Dynetics Meets the Citizens of Larkinsville or, A Classic Example of How Not to Sell a Product

WAAY TV VIDEO

http://www.waaytv.com/news/local/story/Tempers-flare-at-Dynetics-meeting/KefDvEF7EE-24zB2p1Y--A.cspx

WAFF-TV: News, Weather and Sports for Huntsville, AL
Video pulled - WAFF story: http://www.waff.com/story/18839702/some-residents-unsure-about-dynetics-expanding-into-area

These are my observations and a story about citizens, government, a company and a communications process. A story about people and what they think of government; a story about a company, Dynetics, a good company which employs several citizens of Jackson County in Madison County.

A story about a government agency involvement in business incentives, the Economic Development Authority, EDA - a county agency. The EDA's mission in our government is to assist in the acquisition of jobs for the citizens of Jackson County and in so doing not to waste the citizens money. The EDA's mission is to represent the citizens of Jackson County, not the corporation who may be attempting to locate in Jackson County.

Under the laws of our state the EDA may acquire funds to assist in infrastructure improvements for a prospective business or corporation coming to Jackson County. The EDA may issue substantial tax abatements for the business or corporations benefit on behalf of the citizens of Jackson County.  In return for what may amount to hundreds of thousands of dollars, even millions of dollars,over 10 to 15 years, there must be a substantial return to the community offered by the perspective business or corporation.

Jackson County EDA

In our capitalistic government form, an Economic Development Authority will either support the citizens, business, special interests or themselves. The proof is in the pudding, so to speak. Jackson County has not shown growth since the aluminum mill closed on Goose Pond Island. The effectiveness of the EDA and the Chamber of Commerce is questionable. There is a duplication of effort between the Chamber of Commerce and the EDA, results have been lack luster.

In studying the history of Economic Development Organizations relationships with a given population and the economy of the population one must understand basic concepts of economic systems and their interaction with people, government structure and cost benefit analysis-short and long term.

Within our local system of economic development there is always a trade, citizen jobs for "corporate welfare give aways." There is a point in the economic trade offs EDA managers must evaluate the citizens potential gain. Just as the corporation has a bottom line so must the citizen's representatives in the acquisition of business.  The economic development authority must never sell the citizens short for the benefit either of the corporation, known or unknown special interests, or personal benefit. This is where the EDA Board must ask hard questions of its CEO and hold the CEO 100% accountable. If an EDA Board does not hold its executive accountable at all times for its staffs actions then the EDA is not representing the citizens interest.

"It is a great privilege and honor to support the war fighter," says the Chamber of Commerce and the EDA CEO. This old soldier says "hogwash," go sell that song and dance routine somewhere else, possibly at a convention for Defense Contractors. It is the EDA's role and the Chamber of Commerce's role (The Chamber of Commerce receives tax payer dollars.) to represent the citizens of Jackson County in the acquisition of jobs. Spending what amounts to a quarter of a million dollars on 4 jobs within the first 2 years, then the POSSIBILITY of a total of 6 more jobs-MAYBE, does not warrant the investment of a quarter of a million dollars for a "munitions testing range."  Job reality in this project: security(3), janitorial (2), maintenance(3) and administrative(1) will equate to 9 maybe 10 jobs max. Engineering expertise, the high paying jobs, are already employed by the corporation involved-Dynetics.

Dynetics stressed safety in their testing programs. They demonstrated, if the property is purchased, testing will be accomplished in the upper part of the Stone-Moody property, in the back of Pinhook hollow.

The interaction of the Jackson County EDA with citizens of Larkinsville is a case study of what not to do when asked hard questions about their role. When the citizens group approached the EDA the citizens were told by the EDA CEO, the EDA fully supports this project. There was no explanation as to a cost benefit analysis nor any conciliatory remarks given concerning the citizens points of view. There was an aire shown, "I'm the government authority, and I don't care what you think."  Very bad form and unprofessional on the part of the EDA. Although the EDA did allow the citizens to voice their concerns at July's monthly meeting.

Dynetics managers conducting the briefing failed to recognize Larkinsville citizens in the group meeting. Concerned citizens were told they could meet with us after the meeting.

I observed Dynetics managers and the citizens interaction during the public meeting Tuesday evening, July 24th. The session was an expose of what not to do if you are a corporation attempting to convince a community of why they should be accepting of an organization who will be testing munitions.

