Categories
News

Shelby County Sheriff’s Office to Sell Seized Property

Need a beat-up 1993 Dodge pickup truck? Or how about a single-engine Cessna plane? Both items will be sold in a Shelby County Sheriff’s sale on Wednesday, November 28th.

A new feature on the Shelby County Sheriff’s Office website lists items to be sold in auctions of seized property. Items range from major purchases (such as the plane) to everyday goods (i.e. computers).

Often, property is seized when a loan is defaulted. For example, a creditor could get a court order for deputies to seize a person’s real estate or other valuable goods. Most of the money from those sales goes back to the creditor, although the sheriff’s office receives a small fee for conducting the auction.

Other items are seized by the Shelby County Narcotics Bureau. Officers may confiscate a vehicle used in drug sales or a computer used to store information about stolen goods. Proceeds from those sales are used to purchase new equipment for the narcotics bureau.

For more, go to the Shelby County Sheriff’s Office website.

Categories
News The Fly-By

Bid Day

Owning a piece of Memphis history may be as easy as cash-and-carry.

Memphis Heritage will host its biannual Architectural Auction October 20th and, for the first time, will include a cash-and-carry section with items priced from $2 to $25.

“That’s our yard sale,” says Memphis Heritage executive director June West. “People can go in and literally buy what they like. We have so much stuff.”

In addition to the cash-and-carry section, the event will feature both live and silent auctions with items from all over Memphis.

There’s a green bar dating back to the 1940s or 1950s that came from South Main’s Chisca Hotel. Memphis Heritage will use it to serve the evening’s drinks, but it’s still for sale.

“It would take a pretty big room,” West says, assessing its lure to potential buyers. “But it’s in two pieces, so it’s very manageable.”

The auction also will feature an E.H. Crump Stadium sign, a juke box once used in a local club, and two animal heads — a giraffe and a wildebeest — formerly at home at the Pink Palace.

“[The giraffe] was at an office supply store on Union for a long time. It was an era when that was something cool to do,” West says, “but I have a hard time with it.”

One donor couple bought a cotton-classing table in Memphis with the intention of converting it to a dining room table. They moved to Texas and took the table with them, but recently donated it to Memphis Heritage.

“It’s a little classier than you might think,” West says. “It was made here in Memphis and has cool emblems on the side.”

There are also items with less definitive history: a grocery store delivery bike, a switchboard, two antique stoves, a Murphy breakfast table (which at first glance, looks like a set of double doors), and assorted finials.

Most of the items are donated or scavenged.

“People call us throughout the year. They’ll say, we have 40 doors from a church. Ultimately, we want to have a warehouse where we sell things year-round,” West says.

For now, though, Memphis Heritage holds the auction every other year to have enough time to amass and organize items.

If the group knows a building is being demolished or renovated, Memphis Heritage might ask for certain architectural elements, such as the top of the former Court Square gazebo or limestone from Number One Beale (both up for auction). Before Baptist Hospital was imploded, the group worked with Bioworks to preserve some of the hospital’s green marble.

“We stay on top of things,” West says.

Or items might be acquired through what Memphis Heritage calls its “preservation posse” or, alternately, its dumpster diving division.

“We’ve got lawyers, carpenters. We’ll e-mail or call people and say, we saw such-and-such on the side of the road. Go pick it up,” West says.

Despite the trash-to-treasure aesthetic, the event’s best-kept secret is perhaps the site of the auction: the old marine hospital near the National Ornamental Metal Museum. Actually, that entire area — located south of downtown and found by heading toward the I-55 bridge to Arkansas — is something of a secret.

The hospital’s earliest buildings date back to the 1880s, but the main building was erected in 1937. It closed as a hospital in 1965, but the government continued to use the facility for other things until the end of the first Gulf War.

For now, the buildings look kind of creepy, but it probably won’t stay that way for long. The owner has plans for the property.

“It ultimately will be made into condominiums,” West says. “The cool thing about that site is that you feel like you’re in a historic Midtown building, but you’re on the river. The views are phenomenal.”

The inside is still raw, however, and with the bargains at the cash-and-carry section, West suggests wearing jeans. But at least you won’t have to dumpster dive.

Categories
News The Fly-By

Why the Rush?

The clock is ticking. On Thursday, July 5th, MLGW’s Board of Governors will vote whether to sell Memphis Networx to a Colorado-based holding company, Communications Infrastructure Investments (CII), for $11.5 million — a loss for MLGW exceeding $28 million. Networx representatives have cautioned that any significant delay could negatively impact a deal that, for MLGW ratepayers, is already negative.

Before the vote, however, some serious questions should be asked regarding potential conflicts of interest and the business practices that led MLGW to this juncture.

First, if MLGW is already prepared to eat almost all of its $29 million investment, what do the ratepayers stand to lose by delaying this decision long enough to ensure that the sale is on the up and up?

