At Tuesday night’s Danville City Council meeting, Lee Vogler made a terrific, well-needed speech. We’re glad to print his remarks in full here on SouthsideCentral.
From: Lee Vogler
Tonight, I want to address an issue that everyone on this Council has been asked about over the past several months and probably will continue to be in the days ahead. But I will do my best to correct some misconceptions that exist, as well as discuss the reality of the situation.
The Tobacco Commission has been a very important partner with the City of Danville in recruiting new industries to our region over the past 15 years. This partnership has helped create thousands of jobs at industries that are alive and well today. We also know that there have been instances where companies did not live up to expectations. I don’t believe that we have done a good enough job explaining to the public what happened, what is happening and what has been done to, hopefully, prevent these mistakes in the future. I believe in speaking directly to the people and that is what I hope to do tonight.
Here are some of the statistical facts in regards to these Tobacco Commission grants:
-The Tobacco Commission has awarded 47 grants totaling more than $37 million to the City of Danville over the life of the program.
-Of the 47 grants, 31 of them have been fully successful.
-10 of them are currently active, though likely some will fail
-2 grants were restructured and the clients have repaid an agreed upon portion of their grants to retire the balance.
-4 grants, which equals 8.5% of those awarded, are currently in default.
-Of those, Blue Ridge Fiberboard repaid the small amount they owed.
-US Green Energy has entered into an agreement to pay back their grant money and so far, have done so.
-That leaves Web Parts and GOK International.
I was not here when the Web Parts grant was decided upon, but in regards to GOK, I can say we made a mistake. As it turns out, the information that we (as City Council) were given was incorrect and possibly untruthful. In an effort to bring jobs to a community that desperately needs them, we accepted statements as facts. But ultimately, the buck stops here. With us. City Council. I wish we had done more to question the information we were provided with and the assurances we were given. But we didn’t do enough. I didn’t do enough. And that is something that I will regret for a long time. So I accept my share of responsibility for this and although we can’t go back in time and change what has been done, we can take steps to ensure it doesn’t happen again.
Here are some of those steps that have already been taken:
-As most of you know, last year we hired a new Economic Development Director, Mr. Telly Tucker. I believe he will be a great asset to our city.
-Brown Edwards, Certified Public Accountants, performed a special audit of grant and incentive payments issued to seven clients. They provided recommendations on strengthening financial oversight of grant administration that our Economic Development Department immediately put into operation.
-Danville Commonwealth Attorney’s office was notified of suspicious grant client activities that were uncovered by the audit and an investigation has been ongoing since last year.
-The City retained attorneys at Taxing Authority Consulting Services to pursue collection of grant and incentive funds in cases of non-performance. Two lawsuits have been filed.
-Last year, the City retained the law firm of Kilpatrick Townsend to more thoroughly vet national and international grant prospects to ensure that clients selected for funding are business worthy. This one is key. This guarantees that the vetting process no longer hinges on one man or one department.
On a broader note, in a few months, we will be rolling out a new open data platform for the public to use. This essentially “opens the books” to the entire City of Danville budget. Every line item. Every expenditure. Every dime and every dollar will be made available to the public in an easy-to-use online system. This is something I have advocated for since joining this Council. I am glad to see it’s on its way.
Notably, the public’s trust has been shaken over the past year. This is unacceptable. My hope is that we begin to regain that trust with some of the steps we’ve taken that I’ve mentioned tonight. I’d love to sit here and tell you that this council will never make another mistake. But that would be a lie. We are not a perfect body because we are not a perfect people. We never will be. But we can learn from our mistakes. We can grow from them. And hopefully, eventually prosper from them. Someone once said that when you make a mistake, you take your knocks, you learn your lessons, and then, you move on. And that is what we will do.
I can say with all sincerity, and my wife would say to a fault, that every day I wake up and every night I go to sleep, thinking of ways to make Danville a better place for all. I know that is true of everyone sitting up here. We love this city. We wouldn’t spend the long days and sleepless nights if we didn’t. There is a lot to be accomplished over the next couple years and I believe we have an obligation to do our very best for the people of this city. When we work together, we can achieve great things. And with your help, that is what I intend to do. Thank you.
