What's up with Mautino?

[carltonplace]

This article from the Tulsa World makes Jim sound a little desperate.

East Tulsa deal dead, developer says
By P.J. LASSEK World Staff Writer
1/10/2006

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A city councilor had told him that the city would fund sewer service to the area, he says.
A proposal to build about 400 homes on 140 acres in east Tulsa is dead because the city won't fund sewer service to the area without an assurance on the project, a developer said Monday.

Buford Williams said he had planned to develop the land after City Councilor Jim Mautino said the city would pay the $700,000 for sewer service in the area.

"Jim seemed to think the city would run the sewer at no charge to me because I can't afford to build the type of houses I think can be built and pay for the sewer line," Williams said.

But he added that when he picked up the contract in late December, the city was requiring a payback assurance for the cost of the sewer line if the development failed to be built.

Williams said it also required him to buy the right of way and pay for engineering, requirements that Mautino told city officials and councilors that Williams had agreed to.

"That wasn't my agreement. Jim doesn't know what he is talking about," Williams said. "I think there has been a misinterpretation here."

Williams said developers usually pay to install the utilities and recoup the cost by selling  

houses. But the development near 11th Street and 161st East Avenue "is too risky; it's not feasible because of the location," he said.

"It's a big gamble even if the city ran the sewer in there for free."

Williams is the first developer to face a new policy established by the Tulsa Metropolitan Utility Authority in November that requires utility requests for economic development projects to have a payback guarantee.

Public Works Director Charles Hardt said the authority decided that if ratepayers were going to subsidize a project, there should be an assurance.

"This isn't meant to be punitive; (it's) just to provide a safety net in case something goes south," Hardt said.

Williams said he has no problem with the assurance but that he just can't pay it in regard to this project.

At a council committee meeting last week, Mautino said Williams is a successful developer and that "the assurance of his word should be enough."

He said he blames the city for the deal's death because the city decided to require the letter of credit at the last minute.

Hardt reminded Mautino that he had been in the utility authority meetings when the policy and the payback guarantee were discussed and officials agreed to shift funds to pay for sewer service for the development.

"I don't understand that Mr. Williams is surprised . . . unless somebody presented to him that assurances according to the policy would not be required of him," Hardt said then.

He said the city didn't expect Williams to give anything other than the normal financial assurance available to him from any lending institution.

At one point during the meeting, Mautino admonished Hardt for his continued challenges.

"Mr. Hardt, you are a professional, and I would certainly hope you would act like one," he said.

Hardt replied, "You're a councilor, and I would hope you would be factual in your presentation."

Williams said he fears that if the leaders change, he might never get a letter of credit released from the city, and he doesn't want to take the chance.