VOL. 61, No. 22
May 31 - June 6, 2012
www.tristatedefender.com
75 Cents
Trio of Council budget plans on table as decision time nears Special to The New Tri-State Defender
by Tony Jones
Early details about a lending discrimination lawsuit settlement were discussed at a press conference on Wednesday that included (l-r) City Attorney Herman Morris, Leigh V. Collier, Regional Wells Fargo president, Mayor AC Wharton Jr., County Mayor Mark Luttrell, and Kelly Rayne, Shelby County attorney. (Photo by Tyrone P. Easley)
‘Meat on the bones’ next step after Wells Fargo settlement The New Tri-State Defender staff
Shelby County Mayor Mark Luttrell called it a rare event that proves everyone benefits when the goal is collaboration. Mayor A C Wharton Jr. noted that the City of Memphis and Shelby County are collaborating with Wells Fargo bank on “a new partnership that will bring stability and renewed prosperity to some of our community’s hardest-hit neighborhoods.” And attorney Webb Brewer, who was on the ground floor of the multimillion lawsuit accusing Wells Fargo of lending discrimination, said that while he is pleased, the hardest part – enforcement of the settlement – likely still is ahead. All of this flowed in the wake of an agreement officially made public on Wednesday. As the day unfolded, Wharton and the regional president of Wells Fargo Bank, Leigh Collier, visited near Prospect and McKellar in South Memphis to announce a deal had been made to dismiss the multi-million dollar predatory lending lawsuit filed by the city and county in January 2010, alleging the bank discriminated against minorities.
You deserve five…
“Under the terms of our new agreement, Wells Fargo will invest $425 million in new home loans in our community, with $125 million of those dedicated specifically to low-income and moderate-income families,” Wharton said. “Wells Fargo will also make $4.5 million available in grants to first-
“Under the terms of our new agreement, Wells Fargo will invest $425 million in new home loans in our community, with $125 million of those dedicated specifically to lowincome and moderate-income families.” Mayor A C Wharton Jr.
time home purchasers, as well as an additional $3 million for a variety of programs related to financial literacy, home buyer counseling, and small business development.” Collier stressed that, “There’s also going to be financial literacy to help with making the payment, caring for the home, etcetera.” Wharton said he was confident that Collier and Wells Fargo understand
that there is so much work left to do to rebuild the neighborhoods that were devastated by the foreclosure crisis of the past several years. “ With Wells Fargo’s support, we are on a path to help many, many Memphians realize the dream of homeownership for the first time, building the foundation for a strong, prosperous city moving forward.” More details would be forthcoming, he said, later adding that favorable timing was crucial to the resolution. “Wells Fargo saw an opportunity to extend its spirit of partnership and, hey, it came together,” Wharton told the media. Here are some details that are known: Wells Fargo will set up a homeownership program that would make $15,000-max grants available to those interested and qualified to buy a home. A family income below 120 percent of poverty of the area median income is required of prospective homebuyers. An eight-hour home education session is required. This must be with an SEE LENDING ON PAGE 3
Rochelle Stevens set a U.S. record in the 200-meter dash for ages 45-49 during her own track invitational at Collierville Elementary School on Saturday (May 26). See related photos in Sports, page 14. (Photo by Warren Roseborough)
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SEE BUDGET ON PAGE 2
City’s Contract Compliance office has ‘Bright’ future The New Tri-State Defender staff
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SUNDAY
• Oprah delivers ‘crowning’ touch to Spelman grads. See Nation, page 5.
