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Bham, AL - Top Golf hire minority contractors or lose $1.5 million

Posted on 6/29/17 at 8:52 am
Posted by Palmetto08
Member since Sep 2012
4048 posts
Posted on 6/29/17 at 8:52 am
quote:

Topgolf is at risk of losing $1.5 million in financial incentives it received from the city of Birmingham to build a 65,000-square-foot facility near the Birmingham-Jefferson Civic Center Authority downtown.

City officials say Topgolf has failed to comply with terms of the project agreement by not hiring minority-owned contractors and subcontractors.

In a letter to Topgolf dated June 16, Birmingham Mayor William Bell said the entertainment company hasn't provided any reports to the Birmingham Construction Industry Authority on the hiring of minority contractors.


quote:

The Topgolf entertainment complex is anticipated to create an economic impact of $264.5 million over 10 years to the Birmingham economy.




LINK
Posted by udtiger
Over your left shoulder
Member since Nov 2006
98480 posts
Posted on 6/29/17 at 8:54 am to
Translation:

I have political supporters with a MOB and if they aren't paid off to the tune of $1.5 million, then frick any economic impact that may come with this project.
Posted by Jyrdis
TD Premium Member Level III
Member since Aug 2015
12788 posts
Posted on 6/29/17 at 8:55 am to
MOAR DIVERSITY!!!
Posted by skullhawk
My house
Member since Nov 2007
22961 posts
Posted on 6/29/17 at 8:57 am to
quote:

City officials say Topgolf has failed to comply with terms of the project agreement by not hiring minority-owned contractors and subcontractors.




I'd love to hear our resident libs explain how this was ever a good idea.
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73424 posts
Posted on 6/29/17 at 8:57 am to
The parent company I now work for is losing a contract because the DOD says the winner of the follow on contract must be a minority or female owned company. The company just received a bridge contract to allow the DOD time to find a minority/female owned business, because there is only one minority owned business that can perform the job, you guessed it, banned from DOD contracts because of shady performance.
This post was edited on 6/29/17 at 8:59 am
Posted by AlbertMeansWell
Member since Sep 2013
5555 posts
Posted on 6/29/17 at 8:58 am to
I live in the Bham area and I've never thought this project would be completed. I've heard there are a lot of people looking to line their pockets and don't expect this to actually be completed.
Posted by skrayper
21-0 Asterisk Drive
Member since Nov 2012
30856 posts
Posted on 6/29/17 at 8:58 am to
quote:

City officials say Topgolf has failed to comply with terms of the project agreement by not hiring minority-owned contractors and subcontractors.


No sympathy either way.

I think it's stupid to mandate that type of hiring, but at the same time they went and got involved with the contract. Either they knew and failed to adhere to the stipulations, meaning a breach, or they didn't know because they were ignorant.

It's a law that needs to be done away with, but that doesn't excuse being stupid in dealing with it either.
Posted by GoCrazyAuburn
Member since Feb 2010
34868 posts
Posted on 6/29/17 at 9:00 am to
I can't stand this at all, but I can't believe Top Golf didn't take exception to those T&C's to make it just that 25% of bids had to be from minority owned contractors. To leave it that actual work has to be done by 25% is absurd. Birmingham going to Birmingham.
Posted by udtiger
Over your left shoulder
Member since Nov 2006
98480 posts
Posted on 6/29/17 at 9:00 am to
quote:

banned from DOD contracts because of shady performance.


Not uncommon with minority/female owned businesses.

Affirmative action/diversity bullshite.

This is why many companies have subsidiaries with a token owner, and then the real company actually does the work.
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 6/29/17 at 9:00 am to
If Topgolf signed the contract and isn't fulfilling their end of the deal, I have no problem. I don't agree with tying financial incentives to hiring minority businesses, but that's on Topgolf if they singed it.
Posted by Screaming Viking
Member since Jul 2013
4439 posts
Posted on 6/29/17 at 9:00 am to
wait and see how far over budget the new airport project in new orleans goes. they are following city of new orleans "DBE" guidelines which is a minimum of 36% - ish.

not going to end well.
Posted by FairhopeTider
Fairhope, Alabama
Member since May 2012
20758 posts
Posted on 6/29/17 at 9:00 am to
Its a terrible program all the way around. It either lines the pockets of friends of local black politicians or contractors put up a token minority as the "owner" and get the job that way.
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 6/29/17 at 9:03 am to
quote:

contractors put up a token minority as the "owner" and get the job that way.




This really doesn't happen anymore. The "owner" has to have an active role in the company, and most cities will check that. At least in my limited experience with them.
Posted by GoCrazyAuburn
Member since Feb 2010
34868 posts
Posted on 6/29/17 at 9:03 am to
Yep.

What's silly about it all to is that Top Golf may actually be doing just fine, Bham is just bitching right now because they haven't provided them with any reports on the matter. Well, why would they until the project was complete?
Posted by GoCrazyAuburn
Member since Feb 2010
34868 posts
Posted on 6/29/17 at 9:04 am to
quote:

This really doesn't happen anymore. The "owner" has to have an active role in the company, and most cities will check that. At least in my limited experience with them.


Yes it does, it happens all the time, especially on the women owned side. It is incredibly easy to pass the city's test.
Posted by The Spleen
Member since Dec 2010
38865 posts
Posted on 6/29/17 at 9:07 am to
I guess it depends on the city. I've reviewed bids and the process a few cities go through, and they've all checked up on the minority listed as the owner. Does he/she sign the checks? Is he/she on the payroll? Does he/she sign any contracts?
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73424 posts
Posted on 6/29/17 at 9:08 am to
quote:


This is why many companies have subsidiaries with a token owner, and then the real company actually does the work.
USAF says the documented work must be equal to or greater than 51%, so our company will do the heavy lifting and the new company will get the administrative and field stuff for a 30-40% increase in cost.

So the largest increase in the cost is to document and proove said company is in fact doing at least 51% of the work.
This post was edited on 6/29/17 at 9:11 am
Posted by CamdenTiger
Member since Aug 2009
62374 posts
Posted on 6/29/17 at 9:10 am to
Yeah, this is pure racism/ sexism with these "minority contracts". I have an acquaintance that brags about all the money he makes off the Govt, through minority contracts. Painting military and govt building for millions every year. He told me his business model. His wife owns the business, but it's a shell, as she runs a medical clinic and it takes up all her time. They bid out the contracts through her, and as a woman, she jumps all the normal bids( his words) ,and then his crew does the work. Pretty lucrative business model.
Posted by GoCrazyAuburn
Member since Feb 2010
34868 posts
Posted on 6/29/17 at 9:11 am to
Birmingham is very easy to get past, it is almost a joke.

quote:

Does he/she sign the checks?

Depends on the company set up, but many times no.
quote:

Is he/she on the payroll?

Yes.
quote:

Does he/she sign any contracts?

Again, depends on set up and type of contract.


Posted by DeltaDoc
The Delta
Member since Jan 2008
16089 posts
Posted on 6/29/17 at 9:13 am to
I agree. These requirements are very common in contracting. Most general contractors that bid on these projects have standing Teaming Agreements with MWBEs and disclose this relationship when they bid on projects.

What is likely to have happened is the MWBE that they used either folded or demanded more money than agreed upon...and now Top Golf is having difficulty replacing them for a fair price.

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