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Wednesday, October 31, 2007

A Trenton developer's bad business practices

Memphis media are reporting that the developer responsible for building a mixed-use project in Trenton's South Ward has been engaging in questionable business practices, withholding tens of millions of dollars from the city and spending the funds on projects elsewhere in the country.

Performa LLC's John Elkington took over commercial real estate responsibilities for the Beale Street district in Memphis back in 1982, and has been taking in what amounts to over $1 million annually by taking advantage of a great deal with the development corporation managing Beale Street.

But Memphis officials said Performa and Mr. Elkington have engaged in bad business practices by misappropriating tens of millions of dollars.

Performa should only be taking 15 percent of rental revenue - of a total of $125,000 monthly - but the rental funds that should have gone to the city have not been received, and are not in a court-mandated escrow account that should have been created five years ago, according to Memphis blogger Thaddeus Matthews.

An entity known as the Beale Street Development Corporation should have been receiving rent collected by Performa from Beale Street tenants, and then turning over 15 percent - plus other agreed-to funds - to Elkington's company, with the remainder going to the city.

But Memphis hasn't seen any of these funds since the agreement began in 1982, and there are zero funds in the escrow account Performa should have been maintaining, Mr. Matthews said.

Now city officials want to know where the funds have gone, and when they will be rightfully returned to the City of Memphis. Perhaps the funds are now in coffers of the City of Trenton in payments made for the Hamilton Avenue project.

If these allegations are true, then Performa certainly looks like bad news for Trenton.

1 comment:

wilder said...

I highly recommend you go to:

or his blog site

He has been following Elkington since 2005. Between he and Matthews, Elkington is doomed in Memphis. There is already rumors that he wants to bail on Beale St. and he even tried to get the City to sell it - of course he would have been paid a hefty brokerage fee.

I also think it will not be long before Memphis takes Trenton as the most corrupt City in America.

Keep up the good fight - we need more folks out there willing to take on the system.