Investors asked to fight City Hall for funding
BYT. KEVIN WALKER
THE CHRONICLE
The proposed Eastside Cafete
ria doesn't have any support at
City Hall and banks aren't giving
the project a second glance, but
the project and its leaders do have
the strong backing of some of its
stockholders.
I* An overwhelming majority of
tfie 40 or so investors (officials say
there' are more than 700 stock
holders total) that attended last
Thursday's stockholders meeting
give a vote of confidence to the
bjard of directors of David Capi
ta. the for-profit entity developed
oversee the proposed eatery.
Qte vote essentially gave the
Epard a stamp of approval for all
C# its past activities and decisions
(a regard to the project.
? The vote capped off an
exhaustive meeting, a gathering
(hat cafeteria leaders used to not
only paint the current economic
picture of the project but also to
try to unravel the controversy that
(las surrounded the building of the
ejfeteria ever since the projected
efst of the project rose substantial
ly and the pace at which cafeteria
development was moving began
be questioned.
"We need to move because
tSere is so much that can be done."
ijmes Grace said to stockholders.
IWe have been through the rough
fat part."
?t Grace is a David Capital board
timber and director of the East
yVinston Community Develop
ment Corp. The EWCDC began
iq seriously push the idea of the 1
K&W-style cafeteria in 1998
when that organization teamed up
with the Ministers Conference of i
Winston-Salem and Vicinity to
form David Capital, which began
to offer everyday East Winston
residents a chance to buy a stake i
in the proposed cafeteria. Shares i
of stock were offered at $10 each, I
and as of" the end of May a little ;
more than $142,000 had been
raised for the proposed $2.8 mil- i
lion cafeteria through the selling i
of shares. ;
The U.S. Department of i
Health and Human Services also ?
gave the CDC a $250,000 grant to
use for the project. With interest, t
David Capital, as of May 31, had <
collected $399,050.92 for the I
project, but as of that same date, i
the company had a balance of I
$6,283.57. ? I
Question of Priorities i
, Most of the money was used i
to pay independent and EWCDC
consultant!, and to hire an architect
to create blueprints for the cafete
ria. Critics of the project and some
stockholders at the meeting said
that the land for the cafeteria
should have been purchased first.
David Capital has its eye on a
$200,000 four-acre tract off New
Walkertown Road'and 14th Street.
The company's option on that
land ends in September, but the
project has no money and no good
prospects for getting the cash
needed to buy the property.
"Why spend so much money
on the consultants' fee. when you
don't have the land to build on?"
Robert Baskin asked at the meet
ing. Buskin said he came to the
meeting to gather information on
the project to Jake baclilo the pas
tor and congregation at Wentz
Memorial United Church of
Christ.
Cafeteria officials said when
they first started selling stock
options, they envisioned that the
several hundred African-Ameri
can churches in Winston-Salem
would take an interest in the proj
ect and that money would be gen
erated fairly easily. Grace admit
ted that they overestimated the
amount of support they would get
from churches. Only about 20
churches have made concerted
efforts to buy stock for the project
and their contributions have been
only about $1,000 each, Grace
said.
Grace defended the use of the
funds that were raised. He said the
services that were paid for with
he money, which also included
everything from marketing to
leasing equipment, were required
For a project of this nature. He
added that the money should be
considered "equity" in the project.
Although Grace did about 50
percent of the talking at the meet
ing, Bonnie Moorman, chairper
son of the David Capital board,
made a point of trying to distance
Grace from the project. She spent
time trying to clear up what the
board sees as misconceptions
about the cafeteria project, one of
which was the impression that
Grace and his CDC are behind the
effort. An adamant Moorman said
David Capital is the driving force
behind the project and that the
company is a separate entity from
Grace and the CDC.
"He (Grace) does not control
it," she said.
Moorman also addressed
another controversy that has
plagued the project. The- land
being proposed for the cafeteria is
partly owned by Michael Grace,
James Grace's brother. Grace said
that, "bar none," the land is the
best site for the cafeteria and that
is the sole reason why it has been
selected. When cafeteria officials
went to the Board of Aldermen in
May to try to get city funding for
the cafeteria (the board said no),
some aldermen complained that
the $200,000 asking price for the
property was too high. One alder
man brought up the relationship
between James and Michael
Grace.
1 As for the asking price for the
land. Moorman said tracts adja
cent to the site where the cafeteria
is proposed were purchased for
even higher prices.
"There is nothing questionable
about the land in regards to its
price or its ownership," she told
stockholders.
Among the other misconcep
tions Moorman addressed was the
notion that the project has taken
too long to come to fruition.
Her response: "The time that it
has taken has not been out of the
ordinary for a project of this type."
A Call to Action
David Capital officials also
asked stockholders to join them in
fighting to get money from the
city and financing from a bank. In
two other motions passed by a
majority of those at the meeting
(only six voted no or abstained),
stockholders vowed to "chal
lenge" members of the Board of
Aldermen to attend a public pres
entation of the cafeteria's business
plan and to push their aldermen to
hear David Capital's request for
city money once more.
When David Capital and
EWCDC officials went to City
Hall in May, their request for
$700,000 in city loaas and grants
was roundly snubbed by alder
men, who said that the city would
consider giving the project money
only after the project secured
finances from other sources,
namely a bank.
But Moorman said the project
is in a Catch-22 because banks
will not take an interest until the
city throws its financial muscle
behind the project.
Aldermen were also cautious
about an audit being conducted of
the EWCDC by the Department
of Health and Human Services.
The agency is looking into
whether the $250,000 grant it
gave the project was used correct
ly
The EWCDC has hired
Durham-based attorney William
Graham to respond to the audit.