Dynetics managers discuss operations with Larkinsville residents after the group session. At times it was obvious that both Larkinsville residents and Dynetics managers became frustrated with each other.

Dynetics had Public Relations and Communications persons available, they did not utilize them in their formal presentations. Concerned citizens of Larkinsville were not recognized as people who had legitimate concerns. The interactions of the Vice President and Project Manager was less than professional and designed to diminish citizen group participation. Dynetics management involved, placed themselves into an unnecessary argumentative session which was improperly conducted. Dynetics management present demonstrated a lack of skill in the communications process of group interaction and facilitation.

I stayed until Dynetics personnel were packing up and asked many questions about what Dynetics intended to do with the property. It is obvious Dynetics intends on utilizing the property as a test bed for munitions and it is more than likely the property will be utilized for expanded munitions testing to include high explosive military ordinance.

If the property is purchased it will be impossible to determine if there will be any undesirable fuels, chemicals or waste products utilized or disposed on the site. Dynetics stating the Alabama Department of Environmental Management, ADEM, will inspect them does not hold weight. What will they inspect them for, ADEM does not have the money to provide basic water monitoring and Waste Discharge permitting within our state much less providing high level environmental monitoring of a test range. Dynetics did have an environmental contractor present but the contractor was not able to provide meaningful information.

The most positive aspect of the meeting for me was meeting the employees. The hard working everyday bread and butter employee of the company. The Jane and Joe employees of Dynetics have the capability to sell the public on the company in far greater positive terms than any of the Dynetics Executives present. I'm sure the managers and executives present are experts in their respective fields; experienced and learned communicators in dealing with a group of concerned citizens they are not. The Dynetics managers present did not fully utilize their expert staff present.

Story Links
WAAY TV link http://www.waaytv.com/news/local/story/Tempers-flare-at-Dynetics-meeting/KefDvEF7EE-24zB2p1Y--A.cspx

WAFF-TV links about Dynetics: http://www.waff.com/search?RecordNum=1&vendor=ez&qu=dynetics

Scottsboro's Dauily Sentinel links: http://thedailysentinel.com/news/article_0e7b7e94-d776-11e1-8766-0019bb2963f4.html

http://thedailysentinel.com/news/article_7d601f04-d726-11e1-a98a-001a4bcf887a.html

When all is said and done concerning this issue a few facts stand out: 1) Dynetics has not purchased the property. The EDA appears, by their demonstrated actions, to be representing Dynetics. 2) Some Larkinsville residents are not supportive of the "test bed project," while other residents support the project. 3) Dynetics has great employees who are offered one of the best benefit packages available to employees in the United States. Dynetics takes care of their employees, a very positive aspect of the company, it is an employee owned corporation. Dynetics provides Information Technology support to both business and government in Jackson County. 3) Are the citizens investment into Dynetics worth the return in this "test bed project?" It is my opinion the EDA has not acted responsibly in this matter. 4) Dynetics did not conduct the session properly. They did not allow, nor moderate citizen participation in the group session. The citizens who do not support the project interupted the presentation, a professional moderator could have resolved the issue if the session had been designed to receive concerns and feedback from all citizens. Dynetics managers during the group session made an informative presentation which was interupted by the group of concerned citizens present. This lack of attention to detail on the part of the engineer managers concerning the informational session ignored standards of communication and group interactions, that is bothersome. 5) The Dynetics managers conducting the informational session did not utilize their communications and public relations staff in an appropriate manner.

Jackson County Economic Development Authority (EDA) Meeting

UPDATE July 20, 2012: The Jackson County EDA appears to have held a meeting prior to the regularly scheduled monthly meeting at noon on Tuesday, July 17, 2012. A quorum of the EDA were present for the meeting. The "pre-meeting" involved Spectra Energy officials. Spectra Energy has stated, via local press releases, they are considering plans to build a major gas line in the north part of the county. TVA has indicated interest in utilizing natural gas for a combined cycle gas plant to replace shut down coal fired power generators at the Widow's Creek Power Plant between Bridgeport and Stevenson, Alabama.

Deliberations under Alabama's Open Meetings law includes discussions or information which may influence members of the public body in their official actions or information or discussions which may come before the meeting at a later time. Alabama's Open Meetings Act may be found in the Code of Alabama Section 36-25A. An Open Meetings Manual for Alabama Public Officials and citizens may be found on the web at http://www.acca-online.org/oml/ag_open_meeting.pdf .

