Fri
Apr 3 2009
02:58 pm

In an article the News Sentinel posted online yesterday, Jon Lawler stated he had no relationship to Wood Brothers, the company awarded the construction contract involving $2 million in taxpayer money on Minvilla, the former 5th Avenue Motel on Broadway.

"My connection to Wood Brothers does not exist," Jon Lawler said in the News Sentinel story.

The Sentinel reported that "Wood Brothers was founded by brothers Jerry, Mike and Pat Wood. Pat Wood later founded Lawler-Wood with Jon Lawler's father, Rodney Lawler."

The News Sentinel is incorrect, according to Jerry Wood’s obituary.

continued...

In addition to Pat Wood, Jerry Wood was also a founder of Lawler Wood LLC, He passed away in 2007.

Jerry Houston Wood, Sr. a native of Knoxville, passed away Tuesday October 30, 2007 after a lengthy illness. He was a graduate of Young High School and the University of Tennessee, Knoxville. He served in the United States Army as a First Lieutenant. He was a member of The Episcopal Church of the Good Shepherd where he served on the Vestry, and also served on the Vestry of St. James Episcopal Church where he grew up. He was a founding member of Wood Brothers Construction, Wood Realty, and Lawler-Wood LLC. He was a member of the Home Builders Association of Greater Knoxville, Home Builders Association of Tennessee, and served over 20 years as an elected National Director of the National Association of Home Builders. In October of 2000 he was inducted into the Building Industry of Tennessee Hall of Fame. He served as a member of the Alcoaway Optimist Club, serving as President of the organization in 1976. He had also served as chairman of the Alcoaway Athletic Association, a community group working with the children of the area. Wood coached little league football and baseball. He had been a Commissioner of Knox Chapman Utility District for over 25 years, serving at one point as Treasurer for the District. He served as an honorary member of the Codes Committee for the City of Knoxville, and was a member of the Fraternal Order of Elks, Better Business Bureau, The UT Alumni Association, and a past member of Knoxville Junior Chamber of Commerce.

source: Berry Funeral Home, captured 10:17 pm, April 2, 2009.

As reported here previously, Lawler has made campaign contributions as both a partner and an executive of Lawler Wood, LLC, directly linking him as a partner in Lawler Wood LLC to Wood brothers Pat and Jerry Wood, each founders of the firm along with Lawler's father, Rodney.

Lawler may be able to claim he is not a partner in Wood Brothers Construction, but he is incorrect in stating he has "no connection" to the Wood brothers. He has been a partner and executive in a firm founded by both brothers while he has also been director of Knoxville’s Ten Year Plan to End Chronic Homelessness, according to campaign contribution filings.

About Lawler Wood LLC (from their web site):

Today, Lawler-Wood has more than 300 employees and more than $2 billion in projects. Our focus is development and management for business/commerce, education, health care and recreation/leisure, with an additional emphasis on affordable community housing through our sister company, Lawler-Wood Housing.

About Lawler Wood Housing, LLC (from their web site)

Lawler Wood Housing, LLC has developed more than 50 residential properties including new construction and acquisition/rehab. Over our 30 year history in the housing industry, we have tried to maintain the highest level of integrity and have emphasized the importance of quality in our development and management activities. In recent years, the majority of our projects have involved the acquisition and rehabilitation of existing apartment complexes using tax-exempt bonds and Low-Income Housing Tax Credits.

Lawler Wood Housing LLC, while claiming a 30-year history, was only incorporated on July 28, 2004.

To recap:

  • Jon Lawler, the director of Knoxville’s Ten Year Plan to End Chronic Homelessness has strong ties to the construction company awarded an unadvertised contract to redevelop Minvilla.
  • The construction company stood to profit from this contract.
  • A company with which he has had a long association is one of the largest low-income housing developers in the country with a $2 billion portfolio, creating potential conflicts between his city position and his continuing relationship with his firm.
  • A variety of for-profit companies are being set up for the sole purpose of allowing unqualified nonprofits to take advantage of tax credits. For example: "Minvilla Manor will be owned by Minvilla Manor, LP, which is owned and controlled, ultimately, by VMC. The for-profit ownership entity allows the project to utilize low-income tax credits. A professional real estate management company hired by VMC will manage the asset. VMC will operate the facility, providing case management and other client services." source: TYP web site.

