent activities. According to the Association of Fraud Examiners, 71.4% of the total number of instances of occupational fraud committed involved billing, expense reimbursement, check tampering and wire transfer frauds.

Looking at the school’s procurement policies and performance, the report found:

- The internal controls for following procedure and ensuring lawful practices in the procurement and accounts payable processes were “significantly weak.”

- There were “significant non-compliance with RPS policies and the Virginia Public Procurement Act provisions.”

- School officials paid $18 million for purchase orders that were not authorized.

- Richmond Public Schools buys more textbooks than it has students [this will be news to teachers in several city schools who complain about not having enough books to go around]. Moreover, RPS has higher textbook costs per student than localities with more students, such as Henrico. It also has no record of what is done with used textbooks, who sells them and for how much.

- The RPS staff may have skirted regulations for emergency and single-source purchases. Moreover, the School Board’s approvals for most of the emergency purchases were not obtained as required by the School Board bylaws.

- Looking at 52 competitively bid purchases, 96 percent did not comply with such requirements as documenting bids. The purchases were for more than $1 million.

- School officials awarded a $104,000 contract to a firm barred from doing business with the federal and state governments because of unethical business practices.

- Two RPS employees were related to contractors who provided services to RPS. One was a purchasing officer responsible for construction procurement. The Auditor’s office identified that “one of the construction firms utilized by RPS is owned by a family member of this purchasing officer. And a Plant Services employee’s immediate family member performed construction services for RPS. This is of concern since construction projects are handled by Plant Services. During the audit scope, both contractors received a combined total of approximately $357,000 from RPS.”

- “On at least two occasions, staff members were instructed to backdate contracts.”

- RPS has no little control over its vendor data input. “Staff could add, change and delete vendors without any supporting documentation.”

- There were approx. 300 vendors that had duplicate names in the RPS database. Little wonder that Dalal and his staff found duplicate payments on 59 invoices totaling $121,073.

- RPS balances its bank account haphazardly. “Basically, RPS personnel reconcile the bank balance with outstanding checks and relevant adjustments. This means that, as long as the list of outstanding checks reconciles with the bank balance, any errors in the general ledger balance will not be detected by this process.”

- There was no proper documentation concerning expenses charged to credit cards issued to RPS management and former School Board members. “The charges on two former School Board members’ credit cards included the following: $485 in gasoline purchases in the Richmond area with no receipts or explanations. The business purpose of these charges is unknown… $10 for one on-line charge to an inappropriate website…. $175 for a Western Union money order. The payee and the reason for issuing the money order are not known.”

- Two interactive, computerized classroom projection systems are missing. These cost a total of $7,000.

There’s more, a lot more. This devastating report, which came complete with detailed recommendations for improving the department, should have been enough to get the school administration cracking down on their procurement policies immediately.

But, no, Richmond schools had to wait one more year, and endure one more embarrassing procurement scandal — a $291,000 school elevator job awarded without proper bidding— before the school board began its own audit of the school’s accounts payable division.

In other words, RPS began thinking about thinking about doing something.

Now this latest study has arrived. And surprise, surprise… there are problems within RPS’ Accounts Payable and Procurement Department!

From the Times-Dispatch:

The Richmond school system’s payroll department is overstaffed but has been unable to detect overpayments, accurately track time off or collect money it is owed by employees, according to a report released yesterday by the schools’ internal auditor.

In addition, an audit of the system’s human resources department, also released yesterday, showed a department operating on the fringe, with out-of-date policies and procedures and ineffective management. Neither department has seen updated guidelines since the mid-1990s.

“We have a lot of concerns with policies and procedures,” internal auditor Debora R. Johns told the School Board’s Audit Committee.

Her review of payroll information, covering the period from July 1, 2006, to May 31 of this year found a number of problems, including:

* Overpayments to 19 employees, totaling $50,356.96. The biggest was $10,050 to an employee who was paid while on education leave. While that employee has agreed to repay the money — in $50 increments over 201 pay periods — four other employees may have gotten away with keeping $1,710.64 in overpayments, according to the report.

* Employees taking off time but not recording it, leaving time off on the books that had been used. There were also problems with the awarding, tracking and use of compensatory time off, with no single way of recording such time.

* Sloppy record-keeping. A spot review of 30 employee files became a review of 29 files when one employee’s file couldn’t be found. Of those files in place, all were missing certain forms, including copies of photo identification, Social Security cards and internal paperwork used to prove job status.

“It’s deja vu all over again,” as Yogi Berra might say.

