Orange Beach officials reach settlement with BP for part of revenue lost because of oil spill al.com: Orange Beach officials reach settlement with BP for part of revenue lost because of oil spill
Originally published by the Mobile Press Register
ORANGE BEACH -- After a year of negotiations, Orange Beach officials have reached a settlement with oil giant BP PLC for a portion of revenue lost during last year’s oil spill.
But city leaders still believe they are owed upwards of $6 million.
The drawn-out, $1.27 million settlement would pay for lodging and retail revenue, along with a few other “small claims,” according to Mayor Tony Kennon.
He said the settlement was finally reached when BP agreed to pay an additional $300,000.
That figure does not include money from franchise taxes, sewer fees, business licenses and building permits, particularly for multimillion-dollar projects that could have come to fruition but did not because of the oil spill, said Clara Myers, the Orange Beach finance director.
“It takes some time to figure out what hasn’t come to town,” Myers said.
At a work session Tuesday night, the City Council appeared to agree that the figure was right. A vote is expected at a regular council meeting next week.
“That’s a nice settlement right there for that portion of it,” Councilman Brett Holk said.
Kennon said the agreement brings the city to a roughly 10 percent increase in lodging and retail revenue over 2009 figures.
“We used this summer as validation for our claim that we could have been up 15-20 percent in 2010, had it not been for the oil spill,” he said. “But the bottom line is, we knew what was fair, and we just stood by that number.”
Kennon said the city would continue to fight for other forms of lost money using “whatever legal avenues we have to go through to go after that revenue.”
Asked whether reaching a deal on that figure would ultimately satisfy city leaders, Kennon responded: “We’ll feel a whole lot better about being whole. They can never make us whole, because ‘whole’ incorporates more than just money. You can’t give back the time that we missed with our children on the water, our summer -- you can’t give that back.”
In neighboring Gulf Shores, officials agreed to a $1.8 million settlement for 2010 lost revenue late last year.
BP officials have acknowledged working with the Pleasure Island municipalities, but have declined to discuss settlement deals
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Showing posts with label BP Oil Spill. Show all posts
Showing posts with label BP Oil Spill. Show all posts
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Monday, February 7, 2011
Mayor: Feinberg to change claims policy | Fox10tv.com
Mayor: Feinberg to change claims policy Fox10tv.com: "Mayor: Feinberg to change claims policy"
Mayor: Feinberg to change claims policy
Updated: Monday, 07 Feb 2011, 10:08 PM CST
Published : Monday, 07 Feb 2011, 9:43 PM CST
Libby Amos
Photojournalist: Robert Brown
ORANGE BEACH, Alabama (WALA) - After a closed meeting with claims czar Ken Feinberg, Orange Beach Mayor Tony Kennon said he felt that Feinberg was "humbled." Kennon attributed the new side of Feinberg to major pressure being brought by a Louisiana judge and an associate attorney general within the Department of Justice. Kennon said during an hour and half long meeting in Pensacola, he and other elected officials talked specifics with Feinberg.
"Specifically the issues were timely payments, payments that were too small, ineligible claims, and the final claims to being too small and issues of transparency," Kennon said.
Kennon said the reconsideration of eligibility is finally being addressed by Feinberg.
"Mr. Feinberg's position was that you had to have a link to the beach to be eligible and we said no, if you can document loss due to BP's error then you should be compensated," added Kennon.
Kennon said Monday, Feinberg finally agreed to that argument.
That comes as great news to people who were originally denied, like Don White.
"I was just turned down with a form letter saying I wasn't directly affected and I didn't have a right to file a claim," White said.
White owns a shopping center in Orange Beach on Canal Road. Most of his tenants can't pay their full rent. He said he has lost approximately $125,000 from the building, but understands why people can't afford to pay and hasn't kicked anyone out.
"Some of them are paying half, some got a check from BP and can pay, and some say every month I'm waiting on a check," White said.
When White learned Feinberg had agreed to consider those not directly tied to the beach or water, he said he would be re-filing his claim immediately. White already has all the paperwork to show his loss and said he even has letters from his tenants explaining to him why they can't pay rent.
White said he is thrilled to hear the news.
"That's a ray of hope and hopefully maybe he can prove some things he's been saying all along and re-justify. If they deny us, that's fine, if it's on the right basis. Not just we aren't affected because everyone in this town is affected," said White.
Kennon also said Feinberg promised to get more adjusters working on the ground.
"He has promised he is going to have more people on the ground doing more one on one claims response which is what we've been asking for. If he'll do that, that will solve a lot of our problems because so many of our claims are falling into a black hole and we have too much fraud. We need to get those folks out of the system," Kennon said.