Editorial Note:
I am personally puzzled by why a project such as Minvilla has been so strongly pushed by the city and the Ten Year Plan office when, at over $200 per square foot and $7 million for only 57 units, the project has never made sense financially.

It is time for the Knoxville media to wake up and follow the money--not only for the construction phase of the project, but also to follow to whom and how the management contracts will be awarded on Minvilla and other permanent supportive housing projects.

It is also time for the decisionmakers—Mayor Bill Haslam, Knoxville Community Development Director Madeline Rogero, and members of City Council to no longer turn a blind eye and let such an egregious waste of resources occur while there are homeless truly in need of housing. There are tent cities for newly homeless people going up across the country, including in Chattanooga, while Knoxville fiddles with such a wasteful project. We no longer have the time to waste so much time and money on housing so few chronically homeless.

Clarification: Based on a quote in the News Sentinel article, I called Madeline Rogero today to ask a few follow-up questions. She asked that I clarify the difference between "no-bid" and non-advertised. I told her I would be happy to comply, as soon as I received documentation as to how Southeastern Housing Foundation, the Ten Year Plan Office, and Allan Architects conducted their contract award to Wood Brothers Construction. She mentioned that Allan Architects had had a fire. She added that her office was not involved in the award of the construction contract but that due to the NSP federal funds that are now involved, this raised the standard for the bidding process on the construction contract.

AJ's picture

According to rumors, Lawler

According to rumors, Lawler may be running for Mayor in '11.

LawDog01's picture

Ron Peabody for Mayor?

Recently, I learned that Ron Peabody is planning to run for Knoxville Mayor next year.

I do not know Mr. Peabody nor his background but I'd support him.

Rachel's picture

I do not know Mr. Peabody nor

I do not know Mr. Peabody nor his background but I'd support him.

I sincerely hope that statement is a joke.

I say this not to denigrate Mr. Peabody, but to question anyone who would vote for someone while not knowing the candidate nor "his background."

Pam Strickland's picture

Really?

From what I've seen of the man's arrogance, I really do not think it would be a successful campaign. It would be painful and embarrassing both for him and for the city, I'm afraid. Let's hope that this is just a bad rumor.

fischbobber's picture

Funny, that's the same thing

Funny, that's the same thing we were saying about Owenby.

citizenX's picture

According to rumors....

.....Lawler may be running for Mayor in '11.

I would welcome that. He may want to think about running for the city limits as more truth begins to emerge regarding the Minvilla Manor project.

This deal is beginning to smell like four day old chicken innards on a hot summer day.

Hopefully, no matter who runs for Mayor we will elect someone who realizes that there is more to Knoxville than Gay Street and the riverfront. Oh well, I can dream, can't I?

Lisa Starbuck's picture

Cozy Relationship

Lawler-Wood also scored an approx. $600,000 broker fee in the controversial property acquisition at Midway Road. That's your tax dollars and mine that went to pay a broker fee for approx. 370 acres of AG land that Knox County Development Corporation purchased for an industrial park that will likely never happen.

sugarfatpie's picture

Cozy indeed

I wonder if Lawler-Wood was also involved with the $1000 dollar checks that were given to County Commissioners during a private presentation on the Midway Industrial Stinkdoggle by the Knoxville Board of Realtors.

RHM's picture

More Lawler Wood Coziness

Up Goose Creek's picture

Prediction

I predict with this new bidding another contractor (or 2) will be hungry enough to buck the system and the bids will come in much lower. Madeline Rogero will keep things on the up and up.

I supported this project when first proposed because I figured it was the only way to preserve the structure. As the costs soared, not so much.

____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."

whooshe65's picture

rocketsquirrel,

What company or entity owns the Minvilla Manor Property today?

bizgrrl's picture

It appears, as of 9/4/2009,

It appears, as of 9/4/2009, the INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF KNOXVILLE owns the property (447 N Broadway). Prior to that it appears MINVILLA MANOR LP was the owner of record as of 3/2/2007. Then for one year prior to that it was owned by the VOLUNTEER MINISTRY CENTER INC.

You can always look this up using KGIS (Knox Geographic Info Sys). Add it to your favorites.

Up Goose Creek's picture

Why

You'd figure that a person involved in a land use issue would know how to use the local land survey to find simple facts like that one.