So what is RPS’ response to this latest latest audit? Immediate adoption of the report’s recommendations? A tearful mea culpa for ignoring the last audit’s recommendations (and the one before that)? A pledge to begin a campaign of no-excuse housecleaning? A concentrated bout of unequivocal fat-trimming?

Girlfriend, please. [Emphasis mine]:

“This is the cumulative effect of long-term problems,” said Superintendent Yvonne W. Brandon. “These are bigger issues than any one person.”

The payroll department has nine employees, and the audit recommended eliminating two positions. While Brandon agreed with most of Johns’ findings, she balked at the idea of cutting two of the payroll employees.

She did, however, agree to an aggressive time frame for correcting the problems, with a September target for fixing many of the problems. “We can’t afford to wait,” she said. “Even if we don’t hit the target on all of them, we can’t wait to start.

“I welcome audits. They help us identify strategies toward improving.”

Uh-huh.

I’m happy to hear that there will be “aggressive” action taken. Problem is: RPS has “waited to start” for years. They have disregarded and thrown excuses at previous studies that either hinted at, or pointed directly to, the same kind of findings. Now, as she “welcomes” the latest findings, the superintendent of schools is appearing to resist common sense remedies that would help to improve and streamline the department.

See you in September, as they say.

Let’s not kid ourselves about the message that all of this sends. These latest revelations (and the superintendent’s less-than-definitive response to them) will resonate with area parents more than any glossy door hanging or slick advertising slogan. Yeah, it’s all well and good to initiate expensive public relations campaigns designed to convince people that everything is OK at Richmond Public Schools. But wouldn’t it have been more beneficial and honest to work on the reality first?

This latest audit of RPS is scandalous stuff, sure. But it is hardly surprising and it’s certainly not breaking news.

When Not Really Risky = Extremely Hazardous to Your Financial Health

Monday, June 15th, 2009

Eagle Eyes here. Quick note from the new Lord of Local Business News, aka RichmondBizSense on ward of the taxpayer First Market Bank [emphasis added]:


First Market Sees Surge in Repos

Richmond-based First Market Bank has seen a rise in repossessions among clients who have not had credit problems in the past.

On Tuesday, BizSense reported that Richmond Auto Auction was seeing more high-end cars from local banks. (You can read that story here.) Today we heard from a local bank.

“People who have had a solid credit history are having their cars repossessed because they are losing their jobs and can’t pay for them anymore,” said Charles Munsey, a senior vice president for dealer financing at First Market.

Munsey said that First Market had not been put in jeopardy because of the increase in repos.

“We’ve always tried to give due diligence to credit applications and we’ve never been into really risky investments,” Munsey said.

Hoocoodanode???? As for the last part, just keep meditating on that mantra, and I’m sure things will get better soon. Lending money to folks who don’t have enough income or savings to comfortably pay their bills, and relying mostly on credit scores, should be a great long-term strategy. I can’t believe the Ukrops want to sell this place.

Other not “really risky” ideas pushed by First Market Chairman Jim Ukrop:

1. The “Super Safe” Broad Street CDA
2. The “Urban Money Fountain” Greater Richmond Convention Center
3. The “It Actually Pays you Money Back When You Buy Prepared Food” Performing Arts Center

If You’re Healthy And You Know It, Pay Back TARP

Wednesday, June 10th, 2009


“We’re going to find out who are the strongest kids on the block and who are not,” said Bert Ely, a longtime banking analyst.

Eagle Eyes here. Yesterday, the Treasury Department gave the O.K. to ten of the nation’s seventeen largest banks to repay funds received from the Troubled Asset Relief Program (”TARP”). Former Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke had forced the ten to accept bailout cash last fall, even though they may not have needed it, in a gambit to obscure the identity of the weaker, actual intended targets of the prorgam (specifically Citigroup and Bank of America), avoid runs on those banks, and preserve the nation’s teetering financial system.

Smaller, regional and local banks, also struggling in the face of surging loan and investment losses, lobbied hard and were subsequently included in the program. On February 6 of this year, Richmond-based First Market Bank received $33.9 million in bailout greenery.

Almost immediately after the worst of the financial storm passed, stronger banks chafed under the increased government scrutiny on executive pay and risk-taking and fought hard to gain clearance to repay the bailout money:


[Jamie] Dimon, calling money received through the Troubled Asset Relief Program “a scarlet letter” and “the TARP baby,” said on a conference call with reporters today that the New York- based bank is awaiting guidance from the U.S. Treasury Department. “We could pay it back tomorrow,” he said.

BB&T CEO Kelly King told analysts the TARP funds are “destructive” to the company.

“Our plan is to repay the [TARP funds] as soon as it is humanly possible,” Kelly said. “It creates excessive controls, it has a negative impact on our people and our strategies” and “it runs a great risk of politicizing the lending process, which is very unhealthy.”