During the meeting, Kennon said he did a lot of listening and at the end the meeting he got the last word.
"My point to him was I'm glad you are hearing it from the Panhandle and you understand now. It's a systemic problem throughout the Gulf Coast not just Alabama and he agreed with me," said Kennon.
Kennon was quick to say the reconsideration of claims can only be considered a real victory if Feinberg keep to his promise. He encouraged everyone who was originally denied and can show a loss to re-file.
Mayor: Feinberg to change claims policy
Updated: Monday, 07 Feb 2011, 10:08 PM CST
Published : Monday, 07 Feb 2011, 9:43 PM CST
Libby Amos
Photojournalist: Robert Brown
ORANGE BEACH, Alabama (WALA) - After a closed meeting with claims czar Ken Feinberg, Orange Beach Mayor Tony Kennon said he felt that Feinberg was "humbled." Kennon attributed the new side of Feinberg to major pressure being brought by a Louisiana judge and an associate attorney general within the Department of Justice. Kennon said during an hour and half long meeting in Pensacola, he and other elected officials talked specifics with Feinberg.
"Specifically the issues were timely payments, payments that were too small, ineligible claims, and the final claims to being too small and issues of transparency," Kennon said.
Kennon said the reconsideration of eligibility is finally being addressed by Feinberg.
"Mr. Feinberg's position was that you had to have a link to the beach to be eligible and we said no, if you can document loss due to BP's error then you should be compensated," added Kennon.
Kennon said Monday, Feinberg finally agreed to that argument.
That comes as great news to people who were originally denied, like Don White.
"I was just turned down with a form letter saying I wasn't directly affected and I didn't have a right to file a claim," White said.
White owns a shopping center in Orange Beach on Canal Road. Most of his tenants can't pay their full rent. He said he has lost approximately $125,000 from the building, but understands why people can't afford to pay and hasn't kicked anyone out.
"Some of them are paying half, some got a check from BP and can pay, and some say every month I'm waiting on a check," White said.
When White learned Feinberg had agreed to consider those not directly tied to the beach or water, he said he would be re-filing his claim immediately. White already has all the paperwork to show his loss and said he even has letters from his tenants explaining to him why they can't pay rent.
White said he is thrilled to hear the news.
"That's a ray of hope and hopefully maybe he can prove some things he's been saying all along and re-justify. If they deny us, that's fine, if it's on the right basis. Not just we aren't affected because everyone in this town is affected," said White.
Kennon also said Feinberg promised to get more adjusters working on the ground.
"He has promised he is going to have more people on the ground doing more one on one claims response which is what we've been asking for. If he'll do that, that will solve a lot of our problems because so many of our claims are falling into a black hole and we have too much fraud. We need to get those folks out of the system," Kennon said.
During the meeting, Kennon said he did a lot of listening and at the end the meeting he got the last word.
"My point to him was I'm glad you are hearing it from the Panhandle and you understand now. It's a systemic problem throughout the Gulf Coast not just Alabama and he agreed with me," said Kennon.
Kennon was quick to say the reconsideration of claims can only be considered a real victory if Feinberg keep to his promise. He encouraged everyone who was originally denied and can show a loss to re-file.
Friday, February 4, 2011
Officials ramp up push for marketing dollars to restore Gulf Coast's reputation
Officials ramp up push for marketing dollars to restore Gulf Coast's reputation al.com: "Officials ramp up push for marketing dollars to restore Gulf Coast's reputation"
By David Ferrara, Press-Register
Gulf Shores Mayor Robert Craft is continuing a push to get BP PLC dollars for marketing.
ORANGE BEACH — Leaders along the Alabama coast continue to push BP PLC for marketing dollars that would help lure tourists back to the beaches and get people eating Gulf seafood again.
Gulf Shores Mayor Robert Craft said that money would help deal with the record-setting oil spill’s impact on the coast’s reputation, “the most fragile part of business and the most difficult to recover from.”
To Bayou La Batre Mayor Stan Wright, the Gulf’s oyster industry is a little bit like the California cow, particularly one seen in television commercials promoting “great milk from happy cows.”
He envisions commercials for fresh Gulf Coast oysters, “showing the products and how you cook it” with delighted eaters slurping the oysters down.
The mayor, an oyster processor, said he meets regularly with his fellow seafood industry partners to talk about how to get those promotions started.
And Orange Beach Mayor Tony Kennon, meanwhile, is trying to form a coalition of elected officials from Panama City to the Louisiana coast in an effort to promote the northern Gulf Coast.
“Recovery isn’t writing a check. It’s changing perception,” Craft said. “We’ve got to convince people that it’s safe to come here.”
So far there are officials from seven counties in Alabama and Florida involved in the interstate commission.
