Data Knight 365 missed deadline for closing
A number of people have called, emailed or dropped by to ask about the status of the announced data center for the Floyd County Commerce Park.
My story in today’s Floyd Press updates the situation: Data Knight 365 (DK365) missed the Tuesday deadline for coming up with $100,000 for a down payment for their $900,000 purchase of a 51.5 acres of undeveloped land at the Commerce Park on Christiansburg Pike where the company says it will eventually spend $67 million to build a 120,000 square foot data center.
The company also failed to provide the county with documentation on principals in the company, a letter of credit and a detailed explanation of the role Paul Allen plays in both the current and future operations of the company.
Allen, who was named last month in a loan kiting scheme that resulted in a federal case filed in Tennessee, moved out of one of the two apartments DK365 is renting at the Station on South Locust. In March, the Ohio Secretary of State shut down Allen’s company, B-Telecom. Bill Byler, the Amish businessman who now appears to be the front man on the deal, returned to Floyd this week and tells people "nothing has changed."
Things have changed. The Tuesday deadline for closing was the first milestone DK365 needed to meet in a performance agreement signed last month. Missing the deadline is grounds for canceling the deal if the county chooses to do so.
Economic Development Authority member Mike Maslaney says the "level of skepticism" over the deal has increased and that "questions need to be answered." Maslaney says he and others on the EDA still have hope the deal can be closed.
EDA chairman Jack Russell is occupied with the death of a family member and is not available for comment The EDA meets on September 22 and a decision on the future of the project may be made at that meeting.
Or it may not. Like so much of the hyperbole, mystery and intrigue that surrounds this deal, the questions far outnumber the answers.
(Updated September 23, 2009 to information about why EDA Chairman Jack Russell was unavailable for comment.)
…and wondering if Paul Allen also looks at BRM, I’m wondering now if he’s realized Floyd won’t be an easy swindle and has bugged out.
Why would you wonder about that?
I’m gratified to read that Mike Maslaney has said that “there’s reason for skepticism” and that “there are questions that need to be answered.” Indeed. Why has Jack Russell refused to answer questions? Is his salary not paid by the taxpayers of Floyd County? Who is he accountable to? Do any of the other members of the Economic Development Authority (EDA) have anything to say? I realize that the work of the EDA cannot be carried out entirely in the public eye (and none of us have the time or interest to get involved in the details, either), but when a “deal” like this starts to smell, the smart thing for appointed and elected officials alike to do would be to explain themselves and their decision-making processes.
If DataKnight 365 can’t come up with $100,000 by the specified contract date, what makes anyone on the EDA think that they will spend $7 million on site preparation or $67 million on the entire project?
Legitimate businesses do not conduct their affairs in this manner. It’s time to declare this contract null and void and move on. There is no need to invest further energy in a losing proposition. DataKnight 365 thought that people in Floyd County were rubes who could be fleeced. I’m sure they did not take into account the investigative journalism abilities of Doug Thompson. Thank you, Doug, for shining a light on this mess and for keeping the heat turned up.
Circle Thursday, September 24 on your calendars and be prepared to pose some questions to the members of the EDA.
Jeff:
Those who serve on the EDA do so as volunteers, not paid employees of the county. They are appointed by the board of supervisors. Jack Russell does not draw a salary as chairman.
Doug,
Thank you for educating me. It seems to me that a position on the Economic Development Authority (EDA) should be paid. To do this kind of work as a volunteer is asking for too much. I understand volunteer work (I’ve done my share) and I understand how important it is to volunteer in the community, but the skills needed to negotiate with potential businesses desiring to locate in the Commerce Park (not all of the negotiations are done by attorneys) are too important to be unpaid. I also know that Floyd County is poor, but, as always, you get what you pay for. Considering the potential of the Commerce Park, I think a paid salary for members of the EDA would be a good investment in Floyd County’s future. An often repeated maxim in business is that you have to spend money to make money. Boot-strapping only goes so far.
Taking the EDA to task when they are volunteers seems unfair to me. Why volunteer only to expose yourself to criticism for making unsound decisions? I wouldn’t put myself in that position. A thankless task, indeed!
SOMEONE is accountable! Sounds to me like it is the Board of Supervisors. What authority is given to the EDC and what authority is reserved for the Board of Supervisiors in this matter? Surely the EDC in not without accountability to the Board?
If nothing else, this saga should cause the Board of Supervisors and the EDC to rethink how this process should work.
Well is anyone surprised that paul allen did not come up with the money that is the story we all heard in ohio last year I am sure according to paul it has to be someone elses fault mabey he will not be able to use honest peoples money to try and make himself rich. he has lost his home in ohio and has to take his four children away all because he can not work an honest days work thank god for the reporter who keeps checking him out I am sure he will try and use someone elses money he just may not of found them yet, and i am sure you will not see byler anymore because if he can not suppoet the allen’s paul will have no use for him.
The funny thing is that this directed me right back to Blue Ridge Muse.