Monday, February 09, 2015

KOAM exclusive: Contract signed by Rohr, JRC obligates city to repay $5 million loan

For the second time in less than a week, KOAM investigative reporter Jordan Aubey has aired a hard-hitting report on the fallout of the Wallace-Bajjali depature.

In an exclusive report first shown on KOAM's 5 p.m. newscast, Aubey revealed that the Joplin Redevelopment Corporation and former City Manager Mark Rohr obligated the city of Joplin to repay a $5 million loan the Springfield company Prime made to former master developer Wallace-Bajjali. From the KOAM report:

According to the contract, Prime would be paid back with a commission from land sold to developers. But Wallace Bajjali is no longer around, and city officials say Prime still wants their money from the City of Joplin, since the city signed this contract.

A copy of the contract can be found at this link.
KOAM TV 7

25 comments:

Anonymous said...

You have to wonder how many more of these deals will pop up in the weeks to come. And no one will claim to know a thing about them.

Anonymous said...

Mr. Aubey's repoort indicates that he was informed that the City Council members were not aware of this agreement. I find that not only inconceivable, but highly improbable given the circumstances. I believe that a thorough investigation of the facts, including testimony uner oath, would surely prove that at least some members of the City Council were not only aware of this but may have advocated for it. Possibly someone(s) with ties to the trucking industry or real estate or both? It would not be the first time that Mr. Rohr acted in poor faith, supposedly on his own, but with the full knowledge and backing of certain council members. This situation is getting worse by the minute and I believee the worst is still to come.

Anonymous said...

At a certain point you have to wonder if this going to be another Jan Blaise (The disgraced former Neosho City manager) except on a much much massive scale.

Any guesses on when the FBI will be starting to come around with public corruption agents?

Anonymous said...

If the former City Mgr and JRC Chair, witnessed by the former City Attorney, obligated the City on the Prime loan, would it not have been part of every council members packet they receive for each meeting? And if so, how can anyone deny knowledge of the obligation without admitting negligence.

Anonymous said...

Hard to believe that Council knew nothing when three council employees signed the document. Why don't you ask the only one remaining at the city who knew and when.

Anonymous said...

Can you please tell us who signed the document from JRC? Was the Joplin City Council given the opportunity to approve the contract?

Anonymous said...

Ooops!

Anonymous said...

Citizens of Joplin need to be looking for a Mr. Ben Dover. Not sure who exactly Mr. Dover was working for, but I bet he was on at least one side of this deal!

Sheesh! A secret cosign for $5 million? No wonder everyone in the kewl kidz klub was so eager to not throw Wally BoJolly out on their ears. One way or another the taxpayers are about to take it in the wallet again!

Time to go buy some more popcorn. Meantime, can someone cue up some more lame excuses about how no one knew? Should the Globe consider hiring Anson to investigate and help cover this story now that it is finally news?

Anonymous said...

I find it easy to believe that council members didn't know about it. I find it easy to believe they, along with many of our city leaders, don't know much about anything. They just like being in positions of authority and pretending like they know what they're doing, when really it's just force of personality and ego that enables them to bluster through life. When it comes to actual specific knowledge and ability, they are lacking.

Now if you were to ask me if I think that absolves them from responsibility, that's a different question. Every one of those blowhards is culpable for the mess we're in, but they are all so stuck on being important people they will find any number of rationalizations for why it isn't their fault. They throw each other under the bus when it comes down to personal responsibility. The people who know what they're doing are tucked away in city departments that don't receive much spotlight, but still have to answer to self-important types.

This also accurately describes the school system and any number of companies and agencies. Sadly, it is the way of the world. Not evil conspiracy, just mediocrity.

Anonymous said...

Let me preface this by saying I'm glad Rohr and W-B are both gone.

But this is a collateral assignment. It only obligates Joplin, as a debtor of W-B, to pay to Prime (the lender) amounts actually owed to W-B in the event W-B defaults on its loan to Prime.

Joplin doesn't have to pay $5M to Prime. It doesn't have to pay anything that it doesn't legally owe W-B. Because W-B has defaulted on its agreement with Joplin, Joplin owes W-B, and thus Prime, nothing.

Only if the agreement is found to have obligated payments to the escrow account and those payments weren't made would the City have any liability. As written, the City may have that obligation.

In most such arrangements (and collateral assignments are quite common in business transactions), the lender permits the funds to be paid and used as they otherwise would. If Joplin has liability for amounts not paid into the escrow account, the fault would be at the City administrative level, not the council.

