4b Money to Land of the Dinosaurs LLC -No Contract
14:09 on 10 September 2010
After hearing about how Mike Dooley went before the Somervell County Commissioners Court and asked for an extension or defrayal of money owed to the county from the Land of the Dinosaurs LLC production, I wondered what would happen to the money, $80.000 that 4b had loaned invested in associationi with the LOD company. The LOD production was cutting back to one day a week.
I asked for a copy of the contract that 4b had made with LOD. Darrell Best reminded me when I asked about this that
...the money wasn't a loan. It was an investment. For the $80,000 investment the GREDC owns 8% of the show. Our investment will be returned in 5 years and we will retain 8% of the show in perpituity.
Repeating that. In the video you'll see below, which is the discussion of this from Feb 4 2010, the pros and cons of loan versus grant versus investment are considered, and finally Dr Mike Jones made the motion that the money be as an investment. I asked Best what would happen if the LOD loses money, if it would be a loss on ROI?
Their loss is there loss, its not a loss to GREDC unless they go bankrupt and fold and then we would own 8% of a defunct operation, but I don't think that will happen.
I waited for my open rec request to be fulfilled so I could see what the contract said. I was told by Mr Best today that there is no contract and that the 4b is going to vote to make a contract at an upcoming meeting (perhaps this next Monday?)
I looked back at the video from Feb 4, 2010 to try to determine where the ball was dropped. When was the money given to LOD and why did not one do a double-check (The video is a little chopped to take out some extraneous stuff-if you want to listen to the audio unabridged, the link is here).
Sounds like from the end of the conversation that after the 4b board decided to do an investment, there was some talk, by Connally Miller, about getting an attorney (which one?) involved and making a contract up between LOD and 4b. Apparently that was never done or at least not completed. And that would mean that the check, for $80,000 was given to the LOD without a contract.
Is it right to NOW go back and try to make an enforceable contract after the fact? Why, if the money has already changed hands, couldn't the LOD come back and say, we aren't going to sign that contract or we don't agree with the terms, or whatever? At best, it's not a way to do business, it's not professional. Connally Miller, son of Mayor Pam Miller, was head of the 4b board at that point; he continued to chair the board until at least May 26, 2010. Why wasn't there a contact made before or at least simultaneously with giving out money??? For that matter, why would, from a professional standpoint, the LOD LLC accept money from 4b WITHOUT a signed contract made by both parties?
UPDATE #1. Have asked for a copy of the check that was given to LOD. Also for some stats on what the ROI is for LOD, which presumably should be available since public money is being used to invest in a private company. Also asking for what specifically was given in consideration for the $80,000 as it seems there should be some paperwork on that.
I could not believe there was no contract...... I want to do business with the GREDC!!!!!! ... I could use an "investment" right about now!!!! WOW is all I can say.
2 - humanbeing
10 Sep 2010 @ 22:41
If you were considering 'investing' $ 80.000 in a theatrical presentation wouldn't you do a little research first?
This information is dismal and depressing. What a waste of resources.
3 - pharper
11 Sep 2010 @ 17:33
so I guess since the Mayor writes the checks (at least according to her husband) then she wrote a check without having a contract in place! How do we know it's 8% when there is no contract? This sounds a lot like the producers...wonder how many 8% shares they sold?
4 - dukesplace
14 Sep 2010 @ 12:05
What next, Mayor? Who is in charge? No contract! Should be a finding in the annual audit. The city does have an auditor that audits its annual financial statements? Is their a contract on that?
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