THF & Nitro Deal On The Table

[pwdgroup]

According to the below Gazette story, a settlement offer is on the table that will give Nitro approx 275,000.

Out of that will come lawyer fees estimated at $100,000, and then THF gets the remaining $700,000 out of the 1 million in escrow.

After that, I guess we will have to wait and see if THF then goes for the de-annexation clause???

http://www.wvgazette.com/News/200804140580?page=1&build=cache

[slyfox]

1. And No One Answers The Question

IS IT EVEN LEGAL?

This is the real question. I only here one candidate asking this question. Johm Montgomery - candidate for Mayor was asking this question more than 10 years ago.

There has been much confusion over what is at issue here. It is not the Agreement or Amended Agreement that was signed with THF. It is whether or not the section of WV Code that allows for municipalities to enter into development agreements and offer tax incentives and credits to allow for economic development.

No one is questioning whether or not the city can enter into an agreement. The question is whether or not a municipality and private corporation can enter into a development agreement whereby the Business and Occupation Taxes from one business can be given to a third.

EX. THF AGREEMENT

Gives the B&O Taxes paid by all of the businesses at the Nitro Marketplace, not back to the Business that paid it - BUT GIVES THEM TO THF...... This is not allowed under WV Code.

That is why the payments were and have never been paid directly to THF but "laundered" through the Nitro Development Authority.

FOR THE CITY TO ENTER INTO ANY AGREEMENT THAT DOES NOT ADDRESS THE LEGALITY OF THESE PAYMENTS IS A MISTAKE. THF KNOWS THEY ARE NOT ON SOLID GROUND.. THAT IS WHY THE DAY BEFORE THE STATE ATTORNEY GENERALS OFFICE WAS SLATED TO RELEASE AN OPINION REGARDING THE LEGALITY OF THE ARRANGEMENT WITH THF, THAT THF FILED A LAWSUIT IN KANAWHA COUNTY CIRCUIT COURT. THEN THE ATTORNEY GENERALS OFFICE WOULDN'T RELEASE THE OPNION AS IT WAS BEFORE A CIRCUIT COURT.

AND EVEN TODAY THF DOES NOT WANT THE QUESTION REGARDING THE LEGALITY ANSWERED. THAT IS WHY THEY HAVE SPENT MORE THAN $500,000 IN LEGAL FEES TO KEEP THAT QUESTION FROM BEING ANSWERED.

YOU SHOULD ASK YOURSELF WHY.

IMO - THEY KNOW THAT IF THE LEGALITY IS ESTABLISHED THAT THEY WOULD LOSE AND LOSE BIG.

[neverlander]

2. Right again!

I hope they refuse ANY deal. Let's get this thing into the courts and end it once and for all.
As long as there is a point unanswered anywhere in that contract, litigation can continue.