I haven't seen the totals for Madeline Rogero, Ivan Harmon, or Joe Hultquist yet, but Padgett says he's raised $146,865 this quarter and $271,769.41 total, with $170,435 on-hand. For someone running his first race against three undeniable political pros, these totals are flat-out impressive by any account. Unless Harmon comes through with numbers in the $75,000+ range to contend via media/direct mail, I think this is going to translate into a Rogero-Padgett run-off with Padgett putting up a pretty tough fight and not conceding any geographic section of town. Game-on.

Rachel's picture

Weren't you telling us just a

Weren't you telling us just a few weeks ago how well Harmon was going to do?

knoxrebel's picture

Things change

I still think Harmon will pull in the mid-20s, percentage wise. But as the campaign progresses, things are going to change. The biggest "change" so far, to me at least, is just how much money this guy raised in 3 months against Madeline, Ivan and Hultquist. Anyone who has been a candidate and tried to raise money realizes how significant this is for Mark. If you have not been a candidate or at least a fundraiser, I don't think you can appreciate it nearly as much.

As for comments about Mark's public presence thus far, I think it is very obvious that he is running a "momentum" stage-by-stage style campaign, focused first on organization, then raising the necessary dollars, and all of this other stuff - yardsigns, stickers, billboards, etc (which are severely overrated) - will take-off later this month or early August, as (my guess is) will his media campaign.

cafkia's picture

I haven't seen the breakdown

I haven't seen the breakdown so I am asking serious questions here. If you look at the zip codes on the Padgett donations, how many of the them can vote with anything other than their money? Of the large donations he has received, ($250.00 and up) how many have come from Knoxville city residents? How do his small donations ($249.00 and down) compare with the other candidates? How much of what Padgett has raised is available to him in the primary?

In my travels around the city, I have seen a few Harmon yard signs and a number of Madeline tee shirts. Padgett can reasonably be proud of the money he has raised but, unless he is running for a different office than advertised, wouldn't it be better to have enthusiastic local citizens, eligible voters if you will?

JHayes's picture

So true!!

Cafkia that is on one of the best posts I have seen on knoxviews in a while. Very true

Lonniewood's picture

Great to see the race for

Great to see the race for city Mayor is so competitive. Rogero has served on County Commission and lost a close city mayor election to Haslam. She has solid support from parts of the city and strong name recognition. Many voters are looking for a new face on the local scene. I am glad a young person like Padgett, with lots of energy and fresh ideas is on the ballot. The large amount of campaign funds will allow him to get his platform heard. Joe, while unlikely to win, can force the discussion of important issues and influence the race in a spoiler role. Harmon will get the FOP endorsement and lots of foot soldiers campaigning door to door. Being the only Republican, he could make the run-off, but he cannot win in November.He will run strong in the Northwest where he was elected to the school board, City Council, and County Commission.

jbr's picture

The last financial disclosure

The last financial disclosure on the Election Commission site is from April 11, 2011. Is there a later one somewhere?

(link...)

Rachel's picture

The statements are due

The statements are due tomorrow and should be posted really quickly. Padgett just released his early.

reform4's picture

It's up now

Largest contributions:
$500 from Tim Graham
$1000 from Dr. Robert Petrone (B&T Distr)
$2000 from Apex Medical Group
$1000 from Robert Campbell, Campbell & Assoc
$1000 from Jim London, Atty
$1000 from Paul Murphy, Murply Development
$1000 from Clark Jones, Owner of Jones Nissan (Savannah, TN)
$1000 from GigiMark, LLC
$1000 from Ray Mubarek, East TN Mortgage Connection CEO
$1000 Roger Kiger, Visionary Horizons
$1000 John Faris, Faris Properties
$1000 Dennis Huckaba, GEOServices
$1000 Marvin Hammond, Hallsdale Powell Utility President
$2000 Blalock Operations Center
$2000 Avis Phillips, Avisco
$2000 Teddy Phillips, Phillips & Jordan
$1000 Don Daugherty
$2500 Chad & Jennifer Kennedy
$1000 Dr. Naseem Siddiqui, also Apex Medical Group
$2000 James Rooney, 3-Minute Magic Car Wash
$2000 Thomas Boyd
$2000 Harrison Boyd
$2000 Boyd Entertainmet Group
$2000 Jenny Boyd
$2000 Tracy Thompson, Owner, Medical Supplies Company
$2000 Susan Thompson
$1000 Mark Williams, atty
$1000 Sidney Gilreath
$2000 Elizabeth Stowers
$2000 Brian DeBusk
$2000 Amy Williams
$4000 T. Wayne and Misty Williams
$2000 Tim Williams, 21st Mortgage CEO
$2000 Stephen Bailey, Volunteer Lumber
$1000 Dan Stanley
$1000 Judy Gooch, Oak Ridge
$1000 J Haslam 3
$1000 Richard Ray
$1000 Stephen Adams,
$2000 Jane and Charles Slatery
$2000 Ann Bailey
$2000 Burgers, LLC
$1000 Faulkner Properties
$1400 Lisa Amyx
$1000 Bill Thomas, TIS Insurance President
$2000 Ross and Sue Bagwell (RIVR Media)
$1000 James Johnson, Pilot
$1000 Witney Haslam Johnson
$1000 3rd and Long, PAC, Asheville (our NC congressman?)
$3000 Andrew Johnson, Beverage Control CEO

... my mind when numb at this point.

Clearly, he's not shy about asking for big numbers from the right people at certain events. Several of them follow the same pattern ($600 at one event, $14000 at another). He focuses on the heavy hitters, not a lot of small contributions.

Rachel's picture

Maybe I'd see them if I

Maybe I'd see them if I looked down the list, but I don't see a neighborhood person in the bunch.

Pam Strickland's picture

I've seen the Harmon signs

I've seen the Harmon signs and the Madeline t-shirts. Nada re Padgett. I haven't examined his donations list, but Cafkia makes immeasurable sense. I'm not impressed by him myself. He doesn't seem to gave political instincts, which is just wrong for a candidate.

Tamara Shepherd's picture

*

Wow. Cross-posted to the Padgett website in under four minutes.

Nothing like making your own media coverage...

Gregg Lonas's picture

This is just

This is just one example of why the local democrats are known for eating their young. One would think after the recent poundings at the poll and the lack of democratic candidates willing to seek office, the democrats might be a little bit happier having two candidates to choose from. I will disclose that I am a Mark Padgett supporter, but not elegible to vote in this race. I remember President Obama wasn't my first or second choice, but sure the hell didn't bad mouth him. After he was nominated, I campaigned for him in North Carolinia; a state he did carry. I understand this is a nonpartisan race, but don't understand the negativity towards Mark Padgett. I think it is awesome that Mark Padgett has the ability to raise $271,000.

reform4's picture

THIS is the cycle to beat Duncan.

If I were Mark, I'd bank whatever I could from the campaign that I can rollover, get my name out this fall, and position myself for a run against JD3 in 2012. Duncan voted for the "Kill Grandma" Ryan budget and the end of Medicare, and that can be seriously played.

If the DCCC had half a brain cell, their first and foremost mission would be to make sure there is a Dem running in *each* of the 435 House districts, no matter how safe it looks for R's. Look at NY-26. If Dems can take that seat, they could take TN-2.

Man, I really hope that's Mark's strategy.

Lonniewood's picture

I enjoy reading the posts on

I enjoy reading the posts on KnoxViews most of the time because I am a very liberal Democrat and I agree with many of the views expressed on this site. Sometimes a few of those individuals that express compassionate, kind, and caring ideas and viewpoints contradict themselves. They are so idealistic in the abstract, but turns out they just can't stand people. They remind me of mean spirited Republicans that cannot argue and disagree and debate without demonizing or hating you. This is sad. I wish that views could be expressed and debated on merit and facts rather than personal attacks.

B Harmon's picture

Precious words from G Lonas

Mighty interesting comments from Mr Lonas considering what many of your friends did to Amy during her campaign.

First, I find it funny that Daugherty comes to Kviews to start this thread, knowing that most of us here are Madeline supporters and have been long before Padgett entered the race.

Secondly, any candidate that raises over a quarter of a million dollars for a mayoral election deserves to have those contribution (and expenses) reviewed. I want to know who is funding this campaign, where are all those big dollars coming from and I do find some very interesting names on that list.

Lastly, while I was looking at the disclosures, I wonder why the final disclosure for Daughtery's failed attempt last year is not posted. I assume he has filed it... I am now curious as to how much that campaign cost. It kind of proves that money does not buy the win.

knoxrebel's picture

Becky, get over it!

There you go again, Becky. Why can't you and other folks get past this? It's over. I lost the election and am perfectly content with that result. I feel bad about the folks who helped me and supported me and wish I could have made a better showing for them. But Amy won and that's that. Gregg Lonas is dead-on, Democrats have a great opportunity here, but not if they beat each other up. If either Mark or Madeline wind up against Harmon, please tell us how are your comments going to help get either elected?

And incidentally, the money we raised and spent last year does not seem very relevant to this race. After all, I was running as an Independent and that required us to raise and spend alot more than AMy, as she was a party-nominee. I am actually prtetty proud of the fact we got as many votes as we did, since no Independent had ever received more than 32% of the vote in a county election. Finally, if you want a copy of any of my reports, I'd be glad to email them to you. But really, let's please get over this petty bickering. It won't help anyone.

Tamara Shepherd's picture

*

Lastly, while I was looking at the disclosures, I wonder why the final disclosure for Daugherty’s failed attempt last year is not posted. I assume he has filed it... I am now curious as to how much that campaign cost. It kind of proves that money does not buy the win.

Becky, I took the liberty of phoning the Election Commission office at 215-2480 to ask your question, as I had wondered if Daugherty possibly donated any of his residual campaign contributions to another candidate.

Linda there says that Daugherty, who had a campaign balance of $6878.11 per his 7/26/10 filing, spent all but $2400 of that amount in the last days before (and just after) the 8/5/10 general election.

She tells me that these numbers are from Daugherty's last disclosure, which he did file with their office on 10/15/10, but for some reason the disclosure was never posted to their website.

As to his residual balance, she says he did not donate his remaining $2400 to any other political candidate, but instead donated it to the Knoxville-Knox County Focus.

This being the case, I can only assume that he has finally ended that "love affair" he so frequently spoke of and decided to instead become unabashedly promiscuous.

Tamara Shepherd's picture

*

Thanks, Cafkia, Rachel, and Becky. Yours were exactly the points I planned to make after reviewing campaign financial disclosures.

In last year's Daugherty versus Broyles commission race in the Second District--or "centering on" the Second District, I should say--Daugherty had more than double, nearly triple, the campaign dollars--but just 41% of voters.

Personally, I think the problem posed for voters by a Padgett candidacy is that it smacks of an "heir apparent" kind of run, which I don't think is likely to be very palatable in Knox County for a long, long time. Remember, Duncan III got in unopposed.

Rachel's picture

I've now been down Padgett's

I've now been down Padgett's entire list, and although I don't know every "neighborhood" person in Knoxville, I don't see one name that falls into that category.

I DO see Scott Davis, the developer leading the charge (and not always honestly) against the Hillside/Ridgetop Plan.