Why would you think that? Are we supposed to limit civic discussion to those who are familiar with the obscure corners of the internet?

Sometimes I get so tired of your elitist snark. Why are you so insecure that you feel compelled to constantly denigrate others?

rikki's picture

There is no more elitist

There is no more elitist behavior than rent seeking.

wtf?

michael kaplan's picture

i wouldn't say elitist, i'd

i wouldn't say elitist, i'd say petty bourgeois, to keep the discussion on a class rather than judgmental basis. being a landlord in an economic structure that encourages/rewards landlordism (new term?) isn't necessarily negative, just a fact.

smithrob2010's picture

OK, why does the IDB own

OK, why does the IDB own Minvilla? Is this just a contruction issue, and then it will transfer back to the Minvila Manor, LP entity?

And does anyone know who the Limited Partners of Minvilla Manor, LP are?

michael kaplan's picture

i researched this for an

i researched this for an article i wrote a few years ago for the knoxville voice and honestly can't remember the details. but i do recall that, after its condemnation by the city, the property was transferred to ownership by a private entity intending to develop it as condominiums. the numbers didn't work on that, at which point the VMC project came into being.

but seriously, it's a really good question why this property is owned by IDB which, in effect, is public ownership.

michael kaplan's picture

here's what i wrote in

here's what i wrote in 2007:

Similar circumstances are evident in our own mission district. Take the case of the Fifth Avenue Motel. It was built in 1913 as Minvilla, thirteen row-house residences grouped along N. Broadway and Fifth Avenue. Used as offices in the 1960s, the buildings were later converted into an inexpensive rooming house that served a low-income population for over two decades. A victim of deferred maintenance and a changing neighborhood, the building was condemned by the city and closed in 2002. After the owner invited the city to demolish it, the motel was included in Knox Heritage's most endangered list, then incorporated in a Worsham Group plan to restore the buildings as affordable private housing.

Nothing came of the project, and it was not until 2006 that the building's future was secured when the homeless issue intersected with increasing real estate values along Gay Street. The occupancy of the Volunteer Ministry Center (VMC) at the southwest corner of Gay and Jackson by a low- or no-income population was not consistent with the upscale development taking place along the rest of the 100 block. This stretch between Summit Hill Drive and Jackson Avenue, just a few years before, was anchored socially by Harold's Deli and a motley assortment of commercial, retail and residential uses. (Harold once said, in all seriousness, that "this block will never come back.")

The opportunity to realize the "transfer" of this population presented itself when the Fifth Avenue Motel was condemned, and the (Worsham) rehab project stalled. The Volunteer Ministry purchased Minvilla in 2006 for $129,000 shortly after the city and county approved a $470,000 federal grant to purchase a building abandoned by the Knox Area Rescue Mission on N. Broadway. These actions were contingent on the VMC vacating its premises on Gay Street, and there will certainly be interest in "cleansing" that corner of Gay and Jackson, a last enclave of poverty on what has become the most gentrified street in downtown.

edens's picture

Bit of a tangent, but do you

i wouldn't say elitist, i'd say petty bourgeois, to keep the discussion on a class rather than judgmental basis.

Speaking of, would it be petty of me to ask if you ever wonder who got "cleansed" so you could realize your transfer to Old North?

tiredofthelies's picture

Minvilla Manor, LP is a For

Minvilla Manor, LP is a For Profit Company. VMC and Southeastern Housing Foundation are the Partners.

The actions of VMC, Southeastern Housing Foundation and Knoxville Leadership Foundation are boardering on Criminal.

Minvilla Manor and Flenniken have taken Federal Funds that are designated to be for Non Profits, and those funds have ended up in the Hands of their For Profit companies.

The new County Administration has realized these and other problems, and has begun to take steps to stop the TYP. The City Council, by their actions Tuesday can send the same kind of message. Stop the Lies !

Hoyt Conner's picture

"Minvilla Manor and Flenniken

"Minvilla Manor and Flenniken have taken Federal Funds that are designated to be for Non Profits, and those funds have ended up in the Hands of their For Profit companies."

Didn't Mark Harmon bring that up in Commission as a serious problem?

You would think any federal funding agency would check that out. Why would the government let for profit companies get a multi-million dollar building using taxpayer money? This is like Renee Kesler all over again. Do they ever learn?

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