But the agreement itself isn't per se bad or uncommon.

Anonymous said...

Available records show the contract was presented to the council 9/24/12 in the informal session prior to meeting by City Attorney Brian Head. Recorded minutes show the council approved the contract for signatures by a 9-0 vote.

Anonymous said...

I'm really disgusted. That Wallace Bajjali really played a fast one. I cannot believe they were borrowing money, after they got a fee from Joplin? They pocked millions from Houston Investors. Poor investors. What happened to the $5 million? Where did it go? Does anyone know? Those two thieves have hurt and destroyed so many families. I'm confident we'll see an indictment soon. They cannot get away with this.

Anonymous said...

PONZI

Anonymous said...

Never fear...Anson looked everyone in the eye...they are all good men, heroes, etc.,

'Peace in our time...'

Dusty Roads said...

They borrowed 5 million and spent 300,000 bucks, nice.

Anonymous said...

This is why council went full steam ahead on the library project without batting an eye. Tying to hide this from the public and cover their butts. Thinking if they hurry and get this done, they could pay it back and we would never know. I hope all involved enjoy that 5 mil because the citizens of Joplin never saw a penny of it, yet our tax dollars will be what pays it back!

Anonymous said...

According to one of the members of the Joplin development corporation in the Sunday paper, the city got more than its moneys worth in the form of federal grants from old Wallace. And when small things like delays, bankruptcies, total lies, multiple local project directors, and so forth, the city was right on top of the whole thing and has done an exceptional job of keeping old Wallace from steeling even more millions than he did. Also, the same people on this board have claimed that all this vacant land that the city drastically overpaid for, is all paid for and free and clear. This is just not true. The city sold bonds to finance the purchases which must be paid back through the revenues produced by the TIF zone over the next 22 years. They may technically have clear deed to these lands, but the borrowed money to make the pruchases is still owed and it is highly unlikely anyone with any brains at all would buy any of this land from city at anywhere near the price they paid.

Anonymous said...

Look into all of the purchased properties around the ball field where the new team will be playing. Most of those properties were purchased in the name of the ex-mayors nephew (who is a felon). The properties may have since been sold to cover up this fact, but this was done as an inside deal when the council knew the ball team was coming to Joplin, but before it was released to the public. Anyone with access to the tax assessors office can find out who owns property. Look into it, you will see what I'm telling you is true. There was shady real estate dealing going on then to sell for a profit later. Can you imagine who was involved in that and with what money?

Dusty Roads said...

Does anyone else remember Mayor Tupper when he bought some lots around Joe Becker in his 18 year old sons name. Does anyone remember the details of that?

Anonymous said...

No need to make a trip to find out who owns land--you can track ownership of property in Jasper County online at www.beacon.schneidercorp.com.

Anonymous said...

Jon Tupper has nothing to do with this and the Blasters weren't even a nightmare when he was Mayor. Joe Becker was a run down ball field back then. It's the dirty, underhanded dealings of the current council we are discussing. I don't think putting land in his son's name is really trying to hide much from the public do you? Putting land in someone's name that happens to be diferent from yours, now there's a concept.

Anonymous said...

832
I looked at the jasper county beacon but it's difficult to know who you are talking about and what properties. If you know just say the name of the ex mayors nephew and what land they bought.

Tommy Walkinshaw said...

Who was it that was involved with annexing some swamp land next to Calvary Baptistson a former mayors son. ?which city councilman was it that was acting as a agent for a out of town company buying up land around 20 street who had to excuse himself on the vote for a 20 million dollar library is being built? And why the hell is a two story building still sitting unfinished next to 3 massive finished building. And what former wig buying mayor worked for the owner of the plywood shack?

Dusty Roads said...

To 5:33 I was just making a point that it seems Joplins mayors try to make a few extra bucks from insider information, whether it be Tupper or Keane. Just very unethical at the very least. 2006 or 2012 it is the same old song and dance.

Anonymous said...

My point is that Tupper was outspoken and mouthy, he didn't agree with the council on every little thing. That's what got him ousted. They were afraid he wouldn't keep their dirty little secrets. As for his land purchases, how would he know in 2006 about the Blasters in 2014? His dealings were out in the open for all to see, he didn't try to hide them under the guise of a different last name. The only thing going on then were the private team playoffs. Tupper felt Joe Becker needed a facelift, the council disagreed. End of story.