February 23, 2007

DO AWAY WITH THE RDC, SAVE MILLIONS AND REQUIRE THE EX DIRECTORS OF THE CITY OF MEMPHIS TO LIVE ON THEIR GENEROUS PENSIONS

Watchdog read with interest the recent CA article by Jacinthia Jones entitled “Retired Directors Club' provides lucrative jobs”. We show below an article written and published on memphiswatchdog.org on October 18, 2005.

RDC had pegged the cost of the land bridge and related construction at $78 million, by far the most expensive item in its $292 million slate of outlined improvements. Although public capital funds would pay for the projects, RDC's master plan says a "significant portion" of the costs would be recouped through private development activity.
At last reality has begun to dawn on the Riverfront Development Corporation and they have temporarily killed the expensive, unwanted land bridge. Whether the current City Council will back this decision is unknown at this time as they continue to insist on their expensive, unneeded capitol improvement projects.

Memphiswatchdog.org has just obtained all the inside information on the riverfront Development Corporation and we publish it below for the general taxpaying public to study. Here are the important points.

• As of June 30, 2005, RDC had a net worth of about $1 million
• During the year ended June 30, 2005 RDC received a little over $6 million from the City.
• RDC (really the City of Memphis) lost a little over $2 million on the parks, mainly Mud Island.
• In July 2001, RDC signed a contract with the City of Memphis giving them management of all City of Memphis riverfront property paying them over $10 million to date.
• Benny Lendermon, the President of RDC makes a salary of $172,050 per year plus a bonus of $25,000. Also he and other employees get vacations, sick leave, health insurance, life insurance, short and long term disability insurance, and a retirement plan, all as shown on the attached information.
• Bounds & Gillespie, Architects, received a three month contract in 2004 for a Beale Street Landing design contract for $3,137,266.00.
• Hnedak Bobo Groups, Inc have a monthly Beale Street Landing Management contract of $34,000/month since 11/27/01. that is nearly $2 million to date.

The public needs to consider that the City debt has nearly tripled in the last ten years to over $1 billion. We do not need to spend money on these kinds of projects until we get our finances under control in the City and the County.

Now we have available the IRS form #990, Return of Organization Exempt From Income Tax, and it show that from June 30, 2004 to June 30 2005, the net worth of the RDC has increased from $1.8 million to $4.3 million. “WHY”

Watchdog takes some credit for the deletion in some of the long range and expensive programs and the reduction of the CIP budget from $52 million over the next five years to $35 million as shown on the CIP budgets attached. When the sunshine light of open records laws shines on some of these hidden projects, the roaches run for cover. Still I think Jacinthia Jones and the Commercial Appeal are correct in that the only real value that the RDC provides is the lush jobs and salaries that it creates for retired directors of the City as they collect their pensions out of the tax payers pockets. It is time to defund the RDC boondoogle. By the way, Lenderman’s salary as quoted in the CA article at $198,000 has increased from $176,609 at June 30, 2004 to $183,907 at June 30, 2005 to $198,000 in 2007. Nice work if you can get it.

Click here to read the IRS tax form 990 for the RDC for the year ending June 30, 2004

Click here to read the IRS tax form 990 for the RDC for the year ending June 30, 2005