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REGIONAL TEMPS LITTLE ROCK NASHVILLE JACKSON, MS
In the budget proposal that District 3 Councilman Harold Collins offers, several items have piqued interest, with his recommendation of how to use the city’s reserve coffers to pay off the last official debt to the Memphis City Schools drawing close scrutiny. Collins says his proposal to withdraw $19.5 million from the city’s reserve will not be detrimental to the city’s bond rating. “That is a misconception,” he said. “If we were to draw on the reserve fund, it would still leave 8.6 percent available to us. That will leave us with 60-plus million in reserve, which will not affect the bond rating. What the bond raters want to know is if the city is able to draw on resources if needed, and that would give us an accessible amount if needed.” Over the past five years, the council has reduced the property tax rate from $3.43 to $3.19, he said, as an illustration of the city’s fiscal strength. His proposal would further reduce the tax rate to $3.11 to be achieved after the funding for schools is removed as part of the budget, another possible indicator that Memphis is still a great placement possibility for businesses. “When we finish with the obligation to the schools, we need to repair the city’s transportation infrastructure,” Collins said. “I believe that if we are after active improvement of the roads and the highways, people will support a bond issuance.” Collins’s Whitehaven district contains two of the city’s major economic engines, Elvis Presley Blvd., (which he successfully secured $47 million in refurbishment funding) and the airport, which is being studied as one the world’s key potential centers in the next age of worldwide urban transport and shipping known as an aerotropolis. The core factor that makes him upbeat that Memphis can create a new paradigm for a successful urban
Transition after 12 years
MEMPHIS WEEKEND
FRIDAY
This year’s version of the annual wrangling between the mayor’s office and the Memphis City Council over the city’s budget for the next fiscal year is expected to eventually give way to a final vote on the budget on Tuesday (June 5). Council members Harold Collins, Edmund Ford Jr. and Jim Strickland each have their own versions of a proposed budget for the fiscal year that begins July 1. This week (May 29), they presented those alternatives to the council’s finance committee, veering away from the budget proposal Mayor AC Wharton Jr. presented in April. The mayor’s proposal made the case for a 47-cent property Harold tax increase, Collins which appears dead in the water. Wharton already has moved to finesse any obvious controversy out of the matter. “I’m not going to debate over the tax rate,” Wharton told reporters before the finance committee convened. “Let’s take care of the kids, keep the core services of government and I’ll be satisfied. I’m not going to get tripped up over what the tax rate is.” Besides scuttling Wharton’s proposed tax increase, each of the three council member proposals address hot-button concerns over threatened support for libraries and community centers, with Strickland presenting the idea of turning over management of several community centers to non-profit organizations. A key element in the discussion is the tax rate needed to operate the city on a sound financial basis. The present tax rate of $3.19 is expected to drop to $3.01 after funding for the city schools is dropped from the budget.
Collins: Plan a sound future
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• ‘Messed up’ mind is an opportunity to take control. See Religion, page 8.
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• Eat healthy during the summer. See Health, page 12. Allen Iverson
• Should Allen Iverson return to the NBA?. See Sports, page 14.
May has been pretty much of a blur for Mary L. Bright. It’s the month in which she received the Office of Contract Compliance (OCC) baton passed to her by a predecessor with a 12-year stamp on the position. The OCC is known by many as the place for small, minority and women-owned businesses to go to obtain assistance in doing business with the City of Memphis. Carlee McCullough, Esq., who made the decision to retire on March 23 and start her own firm, McCullough Law, had run the office since 2000. She was the new face brought in to oversee the rebranding of the Office (and the programs) originally created in 1996. Now it’s up to Bright, a former assistant city attorney, to pick up where McCullough left off, overseeing the office that provides oversight to the Equal Business Opportunity (EBO) Program as well as the Small Business Enterprise (SBE) Program. “While I have only been on the job for a brief moment, I am hesitant to come into the position and change a lot of things all at once,” said Bright, a 2004 graduate of the Tennessee College of Law in Knoxville, and who received her B.A. in accounting from Tennessee State Uni-
Now itʼs up to Mary L. Bright to oversee the office that provides oversight to the Equal Business Opportunity (EBO) Program as well as the Small Business Enterprise (SBE) Program. (Courtesy photo)
Going full time!: McCullough Law. See Business, page 7.
versity in 1997. “But just from my brief observation, I would like to work on increasing the number of certified vendors within our EBO and SBE programs, as well as identify areas where EBO and SBE vendors have been left out of the contracting process because no ready, willing and able vendor was there to do the job. I would like to see that there are ready, willing and able EBO and SBE vendors in all contracting opportunities.” McCullough, who was passionate about the subject matter, worked hard to raise the profile of the Office. Under her leadership, the DiSEE BRIGHT ON PAGE 2