april.thompson@wreg.com
(Memphis 8/12/2009) - Beale Street is booming, or is it?
The Beale Street Development Corporation hired Performa Entertainment to run Beale Street, collect proceeds and pass them to the Corporation and the City, after taking out expenses.
But apparently Performa says over the years there hasn't even been a profit.
"That's ludicrous. How many business that you know go into business, be in business 25 years and there is no profit? Absolutely not." says Randle Catron, Executive Director of Beale Street Development.
The city of Memphis just received an audit on Beale Street's finances.
Though the details are sealed, it reportedly found 6 million dollars in question.
Now a March 8th trial date was set to learn more about the money trail.
"The audit examination has been designed to try to understand the total revenue collected on the street, to understand where that money went. Did it go to the appropriate places as the lease calls for or did it go to the some other source and if so what amount?" says Ricky Wilkins, Attorney for the City of Memphis.
Performa says the figure is way off and it will prove it's taken a lot of money to make Beale Street what it is today.
"I can't imagine that 6 million, 7 million dollars whatever the amount, 10 million in profits have been squandered away somewhere. It just doesn't make sense knowing what we know about how the street was in 1985 and 1990 and the difference we had in downtown Memphis." says John Speer, Attorney for Performa.
Another twist, it seems interim Mayor Myron Lowery is considering settling the lawsuit and getting a new management company to oversee Beale Street.
But development corporation officials say they are the only ones who can bring in new managers.
Right now the trial stands at March 8th.
- City of Memphis and Beale Street Development sue over profits on Beale Street
- Performa Entertainment manages Beale Street and says it hasn't turned a profit
- The city is reportedly considering a settlement in the Beale Street case
(Memphis 8/12/2009) - Beale Street is booming, or is it?
The Beale Street Development Corporation hired Performa Entertainment to run Beale Street, collect proceeds and pass them to the Corporation and the City, after taking out expenses.
But apparently Performa says over the years there hasn't even been a profit.
"That's ludicrous. How many business that you know go into business, be in business 25 years and there is no profit? Absolutely not." says Randle Catron, Executive Director of Beale Street Development.
The city of Memphis just received an audit on Beale Street's finances.
Though the details are sealed, it reportedly found 6 million dollars in question.
Now a March 8th trial date was set to learn more about the money trail.
"The audit examination has been designed to try to understand the total revenue collected on the street, to understand where that money went. Did it go to the appropriate places as the lease calls for or did it go to the some other source and if so what amount?" says Ricky Wilkins, Attorney for the City of Memphis.
Performa says the figure is way off and it will prove it's taken a lot of money to make Beale Street what it is today.
"I can't imagine that 6 million, 7 million dollars whatever the amount, 10 million in profits have been squandered away somewhere. It just doesn't make sense knowing what we know about how the street was in 1985 and 1990 and the difference we had in downtown Memphis." says John Speer, Attorney for Performa.
Another twist, it seems interim Mayor Myron Lowery is considering settling the lawsuit and getting a new management company to oversee Beale Street.
But development corporation officials say they are the only ones who can bring in new managers.
Right now the trial stands at March 8th.
