Around Town: Kennesaw/Chamber move left Tumlin hacked amid conflicting numbers
by Otis Brumby, Bill Kinney and Joe Kirby
Around Town Columnists
Jun 09, 2012 | 2489 views | 13 13 comments | 7 7 recommendations | email to a friend | print
THIS WEEK’S NEWS that Marietta-based online retailer Fabric.com had been enticed by a $50,000 promise from the Kennesaw Development Authority to relocate there fits Kennesaw officials like a silk suit. But it looks like cheap polyester to Marietta Mayor Steve “Thunder” Tumlin, who says he was blindsided by the company’s high-profile decision to pull up stakes. Moreover, Tumlin thinks the anti-Marietta motives of the Cobb Chamber of Commerce, which announced the Fabric move, are nakedly transparent. The move was announced at the Chamber’s First Monday breakfast. Fabric.com, which is owned by Amazon.com and sells fabrics, patterns and sewing gear, will pull up stakes in August at its 56,000-square-foot location near Dave & Buster’s off Delk Road at I-75 and land in a 200,000-square-foot building off Jiles Road. Questions were quick in coming as to just how many folks actually work at Fabric. Chamber VP Brooks Mathis said on Monday that Fabric employs 200 and that it would add another 50 after moving to the bigger quarters in Kennesaw. But a check of the Fabric.com website this week found a video link saying that the company has 100 “associates.” And when Fabric applied for its annual business license from Marietta late last year for 2012, it specified that it had 156 employees. Moreover, when questioned by an MDJ reporter on Wednesday, Fabric.com founder Stephen Friedman of Cobb said his company already has 275 workers.

REGARDLESS of those discrepancies, Fabric will get a nice payday courtesy of the 50 grand. But it actually will be paying about $3,000 more each year in personal property and inventory taxes in Kennesaw. That’s thanks to Marietta’s substantially lower tax rate (5.233 mills vs. Kennesaw’s 9.50 mills), made possible by the revenues transferred to the Marietta general fund each year from the city Board of Lights & Water. The Journal was unable to calculate the difference in real estate taxes connected with the move because those taxes are usually figured into the rent paid by tenants, which is what Fabric is and will be.

THE STATE approached the Chamber about eight months ago to help with the move, according to the Chamber’s Mathis. The Chamber, hoping to keep the business in Cobb, agreed to help, he said. City of Marietta economic development director Beth Sessoms was asked to help find bigger space in her city, but answered the city had no buildings available of the size needed. Around Town has learned that word of that conversation never made it upward to the mayor or council. Mayor Tumlin isn’t happy about that. He’s also needled that the Chamber, which often touts the need for cooperation among its cities in the hunt for economic prospects, would in essence rob Peter to pay Paul.

TUMLIN is even more irked that he was not given a “heads up” about the pending move by the Chamber, or given any hint of the Chamber’s involvement. Tumlin, who did not attend the Monday meeting, reportedly knew nothing of Fabric’s pending departure until reading about it in Tuesday’s MDJ and seeing it on Channel 11’s newscast. It’s probably just as well that he wasn’t at the meeting and was saved the embarrassment. Rubbing salt into that wound was the fact that the move was announced at the meeting by Chamber development committee vice chair Jim Budzinski — who is the chief financial officer and second-highest official at Marietta-based WellStar Health System. “Yes, WellStar is a great corporate citizen, but the City of Marietta does a great deal for WellStar as well,” said one official. A spoonful of sugar might have helped that medicine go down better. If the move was inevitable, why not announce it at Kennesaw City Hall, rather than at the Chamber meeting? And why not let Kennesaw officials get the glory, rather than the Chamber and WellStar? In fairness to Budzinski, part of his job as committee vice chair is to make such announcements each month at the Chamber meetings, but the diplomatic and more considerate thing to do according to several irate Marietta officials would have been for him to let someone else have the honor this time around. And Tumlin wouldn’t say it for the record, but strongly suspects the Chamber’s public dissing ofMarietta on Monday was subtle payback for his decision that the city would not make the large financial contribution sought by the Chamber to its new EDGE program aimed at beefing up its economic development efforts.

QUESTIONS: Did Kennesaw give Fabric.com “the key to the safe” in a possibly ephemeral quest to snare more jobs? Or did the Chamber and Kennesaw Mayor Mark Mathews just want to embarrass the City of Marietta for its failure to “get on the team”? Or did they simply forget to do their due diligence on Fabric.com’s true employment level?