Graham was to appear at Thurs
day's meeting but had a schedul
ing conflict shortly before the
meeting. In a letter read by David
Capital board member Earline
Parmon, Graham said that he
expects the EWCDC will be vin
dicated in the final analysis, which
Graham admitted could be
months or years away.
While cafeteria officials
admitted that mistakes were made,
they also contend that they have
not been given a fair shake by
Derwick Paige (the city's devel
opment director), the aldermen,
banks and the news media. Grego
ry Chin, David Capital consultant,
went as far as to compare the way
Grace has been treated to the treat
ment of Wen Ho Lee, a Tai
wanese-American who was
wrongfully accused in 2000 of
spying and spent nearly 300 days
in jail before a groundswell of
support from Asian Americans
aided his release.
Trials and Tribulations
Grace sounded like a Baptist
preacher at times when he took the
podium, stating at one point to the
audience that his faith has helped
him through what he says have
been unfair personal attacks.
"I have learned an awful lot by
falling on my face," Grace said as
many in the audience shouted
their approval. "I have learned a
lot by having darts thrown at me."
Other biblical references were
made. David Capital is named for
the biblical David, and one speak
er dubbed City Hall "Goliath."
The appeals did not sit well
with all shareholders. Minnie
Biakely said she came for
answers, not inspiration.
"I did not come here to be
preached to," said Blakely, who
voted against all three motions.
"The majority of the funds have
been utilized, and we need to start
over from the beginning. I needed
some answers but I did not get
them."
Blakely said she still supports
the project.
Strong, unconditional support
for the cafeteria was not hard to
find at the meeting. Stockholder
Odessa Gaither recalled when
black-owned businesses lined the
streets of Winston-Salem in the
'50s and '60s. She said the cafete
ria would again give blacks some
thing to call their own.
"1 think it is a disgrace that we
don't stand behind our own," she
said. "I get sick and tired of cross
ing (Highway) 52 to eat. especial
ly on Sunday. I am 100 percent
behind (the cafeteria)."
John Green, a High Point resi
dent. said he jumped aboard the
cafeteria bandwagon as soon as he
heard about the project. He said
the cafeteria would be something
that all blacks can be proud of.
"I have never seen us owning
anything....! am 55 years old," he
said.
He also told critics to lay off
the folks try ing to make the cafe
teria a reality.
"It is wrong for me to sit in my
seat and do nothing and cast
stones." he said.
Officials told stockholders that
shares are still for sale and urged
them to tell friends about the proj
ect and to consider buying more
stock themselves.
"This project is far from
dead," Moorman said.
James Grace
David Capital Expenses
Accounting 1,250.00
Architect 103,579.42
Bank Charges - 918.03
Capital Additions 1,118.46
Consultants (EWCDC). 135.300.00
Consultants (Independent) _ 80,218.21
Dues/Memberships/Subscriptions 4,620.00
Equipment Lease/Maintenance 2,169.72
Insurance 300.00
Legal 11,168.69
Marketing, Advertising
& Promotions 20,522.02
Meetings/Events 8,115.21
Office Supplies 827.48
Postage/Express Mail : .,1,535.94
Public Relations/Printing 19,373.87
Rent/Utilities/Parking
Telephone/Fax 750.00
Travel ......... -
Allowance for Doubtful Acct 1,000.00 ,
TOTAL EXPENDITURES: 392,767.35
BALANCE (Deficit) $6,283.57
Respected coach dies
SPECIAL TO THE CHRONICLE
Henry "Jones Jr., a former
educator, passed July 19 after
ah extended illness.
He was a native of Win
Ston-Salem and received his
bachelor of science degree
ffom Winston-Salem State
University, master of arts
degree from New York Univer
sity, administration certificate
iffom N.C. A&T State Univer
sity, and educational specialist
degree from Appalachian State
University. Mr. Jones was a
World War II veteran.
His professional back
ground included teacher, coach
ajtd administrator in Winston
Salem/Forsyth County Schools
for 41 years. He earned many
labels in the community: com
passionate. understanding,
blaster teacher, impartial
administrator and disciplinari
dh.
Out of all the various hats
(hat he wore, putting on his
coaching hat was his favorite.
Melville Mauney and Paul
Ledbetter remembered Jones
as an outstanding basketball,
football, baseball and track
coach at 14th Street School.
Which was the primary feeder
for Atkins High School. Willis
Johnson. who worked and
toached with him at Kennedy
Junior High, remembers him
us a caring coach who opened
(ip his heart to all students,
Relieving that every child
could succeed and be some
thing no matter where he came
from. No task was ever too
great when it came to helping
others.
|? As an outgrowth of his
teaching and coaching, Her
itan Gilliam. Talmadge Hill.
William McCoy and Happy
fjairston became professional
players in the NBA and NFL.
? Joseph Daniels. Winslow
bowery. Marie Matthews, Ber
ruce Davenj>ort and Jakay
Ijrvin - all former students, co
Workers. classmates, fraternity
brothers arid friends - concur
iflat Mr. Jones encouraged
young people to work hard to
Succeed.
*
?*
Coach Big House Gaines
was impressed with Mr. Jones'
dedication and enthusiasm to
his alma mater and the Alumni
Association of Winston-Salem
State University, where he was
a voluhteer fund-raiser and
special assistant to the athletic
department.
He is survived by his wife.
Mary M. Jones, curriculum
coordinator for Winston
Salem/Forsyth County
Schools; and a daughter. Katri
na Jones-Rice (Lonnie V. Rice
III). Mr. Jones was the proud
grandfather of Aryonna Lael
Rice.
His peers loved him for
what he was - just Henry.
File Photo
Henry Jones, center, receives a Lifetime Achievement Award
in March at The Chronicle's annual awards banquet.
The Chronicle |
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