It was confirmed by EDA CEO Dus Rogers that Spectra Energy was present to met with the EDA to discuss issues prior to the regular scheduled meeting. The EDA approved an Executive session at 12:44 PM and was certified by the EDA's Attorney John Porter. Porter was not present at Tuesdays "pre-meeting." .

When I arrived at the regular scheduled meeting at approximately 11:50AM there were 3-4 Spectra Energy Officials departing the EDA. CEO Dus Rogers was contacted to confirm the officials departing were from Spectra Energy.

Jackson County EDA, South Broad Street, Scottsboro, Alabama. (photo from EDA's FaceBook page)

The EDA held its monthly meeting meeting today. Below is the agenda of the meeting. Click on Image for an expanded view. The EDA CEO hired local Attorney John Porter to serve as the EDA attorney.

Several important issues were brought forward. 1) Report on the Forever Wild Board meeting. It was stated 11,000ac were voted to be taken into the Forever Wild Program in Jackson County if the State of Alabama provides funding for the program. "al.com" article about the program: http://blog.al.com/spotnews/2012/06/forever_wild_gives_go-ahead_to.html 2)ADEM could lose authority to issue water permits due to funding cuts : "al.com"  article  http://blog.al.com/live/2012/06/adem_could_lose_authority_to_i.html  3) Treasurer was elected for the EDA, Bruce Purdy is the new Treasurer.

4) A group of 5 concerned citizens from Larkinsville expressed concern over the proposed Dynetics Test facility in Larkinsville, Al. on the 1500ac tract known as the Moody-Stone Property. Land owners adjacent to the proposed test facility stated in today's EDA meeting they do not want the facility to locate adjacent to their property. (photo by G. Morgan)

Expressed concerns: 1)The property owners concerns included chemicals used in rocket fuels to include testing of the rockets and fuel. 2) Karst Terrain and hydrology, fears were expressed concerning ground water and well water contamination.3) Noise pollution as a result of the test bed and decrease of owners property values. The bottom line, the surrounding land owners and Larkinsville citizens present do not want the test facility located near their homes.

EDA CEO Dus Rogers stated he was supportive of the project. Mr. Rogers also stated Dynetics will be holding a meeting with property owners in the near future.

The citizen group present presented a signed petition to the EDA Board from Larkinsville residents stating they do not want the facility located in Larkinsville, Al. There were a total of 124 signatures of citizens opposed to the Dynetics Test Facility.

A discussion ensued between one board member, Bruce Purdy, and EDA CEO-Dus Rogers about the number of employees which would be hired locally by Dynetics. There was differing information presented. Purdy stated that only one employee would be hired that he was aware-a receptionist. Rogers stated it was his understanding up to 15 employees may be hired locally. It was suggested this should not be discussed in the open meeting. The employment issue was discussed at last month's EDA meeting where it was stated that only 2-3 local citizens would be hired.

Previous articles on this blog concerning the issue involving the EDA and Dynetics: http://arklite.blogspot.com/search/label/Dynetics

The EDA adjourned into an Executive Session at 12:44PM and was certified by Mr. Porter to discuss confidential information relating to incoming or potential incoming industry in Jackson County. The EDA monthly meeting began at 12:01PM.

Scottsboro Attorney John Porter serves as the Jackson County Commission, EDA and Jackson County School Board Attorney. (photo by G. Morgan)

Jackson County Commission Work Session, Larkinsville Citizens Express Concerns

Yesterday afternoon the Jackson County Commission held a work session. The hot topic: Dynetics, Test Bed proposed purchase. Several Larkinsville citizens and Scottsboro City Council Member Gary Speers expressed concern at yesterdays County Commission Work Session about the proposed Dynetic's test bed property purchase, story after the brief commission outline.

Items discussed: 1) County Park will need some cleaning up after the wind storm. The City of Scottsboro has agreed to help in the cleanup efforts, overtime will have to be paid by the county for Scottsboro's equipment operators. The commission will decide on this issue in Mondays regular meeting. 2) Discussion concerning speed limit change on County Rd. 331, speed limit to be 35, another item for Monday's agenda. 3) Garbage trucks are breaking down. Solid Waste personnel made a presentation that engine repairs will cost $15-27K on truck. 4) Contract discussion for housing municipal inmates when applicable. New contract will be voted on at Monday's meeting. 5) Joint Bid Discussion concerning regional debris cleanup due to storms. 6) Proclamation for the 100th Anniversary of Flatrock, Alabama will be voted on and presented at Mondays session. 7) Discussion concerning 3 Council of Aging Buses to be declared surplus and sold on govdeals.com. 8) Mapping and Appraisal Office conference discussion, AAAO Summer Conference. 9) Accounting Clerk vacancy discussion.