THE PURPOSE OF INCENTIVES like those ballyhooed by the Chamber is to spur business growth and create new jobs. However, thanks to the conflicting numbers noted above, it remains unclear how many jobs — if any — will be coming as a result of the move.

MAKE NO MISTAKE: Gov. Nathan Deal is “all in” with the decision to build reversible lanes along I-75 from the Galleria area northward to relieve traffic congestion. It’s a welcome

development following eight years of gubernatorial slumber about the problem during the Sonny Perdue administration.

The 30-mile project would add two managed lanes on the west side of I-75 between the I-285 and I-575 interchanges. There will also be one new reversible lane added on the I-75 center median northward to Hickory Grove Road and a similar lane added along 575 north to Sixes Road in Cherokee County. A variable-rate toll (based on traffic volume) will be charged for access to the lanes. The biggest hitch in the project would be a decision by Washington to withhold $270 million in low-interest Transportation Infrastructure Finance and Innovation Act loan dollars needed for the $950 million project. But not to worry, Deal told the MDJ’s Joe Kirby and Jon Gillooly during an interview in his office at the Capitol on Thursday. Even if that were to happen, the state would make up the difference, he said. “We would make every effort to do that,” he said. “But obviously, that’s not something that we foresee. The TIFIA loan program is a very well-established method of federal assistance on projects of this type and it is a loan, it is not a grant. It does have favorable terms on the repayment but if the federal government is going to pick places to cut and save money I would think there are a lot of those in the give away category in the grant side of things and they wouldn’t pick on one that’s a repayable category, which is what the TIFIA loan program is.” For more on Deal’s thoughts on the reversible-lane project, see Gillooly’s story in Sunday’s MDJ.

POLTICS: The Georgia Senate District 6 race (Buckhead,Smyrna) is turning into one of the most closely contested battles in the state this summer. Money is the lifeblood of politics these days, and state House Majority Whip Ed Lindsey will host a reception for candidate Josh Belinfante from 6 to 8 p.m. Wednesday at the home of Virginia and Oscar Persons in Atlanta. Then on Friday, retired Atlanta Falcons Coach Dan Reeves will host a fried chicken fundraiser from noon-1:30 p.m. for District 6 candidate Hunter Hill. That event will be at the CherokeeTown and Country Club,155 W. Paces Ferry Road in Buckhead. Jackets are required.

MORE POLTICS: The Cobb County Fraternal Order of Police has endorsed Bill Byrne for Cobb Commission chairman. And Greg Poole has been endorsed for Superior Court by the Cobb County Association of Educators. … Commission Chair candidate Mike Boyce will host a “meet and greet” at the Rose and Crown Tavern onPowers Ferry Road from noon to 3 p.m. today. … A fundraiser for southwest Cobb Commission candidate Lisa Cupid is set for 6 to 8 p.m. Tuesday at Mexico Lindo onVeterans Memorial Parkway inMableton.

THE GEORGIA TEA PARTY will hold a rally from 10 to 11:30 a.m. today on Marietta Square. Much of the focus will be on opposition to the TSPLOST, reports chairman J.D. Brink. Pocket-sized copies of the U.S. Constitution will be handed out as well at the free event, he said.

Comments
(13)
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Mike O. Bedenbaugh
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June 11, 2012
Yes Fabric.Com will be paying more taxes in Kennesaw and Cobb County because they will be paying higher county taxes both because of Fire Taxes and School taxes because both the Cobb County Fire and Emergency Services and CCSD cover the City of Kennesaw, along with the normal county taxes. Marietta City has its own fire department and school system payed out of the support of the Marietta Water Authority, plus like Kennesaw have their own police departments which they don't pay the county for police protection.
Nice Try
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June 11, 2012
What is really being lost here is the fact that this could and should have been a good news story. Yet, once again this editorial staff took the opportunity to snatch defeat from the jaws of victory. Should have been good news that this company did not move outside the borders of this community but decided to stay and grow right here. Now we have an editorial comment from this paper and in so doing causing collateral damage for the city of Marietta, the City of Kennesaw, the Chamber and worst of all Fabric.com who thankfully decided to stay here. I truly hope they don't regret their decision. We are not off to a very good start based on the tenor of this article.
TIC
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June 11, 2012
Based on many of the comments about the Fabric.com situation it sounds like most people are missing the point.

The issue is that the Chamber did not have the professional courtesy or political savvy to let the Mayor know what was going on in his jurisdiction.

There is also some responsibility on the part of the city's ED staff to let the Mayor know about a company potentially leaving the city.

Bad form all the way around.