Speaking by telephone from a meeting in Pensacola this week, Kennon said officials in Florida were experiencing “the same troubles” with regard to Ken Feinberg’s Gulf Coast Claims Facility.
Kennon has been outspoken in his criticism of Feinberg, occasionally even taunting the Washington lawyer during public events. The mayor has repeatedly said that he believes Feinberg misunderstands the economics of Alabama’s beachfront community.
Kennon said he wants to reach out to the mayors of Biloxi and Gulfport and eventually as far west as Louisiana.
The bigger the group, Kennon imagines, the stronger the pact.
“British Petroleum’s M.O. has been to divide and conquer,” Kennon said. “And we’re tired of that. We want to discuss and work hard to work together on what we have in common. What we’ve got to understand is that the northern Gulf Coast is a region and we all benefit from each other’s success.”
Last year’s free fall concert series drew October crowds larger than the Baldwin coast has ever seen, officials said. Now Craft and other community leaders want BP to fund one more concert series.
Craft said last week that he and others are negotiating with BP on one “theory that hasn’t been worked out yet.”
That is: Charge admission for a concert series this year, and use the revenue to pay expenses for concerts in 2012, with money from each subsequent concert paying for the next.
“So BP only funds one more year,” Craft said. “The best way for us to change the future claims problem is for them (BP) to give us the money we’ve requested for our marketing and advertising dollars for this spring and summer. If we bring the customers back, then the GCCF problem goes away.”
BP spokesman Justin Saia on Thursday acknowledged working with Alabama officials in support of tourism.
Kennon said flatly “we want an absolute commitment in blood” for marketing money.
Craft said there are plans for events other than concerts, but he declined to comment further about those ideas.
By David Ferrara, Press-Register
Gulf Shores Mayor Robert Craft is continuing a push to get BP PLC dollars for marketing.
ORANGE BEACH — Leaders along the Alabama coast continue to push BP PLC for marketing dollars that would help lure tourists back to the beaches and get people eating Gulf seafood again.
Gulf Shores Mayor Robert Craft said that money would help deal with the record-setting oil spill’s impact on the coast’s reputation, “the most fragile part of business and the most difficult to recover from.”
To Bayou La Batre Mayor Stan Wright, the Gulf’s oyster industry is a little bit like the California cow, particularly one seen in television commercials promoting “great milk from happy cows.”
He envisions commercials for fresh Gulf Coast oysters, “showing the products and how you cook it” with delighted eaters slurping the oysters down.
The mayor, an oyster processor, said he meets regularly with his fellow seafood industry partners to talk about how to get those promotions started.
And Orange Beach Mayor Tony Kennon, meanwhile, is trying to form a coalition of elected officials from Panama City to the Louisiana coast in an effort to promote the northern Gulf Coast.
“Recovery isn’t writing a check. It’s changing perception,” Craft said. “We’ve got to convince people that it’s safe to come here.”
So far there are officials from seven counties in Alabama and Florida involved in the interstate commission.
Speaking by telephone from a meeting in Pensacola this week, Kennon said officials in Florida were experiencing “the same troubles” with regard to Ken Feinberg’s Gulf Coast Claims Facility.
Kennon has been outspoken in his criticism of Feinberg, occasionally even taunting the Washington lawyer during public events. The mayor has repeatedly said that he believes Feinberg misunderstands the economics of Alabama’s beachfront community.
Kennon said he wants to reach out to the mayors of Biloxi and Gulfport and eventually as far west as Louisiana.
The bigger the group, Kennon imagines, the stronger the pact.
“British Petroleum’s M.O. has been to divide and conquer,” Kennon said. “And we’re tired of that. We want to discuss and work hard to work together on what we have in common. What we’ve got to understand is that the northern Gulf Coast is a region and we all benefit from each other’s success.”
Last year’s free fall concert series drew October crowds larger than the Baldwin coast has ever seen, officials said. Now Craft and other community leaders want BP to fund one more concert series.
Craft said last week that he and others are negotiating with BP on one “theory that hasn’t been worked out yet.”
That is: Charge admission for a concert series this year, and use the revenue to pay expenses for concerts in 2012, with money from each subsequent concert paying for the next.
“So BP only funds one more year,” Craft said. “The best way for us to change the future claims problem is for them (BP) to give us the money we’ve requested for our marketing and advertising dollars for this spring and summer. If we bring the customers back, then the GCCF problem goes away.”
BP spokesman Justin Saia on Thursday acknowledged working with Alabama officials in support of tourism.
Kennon said flatly “we want an absolute commitment in blood” for marketing money.
Craft said there are plans for events other than concerts, but he declined to comment further about those ideas.
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