Larkinsville Citizens, the Jackson County Commission and the EMA Acting Director discuss the Flood Zone and how the proposed Dynetics test bed might impact the underground aquifer in the area. The area has many sink holes and a former Industrial Park project was cancelled due to the unstable geological structure of the Larkinsville area known as Karst Terrain. Karst topography explained:

 Karst Topography - USGS

 Larkinsville Citizens express concern about proposed test bed at the Stones Cove advertised property.
Within the last couple of months Dynetics Corporation of Huntsville, Al. has expressed considerable interest in the "Stones Cove Property" in Larkinsville, Alabama  http://www.outdoorinvestment.com/land-for-sale/Stone-Cove.html . Stories indicate the property will be utilized as a test bed. Previous story on this blog about the issue: http://arklite.blogspot.com/2012/06/jackson-county-eda-meeting-good-bad-and.html 

The EDA does not have an attorney on its staff to advise the EDA Board on this issue and has not had an attorney for several years according to its CEO Dus Rogers. .

 The EDA and Chamber of Commerce are touting the proposed deal as an "Absolute Honor," making claims of patriotism to have such a test facility. However, it is reported the proposed "patriotic deal"  would bring very few jobs to Jackson County, "possibly 2-3." The "absolute honor" propaganda appears to be a tactic to convince the current land owners to sell.under their advertised asking price of $3.9 million for the 1500ac property called "Stone's Cove." Huntsville Times article: http://blog.al.com/huntsville-times-business/2012/06/dynetics_plans_for_test_facili.html

Surrounding land owners say hold it, not so fast. Stating concerns about Karst Terrain, and possible damage to the underground aquifer. Alabama Water program notice about Karst Terrain and the dangers of pollution. http://www.aces.edu/waterquality/faq/faq_results.php3?rowid=3711

All hands point to the Jackson County Flood Plain Map. County Commissioners inquired of the County Attorney John Porter, "can we make determinations concerning usage of proposed land located in a flood plain?" "Yes," was Mr. Porters reply. The commissioners agreed to place an item on Mondays agenda which will formally request a usage statement of the property which is located in a "Flood Plain." Daily Sentinel article: http://thedailysentinel.com/news/article_3403553e-c7c6-11e1-82b6-001a4bcf887a.html

Scottsboro City Council Member Gary Speers spoke of concerns about a historical cemetery on the property. It has been reported there are possible slave burials and early 19th century burials on the Stones Cove property. Topo map of Pinhook Cemetery  http://www.topozone.com/map.asp?lon=-86.12&lat=34.7039

Jackson County EDA Meeting - The Good, The Bad and The Darn Ugly! UPDATE-June 26, 2012

UPDATE Dynetics issue: Much has been said in local media about the Dynetics issue including a considerable amount of propaganda from local EDA officials, Huntsville Times link: http://blog.al.com/huntsville-times-business/2012/06/dynetics_plans_for_test_facili.html 

The proposed Larkinsville site is to be a "test bed" site. The question is, what is it that Dynetics will be testing and is it dangerous? After examining Dynetics mission and products here is the likely answer: Propulsion and related engines - http://www.dynetics.com/products/space-propulsion  Fuels reference from Dynetics site- "Our capabilities in multiple propellants include liquids, solids, and hybrids, with experience in both green and toxic propellants: liquid and gaseous oxygen, hydrogen, kerosene, propane, methane, ethane, nitrous oxide, hydrogen peroxide, HAN, hydrazine, and HTPB." Hydrazene propulsion, "CLASSIFICATION: B2; probable human carcinogen." CDC info concerning Hydrazene-  http://www.cdc.gov/niosh/topics/hydrazine/

Every month on the 3rd Tuesday at noon the Jackson County Economic Development Authority, EDA, Board of Directors meet; such was the case Tuesday, June 19, 2012. This meeting was Stacey Ledwell's last meeting. Jackson County Commissioner Jack Allen will replace Mr. Ledwell. Information on the Jackson County EDA may be found on line at http://www.jacksoncountyeda.org/

EDA CEO Dus Rogers presents Mr. Stacey Ledwell, outgoing Board Director and Treasurer, a certificate of accomplishment for his tenure as an EDA Board of Director. (photo by G.Morgan)

