Friday, August 7, 2009

Why Did We Hire McNeely, Pigott & Fox in the First Place?

Posted by Pete Kotz on Fri, Aug 7, 2009 at 5:25 AM

click to enlarge McNeely Pigott & Fox executive on his way to a City Council meeting
  • McNeely Pigott & Fox executive on his way to a City Council meeting
I once met a guy who did commercial window instillation. He had a two-tiered system for bidding on contracts. When it involved a private company, he offered his everyday low price. But when it was a government bid, he doubled it -- and still won. That's because his competitors couldn't resist tripling their bids. That conversation came to mind when I heard about Nashville PR firm McNeely, Pigott & Fox ripping off taxpayers for nearly a half-million dollars. Its original contract with Metropolitan Development & Housing Agency (MDHA) was a $75,000 deal to propagandize on behalf of the Music City convention center. But through lax oversight, larcenous billing, and a keen sense of knowing a mark when it saw one, the agency managed to run that tab to $458,000. Until it was unceremoniously caught. The money went to conduct opposition research, monitor blogs, send out emails, planting stories in The Tennessean, etc. In other words, it was largely work a college marketing student could have done for 100 bucks and a bucket of Buffalo wings. But while it's easy to castigate McNeely, Pigott & Fox as thieving little bastards -- because they are -- this one rests entirely on MDHA and Mayor Karl Dean. There's little doubt they felt the need to propagandize on behalf of the convention center, since the project barks like an unfed dog. In the end, the city will likely spend $1 billion traveling a worn path of failure. And when you can't win on ideas alone, better to drum up artificial support. But even if this seems unethical, it was also unnecessary. You see, taxpayers are spending even more money on an in-house propaganda arm. That would be the Nashville convention bureau. With 60 employees and a demonstrated gift for fabricating arguments, we're already subsidizing an arm of government to shill for this dog. Think of it as having your bank account looted once, then hiring McNeely, Pigott & Fox to clean out whatever pennies remain.

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Those are some careless accusations you are flinging around. Tourism is important to Nashville. It is the job of the Convention and Visitors Bureau to bring tourists and conventions to Nashville.
http://web.utk.edu/~tourism/reports/Davidson-Co-06.pdf
Are you suggesting that money spent on bringing people to Nashville is wasted? Or, are you suggesting that it is only a waste when you don't like what they do?

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Posted by Karl Warden on 08/07/2009 at 7:03 AM

No, I'm not suggesting the tourism bureau is wasting money at all. What I am suggesting is that they've already been a vigorous PR arm for the convention center -- and not always an honest one. So if we already have a 60-employee public agency shilling for this, why do we need to hire a second one?

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Posted by Pete Kotz on 08/07/2009 at 12:20 PM

Pete, please explain how the CVB hasn't been honest, or maybe refer me to a past article describing that. I'm new to reading your stuff, and would like more info on the honesty remark.

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Posted by Rick Williams on 08/07/2009 at 2:28 PM

Since when did building a much needed convention center become such an evil proposition?
MDHA paid MP&F $458,000 to carry out the PR operation of the project. It looks like the firm hasn't done a very good job, considering the number of naysayers and skeptics still out there.

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Posted by Brickhouse on 08/07/2009 at 2:51 PM

I will give you a reference to their dishonesty. One of the CVB minions main talking points is that the current facility paid for itself without any additional funding. This is not true since the building was not paid for with meeting revenue but was instead paid for with citywide hotel/motel taxes completely unrelated to their business. That nugget gets floated about even when you give them the revenue figures as well as point out their almost continuous string of annual operating losses and dependency on Metro to cover the CVB's employment benefits (retirement and healthcare). As far as I can tell they haven't even covered all their accumulated operating losses let alone their capital costs.

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Posted by Moost on 08/07/2009 at 3:00 PM

I'm kind of jammed up today, Rick, so I don't have time to do the research. But I'll give you the two biggest ones off the top of my head.
They've been peddling two sets of numbers on how many visitors the new center will attract. The higher one is used to sell laypeople like you and me who are easily fooled. And the lower one is given to hoteliers they're trying to get interested in building or managing the city-owned hotel that goes with it. The hoteliers know too much about the industry, so you can't bullshit them with inflated numbers. (The city and the bureau also haven't revealed the details or cost of said hotel yet.)
They're also peddling numbers that show Nashville surpassing Orlando as a visitor destination, though Orlando is a convention powerhouse, has way more amenities with all its theme parks, etc., and will still have more convention space even after the Music City Center is built.
But if you want specific details and numbers, just do a "convention center" search on our blog archives.

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Posted by Pete Kotz on 08/07/2009 at 4:56 PM

Pete, great post in calling a spade a spade.
I have many friends in the PR business and they all have similar comment:
It was unethical of MP&F, as incestuously familiar with Metro's contracting requirements as they are, to have proceeded with work so improperly commissioned. They are also irritated that this situation has brought such scrutiny to their industry, hurting the image of REAL hard-working and honest PR pros.
Here's what I think: My 10-year old daughter could amass more than the 120 Facebook friends MP&F found for the Convention Center, and she could put together more compelling Tweets, too. They stole $10,000 -- better than two months salary for most highly-paid, full-time employees -- to fuck around online. Gawd. Damn. Crooks!
There are two sides to every coin. While true, MDHA was responsible for managing this contract, MP&F is solely responsible for ripping off Davidson County residents for such "proud" work. Please tell me SOMEONE in Metro will formally request a refund.

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Posted by McReally, Spigott and Crocks on 08/08/2009 at 10:04 PM

The cost of the new Afro American Museum is estimated at $33 million dollars to finish out 55,000 square feet. The city also granted $10 million dollars to the Afro American Museum.
Yet they offer only $5 million dollars in replacement value to a fully functioning tourist attraction, the 30,000 square foot Musicians Hall of Fame. How does the MDHA expect the MHOF to buy property and finish out 30,000 square feet for $5 million dollars? This is not fair market value.
This morning, Judge Barbara Haynes ruled in favor of the Metro Development and Housing Authority and told Joe Chambers to be out of The Musicians Hall of Fame in seven days.
5000 members on this page:
http://www.facebook.com/notifications.php#!/group.php?gid=333452122467&ref=nf

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Posted by Edna Johnson on 02/12/2010 at 1:01 PM
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