Question two: Who exactly is Tom Swanson, the McLean Group consultant who assembled the list of Networx potential buyers and helped facilitate the deal? Last week, when City Council chairman Tom Marshall asked that same question, Networx board member Nick Clark responded by quoting Swanson’s McLean Group Web bio, which leaves out an interesting piece of information. Swanson’s bio for his own private consulting business (TJSwansonCo) lists his involvement with a now-shuttered company called Intira, where, according to SEC records, he served as vice president of sales. Intira was co-founded in 1998 by former Networx CEO Mark Ivie and employed former Networx controller Jeff Rice as well as current Networx CEO Dan Platko. Given his background, should Swanson have been the broker for the deal?

An official contract signed by Platko and obtained by the Flyer suggests, and other sources verify, that late last year, Platko offered Swanson $2,000 a day to consult with Networx’ sales division through his private firm. Swanson’s compensation may have dropped by about one-third when he took on the job of assisting with the sale of Networx through the McLean Group in December 2006.

More questions: Who stands to profit from the sale of Networx? Certainly not MLGW ratepayers, currently taking a $28 million bath. Will any Networx executives have employment opportunities with the new ownership or with companies related to the new ownership? Have there been any arrangements made behind the scenes that may have tilted the scales in CII’s favor?

This isn’t the first time Memphis Networx has been positioned for sale. American Fiber Systems (AFS), the New York communications infrastructure company that submitted a bid for Networx valued at $13 million, has been trying to acquire the company since 2004. AFS’ initial bids involved no cash, but Networx execs and at least one board member showed substantial interest.

More recently, AFS placed a higher combined cash-and-stock bid for Memphis Networx than CII, but it wasn’t the highest. Ohio-based BTI Corporate, a communications firm looking to partner with Memphis Bioworks and strike a deal with MLGW that could allow the local utility to recoup some of its losses, submitted a bid valued at $20 million.

Whose best interests have been served in the rush to unload Memphis Networx? The ratepayers? The private investors? Or someone else? Ultimately, selling Networx — even at a loss — may be in MLGW’s best interests. But given the history, it’s important that MLGW’s ratepayers know who profits from the botched $29 million investment and why.

Categories
Opinion Viewpoint

The Grizzlies’ Worth?

David Stern, the commissioner of the National Basketball Association, thinks “our franchise valuations are going through the roof.” In an interview last week with The Wall Street Journal, Stern calculated the “share price” of the 30 NBA franchises based on the 2003 sales of the Charlotte Bobcats for $300 million cash.

Coincidentally or not, $300 million is reportedly what the majority owner of the Memphis Grizzlies, Michael Heisley, thinks the team is worth.

The value of the Grizzlies is not idle speculation. Heisley wants to sell his majority stake in the team. Here are five reasons why I would say the Grizzlies and most other NBA franchises are not worth that kind of money.

First, Staley Cates doesn’t seem to think so. Cates is one of the minority owners of the Grizzlies and one of the brains behind Southeastern Asset Management, parent of Longleaf Partners mutual funds. He and the other minority owners sat tight while Brian Davis made his ill-fated run at the Griz. I’ve heard Cates speak enough times and read enough Longleaf reports to have a pretty good idea of what a value investor is. My guess is that Cates and fellow minority owner Pitt Hyde would pay a small hometown premium to take control of the team, but they’re not going to be held up, when and if they make a bid.

Second, Grizzlies guard Eddie Jones. The guy is making $15.6 million this year, nearly one-fourth of the team’s entire player payroll. Jones was a good player a few years ago, but his skills and playing time have declined drastically. The problem is that NBA contracts are backloaded so fading stars make big money in the autumn of their years. Jones’ main value to the team is that he creates room under the salary cap next year.

Third, forward/center Stromile Swift, for many of the same reasons. Swift is a mediocre player with a bloated contract who sits out many games each year because of injuries. As injury-prone benchwarmers, Swift, Jones, and Brian Cardinal have negative PR value to the team, just as Shane Battier had positive PR value because he always showed up and played hard, even if he is only an average pro player.

Four, the Grizzlies are in danger of becoming the Redbirds. I literally could not give away our company’s suite tickets to the Philadelphia game. The excuses included “I went to the Tigers game last night,” “You couldn’t pay me to go see those guys,” “My son has baseball practice,” and “Ha, ha, ha.” Finally, I got rid of two of the three tickets. The three of us spent about $15 apiece at the game. But what about the thousands of no-shows? If there were 5,000 no-shows, that’s at least $75,000 in concessions sales.

Five, true value depends on butts in seats and long-term ability to sell season tickets at face value. A better team with a better record will help, but maybe not for long. And with Pau Gasol now admitting he wants to be traded, the Grizzlies may not have hit bottom yet. Surely David Stern knows that what goes up also comes down. An NBA franchise is worth $300 million or $350 million only by the logic and pay-me-later accounting that says Eddie Jones is worth $15 million this year. The true value of a player and a team is what people will pay over time to come and see them play.

Stern was asked if he thought NBA teams in Memphis and New Orleans will stay put even though they are struggling. His cryptic reply:

“If you ask me that as the mayor of Memphis, the answer is absolutely. You’ve committed to us, you built a building, the city is supporting us and we’re going to support you, barring some event that we hope doesn’t occur there.”

John Branston is a Flyer senior editor.