B Harmon's picture

I must add...

I have a few questions for those who know Mark Padgett and find his business credentials worthy of his becoming the "CEO" of Knoxville.

Can you tell me how many full time employees he has working for his company? Are they contract or consultants or actually payroll employees? Does he pay for their health insurance?

I understand he is a great business man and started this successful business, I believe, 6 years ago and it has grown since then.

reform4's picture

I believe...

.. this question came up at 4th District library meeting. I believe he said he had some contractors, and he does not offer health insurance.

Tamara Shepherd's picture

*

Padgett's business, which operates in Knoxville and Nashville, is called eGovernment Solutions. The Knoxville location is at 5205 Homberg Drive, 37919.

According to the TN Secretary of State, eGovernment Solutions is "member managed" utilizing the company's two members.

Listed there as "registered agent" for the business is Blake L. Bookstaff at a Knoxville business address, 5201 Kingston Pike, Suite 6325, 37919.

Bookstaff has previously had some legal trouble as the controller of many 800 phone numbers, then carried by Sprint, determined to be part of a broad "misdial scheme."

The scheme was such that customers misdialing popularly-called 800 numbers and instead linking to the "look-alike" 800 numbers owned by parties like Bookstaff would incur inordinately high costs for their misdialed calls from their carriers. Those carriers (like Sprint) would then pay inordinately high commissions to the parties who own the 800 numbers (like Bookstaff).

In April, NBC television's “Today” show ran an exposé that followed up on Tolchin's investigation and found that a Knoxville, Tenn.-based man named Blake Bookstaff controlled many of the 800 numbers that Sprint and ASC carried. Bookstaff declined “Today” interview requests, and his unwillingness to talk made him appear a mysterious figure that operates in and around the telecom industry's dark underbelly.

In an e-mail to Telephony, Bookstaff declined to comment because of the pending lawsuit. He did, however, say that his companies were Sprint customers and that he has been inaccurately portrayed in media reports as the one who controlled all of Sprint's business. “Out of the 84 numbers mentioned in the lawsuit against Sprint, only 13 are controlled by any of my companies,” Bookstaff wrote.

Sprint has done its part to distance itself from furtive third parties that control 800 numbers, but it has done little to bring any guilty parties out from the shadows. In a vague statement, the company said it has “taken steps to end its relationship with certain customers.”

Padgett's eGovernment Solutions, though, does not appear to have any inclination to end its relationship with Bookstaff.

Not only is Bookstaff the "registered agent" for Padgett's business, according to KGIS it is also the leaser for Padgett's office space at 5205 Homberg Drive.

I'm not sure, but wouldn't Bookstaff's own office at 5201 Kingston Pike be extremely close by?

Also, is Bookstaff possibly the other of the "member managed" eGovernment Solution's two members?

All I know for sure is that his close business association with Bookstaff causes me to want to know more about Padgett's business in general.

rht's picture

as to bookstaff connection,

as to bookstaff connection, bear in mind that there are such things as professional agents who serve as agents for dozens or hundreds of different businesses. I think their main function is simply to serve as an established street address to receive and forward important mail and legal notices. Bookstaff might be such an agent for padgett's business, in which case any connection between padgett and bookstaff (and other customers of bookstaff) might be very limited.

EricLykins's picture

professional agents who serve

professional agents who serve as agents for dozens or hundreds of different businesses. I think their main function is simply to serve as an established street address to receive and forward important mail and legal notices.

Those have become quite popular and Wyoming is trying its best to compete with Nevada and the Cayman Islands. This isn't necessarily related to the thread, but Tamara has an interesting point below that these things may sometimes exist to avoid "important mail and legal notices" that may have some liabilities enclosed.

SHELL GAMES: A Reuters Investigation

Articles in this series are exploring the extent and impact of corporate secrecy in the United States.

Wyoming Corporate Services will help clients create a company, and more: set up a bank account for it; add a lawyer as a corporate director to invoke attorney-client privilege; even appoint stand-in directors and officers as high as CEO. Among its offerings is a variety of shell known as a "shelf" company, which comes with years of regulatory filings behind it, lending a greater feeling of solidity.

"A corporation is a legal person created by state statute that can be used as a fall guy, a servant, a good friend or a decoy," the company's website boasts. "A person you control... yet cannot be held accountable for its actions. Imagine the possibilities!"

Once again, this is not necessarily related to this Padgett thread or the particular shell company being studied here.

Bbeanster's picture

Watch out!

I wouldn't want Tamara on my ass.
She is the best digger of fact in this town, bar none.

B Harmon's picture

What?

I don't see the "demonizing or hating" or personal attacks.

I see a number of us posing questions about a candidate's credentials. One that has raised a boat load of money that makes him a serious candidate for being our next mayor.

This is Padgett's first time at bat for campaigning and he and his supporters need to toughen up if they thinks what is being said here on Kviews is bad stuff.

So what here has ruffled your feathers Lonniewood?

Daniel Lee's picture

Padgett has raised a whole

Padgett has raised a whole lot of money. It is not because he has any record of any civic involvement in Knoxville. He has never voted in a city election and nobody knows of a single public meeting he attended or any issue he showed any interest in until he announced for mayor. Whatever reason for supporting him is all based on his making a payroll and being a CEO and that stuff. Well it is not only appropriate, it is absolutely necessary that this be checked out because that is all there is. Harmon, Rogero, and Hultquit have years of participating in the community. This guy only has some phrases at this point.

We have to understand why all these folks gave all that money. At the very least we have to know the following. How many employees does he have? How many clients does he have? Since these are all government contracts were they competitively bid? After all he wants to use this experience to manage a city with a very large budget and over a thousand employees. I hope these questions are asked and answered because just showing up on the scene and saying you are a great business person that should be mayor is a bit strange. Having all that money flying at him is even stranger. This all begs for a lot of research. Thank you Tamara for getting it started.

Tamara Shepherd's picture

*

KNS reported back in February that eGovernment employs "fewer than a dozen" people (although I note that reform4 says Padgett himself characterized those as contract laborers lacking benefits, not as employees) and the same article said the company then had "about a dozen" clients statewide.

Meanwhile, I just noted a discrepancy in the info on eGovernment among various websites:

The website for eGovernment Solutions says the address for that business is 5205 Homberg Drive.

Both the TN Secretary of State website and the KGIS website say the address for office leaser and eGovernment "registered agent" Blake Bookstaff is 5201 Kingston Pike.

HOWEVER the TN Secretary of State website (same link as above) says that the business address for eGovernment is ALSO 5201 Kingston Pike.

Why does eGovernment cite two different Knoxville business addresses?

Does Blake Bookstaff work out of the same office as Mark Padgett or does he not?

And what, exactly, is this role Bookstaff serves as "registered agent" for eGovernment?

Tamara Shepherd's picture

*

Okay, looking under the "History" tab for eGovernment at the Secretary of State's website and pulling page views for each of the two company "control numbers" found there, it appears that these changes occurred on 9/28/06:

--A former company named "C.P. Liberty, LLC" became "eGovernment Solutions LLC"

--The "principal office" address for eGovernment became 5201 Kingston Pike (Bookstaff's address)

--Blake Bookstaff became eGovernment's "registered agent" (that agent was formerly the old company itself, "C.P. Liberty", the site says) so the "registered agent address" also changed to 5201 Kingston Pike.

I'm thinking, then, that the Homberg Drive business address shown at eGovernment's own website is out of date and that eGovernment has operated out of Bookstaff's office since 9/28/06?

Anybody?

Rachel's picture

Have you ever thought of

Have you ever thought of hiring yourself out as a researcher? I'd hate to have you on my case.

BTW, there is some very interesting info about Padgett's company that I had totally forgotten over at KnoxBlab. Read post #5317.

Tamara Shepherd's picture

*

KNS reporter Scott Barker on KnoxBlab (per Rachel's link, above):

Oh, but (Mark Padgett) did seek a contract here. With his dad. We wrote about it extensively. It's no longer on our website but tomorrow when I'm at work I can access our internal archives and post parts of it. Mark was just starting out and his dad gave him a contract to install tag renewal software in the Knox County Clerk's office. Mark's company wasn't being paid but benefitted from being able to work out the kinks in the newly developed software without risking losing a client. Such tweaking would give him a real leg up on any competition for business in the other 94 counties in Tennessee. The plan was that after a year Mark's company would start charging a fee for every transaction. When we started writing about it, Mike Padgett said he would keep using Mark's software. The arrangement violated the Knox County Procurement Code, but as an independent officeholder, Mike Padgett could, and initially did, ignore it. After about half a dozen stories (including one that included the tidbit that the state was developing a renewal software program that would be available for free), Mike Padgett terminated the contract.

Yes, I remember the several KNS stories on this and I'd already searched their website, trying to refresh my memory as to all the details.

I was thinking that there was a "father-and-son" no-bid contract back then, too, I just couldn't recall exactly how/when the younger Padgett was to begin getting paid by the county.

When Scott posts these old KNS stories from their "internal archives" to the KnoxBlab site, I want to re-read them.

I think we'll find that the elder Padgett was also "offended" that someone questioned his sense of entitlement.

Somebody's picture

Lots of fun at that address

Interestingly, also operating out of that address, 5201 Kingston Pike, Suite 6325 is something called Malt Shovel Media. The domain lookup for maltshovelmedia.com notes the administrative contact as Michael Mitchell, a name often associated on the blogs around here with handles like #9, Number 9, etc, a character well known for political prevarication.

(link...)

I don't know what it means, but it sure is interesting.

Tamara Shepherd's picture

*

Here is the "C" in "C.P. Liberty, LLC," which Jeff Conyers' LinkedTN page says existed for just one year, before Bookstaff presumably stepped in.

JHayes's picture

I wonder if the News Sentinel will pick up this info

We have already had the infamous MLK parade incident and don't forget that he was 8 months late on paying his business taxes.

Someone posted above that he hasn't voted in any city elections. If that is indeed true, will someone post his voting record on here. I know that sometimes in city council elections we make a bigger deal than in my honest opinion we should about that, but if someone is running for mayor they best have had their ass out voting each time.

I don't understand why Padgett didnt start out by running for city council. Like mentioned above, I hadn't even heard of him before he started running for mayor.

Does anyone even know if he has ever been a member of a neighborhood association/watch/group? If not, it would make sense for no big neighborhood people across the city to donate to his campaign.

Rachel's picture

Padgett didn't vote in city

Padgett didn't vote in city elections nor attend any meetings on city issues until recently for the simple reason that until May 2010 he lived outside the city limits.

And I totally agree that a total newcomer - both to city issues and to running for office - would have been smarter to run for City Council first. I guess he's in a hurry.

JHayes's picture

Wow

That's all you can say. Especially when you throw in that people are donating that kind of money to him.

Lonniewood's picture

You make a logical argument

You make a logical argument. However, voters are not logical. Bill Haslam did not have a bit of experience with city government before being elected Mayor. His business experience was not impressive either. He was elected because of a very well funded campaign. Also, Ivan Harmon has won multiple city and county elections, does that make him more qualified than Padgett?

