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kins alleges that local HUD employees and their agents are attempting to “achieve an unethical and improper advantage in pending litigation matters.” Since last year, Watkins has been waging multi-front legal warfare over Farish Street and other projects. Last fall, when the JRA yanked the master lease for the project out from under Watkins, he placed liens on the properties to keep them in legal limbo. Earlier in the year, in February 2013, contractors Ellis Custom Construction and Dale Partners Architects, P.A. also filed liens against Watkins for non-payment for completed work on Farish buildings. Separately, Watkins is sparring with former partners in a venture known as Retro Metro LLC, which renovated parts of Metrocenter on U.S. 80 and is represented by Jones Walker, which was also JRA’s attorney until late August. “Jones Walker, the law firm that represented and advised the JRA through ALL of these proceedings and transactions, failed to even disclose to FSG (Farish Street Group) or Watkins that there were HUD restrictions on the property,” Watkins said in a statement to the Jackson Free Press. “No restrictions or requirements
were EVER put in any contract with FSG and JRA. Their complicity in all of this is clearly demonstrated when you realize that they are the party that is primarily culpable in any kind of wrongdoing with the HUD process and they are not even mentioned in the HUD report, much less suspended.” Mark Herbert, a Jones Walker attorney and chief counsel representing JRA in its lawsuit against Watkins in the dispute over the Farish Street liens, Watkins’ allegations that the firm helped negotiate the HUD report are “completely false.” The parties had been hopeful that a mediation that took place last week would settle the dispute, but the sides did not reach a settlement, Herbert said. For all intents and purposes, no work on Farish Street can take place with the HUD report hanging over the heads of the city and JRA. HUD has put the city on a repayment plan of $503,603 each year for three years, commencing 2016. In the meantime, JRA, which is a separate quasi-governmental body, is considering paying the $1.5 million itself. The city’s timeline of starting repayment in 2016 would prevent JRA from moving forward with development plans on Farish Street as well as with other JRA projects that use HUD money, JRA officials said. Read more about Watkins’ development controversies at jfp.ms/Watkins. Email R.L. Nave at rlnave@jacksonfreepress.com.
Jackson to Appeal Federal Court Ruling by R.L. Nave
October 15 - 21, 2014 • jfp.ms
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he city of Jackson is likely to appeal a recent court decision that would could cost the already cash strapped capital more than $500,000 in fines. A federal jury recently awarded a Jackson developer $600,000 from the City of Jackson following a jury trial. U.S. District Judge Louis Guirola presided over the jury trial, which began Sept. 29 and concluded Oct 2. In 2012, Don Hewitt of Advanced Technology Building Solutions filed a civil-rights lawsuit against the city, then-mayor Harvey Johnson, the Jackson Redevelopment Authority and JRA officials for what he characterized as violating “the natural right of a person to do business” by blocking his attempts to develop three real estate projects in Jackson—most notably the Deposit Guarantee Building, now known as the Regions Building. Furthermore, Hewitt, who is black, claimed that Johnson blocked economic development projects to which he personally objected, which represented a violation of Hewitt’s due process rights. Another part of his suit alleged that two white members of JRA “acted in conspiracy with racial animus” to deprive his company of opportunities. Judge Guirola dismissed the claims against JRA and its officials—including former Commissioner Brian Fenelon and current Commissioners Beau Whittington and Bishop Ronnie Crudup and former executive director Jason Brookins— with prejudice. Guirola ordered Hewitt to recover $600,000 plus costs and 1 percent interest. JRA and its officials must pay their own costs, the judge ruled. Comment at www.jfp.ms. Email R.L. Nave at rlnave@jacksonfreepress.com.