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News truck across from local high school?


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Just curious as to why Chanel 46 had a news truck across the street from EPHS late this afternoon.

 

Anyone know?

 

Saw it on my way home from work around 4:15.

It's about the booster club fiasco

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The school board did not back or approve a loan. The $450,000 that was paid to build the field house by the boosters was to come from public and private donations. The school paid $450,000 and the boosters paid $450,000 however the boosters took a loan out for it. Watch the school board meeting from last week. Very interesting.

http://www.paulding.k12.ga.us/Page/33913

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Exactly how much is owed? And the Board backed the loan? How? Why?

BOE did not approve the loan. It is clear in the minutes where the $450,000 was approved that they did not. That was the same amount approved for all of the other school field houses. I think about $389,000 is still owed. BOE voted to stop all payments from school funds on the loan. Apparently the Principal at the school had written a couple or three checks to pay on the loan. Those were written out of EPHS funds. The Field house at EPHS is valued at more than twice the worth of others in the county.

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I am trying to figure this out. The board approved funds for all the county high schools sports programs. I can not tell if it was for field houses or general to the sports programs. The EPHS boosters decided they wanted to build a bigger and better field house than those funds would cover. They were permitted to plan and build this on school property. Someone maybe the board, Principal or both approved this. I can assume that the bank can not repossess this. Do they have the option of going back and suing the individuals in the booster club at the time? Did they all sign the loan? Maybe the bank will let it go in lieu of having it dedicated in name to them unless they have already done that with a local business.

 

If I understand what a booster club is, it is a completely volunteer group. It makes no sense for a bank to loan them the money or the school system to allow them to build permanent structures on school property based on a loan with no known collateral.

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Well, I guess I'm wondering who is going to pay back the loan?

Thanks for the info on a field house that cost nearly a million dollars. Must be a nice one.

I've been in it many times, no where near a million dollars worth nice.

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... Maybe the bank will let it go in lieu of having it dedicated in name to them unless they have already done that with a local business...

Now that's the best idea I've heard in several years. If the Booster Club wanted to put up a big Bronze Plaque dedicating the Field House to the years long dedication, support and sacrifice of the bank and bank board members for them going the extra mile to support the kids, I'll pledge $100 to the plaque. Everybody wins. The bank gets a tax write off, the Booster Club can then get back to supporting the football program and the BOE has a mess fixed.

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Do you really think we haven't tried to get the bank to wipe the debt away. We have tried everything and the bank won't negotiate. They want their money. Back in 2014 before the loan was resigned we tried everything to get the bank to compromise with us. The answer was always NO

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The booster club has always struggled to pay the loan. Fundraising has gotten harder and harder and to be honest yes funds have dried up a bit. It was a bad loan from the start. The whole story was told at the school board meeting last week. You should watch it.

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This absolutely reeks of the Good Ole Boy system that was in place in the 80's,90's and 2000's. Some GOB's child/grandchild were/are in the EPHS district as well as having some connection with the booster club. GOB goes to another GOB at the GOB bank. This GOB contacts GOB construction and tells them to come up with a "competitive price"(very close to the GOB budget the GOB board secretly had in mind) to submit to the GOB school board and boosters. GOB board approves, GOB bank writes an unsecured loan, GOB construction builds, GOB booster has their field house, current boosters/taxpayers on the hook. Paulding County GOB 101.

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I just watched the meeting for 2 hrs. Usually School board meetings are boring. I found this on incredibly interesting. You will see some of the best community dynamics ever. It was a great discussion, very open and honest. I hope that I understand clearly what happened. The school system authorized and paid for a 450,000 field house. The construction company basically said that they could build a million and a half dollar field house for another 450,000 The booster club guaranteed this loan. I hope that I am not confused on this. The construction company was on the hook until completion of the construction and were released. The booster club then took over the payments. I was a little appalled at the total of payments over the years by the club, school and others verses what was left to pay on the loan.

 

I still remain confused about making loans to entities that consist solely of volunteers. As it stands any formation of a booster club at East Paulding will be held responsible for the loan. I am not really sure if this can be legally done over the long term.

 

I know how I would like to see this settled. I believe the bank at least deserves the principal amount they loaned paid back by the booster club. That is a doable amount under their current hardships. On the other hand it was loaned to a group of volunteers that changed from year to year. The people in the booster club that thought this was a good idea are long gone.

 

http://www.paulding.k12.ga.us/site/Default.aspx?PageID=33913

 

It gets good at the 1:20 mark.

