Sat
Dec 29 2007
07:01 pm

Ok, Here's the deal. No Municipality can incur debt that is intended to benefit a private business entity unless there is a vote and three forths of the voters agree to it. Pinnacle Pointe is a private development, plain and simple and Harriman's citizens never voted to borrow money for Pinnacle Pointe.

From the State Auditor:

A review of paid invoices on the Pinnacle Pointe project revealed that, in addition to expenditures on infrastructure, the city paid $753,860 for improvements to propertyowned by Prestige in preparation for sale of the property to Lowe’s. Prestige, in turn,“contributed”$519,175 to the city, leaving a balance of $234,685 paid by the city for the development of the property, financed through the issuance of municipal bonds.

In other words, it was illegal for Harriman to borrow money (In this case via issuing Municipal Bonds) for Pinnacle Pointe so the money should be repaid by the developer unless the contrator invoices are in error.
To date no one has made such a claim.

AUDITOR’S CLARIFICATION:The analysis was not based on payments exceeding budgeted costs, but rather areview of invoices submitted by the contractor. These invoices clearly indicate $753,860 was used for private land development, of which $234,685 remained unreimbursed.

Kirkham and Duncan state that they have paid for an independent audit(astute readers will note the irony) and it shows that the City owes them money. OK...Put it up and let's see what it says.

Here is the State Audit, which contains lots of interesting things, most of which have been dealt with forthrightly by the City of Harriman and it's officials.

Lost Medicaid Funding

To date, the failure to expand Medicaid / TennCare has cost the State of Tennessee ? in lost federal funding.