Tamara Shepherd's picture

*

(Haslam) was elected because of a very well funded campaign.

But Haslam didn't bring the political baggage to his campaign that Mark Padgett brings, Lonnie.

Correct me if I'm wrong, but isn't it the case that not one of the 19 former commissioners nor any of the five fee officeholders associated in any way with the term limits decision has been re-elected to public office (to include Ivan Harmon, in fact)?

So his relative youth, his lack of experience in public office, his absence of business background, and his previous attempt to establish an income stream from Knox County through a no-bid contract with his daddy (when the same service was available for free through the state) are not Mark Padgett's only forms of political baggage: His family name is also associated with yet another longterm county officeholder who, for years and years, just wouldn't go away.

Tamara Shepherd's picture

*

...(Mark Padgett's) previous attempt to establish an income stream from Knox County through a no-bid contract with his daddy (when the same service was available for free through the state)...

And what about this point, anyway?

According to Scott Barker, this service that was/is the basic thrust of Padgett's eGovernment business was already available to county governments for free through the state.

Is this still the case?

And if so, is Padgett still trying to "save county governments money" by charging them for services that are available through the state for free?

I have no idea how to look into that question, but SOMEBODY needs to...

Bbeanster's picture

I have asked Mark why he

I have asked Mark why he didn't start by running for City Council. He said he was offended that I'd ask such a thing.

Rachel's picture

No joke? That's amazing. He

No joke? That's amazing.

He also told me, standing on my front porch, that if he lost this election he would go back to the private sector. Said he had no passion for politics and that he just saw this as an opportunity.

This was in response to me nicely saying that I was sure that whatever the outcome of the election we would see him in public service in the future.

I remember it well because I thought it was such an odd thing for a candidate to say.

Dante Malebranche's picture

J'accuse

Procurement code applies to all county offices
Knoxville News-Sentinel, The (TN) - Monday, July 11, 2005
Well, it's about time.

If it looks like a duck, walks like a duck and quacks like a duck, it probably is a duck, and we're glad County Clerk Mike Padgett has finally taken notice.

At issue is the clerk's office contract with a company owned partly by Padgett's son for an online license-tag renewal system. At the request of County Mayor Mike Ragsdale, Padgett has finally agreed to terminate the contract.

When the arrangement came to light in May, Ragsdale said it was problematic because of the family relationship, but Padgett said it was not a conflict of interest. At the time, county purchasing director Hugh Holt said Padgett, as an independent officeholder, could not be forced to follow the procurement code.

The contract was with CP Liberty LLC, co-owned and operated by Mark Padgett and Mark Conyers, son of Gov. Phil Bredesen's chief administrative officer. Both Mark Padgett and Conyers are former state employees.

Under the contract, the firm would provide customized software for tag renewals that would allow users to pay by credit card. CP Liberty was not to be paid for its services during a one-year trial period, but the contract called for the clerk's office to provide feedback and assistance in refining the software. The contract also required the
office to demonstrate the software for other Tennessee counties interested in purchasing the software.

In an opinion released June 24, County Law Director Mike Moyers said all county employees, including elected officials like the county clerk, must abide by the Knox County Procurement Code, bolstered by voter approval 11 months ago to apply to all county offices. Moyers left it up
to Holt to determine whether Padgett violated the rules.

In a memo to Ragsdale released June 29, Holt outlined three violations:
Padgett didn't go through the Purchasing Department, didn't open the contracts to competition and didn't get approval from finance officials or the mayor before signing a contract with a family member.In the meantime, Dick Moran, who runs the county's Information Services Department, said his employees could do the work in-house.

After Holt's memo, Ragsdale asked Padgett to end the contract because it violates county purchasing rules. Padgett also agreed to an audit of online transactions made since his office began using the software May 12 and asked Ragsdale to issue a request for proposals to get the service up and running again.

"If this is what it takes to comply with the procurement codes of Knox County, I will do it," Padgett said.

We're pleased to hear it. We think the transparency of competitivebidding and openness in procurement decisions will benefit the county in the long run. Padgett says the public loves the online service. "I hate to take something away the public appreciates," he said.

While we can understand that the public likes anything that makes doing business with the clerk's office easier and more efficient, there are ways to provide this service without giving the appearance of impropriety.

Officials must remember they work for the public and answer to the public. An action that gives the appearance of impropriety can be as damaging as improper behavior and do as much injury to the public trust.

We're glad Padgett has agreed to follow the county procurement codes. There's a reason for them.

Tamara Shepherd's picture

*

When you go back and edit a previous post, it is difficult to suss out what you changed. Not a criticism, but a gentle reminder from folks who are loving ever minute of your "dust busting."

Sorry. My changes were to spelling and grammar. I found I'd misspelled "leaser" as "lesser" or "lessor" or some such in two different spots. In yet another spot, I found I'd typed "Conyer's" rather than "Conyers.'" I probably shouldn't have bothered with the corrections...

But I guess I'm not familiar with this term "dust busting?" I've meant only to express my frustration with a candidate whom I think is much less qualified for the office in question but whom nevertheless appears to be a potential spoiler in this race.

Then, too, as relates to Gregg's observation that he personally held his tongue and campaigned for his third choice, Obama, in the last federal general election, I'm not sure that shoe fits WRT the mayoral campaign underway.

After all, Obama did not have the potential to win his partisan race in the primary. Rogero, though, definitely does have the potential to win her non-partisan race at that juncture. Not that I have either her instruction or her permission to write here as I do, but...surely it would be her choice to win her race earlier, rather than later?

So, as knoxrebel says, "game on."

Tamara Shepherd's picture

*

OMG. With all this "help," surely Padgett the Youngest's campaign will turn out as sadly as did poor Matthew Jones,' whom you'll recall got so much "aid" from Lumpy...

(So Mitchell and Peabody are NOT joined at the hip, then???)

EconGal's picture

Bookstaff, Mitchell, Mitchell (Padgett?)

I do not believe that the Mike Mitchell associated with Blake Bookstaff's various businesses is not the same Mike Mitchell as has been known as Number 9 and other cyber nom de plumes.

I know the "Bookstaff Mitchell" and would be shocked if he had the time or inclination to write some of the things I've seen attributed to the more provocative and prolific Mike Mitchell.

I think I also saw a picture of the message board Mike Mitchell once at a candidate forum. Not the same guy as Bookstaff's CFO.

EconGal's picture

While prolific (so are

While prolific (so are earthworms), the online poster Mitchell is not provocative. It's more like a case of lice.

Thanks Metulj, you are quite right. My desire for alliteration overwhelmed my obligation for accuracy.

rikki's picture

EconGal, do you know

EconGal, do you know "Bookstaff Mitchell" well enough to know his middle initial? Ron Peabody's campaign domain is owned by MBMitchell. Any guess at the approximate age of the Mike Mitchell you know? There are about 10 Mike Mitchells in Knox County.

Daniel Lee's picture

I have a good friend who

I have a good friend who happens to know the Mike Mitchell who posts all over the place as #9 and Jack Mcleroy and some other names. He has appeared at a few Town of Farragut meetings over the years. He is Michael B. Mitchell. He is in his mid fifties. He lives in Farragut in the general area of Concord. I do not think it appropriate to be any more specific than that. He is the spirtitual advisor to Peabody. He is the Mitchell of the web site.

Pam Strickland's picture

Spiritual advisor? Please,

Spiritual advisor? Please, tell me that he's not a member at St. John's Episcopal where Peabody is a member.

And you're certain that this Michael Mitchell does the website? If so, Peabody has a lot to learn about who really knows anything about local politics and how to conduct a campaign. Mitchell is a laughing stock. He's been banned from this site. I am one of many who has him on ignore on The Blab. Plus, I don't read anything that he writes on knoxnews.com. I'm not the only one.

Daniel Lee's picture

Mike Mitchell is Peabody's

Mike Mitchell is Peabody's political adviser. I have no idea about Mitchell's church, if any. I do not think there is much chance that he goes to St. John's.

EconGal's picture

spiritual advisors

Pam Strickland wrote:
Spiritual advisor? Please, tell me that he's [Mitchell] not a member at St. John's Episcopal where Peabody is a member.

What's the back story on St. John's?

Pam Strickland's picture

Backstory? Peabody is a

Backstory? Peabody is a member there and has been for sometime. Someone told me this back during the heated debate over the TYP. Personally, I found it incongruent because the parish is a supporter of VMC. But then a member doesn't always have to agree with every parish activity. Afterall, one of the things I love about the Episcopal church is how it brings together people with different viewpoints into one community.

For the record, the governor's father is a member there, not Cedar Springs.

At any rate, I find the idea of 9 being there beyond incongruent. All of his activities seem anything but spiritual.

Tamara Shepherd's picture

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Nope. Media campaign's underway now.

Tamara Shepherd's picture

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Hmm. Perhaps Linda misunderstands.

My husband just phoned from his office to confirm that Daugherty's financial disclosure has been sent there and he says the $2400 was not a donation, but an expenditure for three $800 ads.

I do recall Daugherty running a number of full-page Focus ads toward the end of his campaign. They pictured him shaking the hand of then-County Mayor candidate Tim Burchett, with everyone in the background at that event "PhotoShopped" out of the image.

Possibly "love" abounds in his heart yet? Nah...

Tamara Shepherd's picture

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Speaking of websites, today I telephoned the number shown at the bottom of the TN Secretary of State's "Business Entity Detail" page for eGovernment Solutions to inquire whether the office could lawfully divulge to me the identity of the second of two "managing members" in that LLC.

It turns out the information is public record and they had only to transfer me to the "Certification Division" to answer my question.

Given the misunderstanding that arose between an Election Commission employee and me during our recent telephone conversation (re: whether Don Daugherty contributed any excess campaign funds to any other candidate), I'd prefer not to reveal here the answer I received, since I'm still awaiting certain source documents in the question.

However, if you're insatiably curious, I certainly invite you to call, as well.

Tamara Shepherd's picture

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That Bookstaff is the "registered agent" for the LLC--which seems to be the function you describe--is part of the Sec of St record already linked immediately above.

That Bookstaff is the leaser of the LLC's business address per its website, namely 5205 Homberg Drive, is part of the KGIS record also already linked above (over the weekend).

To confirm the second of two "managing members" of the LLC we must phone the Sec of St at (615)741-2286.

We don't have to guess as to any of these things.

Tamara Shepherd's picture

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I think their main function is simply to serve as an established street address to receive and forward important mail and legal notices.

Also, the "street address" supplied to the Sec of St for this LLC's registered agent, Bookstaff, is a mailbox-renting UPS store at 5201 Kingston Pike, Suite 6--at which location it would be impossible to serve legal process.

(EDIT: Link to street address added.)

Gregg Lonas's picture

not impossible

It is possible, but not likely to serve legal process at a Commercial Mail Receiving Agency (CMRA). The United States Postal Service and CMRAs can assist federal, state, or local law enforcement agencies in their criminal investigations by making available certain information from reoords kept,(application for delivery of mail through agent). Information will only be released to law enforcement, government agencies on written certification of official need, to an appropriate person when needed for the service process, or to a person in compliance with a subpoena.