Education information, the EDA news letter-"Echoes," including events, may be found at this link: http://www.jacksoncountyeda.org/news.html The EDA Workforce Development partnerships with the various schools and organizations in the area are impressive. The partnerships are linked on the EDA site: http://www.jacksoncountyeda.org/education.html

The EDA has a prominent Facebook presence: http://www.facebook.com/jacksoncountyeda

Business Items : First up was discussion related to Dynetics Corporation's plans of locating to Jackson County, Al.  I was informed this discussion was a confidential discussion. Dynetics link: http://www.dynetics.com/about

I was surprised to read this mornings news in Scottsboro's Daily Sentinel disclosing the information. The Daily Sentinel was not present in yesterdays meeting. Quote from Daily Sentinel: "Dr. Marc Bendickson, Dynetics CEO said the company is committed to economic growth in North Alabama and expansion into Jackson County will help facilitate that goal...Company officials confirmed they are considering a site in the Larkinsville area to perform a variety of testing services." Link: http://thedailysentinel.com/news/article_01594c1a-bb28-11e1-b0b1-001a4bcf887a.html

There has been no finalization of any contracts related to this deal. Negotiations are in a critical stage. It is my opinion the release of this information was intentional for the purpose of interfering with negotiations in this critical stage.

Under the Alabama Open Meetings Act such negotiations may be kept from public disclosure due to sensitive contracts related to real estate and business negotiations in which the disclosure could jeopardize the industry locating in the area, thus costing citizens jobs or costing citizens economic development funds and opportunities. Nothing has been finalized concerning this deal.

Apparently this deal will bring very few jobs to Jackson County. There are several environmental concerns for this area, including hydrology and geolgy impacts due to Karst Terrain.
WAFF TV report on this deal: http://www.waff.com/story/18839702/some-residents-unsure-about-dynetics-expanding-into-area?clienttype=printable
VIDEO


In my discussions prior to the EDA meeting, I inquired of the CEO, "does the EDA have an Attorney on the board?" A public boards attorney must certify Executive Sessions (closed sessions) as proper and legal. The EDA does not have an attorney and has not had one for at least 2 years. The reason I was present was due to information I had received concerning accountability relating to actions of responsible persons on the EDA. A lack of an Attorney to advise the EDA Board of Directors and staff  "for years" is an example of failed management.

In other business, Warren Hicks of TVA Economic Development (ED) was present to provide updates on TVA ED.

Mr. Warren Hicks, TVA Economic Development. (photo G. Morgan)

Workforce updates, existing industry updates, CEO's report, and various items of confidential information was discussed. All items of public nature may be found in the news letter or site information.

Spectra Energy may build a pipeline through Jackson County. It was commented Spectra Energy would like to discuss the pipeline situation with the EDA. Spectra Energy link: http://www.spectraenergy.com/  Story links: "Pipeline Possible" http://thedailysentinel.com/news/article_b451e7fa-7ac8-11e1-bab3-001a4bcf887a.html


WE DON'T WANT NO STINK'N NUCLEAR LIQUOR!
Other items of importance disclosed: Brown-Forman Cooperage Mill refused to locate a larger facility in the Jackson County Industrial Park due to the background of the Bellefonte Nuclear Power plant, (paraphrased)"the image was not in conformance to their environmental policies and public image," commented Mr. Rogers concerning Brown-Forman's concern. Article from this blog on Brown-Forman's small facility in north Jackson County: http://arklite.blogspot.com/2011/12/more-jobe-for-jackson-county-brown-and.html

The larger plant deal, phase 2, fell through for the citizens of Jackson County. Brown-Forman Cooperage is building a larger operation near Decatur, Alabama: http://www.areadevelopment.com/newsItems/6-15-2012/brown-forman-cooperage-alabma-expansion-25541612.shtml TVA's Bellefonte Nuclear plant had a negative impact for approximately 200 permanent jobs. The Jackson County Industrial Park is located east of the Bellefonte Nuclear Plant between U.S. Hwy 72 and the nuclear plant. The nuclear plant image would have made for a poor image for Jack Daniel's products.

The Bellefonte Nuclear Plant, not in conformance with the image of Brown-Forman. "We don't want no stink'n nuclear liquor."A similar image is evident from Jackson County's Industrial Park (Ghosts of Bellefonte by G.Morgan http://www.matrr.org/ )