It seems like every time we turn around the Chamber is doing something to undermine the the county or one of its cities.

County SPLOST, TSPLOST, supporting proprty tax tax increases, Development Authority controversies, EDGE, etc. etc.

Their slimy fingerprints are always at the scene of the controversy.

Whether it is on purpose or just because they don't have enough sense to know any better is up for debate. Either way it is not in the best interest of the county and it's municipalities.

The only good thing about this is that the company is staying in Cobb County.
Got it right
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June 14, 2012
What the Mayor has is an internal problem. His Economic Dev. expert, Beth Tippins, knew this all along as well as the city manger, Bruton. They both had been working with the Chamber trying to find the company larger space in the city and could not find any. Maybe Tumlin should stay closer to his people and keep in touch with what is going on right under his nose. He might not be blind sided so much in the future.
MAY-RETTA SURVIVOR
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June 10, 2012
And since when did anyone have to ask for Tumlin's permission to do anything? Get a grip!
anonymous
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June 09, 2012
If Tumlin would get his nose out of the air long enough to just talk to the city directors then maybe he would have known about this. Hey, but in all fairness he did talk to enough people to get a park named for his parents.

AT you say he didn't attend the breakfast. Let's ask good ole "Thunder" how many Chamber meetings he has attended prior to Monday's breakfast. My guess is not very many if any. He doesn't know what is going on at the Chamber or in the other cities because he treats them just like he does his own, without communicating. I miss Bill Dunnaway. At least he communicated between fights with Goldstein.

Someone please ask Mayor Tumlin if he wants to continue to be my Mayor or if I need to start supporting his replacement early.

sourgrapes.com
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June 09, 2012
Sounds pretty PETTY to me! Good for Kennesaw, they had the extra commercial space so glad it got filled in Cobb Co. instead going to another community. Marietta has lots of great stuff and plenty of big wins. No need make a big deal about it and try to pit two fine cites and the chamber against each other.
SG68
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June 09, 2012
Connell and the leaders at the Chamber cannot be trusted. They are not only unprofessional they are glory hogs.

Ronald Reagan used to say "It doesn't matter who gets the credit as long as it gets done."

I think the Chambers slogan is "It doesn't matter who gets the credit as long as it us."

It would have been simple professinal courtesy to let Mayor Tumlin know what was going on.

It was a bush league move by a bush league organization.
Jane W.
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June 09, 2012
So the Cobb County Association of Educators endorses Superior Court candidates? In what way is the Superior Court linked to education?

This is the sort of hyper-partisanship that turns people off to CCAE/GAE/NEA ... and the union bosses' addiction to liberal Democrat causes.

Do a Google search on "NEA" and "donations" and see the full extent of their money-wasting. Playing politics is a costly hobby. They should stick to education.
Silly girl
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June 09, 2012
Smells as if Lee, Sessoms and Mathews are under-cutting Marietta welfare with stealth moves of a conspiracy. I would fire Sessoms and wonder if her contract has a non-compete clause incorporated in it. What else is Tumlin going to be blindsided with by Lee, Cobb Chamber, Sessoms, and Kennesaw,s Mathews, What else do they have going on

that Tumlin does not know? regarding Splost? Wellstar should not bite the hand that feeds them.

Interesting that Marietta apartment dwellers and seniors living in senior properties are subsiding property owners tax rate when Marietta Water transfers revenues to Marietta City general fund. This is stated in 6/9 Around Town. Is this taxation without representation when Marietta Water is city's slush fund.
Ripped and Torn
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June 09, 2012
Not sure how many jobs will be created but it is apparent Fabric.com, for whatever reason, needed more space than what they had. Their current home (Marietta) could not provide another space so they moved, thankfully, to a another space inside Cobb.

Instead of making this into a who won and who lost scenario, lets look at the fact that this company who could go anywhere, decided to stay within the borders of our county and keep those jobs, whatever the number is, right here.

This "glass is ALWAYS half-empty" mentality is wearing pretty thin folks, in fact it is pretty see-through.
Bobby Bland
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June 09, 2012
Make no mistake about it. If there is something shady about the deal on the Fabric move, it involves Kennesaw and their council. They have a corrupt development group, lead by Cris Welsh who loves to point fingers at the Mayor but is actually a big part of the problem there herself with shady dealings behind the scene. Do not be fooled. Kennesaw is about as corrupt as they come these days. If you only knew the things that go on around there.
Kennesaw Voter
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June 19, 2012
Well why don't you tell us specifics instead of spouting off a lot of vague crap.
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