Tamara Shepherd's picture

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Those have become quite popular and Wyoming is trying its best to compete with Nevada and the Cayman Islands.

I notice Bookstaff is also active in Florida, particularly with a man named Vincent A. Claude or sometimes V. A. Claude.

Tamara Shepherd's picture

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From Eric's link, "Shell Games":

The state of Wyoming says it cracked down on incorporation services in 2009 after discovering that nearly 5,700 companies were registered to post-office boxes. New laws require companies to have a physical presence in the state through an owner or a registered agent, and make it a felony to submit false filings.

I will reiterate that not only has eGovernment Solutions provided the TN Sec of St a "street address" for its "registered agent" at this mailbox-renting UPS store (which precludes the "registered agent" from fulfilling his responsibility to receive legal process), eGovernment has also provided the state the same mailbox-renting "street address" as its "principal office" address, namely 5201 Kingston Pike, Suite 6325.

Neither is any physical office for eGovernment Solutions present at the address indicated on the LLC's website, 5205 Homberg Drive--at least per the existing tenant in that building to whom I spoke.

The existing tenant in that building instead advised me to contact eGovernment's "owner" at 205 Mohican--but I didn't care to.

EDIT: I should have further explained that, WRT its filing with the TN Sec of State, an LLC's failure to provide a physical address for BOTH its "principal office" and its "registered agent" constitutes a "false filing" under the law. I do not know the penalty for a "false filing" under TN law, but in some states it's a felony.

rht's picture

please forgive me if this is

please forgive me if this is a dumb question, but does the UPS store have a clerk present during regular business hours?

cafkia's picture

If Padgett is elected I

If Padgett is elected I imagine it will be quite a windfall for the city. Just think, all of the city offices in the CC Bldg can be rented out for real money and the actual work (of staying out of citizens's lives) can be accomplished from homes or libraries or churches or bars, wherever there is an internet connection.

I don't know why Haslam didn't think about this. He was a business guy too. (/sarcasm)

Bbeanster's picture

Finding Padgett's office is

Finding Padgett's office is ike playing 'Where's Waldo'.

Tamara Shepherd's picture

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I am not an attorney.

Is this the TN statute requiring a LLC to supply a physical address for its "principal office" and its "registered agent?"

48-205-101. Articles of organization.

The articles must set forth:

(1) A name for the LLC that satisfies the requirements of § 48-207-101;
(2) The street address and zip code of the initial registered office of the LLC, the county in which the office is located and the name of its initial registered agent at that office;
(3) The name and address of each organizer;
(4) If, pursuant to § 48-217-101(f), one (1) or more members are personally liable for all of the debts, obligations and liabilities of the LLC, the articles must set forth the information required in § 48-217-101(f);
(5) A statement as to whether the LLC will be board-managed or whether the LLC will be member-managed;
(6) The number of members at the date of the filing of the articles;
(7) If the LLC is board-managed, and dissolution events may be triggered by an action approved by the governors or a subset of the governors and/or that transfers of governance rights may be permitted only by consent of the governors or a subset of the governors, either of such provision(s) must be set forth in the articles or the articles must contain a statement that the operating agreement may so provide;
(8) If the existence of the LLC is to begin upon a future date or the happening of a specific event, the articles must state the future date or describe the happening of the specific event. In no event can the future date or the actual occurrence of the specific event be more than ninety (90) days from the proper filing of the articles in compliance with § 48-203-102;
(9) The street address and zip code of the principal executive office of the LLC and the county in which the office is located;

Tamara Shepherd's picture

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Or possibly the TN statute I cited previously applies to a LLC's initial filing and this statute applies to its subsequent filings (below)...

48-247-101. Filing requirements.
(a) A document must satisfy the requirements of this section, and of any other section that adds to or varies these requirements, to be entitled to filing by the secretary of state.
(b) Chapters 201-248 of this title must require or permit filing the document in the office of the secretary of state.
(c) The document must contain the information required by chapters 201-248 of this title. It may contain other information as well.
(d) The document must be typewritten or printed in ink in a clear and legible fashion on one (1) side of letter or legal size paper.
(e) The document must be in the English language. An LLC's or other business entity's name need not be in English if written in English letters or Arabic or Roman numerals, and the certificate of existence or equivalent required of foreign business entities need not be in English, if accompanied by a reasonably authenticated English translation.
(f) The document must be executed:
(1) By the chair of the board of directors of a domestic or foreign corporation, by its president, or by another of its authorized officers if a corporate action is taken, by the chief manager, a governor or another authorized manager if an LLC action is taken, by a general partner if a partnership action is taken or by the equivalent person of another business entity;
(2) If directors of a corporation or governors of a board-governed LLC have not been selected or the corporation or LLC has not been formed, by an incorporator or organizer; or
(3) If the business entity is in the hands of a receiver, trustee, or other court-appointed fiduciary, by that fiduciary.
(g) The person executing the document shall sign it and state beneath or opposite the signature the person's name and the capacity in which the person signs. The document may but need not contain:
(1) An attestation by the secretary or an assistant secretary;
(2) An acknowledgment, verification, or proof; or
(3) The date the document is signed, except that such date shall be required for the annual report for the secretary of state.
(h) If the secretary of state pursuant to statutory authority has prescribed a mandatory form for the document, the document must be in or on the prescribed form.
(i) The document must be delivered to the office of the secretary of state for filing and must be accompanied by the current filing fee, and any tax, license fee, interest, or penalty required by chapters 201-248 of this title.
(j) The document must contain a statement which makes it clear that it is being filed pursuant to the Tennessee Limited Liability Company Act.
(k) The secretary of state has the power to promulgate appropriate rules and regulations establishing acceptable methods for execution of any document to be filed with the secretary of state.
(l) Notwithstanding any other provision of the law to the contrary, whenever this title requires that an application or other document submitted to the secretary of state for filing be accompanied by a confirmation of good standing, tax clearance for termination or withdrawal, or other similar communication of taxpayer status by the commissioner of revenue, then such requirement shall be met, and a paper certificate need not accompany the application or other document, if the commissioner provides to the secretary of state electronic verification of the required information. Upon request of the person seeking certificate information, the commissioner shall provide to the secretary of state electronic verification in lieu of a paper certificate.
(m) Any Tennessee LLC that has not timely filed with the department of revenue such information as has been required by the commissioner of revenue under prior law (Acts 1997, ch. 421, § 1) shall be subject to administrative dissolution in accordance with the procedures specified in § 48-245-302. The certificate of authority of any foreign LLC that has not timely filed such information with the department shall be subject to revocation as provided in § 48-246-502. Upon certification by the commissioner that it has complied with the information reporting requirements that were required under prior law, a LLC that has been administratively dissolved or that has had its certificate of authority revoked for failure to timely file such information may be reinstated.

...and this statute describes the penalty for "signing false document" as part of any subsequent filing (below)?

48-247-108. Penalty for signing false document.
(a) A person commits a Class B misdemeanor, punishable by a fine not to exceed five hundred dollars ($500), if the person signs a document, knowing it to be false in any material respect, with intent that the document be delivered to the office of the secretary of state or other required office for filing.
(b) The offense created by this section is in addition to any other offense created by law for the same conduct.

Tamara Shepherd's picture

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Well, thanks so much for that, Gregg.

Shall we then construe your position to be that TN statute guiding the Sec of St filings of LLCs may be ignored?

Or maybe you just interpret TN statute differently than the rest of us...kinda like your interpretation that "the Knox County Charter allows any commission or school board candidate living in any district to run for public office representing any district in any election immediately following redistricting?"

Or something???

Gregg Lonas's picture

Your welcome

Your welcome Tamara. You shall not. Like you I am not an attorney. When it comes to election law I rely on the State and County Election Commissions to provide guidance. Anything else I would hire an attorney. I can provide a few references if you need one?

cafkia's picture

I must be a little slow on

I must be a little slow on the uptake today. Are you (or are the State and County Election Commissions) saying that if the mailbox operator provides the authorities with a serve-able address upon request, then the conditions of the TN LLC laws have been met? I am very much not a lawyer but I saw nothing in what I read to indicate that a redirect address would satisfy the letter or spirit of the law. However, I'm willing to listen.

cafkia's picture

My question would be

My question would be "Why?"

Why is there (apparently) such an effort to keep the location where the work of the business gets done secret? Is it that he is working out of his home and violating some neighborhood covenant or some such in the process? Is it that the work of his business is being done in some place with more favorable (to him) tax or labor regulations? Is it that the actual work being done would be offensive in some way to ordinary citizens? Is it that he simply wishes for entities with whom he does business to believe that his operation is more physically impressive than it actually is so his addressing scheme is just a deception?

Or is there a reason that someone as unsophisticated in business as I would not know about?

Rachel's picture

My guess would be that much

My guess would be that much of the work is done by employees out of their own homes and there IS no central office.

But I'm guessing.

cafkia's picture

I imagine that to be a

I imagine that to be a reasonable guess. Why do we have to guess? Why would there be an effort to hide the fact that he has telecommuting employees? As one who routinely submitted columns for publication in a newspaper from my own home/computer, I am very familiar with the concept. However, I doubt that any of those organizations I was submitting to used a P.O. box as their address of record with the state.

Was this merely an oversight in setting up the business (from a guy who is running exclusively on his business acumen)? Is there or was there and effort to hide the nature of the business and if so, why and from whom?

(p.s. I thought you were refusing to participate in threads on the blab that were started by nein.)

Rachel's picture

(p.s. I thought you were

(p.s. I thought you were refusing to participate in threads on the blab that were started by nein.)

Yeah, I usually do. Fell off the wagon this week. Climbing back on now.

B Harmon's picture

"making payroll"

I know most business people running for public office often claim they have had to "make payroll" as a qualification for holding an office. In addition, having to pay rent and run a physical office to house employees also shows a long term investment in space and capitol.

But perhaps a savvy business person is one who has figured out how to be successful with no office and only contract employees that require no benefits, no deductions, and no payroll.

As a voting Knoxville resident, I would look at that business experience along with the position being sought and cast my vote accordingly.

cafkia's picture

As with so many things in

As with so many things in public life, it isn't the act. It's the coverup. Although I remain skeptical of general business experience as a qualifier for public office, I would certainly not discount an otherwise seemingly qualified candidate on that basis. However, a willingness to lie to or otherwise deceive the public and/or the government one seeks to become a part of is certainly something that I would consider a disqualifying characteristic.

Dante Malebranche's picture

Mr Padgett, tell the voters the whole truth

In light of this tsunami of questionable or at least puzzling business practices, I call upon Mr Padgett to immediately release all the pertinent financial records.This should include all his personal and business tax returns dating back to 2005.This early date is essential since this curious little witches brew of a business was born then.There is plenty of time for Mr Padgett to clear up all these questions prior to the WBIR /Chamber of Commerce Mayoral Debate on July 28 at the Knoxville Convention Center.If he does not, then that debate will be an opportunity for panelists and citizens to ask those questions directly.The ball is in your court, so to speak . Actually, I should have said," Mark you can hit a 3 pointer or throw up a brick airball." The citizens of Knoxville will be your judge.

Tamara Shepherd's picture

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It is possible, but not likely to serve legal process at a Commercial Mail Receiving Agency (CMRA)...

