The recently released FBI probable cause search warrant alleges that Maddox maintained control of Governance even after the sale to Carter-Smith.

Tallahassee Reports has obtained a copy of the contract which was turned over to the Florida Commission on Ethics during an ethics complaint investigation.

The handwritten contract shows that the business was sold for a $100,000 under the following terms:

Any or all carry over losses will remain with seller.

Said consideration shall be paid in full no later than seven years from execution of this agreement.

The contract was signed by Scott Maddox and Paige Carter-Smith on March 12, 2010.

The Tallahassee Democrat reported that Carter-Smith paid Maddox $106,000 for contractual work in 2011 and 2012 — more than she paid him for the entire company. Maddox said he stopped working for Carter-Smith before he filed qualifying papers to run for the City Commission in 2012.

Ultimately, Jackson lost the court case. However, it now appears that questions answered by Maddox in that case about his relationship with Governance, Inc. are part of the FBI investigation into corruption.

From pages 12-14 of FBI search warrant:

E. Maddox’s False Statements Concerning his Relationship with Governance

On November 30,2016, MADDOX gave sworn deposition testimony concerning a civil lawsuit whereby the complainant challenged MADDOX’s status as a resident of
Tallahassee. During that deposition, MADDOX was asked the following questions and gave the following answers:

Q: Do you have any other business interest or dealings with Governance Services, LLC?
A: Repeat the question. I’m sorry.

Q: Sure. You have mentioned paying rent, the law firm pays rent for the Adams Street properties to Governance Services, LLC. Other than that do you have any business relationship, you or your law firm, with Governance Services, LLC?
A: I’m not sure whether we represented them on anything. I don’t know.

Q: What about Governance, Inc.? Are you familiar with Governance,Inc.?
A: Yes.

Q: Who owns Governance, Inc.?
A: Paige Carter Smith.

Q: Do you or your family or your businesses have any relationship with Governance, Inc.?
A: I don’t know what that relationship would be.

In September, 2017, the FBI interviewed a witness (hereafter “WITNESS THREE”) who was employed by GOVERNANCE from approximately 2006 to 2014.

WITNESS THREE advised that MADDOX was in charge of GOVERNANCE throughout WITNESS THREE’s employment at GOVERNANCE, to include the time period whereby MADDOX was a Tallahassee City Commissioner.

WITNESS THREE advised that GOVERNANCE sold its political influence and local government experience, largely through MADDOX’s political connections in Tallahassee and other parts of Florida.

WITNESS THREE had not seen CARTER-SMITH represent a client, recruit a new client, or go to the City Commission podium on behalf of a client while employed at GOVERNANCE.

WITNESS THREE advised that CARTER-SMITH did not have a viable firm without MADDOX and that CARTER-SMITH did whatever MADDOX wanted.

WITNESS THREE was ultimately fired from GOVERNANCE by MADDOX in 2014.

From page 13 of the search warrant:

In September, 2017, the FBI interviewed a witness (hereafter “WITNESS THREE”) who was employed by GOVERNANCE from approximately 2006 to 2014.

WITNESS THREE advised that MADDOX was in charge of GOVERNANCE throughout WITNESS THREE’s employment at GOVERNANCE, to include the time period whereby MADDOX was a Tallahassee City Commissioner.

WITNESS THREE advised that GOVERNANCE sold its political influence and local government experience, largely through MADDOX’s political connections in Tallahassee and other parts of Florida.

WITNESS THREE had not seen CARTER-SMITH represent a client, recruit a new client, or go to the City Commission podium on behalf of a client while employed at GOVERNANCE.

WITNESS THREE advised that CARTER-SMITH did not have a viable firm without MADDOX and that CARTER-SMITH did whatever MADDOX wanted.

WITNESS THREE was ultimately fired from GOVERNANCE by MADDOX in 2014.

A request for proposal (RFP) was sent to a number of interested parties. Only two responses were received by the City of Tallahassee. The Big Production, Inc. submitted a bid for $27,000 and MVP, Inc. submitted a bid for $6,000. Both bids were submitted in January, 2012.