“The company believes it has sufficient capital and access to capital to operate without the TARP money,” CEO W. Moorhead Vermilye said in a statement released last month when Shore Bancshares applied for permission to repay TARP funds.

In the March press release, Vermilye echoed that sentiment, saying: “It has become clear to us that the public, including many members of Congress, view institutions that participated in Tarp as having done so because they are weak, and not because they wanted to do their part to foster economic recovery.”

Weaker banks, with too little capital to pay back TARP, instead fired up the PR machine (I’m guessing “Troubled” is not a word loved by their marketers):


First Market gets TARP infusion of $33.9 million
“The TARP funds are meant for healthy banks,” said Katie Gilstrap, spokeswoman for First Market. “First Market has a very conservative credit culture. We have never been involved in subprime or risky loans.”


Bailout’ it’s not, Virginia bankers say
Virginia bankers cringe at the word “bailout.”

Many have applied for money that the federal government began offering last fall to boost lending in frozen credit markets.

But banking officials don’t want to be included with AIG Inc. and Citigroup Inc., or the automobile-manufacturing industry, as beholden to federal taxpayers for their financial prosperity…

However, now that certain banks have been deemed strong enough to return bailout funds (about two dozen smaller banks have already mailed Timmy G. the check) there is an easy way to accurately differentiate between “good” and “bad” banks. As a result, there will be tremendous pressure on banks to repay in order to avoid being lumped in the latter category. We should all pay close attention to those that cannnot.

It will be very interesting to see if First Market and its new suitor Union Bankshares (which received $59 million in TARP) can return the money. I’m guessing they don’t have the quan.

First Market has operated on a relatively thin capital base since a 2005 reorganization that saw Markel Corp replace SunTrust as a minority owner. Losses on loans and investments eroded their capital further.

And the news isn’t getting any better. First Market’s major lines of business include construction loans, home equity lines of credit, commercial real estate loans and auto loans, all showing significant deterioration at First Market and industrywide. Last week, large local builder Prospect Homes declared bankruptcy. Prospect owed First Market $4.2 million, or about 5% of First Market’s pre-TARP equity capital. Ouch! A few more losses like that one and they might have been graced by a late Friday knock at the door.

But, of course, Jim Ukrop leads a charmed life. With the taxpayers’ $33.9 million in his vault, he can keep the doors open and push though a sale to Union Bankshares that will reap him and his family somewhere on the order of $60 million+. But, if First Market is not going to pay TARP back, at least he can spare us all the “healthy bank” charade.

P.S. How about Richmondbizsense.com needing only about a year to take over as the source for local business news - well done guys!

P.S.S. Wouldn’t it be nice if we could all have a major newspaper give us tons of free advertising under the guise of journalism like this this this (only 6 sold?!) and this?

P.S.S.S. Ukrops Supermarkets only made a $465k profit last quarter and has about $100 million in debt. Better sell it fast…

P.S.S.S.S. Anthony Markel just sold more than $19 million of his Markel stock. Should you sell yours?

Quick Thoughts

Tuesday, June 9th, 2009

Mark Holmberg at Channel 6 weighs in on the city government’s ongoing war with the grassroots music and art community. Save Richmond has had disagreements with Mark in the past, but on this one, all we can say is: “Go Slim Go!”

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There are philanthropists who give money to things and then there are genuine community heroes. Retired real estate developer W.E. Singleton, a huge fan of Richmond’s underappreciated Parks and Recreation Department, has offered to pay for the restoration of the burned playground at George Mason Elementary all by himself. We salute you, Mr. Singleton. If we had ten more like you around here, Richmond might actually be going somewhere.

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Councilwoman Ellen Robertson’s “standards” never cease to amaze. We’ll just leave it at that.

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The emails are still coming in to SR H.Q. about this. We can’t explain it, except to say that it is further evidence of the impending apocalypse. For the record, “Eagle Eyes,” who wrote the cited Save Richmond post, had this to say: “I guess it is just cranks that read our site.”

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I hope all of you who came out to Broad Appétit on Sunday had a great time stuffing your faces. I know I did. And I hope everyone enjoyed those CenterStage hand fans that were being passed out. Just to remind: Three months away from its grand “gala” — on September 11th!! — the performing arts center still doesn’t have an artistic director, or a complete calendar of events. What has been announced on the schedule are programs that would have played the Modlin Center For the Arts if there had been no Centerstage. (Think about that for a minute). So enjoy those fans, folks — they may be the only windfall that Richmonders ever get out of the city’s ongoing boondoggle.