Update: Smyrna Mayoral Candidate claims FBI looking into Hickory Lake

Update: Further investigation Wednesday shed little light as to why the FBI would be investigating alleged wrong doings by the in relation to Hickory Lake Apartments.

There was a lawsuit in late 2010 from a former tenant at Hickory Lake about mold in her apartment. Her suit was against the apartment owners and not the City and her complaints predated anything having to do with the City’s purchase of the apartments last December.

In a letter the plaintiff's lead counsel wrote to The Marietta Daily Journal, there is mention of $38 million in Revenue Bonds to Hickory Lake, LP that were issued in 2002 by the Housing Authority of Cobb County. This was done before the apartments were annexed into the City in 2003.

Of interest in the letter, which is published in its entirety at the end of this story, is that a 2003 Smyrna Code Enforcement declared the living conditions at Hickory Lake "unsanitary and otherwise dangerous to human life."

Original story: Smyrna Mayoral candidate Alex Backery made mention before and during Monday’s Smyrna Mayor and City Council meeting that the FBI was investigating financial dealings involving Hickory Lake Apartments in the immediate years prior to Smyrna annexing it into the City in 2003.

Backery could not be reached for comment to elaborate as to what extent the FBI was involved. As its policy, the FBI does not comment on such matters. Last December, the City issued $15 million in bonds to help purchase the 48-acre, crime-riddled apartment complex on Windy Hill Road near South Cobb Drive. The the 92-building complex and sell the property to a developer.

Smyrna Police and Fire officials again Monday praised the city's purchase and remarked how calls to that section of town have dramatically dropped since Hickory Lake was closed.

Smyrna has hired a firm to market the property for $17.5 million, but the City's involvement with the property is a chief source of contention for Backery, who is seeking the mayor's seat for a third time in November.

“You don’t speculate with taxpayer money,’’ Backery said during Monday’s citizen comment portion at the meeting. "The original owners of Hickory Lake had $38 million given to them with $15 million in write-offs and 1,325 violations. Where’d the money go? The FBI is invesitagating that…(the City) shouldn’t get involved in the private sector.’’

The Letter to the Editor as it appeared in The Marietta Daily Journal on Dec. 14, 2010.

DEAR EDITOR:

Cobb County taxpayers have much to be upset about concerning the Hickory Lake Apartment Complex. I was lead counsel in connection with a lawsuit filed against Hickory Lake in Cobb Co. State Court. The trial lasted nearly two weeks. While the jury returned a verdict in favor of the Spence Family, the amount of the verdict was small in comparison to the harm done. 

In 2002, the Housing Authority of Cobb County issued Multi Housing $38,000,000 in Revenue Bonds to Hickory Lake, LP, an obscure limited partnership comprised of multiple Limited Liability Partnerships from Ohio to Colorado. The alleged purpose of these funds were to rehabilitate the aging complex in order to provide safe and affordable housing to low income residents of Cobb County. Millions of dollars went to companies owned and controlled by Hickory Lake General Partner, Robert A. Crowder. Hickory Lake, LP also received $15,000,000 in Federal Tax Credits pursuant to Section 42 of the IRS Code, to be paid over 10 years for their "investment" in Hickory Lake. That's over $1,300,000 per year paid to the corporate partners at Hickory Lake. Despite this government give away to corporate interests, the apartment complex was so riddled with health and safety problems that Smyrna Code Enforcement deemed the living conditions "unsanitary and otherwise dangerous to human life." The jury never heard about the tax credits, or profits Hickory Lake received. 

Fortunately, Hickory Lakes will be razed in a few short months. As a Cobb County resident, business owner and taxpayer, I am disgusted by the poor regulatory oversight that permitted Hickory Lake to obtain millions of dollars in corporate welfare, while putting the health and safety of thousands of Cobb Citizens at risk. As a husband and father of two young children, I am disgusted and outraged that our officials allowed these conditions to exist. Cobb County taxpayers were as compassionate as they are conservative when they agreed to fund safe and affordable housing to low income residents. The city of Smyrna is now prepared to pay Hickory Lake, LP over $9 million to buy back the land, while Hickory Lake and Robert Crowder pocketed millions of our tax dollars. Hickory Lake, LP and Robert Crowder should be held accountable for their conduct. The interests of justice require it.

Michael P. Carvalho, Esq.
Cobb

MDJ's Editor's note: Mr. Carvalho is an environmental attorney in Cobb County.

• In other public safety news, the Cobb County Public Safety Department is accepting applications until July 29 for the fall session of its free, 13-week Citizens Public Safety Academy. The academy starts Sept. 20 and meets Tuesdays at 6:30 p.m.

This program provides an opportunity for Cobb County citizens to gain an inside look at the various units which comprise the Department of Public Safety. During the course, participants will experience the Emergency Communications Center, Fire and Police organizations, and the role each plays in protecting Cobb citizens.

The class is limited to 25 people. Call the Department of Public Safety Training Center at 770-590-5650, or email Renee Cameron at renee.cameron@cobbcounty.org if you are interested.