[…] Lee Vogler’s City Council Remarks (2/3/2015) […]
Well stated, Lee.
“The Tobacco Commission has awarded 47 grants totaling more than $37 million to the City of Danville over the life of the program.” Question 1: How many jobs have been created with this investment? Question 2: How about Norhurst? Didn’t they receive over half a million dollars in tobacco money?
Having said that, I applaud Mr Vogler and his service to the community.
Regarding Norhurst, their clock hasn’t ran out yet. They should have the money to repay.
What about Macerata wheels that received $600k? Was that included in Mr Volger’s statement?
Charles, they would be included in the line:
“10 of them are currently active, though likely some will fail”
Active meaning their performance grant agreement has not reached its official timeline yet but yes, they don’t appear to be a success by any measure.
Again, though, I will stress that several changes were made a year ago that will safeguard these mistakes from happening. The entire way incentives are given out has changed. They are now more in line with what I have always supported: performance based incentives. The better you do, the more people you hire…that’s when you get an incentive.
I don’t mean to drown happy talk, but WBTM’s been tearing up the economic beat the past couple of years. Danville’s unemployment rate only looks “better” b/c so many people have either moved, retired, or dropped out of the workforce. I believe Danville’s had one of the biggest workforce shrinkages in the nation the past couple of years. I don’t see how all of these projects could be “successful” when you look at those very real numbers.
As I’ve posted before, it’s unfair to compare Danville to Richmond or VaBeach. But Lynchburg and Roanoke are fairer measuring sticks. They’re isolated cities in Western Virginia. If you visit either one, they’re miles ahead of Danville in terms of serious economic and socioeconomic indicators. In 1990 Lynchburg had 65K residents and Danville 54K. Today? Lynchburg has nearly 78K and Danville has 43K.
Excellent speech Mr. Vogler. Happy to see some transparency at last. I have one question please. Did you factor in the money that has been paid to any local consultants on the failed companies? Would like to hear about that amount of money paid vs the success rate of deals made, especially where family members obtained jobs. That should also be a loss, shouldn’t it?
i think this is going to take more than a mea culpa by one member of the emptied out clown car (city council) to fix this
.
Mr. Vogler seems not to know the difference between misfeasance and malfeasance. He wants to portray what has happened as a mistake when in fact it was a crime.,.
Was it? To me, that’s a question Michael Newman is far more qualified to answer I read Mr. Vogler’s remarks to suggest that investigations into certain issues are underway and we will see the results at some future time. More to the point, it could be the city wants to see if somebody like Brad Mainland ponies up before they try the indictment route. Who knows?
truth of the matter Lee vogler has caught heat and is catching heat cause people tired of his pretty boy image riding him onto another term. a.k.a. “damage control” let’s see him tear the school budget to pieces—how humble and understanding he is !! and also buddy rawley. more on that as it hits the news.
Trevor,
I’m not sure what “heat” you’re referring to but I would think that out of all the council members, with the exception of maybe Mr. Buckner, that Vogler would be the one catching the least amount of heat over the grants, considering a majority of these deals were done before he ever got on council. The fact that it was him that finally spoke out on this speaks volumes of his character.
But on a side note, your comments on this site over the past year are certainly noted. You seem to be fascinated with Councilman Vogler’s appearance, as I’ve seen you refer to him as “pretty boy” more times than I can count. Sounds like someone has a crush. That’s fine if that’s your bag but that type of stuff is probably better suited for Match.com rather than Southside Central….
sounds like pot is calling the kettle black with your observing my comments about a certain city councilman . u seem to have an attraction to noticing ALL I write. F Y I I do NOT have an attraction to him in the way you ACCUSED me. I don’t appreciate you even bringing the insinuation up for it is NOT applicable to the topic at all. sounds like you have a hatred / dislike for those who have an attraction for the lee voglers on the globe or are you on the down low or in the closet since you want to out others??
get some medical help….get a life…..get anger management training….and diversity training ( U NEED THIS BIG ASS TIME) ….get out more often…..get interested in something other than attempting to read between the lines on southside central postings.