View documents here.

On March 19, 2012, Karen Rubin, the TAPP Program Coordinator, sent an email requesting a purchase order. The attachment on the email was entitled “Yordon Proposal.pdf” and the email stated “this vendor has been approved by the City Manager.”

The attachment was a reference to Gary Yordon, who submitted the proposal by The Big Production, Inc. Mr. Yordon has significant ties to the City of Tallahassee. He is currently a registered lobbyist, has been a paid campaign consultant for Mayor John Marks, Commissioner Scott Maddox, and Commissioner Nancy Miller and has previously done work with TAPP.

Each of the proposals listed three references. In fact, North Florida Legal Services was listed as a reference on both proposals. However, The Big Production proposal also listed City Commissioner Nancy Miller as a reference.

Commissioner Miller was elected in November 4, 2010 and the proposal was submitted January 26, 2012, while she was a sitting City Commissioner. Ms. Miller also worked as the TAPP Project Coordinator before she was elected in 2010.

Tallahassee Reports, through her aide, has asked if Commissioner Miller gave permission to The Big Production to use her name in the proposal. We have yet to receive an answer.

The City policy on procurement states that the intent is “to institute a uniform procurement system with purchasing policies that provide for on-time acquisition of competitive, quality products and services.”

Sources told Tallahassee Reports that when a Request For Proposal is released, the goal is to get a competitive price that meets the objectives of the city requirements. 

Tallahassee Reports reached out to MVP, Inc., but representatives there did not want to go on the record. However, they did say they did not recall be contacted by the City of Tallahassee after the bid was submitted.

Tallahassee Reports has submitted an email to the City of Tallahassee requesting all documentation that would justify choosing the highest bidder for this project.

About TAPP

The TAPP program is probably best known for the “Think About Poop” TV advertisement which was designed to encourage people to pick up their pets waste.

The campaign is an ongoing water quality enhancement project originally funded through a USEPA grant. The goal of the program is to generate awareness of area water resources, of each individual’s personal responsibilities in reducing non-point source pollution, and to encourage behavioral changes that reduce pollution entering area waterways.

Program elements include public presentations, television advertising as paid spots and public service announcements (PSA) commercials, billboards, an interactive web site, social media networking, demonstration rain gardens, grants to construct rain gardens, and outreach materials that help residents implement measures that reduce excess fertilizer, pesticides, pet waste and other sources of pollution that contaminate urban runoff.  

The budget for the TAPP program has varied over the years and is a combination of grants and City matching funds. In 2008, the City approved approximately $880,000 for the program. In 2013, the City received a grant from the FDEP for $115,600.

About the Two Bidders

MVP is registered in the state of Florida and in Leon County as Mike Vasilinda Productions Inc, with a business address of 311 North Monroe Street in Tallahassee. The registered officers of the corporation are Mike Vasilinda and Andrew Bundshuh.

MVP has a website at mvptv.tv and lists information about the company and a portfolio of their work.

The Big Production, Inc. is a registered corporation with the state of Florida and in Leon County with a business address of 502 North Adams in Tallahassee. The registered officer of the corporation is Paige Carter-Smith.

Ms. Carter-Smith is also listed as the Manager of the Governance Services, LLC and the sole registered officer of Governance, Inc. Both businesses also list 502 North Adams as their principal address.

Tallahassee Reports could find no website for ” The Big Production” or any other information about the company.

However, our search revealed that TAPP video projects are listed on youtube.com under Governance Productions with the following information: 

Governance provides tools for local governments, candidates and corporate clients to achieve their goals efficiently and effectively. Gary Yordon is an EMMY Award winning writer, producer and editor with over 30 years of experience…spend a few minutes looking over our work.

Further review of “The Big Production” proposal reveals a couple of interesting facts.

First, on the “Local Business Certification” form submitted with proposal, the information reveals that The Big Production, Inc, has no website, no email address, and no employees.