If the topic is "remote possibilities," Gregg...

It is "possible but not likely" that a candidate like your cohort Daugherty has only the voters' best interests in mind when positing that the framers of the Knox County Charter intended any commission or school board candidate living in any district to run for public office representing any district in any election immediately following redistricting.

More likely, though, that such a candidate is bent on deception and opportunism.

Similarly, it is "possible but not likely" that a candidate like your would-be mayor is a "businessman" when he lacks a physical office presence, possesses no bona fide employees, generates income inadequate to feed his family, falsifies reporting to the TN Secretary of State, ignores his business license expiration date, allow his gross receipts tax to become delinquent, and fails to vet the ethical standards of his closest business associates.

More likely, though, that such a candidate is also bent on deception and opportunism.

See the pattern?

Tamara Shepherd's picture

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Cafkia and rht, regarding allowability of mailbox addresses, I have spoken directly with the TN Secretary of State at the number indicated on their web page and they have advised me that under no circumstances will a mailbox address suffice--for either a LLC's "principal address" or its "registered agent address"--WRT any official filings the business may submit.

Their instruction to me via phone appears to be the same instruction found in statute, which I have linked above.

rht's picture

UPS store claims to be more

UPS store claims to be more than just p.o. boxes. They have staff, they receive packages for you and notify you, they can notarize things. They can probably agree to do additional stuff. And yes, you get a street address, at least technically. It might not be as straightforward as you seem to think.

rht's picture

I think its arguable. And i

I think its arguable. And i think most attorneys, and hopefully Madeline too, would advise against making a lot of noise about it at least without knowing more specific facts

cafkia's picture

Do you mean to suggest or

Do you mean to suggest or imply that the citizenry should wait to question Padgett(or any candidate for any office) about things that appear questionable until and unless the candidate deigns to address those issues? If not, perhaps you will want to define the term "making a lot of noise" as used in your comment above. If so, why do you hate democracy?

rht's picture

hey, i wonder about padgett's

hey, i wonder about padgett's business too and it should be looked at since he is making such a big deal about being a CEO. But i just think it was way premature for tamara to be waving around criminal statutes on a public message board without knowing the facts. Ask madeline what she thinks

Bbeanster's picture

Ask madeline what she

Ask madeline what she thinks

Heck, no.
Why would I ask Madeline what she thinks about what Tamara's saying? She's not responsible for what somebody says on a blog/messageboard/email list/bathroom wall.
You big silly.

cafkia's picture

I believe there to be a

I believe there to be a number of folk who participate on this forum who have run and/or started up a business. I rather expected for some of them to chime in, especially the ones who are Padgett supporters or are neutral for whatever reason. I might even expect the Rogero supporters who are in business to try to calm things down if there was obviously no fire where we see smoke. But none of that is happening. Tamara posted the statutes on filing and registering with the state along with a brief paragraph about the penalties for wrongful filing but, nothing that I would characterize as

waving around criminal statutes on a public message board

.

While I am a known Madeline supporter in this race, I would love to see young, capable, energetic Dems going after all of the political positions in the state/nation. But if things are as they appear, Padgett would face much more strident opposition in any partisan race. Republicans don't do much well but they are nearly artistic in going after an opponent's weakness even if they have to manufacturer that weakness themselves. I suspect we are doing young Mr. Padgett a huge favor.

I don't know why you think that Madeline has no political skills or knowledge but I would be shocked and disappointed if she chose to defend an opponent from her own supporters in the midst of a race. I assure you that Madeline is much smarter than that.

rht's picture

I don't know why you think

I don't know why you think that Madeline has no political skills or knowledge but I would be shocked and disappointed if she chose to defend an opponent from her own supporters

misunderstanding. I think Madeline is skilled and as part of that she would simply prefer that her vocal supporters avoid premature insinuations of criminal behavior

Bbeanster's picture

"specific facts" should be

"specific facts" should be available soon. Metro Pulse is coming soon with a story re the candidates' 2010 earnings and income sources. That should provide more specifics.

EricLykins's picture

not much

Dante Malebranche's picture

From the Chamber

From the Chamber Website....

Chamber to Host City of Knoxville Mayoral Debate

The Knoxville Chamber will host a debate of the candidates for mayor of the City of Knoxville at 7:30 p.m. on July 28, 2011 at the Knoxville Civic Auditorium.

The debate will feature the four leading mayoral candidates based on fundraising totals - Ivan Harmon, Joe Hultquist, Mark Padgett, and Madeline Rogero. John Becker will emcee the debate and questions will come from a panel focusing on business issues, audience members, and via Twitter. The public can suggest questions prior to or during the debate by tweeting and including the hashtag #chamberdebate. Chamber members can offer questions prior to July 28th by emailing gwagley@knoxvillechamber.com.

The debate will be broadcast live on WBIR and NewsTalk 98.7 from 8:00 - 9:00 p.m. The Knoxville News Sentinel is also a media partner.

Sharpen your pencils all you KV Comprachicos of business questions. .. Mr Padgett ,Malacoda and his friends await between Bolgia 5 and Bolgia 6

Tamara Shepherd's picture

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...questions will come from a panel focusing on business issues, audience members, and via Twitter.

Curious.

The Knoxville Chamber seems to presume that no questions submitted by "audience members" or "via twitter" might focus on "business issues."

Are these groups somehow mutually exclusive???

EconGal's picture

one possible explanaton for the wording

Tweeted and those posed by audience members might be about business, and they might not.

Presumably, however, the Chamber knows that the panelists' questions will be business-related, since they chose and will brief them.

Poorly worded, although perhaps not sinisterly toward Tweeters and attendees. Perhaps.

***

Tamara, did you get my Knoxviews email?

Tamara Shepherd's picture

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Not so fast, Toby!

Mail that C-note to PO Box 9426, Knoxville, TN 37940.

Tamara Shepherd's picture

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Not so fast, Toby!

Mail that C-note to PO Box 9426, Knoxville, TN 37940.

Dante Malebranche's picture

From the Rogero

From the Rogero website...

You're invited to participate in a significant event in Knoxville's mayoral race.

On Thursday evening, July 28, WBIR-TV and the Knoxville Chamber are co-hosting a televised mayoral debate at the Knoxville Civic Auditorium. The debate is open to the general public, and we want Madeline to know she has a room full of supporters.

Beginning at 6 p.m., each candidate will hold a rally outside the auditorium in an area designated by the debate sponsors. Please join us for music, food, and fun as we show our support for Madeline!

Please wear your campaign T-shirt to the rally to show your support, however, campaign shirts are not allowed inside the auditorium. We encourage you to bring an additional shirt to wear during the debate.

At 7 p.m., supporters will be escorted into the auditorium to specially designated seating and must be seated by 7:30 p.m. The debate begins at 8 p.m and will be broadcast live on WBIR Channel 10.

At this time, this is the only scheduled TV debate, so your participation—in the audience or watching at home—is crucial. Questions for the candidates will come from a panel, the live audience, and from social media. Watch, listen and Tweet! Tag your questions with #chamberdebate. We'll also be using the #knoxvillemayor hashtag to monitor the online conversation.

Should be fun

Tamara Shepherd's picture

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Rht, I've gone to some length here to explain how I've arrived at my understanding of the "physical address" requirement under TN law.

I've explained that I phoned the Sec of St. If you should phone them and receive contrary instruction, by all means share it.

I've shared a link to what seems to be the guiding statute. If you should search the code further, and find some contrary instruction, by all means share it.

Just now, I phoned the specific UPS store in question and spoke with the manager, Mitchell, who says "no," a UPS employee may NOT receive legal process on behalf of a UPS boxholder. All a UPS employee may do is offer the process server the physical address the boxholder gave UPS--which may or may not be correct--and wish that process server "good luck." If you should phone Mitchell and receive some contrary answer, by all means share it.

Unless you have some conflicting information of some sort in this question, I don't know where you're coming from.

Meanwhile, as I've stated once or twice before in this thread, my attempts to research these several questions are made of my own volition.

I have not sought Madeline Rogero's permission to do so and I certainly do not act under her instruction, so kindly leave her out of it.

And I've been posting here for four years under my own full name, hopefully to the effect of being someone others can trust to tell the truth and/or to willingly retract any innocent misstatement I may make.

You are anonymous and popped up here yesterday.

rht's picture

tamara/beanster thanks for

tamara/beanster

thanks for additional facts. I'd want to hear mark's side of the story before concluding whether or not he stretched the agent requirement too far. Surely he's not the first TN business to use UPS. If it does turn out to be improper i hope he will fix it. At any rate i doubt it rises to the level of knowingly submitting material false info such as in the statute you highlighted.

yes you might well wonder about my being new here. I got here by way of the blab, where i have posted as t3p. I am an attorney (although "not that kind of attorney") and the way you raised the issue simply triggered my radar. Didn't intend to drag you into prolonged debate.

best wishes

Bbeanster's picture

I've gotta run, but here's an

I've gotta run, but here's an email I just got from a very competent business lawyer I know (a Republican, btw).

See document’s page 18 (or adobe viewer page 24 of 64) about registered agent requirements. This is from the Tennessee Secretary of State.

(link...)

Without a side-by-side comparison, it looks like same requirements for an LLC formed under the old statute as well as the new statute.

The registered agent has to be at the registered office. Is Blake Bookstaff at the UPS Store?

Also if you look at the UPS Store’s corporate web site and do a search for “registered agent” I got 4 hits, none of which involve Tennessee. There’s a huge liability exposure problem for registered agents if they miss something, and I doubt the UPS Store wants its $10 an hour clerks to take on that exposure for them.

reform4's picture

Clearly.

(The address of the registered office must be a
complete street address; a post office box number alone is not
acceptable)

Clearly the intent of the law is that the address should be the place of business, not a PO box, and a UPS alias is the equivalent of a PO box, and not the 'principal office.'

Jeez, how hard is it for people to just follow the law?

As far as 'income' and 'success', there's tons of ways to play with depreciation to lower your income for tax purposes. I don't know if that's what is being done here. But taxable income is misleading.

Tamara Shepherd's picture

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Cafkia said: "I don't know why you think that Madeline has no political skills or knowledge...

Rht said: "I think Madeline is skilled..."

Well, me three.

I volunteered on Madeline Rogero's very first campaign for public office--which was successful, I might add--when Mark Padgett was in elementary school.

Tamara Shepherd's picture

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(Edit: This comment in response to Eric's link, two posts above this one, to the Metro-Pulse story just out, "Municipal Candidates Show Us Their Money." Don't miss Eric's link.)

Well, thanks to all candidates for their candor.

Surely to goodness MOST people would not cast their votes for officeholders based solely on the candidates' levels of income.

As to why voters' appreciation for this kind of information, I think the bigger issue in most campaigns--as MP's Gervin writes--is the disclosure of any conflicts of interest a candidate may have.

But yes, in this year's mayoral campaign in particular, I think a second issue exists of voters' desire to verify for themselves whether Mark Padgett is or is not a "successful businessman."

After all, this is virtually the ONLY qualifier Padgett has touted in terms of his preparedness for the office.