Prehaps you might be better served if you discontinue using personal attacks on other people.There is no need to refer to anybody as “pretty boy”, even if you think he is. Other folks would be more receptive to your posts if stick to the facts and stop the name calling.
direct / forward the same comments to KMA, Pam. don’t single me out when others do the SAME to me!!!! admonish fairly.—END of thread !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
YOU are accusing someone of being gay? YOU are telling someone to get anger management training after you just laid him out for no damn good reason? YOU are telling A N Y O N E in this whole f’ing world to get DIVERSITY TRAINING? Your comments PROVE what a low down POS racist YOU are. YOU are the one who keeps referring to Lee Vogler as a “pretty boy” as LA pointed out. YOU are putting his looks over the substance of his remarks, you dumbass. Did Mr. Vogler slap your hand in the showers? What the hell is YOUR problem?
well well well….someone else needs anger management training. since my postings annoy you why do you even reply? I am the apple and you are the EVE ; you can’ t resist commenting and getting all worked up over what I post. really …is getting all worked up over what I post necessary ? not really. take a chill pill and keep a stepping when u see my posts. not good to dwell on these things that don’t amount to a hill of beans. we have the freedom to post. when replying affects and hurts your health, not wise…drink you a beverage…get in your favorite chair,,,get the remote and enjoy the peaceful, tranquil times.
Southside Central, we should thank you for printing Lee’s remarks – his dissertation (lol) – great job!
But Lee, the citizens of Danville should appreicate your efforts to increase the awareness and relationship between servants and citizens. Rural America has taken a blow to more that just their pockets, for rural America has been in this economic devastation years longer than the rest of America, and where as urban sectors have made quicker progress we here in the rural parts have been forgotten about – or given hand me downs. I think when you consider such a harsh devastation one must think that the morale and intergity of not only society, but the structures of government and its trust must be questioned. With Danville dealing with issues surrounding ulitility department intergity along with grants funds from the Tobacco Commission, it was time for answers – for those of us in the know, we understand – to citizens who do not understand. We should commend you for your efforts and praise your wife and child for lending you to us.
#OnlyInDanville
Someone mentioned Lynchburg in one of the comments growing from 1990 until today but I think a lot of this is due to Liberty University gaining national recognition. Lynchburg has become a college town of sorts, I know Averett University is a private institution, like Liberty is, but I think a better use of money would be spent helping Averett grow.
Averett is almost landlocked, so that’s why they rapidly expanded their off-campus graduate program to stay financially competitive and prosperous. On the other land, Liberty can buy whatever it wants whenever it wants and can influence Lynchburg politics by their sheer size.
I can’t go along with a local government “picking a winner” in the form of spending public money to help Averett grow, and especially not with the ultra-tight city budget issues now.
[…] If the Register & Bee reporter had asked Vogler why he made the solo speech on Tuesday night like I did, she would have gotten the answer that some members of council didn’t want to tell the full story. Instead, the lead on their article was Gary Miller’s repeated demand for Duke Energy to cough up some coal ash cash. I sat back and listened to Vogler’s speech. I watched the smiles and nods of approval from Fred Shanks, Alonzo Jones, Larry Campbell, James Buckner and Buddy Rawley. I asked Lee Vogler for a copy of his speech so that I could publish it here on SouthsideCentral, and…. […]
[…] An around the horn session that will praise Public Works for snow removal efforts. We’ll watch the around the horn session to see if anybody piggybacks on Lee Vogler’s sta… […]
Based upon the Norhurt story on the front page of the Sunday paper (03 22 2015), I am awaiting Lee Vogler’s response>> Maybe something like ‘I was not at the meeting that day and did not vote’. This one was a joke from the get go and truly amazing that the City Economic Development Office, Danville City Council, IDA and Tobacco Commission did not see through this from the start.
MIssing from the Danville Register & Bee story was the sale of part of the Norhurst property back to the IDA. If you are not aware, he sold some acreage including part of his parking lot to the IDA shortly after he purchased the property. The sale price was $425,000. So after receiving the $625,000 from the Tobacco Commission, his total take was $1,050,000.
I guess the City Of Danville thought this area would be good are to locate another industry although seems like an odd investment to me but common sense does not seem to prevail with this bunch running the city.
The incompetence level is amazing.
It is possible the last 5 years of economic development effort have been a total bust? I think so and will provide details soon.