And second, the email communications between the City of Tallahassee and Mr. Yordon with regards to the TAPP program are all going to a Governance, Inc. email address.

Tallahassee Reports will continue to investigate and will provide more information when it becomes available.

The argument against the development, as articulated by David Theriaque, who was at the meeting representing TM Street LLC, was presented as one of fairness.

“If my client has to follow certain rules with regard to mixed use,  then everyone should follow the same rules,” said Mr. Theriaque.  His client, TM Street LLC, is developing the mixed-use Gateway project across the street from the proposed development.

Mr. Theriaqu was referring to the Mckibbon Hotel Group’s (MHG) request before the Planning Commission to change the land use designation on the City owned  property from office and retail to hotel, so the company can build a Hampton Inn next to the Aloft Hotel.

While some members of the Planning Commission voiced concern over the change, ultimately the Commission voted to move ahead and accept the staff recommendation.  The next stop for the project is the City Commission meeting on October 24th.

Tallahassee Reports has been told that TM Street LLC will continue to fight the proposed development.

How did this project get to the point where developers are fighting against developers?

Back into 2006, City planners envisioned a mixed-use development at the corner of Tennessee and Monroe Streets that would add to the 18 hour downtown idea by creating pedestrian activity around a hotel, office and retail space.

However things changed. The developer, MGH, decided it would be best to build the hotel first and then proceed with the office and retail part of the project later. The City agreed. And to facilitate this change, the City Commission approved a 3-year option agreement for sale and purchase with the MHG to purchase the .63 acre parcel on the southwest corner of the intersection of Tennessee and Monroe Streets. The agreement allowed MHG to purchase the parcel for $1,303,448.

In 2008 construction of what is now the Aloft Hotel began and was completed in 2009.

However, MHG was unable to begin the second part of the project which included office and retail space before the expiration of their option to buy the remaining part of the City owned land. So on April 27, 2011 MHG asked for, and the City Commission granted, a 2-year extension of the purchase agreement, expiring on April 30, 2013.

This extension was not enough time for MHG to get the project under way. MHG for the second time requested a 2-year extension of the agreement to extend the deadline to April 30, 2015. The developer also indicated that Downtown real estate conditions do not support the original development concept for the mixed use parcel. MHG subsequently announced, that in addition to the option extension, they would pursue a change in the current land use of the property  that would allow for the construction of another hotel.

Now it gets interesting.

On April 24, 2013, with little fanfare, the City Commission voted to grant a second two year extension.

Since that vote, Tallahassee Reports has been contacted by a number of individuals that wondered how a developer could secure three different options over a period of seven years to buy a prime piece of City owned property without a change in sale price.

Also, how could a developer secure a change in land use – which was inconsistent with the original development plan – without the City seeking other bids that might meet these requirements?

One caller, upset that a Hampton Inn would be located at the historic corner in downtown Tallahassee, said that “Scott Maddox has sold out to a ***** Hampton Inn!”

This is what Tallahassee Reports has been able to verify.

Governance, a local government consultant group, represented MHG and helped secure the original mixed use development deal. On their website, Governance states they “assisted the McKibbon Hotel Group by navigating the RFP process and facilitating the discussions between the city, county and community redevelopment agency (CRA). The result was McKibbon Hotels gaining the sole right to build a grand hotel and office complex.”

Commissioner Scott Maddox lists Governance as a source of income on his 2012 financial statement and recently revealed that he sold his residence to Governance and is now leasing the residence from the consulting firm.

Tallahassee Reports has also learned that Gary Yordon, an employee of Governance, has met with at least two high level City staffers this year to discuss the MHG project.

These relationships between Commissioner Maddox,  Governance and MHG  raises the question, how did Commissioner Scott Maddox vote on the MHG option extension on April 24, 2013?

Tallahassee Reports obtained and reviewed a video of the meeting.  Just before the vote on April 24, 2013,  Commissioner Scott Maddox got up and left the Commission Chambers.

Tallahassee Reports is still waiting on the release of additional information and will publish any new findings.