Given that Padgett's is a family of three (with a baby on the way, I'm told), my observation is that IF the family had to subsist on ONLY this business's income of $29,555 for 2010 (is that right???), they couldn't do it.

My personal opinion, then, is that Padgett is not yet "successful" in his business.

And furthermore, given that Gervin says the Padgetts had about $26,000 in wages and salaries each of the last four years, it appears that Padgett's business revenue has declined every year over the last three.

R. Neal's picture

IF the family had to subsist

IF the family had to subsist on ONLY this business's income of $29,555 for 2010 (is that right???), they couldn't do it.

I wouldn't necessarily jump to that conclusion. There are lots of reasons for salary and wages from a business interest to be reported low, even CEO wages.

He mentions "royalties, partnerships, S corporations, trusts, etc" with a total of $59K in income. (The article doesn't say if that's gross or taxable.)

Income other than salary and wages from a corporation or LLC can be declared as dividends or shareholder distributions. There are various tax advantages depending on how income is reported.

I'd be more curious re. what or who some of these royalties, partnerships, and S-corps are. The sources may be more relevant than the amounts.

Anyway, carry on.

cwg's picture

income

All reported income was gross income unless stated otherwise. Just FYI.

R. Neal's picture

MP v. SKB 2.0

Missed that detail in the article. Readers will no doubt be able to find that clarification on blogs and chat rooms.

Tamara Shepherd's picture

*

At any rate i doubt (the physical address issue) rises to the level of knowingly submitting material false info such as in the statute you highlighted.

Rht, my effort to collect some authoritative info on this question is sincere.

It was the woman I spoke with at Sec of St previously who told me that "if (they'd) known the address was a mailbox, (they'd) have returned the filing." It was in that same call that that same woman who, when I asked her if eGovernment had made a "false filing," answered "um-hum."

I called back this morning, got someone who sounded like the exact same woman again and asked again about the "physical address" requirement. This time, she said so long as the filing had a street number reflected, they would accept the filing.

Huh? So I asked for her supervisor.

That fellow, Rob Ikard, just called me back. He explained that they can't accept JUST a box number, but that if a street address appears on the filing, they assume that it's the "physical address" of the business. He emphasized that his office lacks any investigatory authority, much less prosecutorial authority (like our local election commission, I suppose), which is understandable.

What I'm hearing, then, is that his office was duped and that there's not much they personally can do about it now.

So...I'm back to not knowing what does or does not constitute a "false filing," nor who might instigate such an action.

I'm a conduit here, you understand. I'll try to do a better job of supplying you a definitive "source," by name, of the messages I'm relaying.

reform4's picture

If it walks like a false filing...

.. and quacks like a false filing... then it's a false filing.

They can claim that they didn't read the SOS documents, but as I've been told since I a young lad, "ignorance of the law is no excuse." It's the responsibility of any business owner to spend a few minutes reading the documents, especially for something as important as REGISTERING YOUR BUSINESS WITH THE STATE.

Jeez.

I don't have an attorney I routinely use in my business, and even I know enough not to do something like this. You have to give the IRS a real address, even if it's your home, and you have to give the state a real address. Pretty basic.

If this is "CEO Experience", then MP just shot himself in the foot, and he needs a new meme by Friday. Any suggestions?

Bring Your Business To Knoxville! Contact us at PO Box 7834, Knoxville 37802! :)

rht's picture

i don't doubt your sincerity!

Rht, my effort to collect some authoritative info on this question is sincere.

tamara:
i don't doubt your sincerity! I do think you have been too eager and predisposed to find a gotcha without your knowing all the facts or the law. Thanks for considering that.
best wishes

Tamara Shepherd's picture

*

As far as 'income' and 'success', there's tons of ways to play with depreciation to lower your income for tax purposes.

Possibly, Steve.

However, if you're thinking in terms of Section 179 depreciation, I wonder just what volume--as in physical volume--a business apparently lacking any physical space could have purchased?

I suppose off-the-shelf software purchases require very little physical space to store, but would Padgett purchase these or, given his aptitude in this area, just write what he needed? Then too, I made a quick search as to how Section 179 applies to any off-the-shelf product that has been "substantially modified" to verify that it cannot be applied.

Also, that March KNS story on Padgett's delinquent gross receipts tax, in which he volunteered the dollar amount of his tax liability, seemed to point to modest gross receipts, too, I thought? I wouldn't expect to learn that any rapid depreciation methodology impacts on a business's gross receipts tax bill?

We'd have to see some supporting schedules, I guess. Did he offer those to media?

reform4's picture

Not really sure...

... we build our software with permanent FT employees. I've never thought about how one would 'capitalize' software built with outside contractors. I would think with accelerated 179 depreciation it wouldn't matter- if you spent $100K to develop your software, you just get to write that off the year you expend those funds, but I would think that eGovernment already had most of the development behind them.

As an owner of an LLC with employees, I recall that it was actually rather awkward to try to pay yourself a W-2 salary, since the profits are pass-through anyway, and you end up having to make separate estimated tax payments anyway as well. It's a lot easier to just draw what you need to an Owner's Equity account, make your estimated payments, because you eventually have to file the business schedule anyway. Seems even stranger if you don't have other employees and don't have to wouldn't have to deal with the payroll overhead otherwise.

I'm not sure I see the point in figuring out how much he makes anyway- I'm a little more interested in the oddities of the registration with the state. Hopefully he didn't give the IRS a UPS box as well. Auditors don't like that.

Tamara Shepherd's picture

*

From the MP article: "Of that income, around $26,000 each year was in wages and salaries ($29,728 in 2010) and the rest was in rental real estate (the Padgetts now rent the first home they bought), “royalties, partnerships, S corporations, trusts, etc” — i.e., from Padgett’s company, eGovernment Solutions."

This clause reads as if income(loss) from all these sources is being run through the eGovernment Solutions LLC.

My question is to the viability of eGovernment as a stand-alone company.

If these other interests are partnerships with daddy or trusts daddy established, they especially muddy the picture.

And no, I don't see that MP has attached as pdfs the schedules we would need to untangle these multiple sources of income(loss).

cwg's picture

Because

As stated in the article, only two candidates gave us their full tax returns, with schedules. The rest gave us just the first one or two pages of their 1040s. Padgett's returns did not include any schedules. I'll try to get everything I received scanned in and posted in a blog post tomorrow or Friday, but I have a lot of other more pressing deadlines to take care of first. Sorry.

Rachel's picture

Those two did NOT include

Those two did NOT include Padgett. Ivan Harmon and Marshall Stair, I believe.

JHayes's picture

something that irritates me

1. I was a small business guy and admittedly the most I ever made was about 45-50K a year. At that business we still struggled from day to day. Basically all of Mark Padgett's campaign has been on his success as a businessman, but if you are the owner of a company and only take in 29,000 dollars, I don't think that you can toute that too much. That is not impressive at all in fact. He needs to quit harping on his "successful" business.

Disclosure: I am likely voting for Madeline Rogero, but I am not an active supporter nor have I gave any money to her campaign.

Tamara Shepherd's picture

*

It may be, J, that your personal experience with business ownership is similar to my own, namely in terms of a modest proprietorship in which, as owner, you could take no salary at all but only sporadic (and meager) draws. In my own limited experience, I could take even less than you were able!

With regard to this business, though, Randy points out that Padgett may also have recognized income from the business, beyond this $29K, in the form of dividends or shareholder distributions, which is certainly possible.

However, it doesn't appear that this business is reporting low income due to CEO wages, as Randy suggests some businesses might, since Padgett himself is the CEO of this business and we'd see those CEO wages "circle back around" to page one of his personal income tax return in the form of salary and wages (if I'm following you, Randy?).

Steve's point about the potential for some rapid depreciation methodology to have masked the business's higher earnings is also possible, dependent on the type and volume of depreciable assets a business of this type (lacking a physical office presence?) might have purchased.

More on my complaint that MP suggests the income(loss) of all these other interests have been "run through eGovernment," leaving me unable to examine the viability of eGovernment's separate profit from software development only: My quick Google search taught me that this "pass-thru" feature is, by definition, the primary function (and benefit) of this relatively new form of business organization, the LLC. And members often "pass-thru" a LLC their income from multiple business interests, causing the entity to be something of a "hybrid."

They're relatively new entities in law (since the 90's) and were completely new to me.

R. Neal's picture

What I'm saying about CEO

What I'm saying about CEO salary is that someone can pay themselves 30K and then get the rest of the 59K total (20K more) via distributions. For example, with an LLC passthru I don't believe you pay employer/employee SSI that you have to pay on salary and wages, similar to an s-corp.

reform4's picture

There are options.. IF...

.. IF it's a C-corp or, in some cases, S-corps. LLCs are treated like sole proprietors or partnerships (depending on the # of members/owners), so whatever profit is left at the end of the year passes to the owner(s) as ordinary income. You can't categorize earnings as dividends, like you can with a corp.

A software business usually doesn't have much to depreciate, general office equipment, furniture, and perhaps some software 'tools' (3rd party development kits). I have heard of some people setting up an offshore company to hold the intellectual peroperty, and the offshore companies lease it back to the US company at inflated rates to move income offshore. My understand is that the IRS says that's pretty much illegal. If you're a small company, they go after you. If you're a big company, you can hire enough attorneys to get away with it (lots of Big Pharms do this with their drug patents).

R. Neal's picture

P.S. Warrent Buffet, CEO of

P.S. Warrent Buffet, CEO of Berkshire Hathaway, reportedly pays himself a salary of $100K per year. The company has $187 billion in revenues and $20 billion in earnings.

Stan G's picture

Personally, I’m going to go

Personally, I’m going to go with rht on this. Why I appreciate Tamara’s research skills, her findings do little to convince me that Padgett is engaged in any attempt to deceive the voters. If anything she probably explained why he might not have filed his gross receipts tax on a timely basis. The forms were sent to an old address. Many small businesses lose their legal status because they fail to file the required annual report and those that do often do not bother to update them. As far as the Secretary of State is concerned, it appears that if papers are served at the address of record and they are refused or can’t be delivered, they are considered delivered and it is assumed that the entity is aware of the contents – my layperson’s interpretation – so it behooves as business to keep it physical address current.

As far as his business income, given the nature of his business, I suspect he is capitalizing the software development costs while having to pay those costs in cash resulting in reportable income and with no cash to pay himself a larger salary.

The “Powers That Be” have found themselves a good candidate and they are dropping a bundle of money on him. He’s young, intelligent, makes a good public appearance and is saleable as a young entrepreneur. The fact that he may have stumbled a few times is unlikely to change anyone’s vote. It’s not uncommon when starting a new business. His weakness is lack of experience, particularly in the public sector.

Madeline’s supporters need to focus on Madeline as the more experienced candidate who gained her executive skills as the executive director of several not-for-profit organizations, as a member of county commission, and as a member of the current city administration. While the public as a whole may not appreciate it, her experience dealing with the public, the media, employees, volunteers and grant administrators, and with budgets, accounting and reports that are far more complex than those incurred by any small business person make her the more qualified candidate.

In short, she needs to overcome the hype that only a businessperson is qualified to serve as mayor.

bizgrrl's picture

Well said, Stan.