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I just watched the meeting for 2 hrs. Usually School board meetings are boring. I found this on incredibly interesting. You will see some of the best community dynamics ever. It was a great discussion, very open and honest. I hope that I understand clearly what happened. The school system authorized and paid for a 450,000 field house. The construction company basically said that they could build a million and a half dollar field house for another 450,000 The booster club guaranteed this loan. I hope that I am not confused on this. The construction company was on the hook until completion of the construction and were released. The booster club then took over the payments. I was a little appalled at the total of payments over the years by the club, school and others verses what was left to pay on the loan.

 

I still remain confused about making loans to entities that consist solely of volunteers. As it stands any formation of a booster club at East Paulding will be held responsible for the loan. I am not really sure if this can be legally done over the long term.

 

I know how I would like to see this settled. I believe the bank at least deserves the principal amount they loaned paid back by the booster club. That is a doable amount under their current hardships. On the other hand it was loaned to a group of volunteers that changed from year to year. The people in the booster club that thought this was a good idea are long gone.

 

http://www.paulding.k12.ga.us/site/Default.aspx?PageID=33913

 

It gets good at the 1:20 mark.

 

Pretty good summary of the meeting. It should be noted that the construction company that built the field house belonged to the Paris Brothers that had children on the EPHS team at the time the loan was made. They eventually went bankrupt, however, I believe they are back in business now.

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Pretty good summary of the meeting. It should be noted that the construction company that built the field house belonged to the Paris Brothers that had children on the EPHS team at the time the loan was made. They eventually went bankrupt, however, I believe they are back in business now.

Yes, it is very easy to Bankrupt one company and turn around and open another one. Just a matter of paperwork. Once that company is dissolved with the Secretary of State's office (with or without a Bankruptcy)--that company no longer exists, as far as the law in concerned, so there is nothing or nobody to go after. Even if the owner of the company personally guarantees a debt--all they have to do is file a personal Bankruptcy and they are also off the hook. I have seen this go down many, many times in my former career as a Bankruptcy Paralegal.

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I don't understand this. In the early days of East Paulding HS this would have been considered a Jumbo loan. Two banks would have shared it. Two loan committes would have to approve it. If land/structure was'nt collateral it would have required personal guarantees. If those Guarantees(persons) main assets (homes) were joint with spouses, they would have had to guarentee also. State and federal auditors go thru banks to check these things almost annually. How did they loan this much money with no collateral/guarantee and get by so many years?

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I don't understand this. In the early days of East Paulding HS this would have been considered a Jumbo loan. Two banks would have shared it. Two loan committes would have to approve it. If land/structure was'nt collateral it would have required personal guarantees. If those Guarantees(persons) main assets (homes) were joint with spouses, they would have had to guarentee also. State and federal auditors go thru banks to check these things almost annually. How did they loan this much money with no collateral/guarantee and get by so many years?

Please refer to post #26.

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Since Pubby posted the meeting yesterday I have watch the better part of it a bit at a time. It was about what one would expect out of a government meeting, too long and often off subject but very enlightening concerning this subject. I applaud the BOE, at least the ones who had the guts to stop payments, for being good stewards of the tax payers dollars. Mr. Albright and Mr. Lester being stand outs as well as Mrs. Cobb. The loan oozes of impropriety and favoritism. The bank "doest protest too much" concerning the origination of the loan and the disappearing guarantors making it look even more suspect. I was disappointed in the BOE members who did not vote. I believe the vote was 4-2 with nine members present. Perhaps the chair cannot vote but come on if you want the job people have the guts to participate on the record. Bottom line the Booster Club is on the hook and I am afraid their officers will see legal recourse. If the club was incorporated properly perhaps the officers have some protection from recourse. The bank is about to eat this one. Maybe they can get a loan from the folks who guaranteed the note in the first place. Chickens commence roosting you have made it home. Oh yeah thanks for the video Pubby and LPPT.

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The booster club voted last night to disband.

Are you going to pay back what you owe?

 

Are any/all team fundraisers at this school going to make sure they cover these costs?

Let me add that I don't believe all the teams at this school share/are responsible but all residents of the county who have children go here/have and participate in any event need to cover these costs. This isn't as Paulding County wide issue.

Edited by CreativeOne
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The booster club has always struggled to pay the loan. Fundraising has gotten harder and harder and to be honest yes funds have dried up a bit. It was a bad loan from the start. The whole story was told at the school board meeting last week. You should watch it.

 

I can imagine it is tough to get parents to work fund raisers when they know that most of the money will go to the bank rather than helping their kids. I imagine they had rather just pay for the kids stuff themselves and know their kid is the benefactor of their work.

 

Sad situation for the current booster club to be put into.

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