Ellington

Developer John Disotell and the city of Jackson recently approved a memorandum of understanding to tear down the Smith-Wills stadium and build an enclosed sports arena, but the agreement is drawing scrutiny.

Under the council proposal, Disotell Land and Development will pay up to $500,000 to buy off existing leases and another $250,000 to relocate an attached high school stadium. In return, the city will issue between $5 million and $7 million in bonds—to be repaid to the city partly through a portion of the sales tax revenue generated by the facility.

Disotell, who owns the Mississippi Headhunters, has the go-ahead, but now has to prove to City Council that he can pony up $40 million for the initial costs of construction.

The Hattiesburg American newspaper recently reported that some of Disotell's past proposals have fallen through.

In the 1990s, Disotell borrowed $70,000 from an investor to buy land for a raceway in Harrison County. Jo Ann DaPozzo told the newspaper that Disotell had lost her loan money when he could not complete the development. She said Disotell had also defaulted on a loan against property he had signed over to her as collateral for her loan.

She won a judgment of more than $100,000 against Disotell in that case.

Attorney Dale Danks, representing the city, gave the city a four-page list of recommendations to follow as the October deadline for the deal approaches.

Danks suggested the city get complete copies of Disotell's state and federal income tax returns from the last consecutive three years; personal financial statements; business references, including two bank references; complete itemization of any and all litigation and itemizations of judgments; itemization of every development project undertaken by Disotell in the past, and other requests—and that's only for Phase 1, ending by June 30.

After June 30, Danks suggests the city keep certified copies of surveys, insurance coverage, architecture, and engineering and construction contracts, among other documents. He also recommended a citizen committee "with legal, and financial expertise" be appointed to work with the city's Department of Finance in evaluating the information.

Council President Marshand Crisler, who was hounded by critics for being hesitant to support the Disotell memorandum of understanding, said he still had some concerns about the city's financial obligations. "I just don't want the city to be left holding the bag if this thing falls through," Crisler said.

See Brian Johnson's Public Eye blog for Danks' letter.

Previous Comments

ID

66405

Comment

Prehaps I'm too practical and too old fashion but, I don't understand this demolition model. Is it anything in this City that we can add on to, expand, or cover? Where are the creative minds that would allow for a perfectly good structure to be demolished. In this age of computer quickness, would it take a MOA and the development of "Phase I" to know if Disotell is on the up-and-up? I don't think so. It takes but a few minutes to authenicate a financial statement. I hope that this deal does not have "kick-back" status. Too many people are too gung-ho.

Author

justjess

Date

2006-06-08T12:15:20-06:00

ID

66406

Comment

The City jumped on this in part the because the Mayor went public way too soon, which Disotell then used to apply pressure thru the media that he would cut and run to the burbs if Jackson couldn't make up its mind. I think Jackson didn't want to lose another arena development to the burbs like Trustmark Park. I like the idea of this facility, but I am a little baffled as to why Smith-Wills is the only suitable location. It is a good location from a traffic and visibility standpoint, but it is a little strange. I'm glad that right now the City is still exercising caution to check this guy's finances out before fully committing to the deal, as it sounds like he could potentially be another Kountry Time in the making.

Author

Jeff Lucas

Date

2006-06-08T12:40:29-06:00

ID

66407

Comment

Well, looks like Disotell is building the arena in Pearl, based on the latest updates from the C-L and WAPT. Says his engineers and architects helped him select a site there weeks ago and the deal is set. How much of this was a shell game and how much of it was based on bad publicity and "Meltonitis" remains to be seen.

Author

Jeff Lucas

Date

2006-06-29T19:43:05-06:00

ID

66408

Comment

Did I hear him correctly? He's also going to have a 20,000SF conf. center as well on the new site? Hmmmm....very pretty pictures. Just like the pretty pictures of the Harborwalk development. They both have one thing in common so far. Nothing has been built yet. Let's see...with his conf. center and the convention center being built downtown, looks like we'll have lots of space available....for someone...maybe.

Author

James Hester

Date

2006-06-29T20:08:15-06:00

ID

66409

Comment

on harbor walk, word I got from a friend of mine who owns property/business in the immediate vicinity of the area is that several of the investors backed out.

Author

Kingfish

Date

2006-06-29T20:32:23-06:00

ID

66410

Comment

That's a shame if true. The way things work around here, it will just sent unused. Damn....we lost the Dock for nothing.

Author

James Hester

Date

2006-06-29T20:51:02-06:00

ID

66411

Comment

Jim, they were going to run the Dock out of that location no matter what. oh, and whoever thought of it, BRILLIANT idea to stick casinos in the middle of aresidential areas. Just what I would want for my family, a damn casino (and yes, I see nothing wrong with gambling) going 24 hours a day two blocks from where I would live with my wife and kids etc.

Author

Kingfish

Date

2006-06-29T20:54:03-06:00