Well said, Stan.

R. Neal's picture

+1

Madeline’s supporters need to focus on Madeline as the more experienced candidate who gained her executive skills as the executive director of several not-for-profit organizations, as a member of county commission, and as a member of the current city administration. While the public as a whole may not appreciate it, her experience dealing with the public, the media, employees, volunteers and grant administrators, and with budgets, accounting and reports that are far more complex than those incurred by any small business person make her the more qualified candidate.

Exactly. Madeline is clearly the more experienced and qualified candidate.

Tamara Shepherd's picture

*

What I'm saying about CEO salary is that someone can pay themselves 30K and then get the rest of the 59K total (20K more) via distributions. For example, with an LLC passthru I don't believe you pay employer/employee SSI that you have to pay on salary and wages, similar to an s-corp.

Understood.

What I'm saying is to agree with you that Padgett COULD have collected compensation from the business through dividends or shareholder distributions paid to its members.

However, Padgett COULD NOT have collected compensation from the business through any exhorbitant CEO salary. Cari broke out for us the couple's income from wages and salaries ($29728, she said) and that amount clearly doesn't include any exhorbitant CEO salary for Mark.

We can make this pretty good guess as to HOW he got paid from the business, we just don't know WHAT he got paid from the business.

And given the "pass-thru" nature of this form of business entity that comingles the P/L of multiple enterprises, we don't know whether he might have gotten paid something due to the financial viability of his work writing and selling software to governments, or due to some partnership with his daddy and/or trust established by his daddy.

In short, we didn't need this two-page FIT return, we needed the supporting schedule for eGovernment.

R. Neal's picture

The passthru can work for a

The passthru can work for a single company involved in one line of business. There's nothing inherent or unique about an LLC that makes it for multiple enterprises. It's just a different type of corporation.

Tamara Shepherd's picture

*

If anything she probably explained why he might not have filed his gross receipts tax on a timely basis. The forms were sent to an old address.

Stan, my understanding is that forms for filing the gross receipts tax are mailed to businesses from the state, namely the TN Department of Revenue.

Since 4/8/08, Padgett's business address on file with the state, namely the TN Secretary of State--for both its principal office and its registered agent--has been this UPS mailbox (click on "History" tab, then click on "Detail").

The business continues to use the UPS mailbox now, so there is no reason to believe that Padgett filed his gross receipts tax form late due to his failure to receive the form.

I certainly agree with you as to the need for Rogero's supporters to focus on her qualification as the more experienced candidate, but I fear that focus isn't possible until first disposing of this false illusion that only Padgett's "business acumen" should be the measure of a candidate's qualification.

And if you're not yet convinced of Padgett's "attempt to deceive the voters," it's undoubtedly because I haven't yet shared all I'm learning.

I sure hope you'll stay tuned. :-)

Stan G's picture

Stan, my understanding is

Stan, my understanding is that forms for filing the gross receipts tax are mailed to businesses from the state, namely the TN Department of Revenue

.

Correct. The forms would be mailed to the address he reported when he applied for the company business licenses, which would not necessarily the address on file with the Secretary of State.

It is not uncommon for a company to use the address of the incorporator when applying for a charter, which is often prior to the time the company establishes a physical presence.

Tamara Shepherd's picture

*

Sorry, but I'm not following you, Stan.

I've researched only these address changes he made with the Secretary of State in this thread.

If you're saying an address he had on file with them at any given time might not have been the same "address he reported when he applied for the company business license" with some other entity, why do you also say that something I've posted here persuades you of it?

I don't know what this other entity to which you refer is, I couldn't say whether or not he gave this other entity any different address, and I couldn't say whether he later changed the address with this other entity.

So...I'm not grasping how any post I made here convinced you of these things???

Tamara Shepherd's picture

*

The passthru can work for a single company involved in one line of business.

Also understood.

It was just disappointing to see that Padgett uses this particular pass-thru for multiple enterprises, especially in the absence of the schedules that would presumably detail for us which of his enterprises are profitable and which are not.

R. Neal's picture

It was just disappointing to

It was just disappointing to see that Padgett uses this particular pass-thru for multiple enterprises

Where/how do you see that?

Tamara Shepherd's picture

*

Where/how do you see that?

Unfortunately, I can't "see" anything lacking both a scan of these two-page returns he submitted AND the supporting schedules he didn't submit.

It was Cari's narrative I found confusing, here:

The Padgetts’ income was $82,475 in 2007, $96,392 in 2008, $70,570 in 2009, and $59,283 in 2010. Of that income, around $26,000 each year was in wages and salaries ($29,728 in 2010) and the rest was in rental real estate (the Padgetts now rent the first home they bought), “royalties, partnerships, S corporations, trusts, etc” — i.e., from Padgett’s company, eGovernment Solutions.

It appeared to me that she's saying all these "royalties, partnerships, S corporations, trusts, etc" comprise the income of eGovernment?

What do you understand her to be saying?

Stan G's picture

Cari is quoting Line 17 of

Cari is quoting Line 17 of Form 1040, "Rental real estate, royalties, partnership, S corporations,trusts, etc. from Schedule E." In no way is she implying that he has income from all of those sources.

cwg's picture

Yes

Yes, I was.

R. Neal's picture

Yes, I was. Then why don't

Yes, I was.

Then why don't you tell us what they are?

They should be listed on the accompanying schedules.

If you have the schedules, why not tell us what they say?

If you don't have the schedules, you don't know, so why imply?

j.f.m.'s picture

Ai-yi. I had promised not to

Ai-yi. I had promised not to get back in here, but just to clarify:

Cari's "Yes I was" was in response to Stan's noting that she was just quoting that line on the form. It was not in response to his second sentence. We don't have the schedules. We have the summaries. We don't know what all the sources of income are for that line, except that they include rental property and his business.

I hope that helps.

R. Neal's picture

I understood it to mean "for

I understood it to mean "for example, eGovernment Solutions" and probably some others. (Partnerships and s-corps, plural.)

Part of that is in quotes ("royalties, partnerships, S corporations, trusts, etc.").

The "i.e. from Padgett's company etc." appears added by the reporter and appears to be an assumption not based on the quoted phrase.

Tamara Shepherd's picture

*

Cari is quoting Line 17 of Form 1040, "Rental real estate, royalties, partnership, S corporations,trusts, etc. from Schedule E." In no way is she implying that he has income from all of those sources.

...and clearly it's a line I've always skipped in filling out my return!

Thanks, guys. You might have corrected my mistaken understanding about six or seven posts ago without offending me in the slightest.

That's why I was complaining that I couldn't discern the profitability of just Padgett's efforts in software development, don't you know?

And I must humbly retract my suggestion that the company's profitability is "muddied" by possible "partnerships with daddy" and/or "trusts established by daddy," too.

My intention here is to examine the facts, not to make any up.

Shannon S's picture

examine the facts

Submitted by Tamara Shepherd on Thu, 2011/07/14 - 1:55pm
“My intention here is to examine the facts, not to make any up.”

Making up facts could land you a job as a writer at the Metro Pulse.

You would have trouble with the censor by omission part of working at the Metro Pulse. Your sudo-pro-bono reporting is very compulsive.

Tamara Shepherd's picture

*

In no way is she implying that he has income from all of those sources.

Well, not entirely Stan--Cari does say the Padgett's have rental income, so apparently that income appears on the same line with the eGovernment income.

Stan G's picture

Understood, I wasn't taking

Understood, I wasn't taking issue with what Cari knew, only with your assumption that there were multiple unknown sources of income that clouded the figure. You may or may not be correct. I'll hazard the guess, however, based on years of preparing individual income tax returns that after interest, depreciation, and other expenses, the Padgetts reported a loss on the rental property.

Tamara Shepherd's picture

*

Oh, Gawd, this is like watching a tennis match from the front row...

Randy, I think the point goes to you.

Cari, he's right that without the Schedule E it does appear that MP is just trusting Padgett's characterization of the sources of the income reflected on that line.

Stan, we know that at least two sources of income are comingled there.

And until we see that Schedule E, I have to retract my retraction as to possible "partnerships with daddy" and/or "trusts established by daddy."

Think I'll step away for a snack, now...

Tamara Shepherd's picture

*

Hi, Shannon.

You don't happen to have Mark Padgett's Schedule E in your hip pocket, do you?

KnoxCatLady1's picture

Not Surprising

It is hardly surprising to see Mr. Padgett raise so much money. Apparently, big business perceives Ms. Rogero to be anti-business. I have not been at all impressed with Mr. Padgett. I've never made any secret about my belief Joe Hultquist was a sorry excuse for a Councilman and would likely be an even worse Mayor, if such a thing is possible. Ivan Harmon couldn't tell the truth if his life depended upon it. Madeline Rogero listens, is very practical and I am for her.

JHayes's picture

Well said CatLady

I don't think Padgett has "deceived" voters, but I do believe he has greatly "exaggerated" his business credentials. Does anyone disagree with me on that?

As for the other two candidates:
Harmon needs to go away. When he loses, we all know that he will run for something else.

I also agree Hultquist was a terrible city councilman. His successor, Councilman Pavlis, has been arguably the best since taking over 1.5 years ago. I had originally hoped that Pavlis would take over as interim mayor

Rogero is definitely the most qualified and I am also voting for her.

Rachel's picture

I also agree Hultquist was a

I also agree Hultquist was a terrible city councilman.

Well, I don't think Joe was a "terrible city council member", although he had his weaknesses, as we all do. I even worked on both of his campaigns.

However, I don't think he has either the organizational or the people skills to serve as mayor. Joe's good at the vision thing, but not at the day-to-day implementation details that realize the vision.

I don't really understand why Padgett is running for Mayor. One year of city residency, no track record of involvement in any city issues, lack of understanding of the issues - although he is better now than he was in January at the first forum (then again, it would be hard to be worse). His entire platform seems to "vote for me; I'm a CEO" but his business is small and he has few clients, so I don't even see great business experiences.

I agree that he's smart and personable, and if he were running for city council, I might well be supporting him. But no way is he ready to be mayor.

Ivan is Ivan.

Madeline is by far and away the most experienced and best qualified, and I'm proud to be supporting her.

Tamara Shepherd's picture

*

Thanks, Jesse. I understood Cari's response to mean that "yes, I am quoting Line 17 of Form 1040."

Cari, I guess you now understand that when I first read your article I thought you had that phrase "royalties, partnerships, S corporations, trusts, etc" in quotes because you were quoting Padgett himself, explaining his total sources of income from all enterprises.

Also, whatever sources of income may be comingled on Line 17, may we assume that Padgett did not report any income on page one of his return other than Line 7 (wage, salaries, and tips) and Line 17 (under close scrutiny here)?

That is, while income may be reported on any of Lines 7 through 21, am I safe in assuming that only Lines 7 and 17 reflect any?

Tamara Shepherd's picture

*

As to another of Stan's comments here...

As far as his business income, given the nature of his business, I suspect he is capitalizing the software development costs while having to pay those costs in cash resulting in reportable income and with no cash to pay himself a larger salary.

...I found it to be a plausible explanation for why we don't see higher CEO compensation on Line 7 "wages and salaries" of this return (although, lacking any familiarity with this industry, I confess I don't fully understand what these "software development costs" might be).

What Stan acknowledged but didn't exactly emphasize--and what no one subsequently commented on--is that if Padgett capitalized costs in this manner, the $29K in earnings we see for eGovernment is actually "overstated."

Stan G's picture

Not sure what lead you to

Not sure what lead you to that conclusion, but I intended no such thing. If I assume anything about the $29K in earnings, I assume it's the amount reported to the IRS in Box 1 of his W-2.

Tamara Shepherd's picture

*

Stan, I think maybe you're reading too quickly...

Understood, I wasn't taking issue with what Cari knew, only with your assumption that there were multiple unknown sources of income that clouded the figure.

If you'll look back to my above conversation with Randy and my last comment to Cari, I explained to both that "when I first read (her) article I thought (she) had that phrase "royalties, partnerships, S corporations, trusts, etc" in quotes because (she) was quoting Padgett himself, explaining his total sources of income from all enterprises."

I didn't assume anything, except maybe that a comment in quotes represents what someone actually said.

Surely that's reasonable.

Not sure what lead you to that conclusion, but I intended no such thing. If I assume anything about the $29K in earnings, I assume it's the amount reported to the IRS in Box 1 of his W-2.

If you'll look back at Cari's MP story, she implies there are two $29Ks on this return: The $29K on Line 7 (wages and salaries) and the $29K on Line 17(the tortured subject of the last several hours). I am referring to the latter, namely the "royalties, partnerships, S corporations, trusts, etc" she references.

You said--and I reiterated--that you "suspect he is capitalizing the software development costs while having to pay those costs in cash resulting in reportable income and with no cash to pay himself a larger salary."

I am pointing out that if your surmissal that Padgett has capitalized these costs is correct this resulting "reportable income" also makes for higher earnings for tax purposes.

I am further pointing out that, conversely, if Padgett had NOT capitalized these costs in this manner, his earnings for tax purposes would have been lower still.

I'm sure you'll agree.

cwg's picture

Look

I will try to get tax documents scanned and posted tomorrow on our blog, but I'm not promising anything because I have a lot of other work to do for the next two issues. In the meantime, I suggest just calling Mr. Padgett - he's pretty easy to get a hold of, and he likes to talk - because he's the only one that can answer any of your questions.

Stan G's picture

To be technical, Cari did not

To be technical, Cari did not imply, she reported. I personally have no reason to speculate on the amounts or sources of Padgett's income. My response was generated by the words "Stan, acknowledged ...." I will, however, speculate that Padgett's business tax return and quite possibly his personal tax return was prepared by a tax professional; therefore, I have no reason to question the reported amounts.

Tamara Shepherd's picture

*

I suggest just calling Mr. Padgett...

Could be you have a tad more confidence in what he'll just voluntarily divulge than some of us do :-)

Tamara Shepherd's picture

*

...his personal tax return was prepared by a tax professional; therefore, I have no reason to question the reported amounts.

What on earth has gotten in to you, Stan?!

You and I and everybody else have reason to "question" the composition of the reported amounts on Line 17 of this personal tax return when that line, by design of the form, represents the total of multiple sources of income and we don't know, for lack of the supporting schedule, what all those sources are.

Sheesh...

Shannon S's picture

prepared by a tax professional not good enough for Tammy

Submitted by Tamara Shepherd on Fri, 2011/07/15 - 7:09am.

Stan said:
“...his personal tax return was prepared by a tax professional; therefore, I have no reason to question the reported amounts.”

What on earth has gotten in to you, Stan?!
You and I and everybody else have reason to "question" the composition of the reported amounts on Line 17 of this personal tax return when that line, by design of the form, represents the total of multiple sources of income and we don't know, for lack of the supporting schedule, what all those sources are.
Sheesh...

It will do no good to reason with a person with an agenda and who is a obsessed and a inexhaustible poster. She will give any opponent that is threatening to her choice as the best candidate, her own little IRS audit to minimize and destroy whoever she perceives as the enemy. Padgett would have been better off not giving any information at the MP’s request so that the arrogant bookkeeper would not have fodder for her baseless attacks. Nothing her enemy could produce will be enough. Why is she not scrutinizing Rogero’s incomplete submission of financials?

Tamara Shepherd's picture

*

Cari, just to be clear, I meant for that comment I made to you last night ("you have a tad more confidence in what he'll just voluntarily divulge") to be funny, not flippant, hence my smiley face at the end of my post.

All I'm suggesting is that we can't anymore assume we know the sources of Padgett's income on Line 17 without having the schedule than we can assume we know his AGI without having page one of the return.

I certainly appreciate that you can't now single out Padgett to provide supporting schedules when you don't have them from all the other candidates.

If MP continues this effort to collect candidate tax returns next campaign cycle, maybe the better approach is to just request supporting schedules from all.

Peace.

Shannon S's picture

If Rogero’s husband has a conflict?

Hey Tammy, look and see if Rogero’s husband has a conflict she does not want the voters to see. Oh, right, you can’t, she did not disclose the information.

You supporting Rogero is her biggest nightmare.

Tamara Shepherd's picture

*

I trust that passers-by will understand my point as to what we do and do not know from this disclosure, Shannon, even if you did not understand.

(You will also note that RNeal, this blog's owner, makes the same point.)

Shannon S's picture

Answer the question

He says he is a CEO. The IRS lists him as a CEO. You are trying to discredit him with your inept audit of his taxes in an attempt to discredit him and put doubt into the mind of the voters.

Answer the question.

Rogero’s husband could have a conflict. Why are you not scrutinizing Rogero’s incomplete submission of financials?
As Mayor of Knoxville Rogero could be in a position to create financial gain for her husband.

Shannon S's picture

An information request is an attack?

Is it not a valid question? Is there something that exempts her from scrutiny?

I am an undecided voter asking for more information. Her response was incomplete. Is it wrong to ask for complete answers?

Tamara Shepherd's picture

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Shannon, I am not trying to "audit his taxes."

I would like to confirm, via his tax return, the success of his business in terms of its profitability, which is a primary measure of any business's success.

I am also trying to confirm the success of his business in terms of other possible measures, including the number/nature of contracts he holds, the number/nature of people he employs, the reputation of his business for adherence to law, and so forth, all of which are additional measures of any business's success.

The reason I am trying to confirm these possible measures of the success of his business is because he is presenting as his sole qualification for his candidacy that he is a "successful businessman."

I don't mind telling you at this juncture that I, personally, do not find even that sole qualifier, about which I am very skeptical is the truth, to be adequate qualification for his candidacy.

I will therefore next be turning my attention to his record of civic involvement in/interest in City of Knoxville issues, as others here have rightly suggested is also an important qualifier for any candidate interested in this public office.

Shannon S's picture

Does separated mean there is no possibility of a conflict?

Separated by design? Does separated mean there is no possibility of a conflict?

She needs to disclose her households complete IRS return as other mayoral candidates did.

You have spent a lot of time trying to find something wrong on only one of the candidates and continually offering negative opinions trying to defame him.

Rachel's picture

I will therefore next be

I will therefore next be turning my attention to his record of civic involvement in/interest in City of Knoxville issues

Good luck with that one. As far as I can tell, there is no record.

Tamara Shepherd's picture

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Further, Shannon, I agree with you that--at some future juncture--Madeline could potentially have a conflict in regard to her husband's employment with Managed Response, Incorporated (MRI).

You will see that I posted to this effect on the "City candidate financial disclosures" thread on Thursday, July 14 at 10:14 a.m., in acknowledgement that MRI has previously worked on projects with Knox County, ORNL, and Wal-mart stores in Tennessee (although it is unclear if these include any stores in the City of Knoxville or in Knox County).

How would you have me comment further on a conflict that has not yet arisen--and may not arise at all--except to say that it could?

Tamara Shepherd's picture

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You really wouldn't be able to do that...

True enough that it might not tell us much, Toby.

I would just say that I'd like to see it for whatever information it could afford us as to eGovernment's--and Padgett's--"success."

(Gotta run. Later.)

Tamara Shepherd's picture

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At the very least, an examination of this Schedule E would afford us knowledge of Padgett's separate sources of income(loss) from "rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc."

Presently, we know only the total income reflected on Line 17 of the return, which we are told comingles at least two sources of income (and which could possibly comingle more than two sources).

So the schedule can provide us some info we lack.

(Gone again.)

KnoxCatLady1's picture

I have to agree

I have to agree with Rachel; pouring through some of this information is a bit like looking through other people's drawers. Mr. Padgett has certainly based his entire campaign on the notion of his success in the business world and I would have to agree it doesn't appear to be all that successful. I suppose that is why so many people are worrying it to death. To me, it seems apparent Mr. Padgett's claim is exaggerated, move on.

I can't agree with Rachel about Joe Hultquist. Even his "vision" was garbled and rarely have I ever seen so many people admit an officeholder is not only long-winded, but oftentimes requires someone to interpret for him. I've not noticed many other politicians who are given that sort of benefit of the doubt. I will say Joe Hultquist's entire service on City Council seemed to be defined by that peculiar "vision", as he certainly paid no attention to every day practical concerns.

Ivan Harmon really deserves no further comment.

I genuinely believe Madeline Rogero is the best candidate for Mayor.

cafkia's picture

Can we get back to

Can we get back to substantive issues? Let's say hypothetically, that Padgett has a reasonable answer to the business address concerns. And as long as we're being generous, let's say that his business really does meet some vaguely defined metric for "success". I can name a slew of individuals who have run businesses, some of them much larger(fiscally) businesses, successfully. Are all of them good candidates for CEO of our city? Successful architects, restaurateurs, contractors, and lawyers abound in this town. Some of them have actually been seen at public meetings and taking part in making our city a better place, even when there is no direct monetary connection to their business. The one's I am thinking of are smart and personable. With Padgetts business experience claim as the bullseye, there are a slew of Knoxvillians who have a better shot at being mayor. If you add in the ancillary meetings and civic involvement, their qualifications absolutely swamp his. Why should he get a pass? Why should he get to leap frog to the front of the local line?

Blatant attempts to obfuscate the issue by asking about meaningless minutia of the other candidate's family finances will not make up for Padgett's apparent shortfalls. Address those or quit wasting my time and 'Bubba's electrons.

Rachel's picture

I can name a slew of

I can name a slew of individuals who have run businesses, some of them much larger(fiscally) businesses, successfully. Are all of them good candidates for CEO of our city?

I always cringe when I hear that govt should be run like a business. I've heard Bill Haslam say more than once that that was one of the first thing he learned - that govt isn't a business and can't be run like one.

Doesn't mean that some good business practices aren't applicable. Does mean that the bottom line for govt is providing services, not making $$ for shareholders. And when your basic goal is different, EVERYTHING is different.

I don't know whether Padgett is a "successful" businessman or not. I DO know he's only lived inside the city limits for a year, and has had no involvement in city issues that I can find until he started running. I DO know that his grasp of issues as demonstrated at the forum I attended was less than good, and that's being charitable.

THOSE are hurdles I couldn't get over, even if I didn't like Madeline.

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