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Wednesday, November 26, 1997

Developer calls on city to sell controversial property

By ANTHONY WILSON / Abilene Reporter-News

Developer Kenneth Musgrave called for the city to auction away the so-called "librarygate" land Tuesday after publicly mocking the library review panel, city leaders and the Reporter-News.

Having once withdrawn his NationsBank Tower from consideration for a new library, Musgrave announced during an appearance before the City Council none of his properties will ever again be available for a library.

But he hinted at his interest in buying the city-owned site at North 6th and Cypress, property that has twice contributed to the defeat of library bond issues. He said he would pursue its purchase only in an advertised auction.

"I know of a facility that could be placed on the site that would be a real boost to downtown," Musgrave said.

Ed Patton, chairman of the defunct library panel, recalled Musgrave once mentioned he was interested in acquiring the land for a bank.

Though he insisted his proposal was meant to unite the community, Musgrave spent much of his presentation ripping into those he faulted for the lack of a library in his 20-story tower. He accused his supposed opponents of libel, deceit and conspiracy.

The display both pleased and appalled portions of a large audience.

"I thought his performance was disgraceful," Patton said. "I can usually find humor in anything. That performance I couldn't.

"It seems to me a little ridiculous to be lectured on ethics and morals by a convicted felon," he added.

Musgrave spent 17 months in prison for embezzlement in the 1970s.

The developer claimed the land's sale would raise enough money to upgrade the current library and add another branch.

Library consultants have estimated enlarging and renovating the building would cost $8.4 million. The land sold in 1992 for $420,000.

Mayor Gary McCaleb said the council won't be rushed into a decision. He said he's gathering recommendations from the public still interested in addressing library service.

"I'm just listening and collecting suggestions," the mayor said. "Sometimes there's wisdom in backing away and letting the dust settle."

Tuesday marked the second time Musgrave has expressed an interest in the proposed library site in the wake of a defeated bond.

City Manager Roy McDaniel reported that after voters defeated the 1992 library bond, an attorney representing the developer offered to trade the Security State Bank building in exchange for the city's property and $1 million.

McDaniel rejected the proposal with council approval.

"It wasn't a good trade," he said. "We had no use for that building."

The city manager said he's also inclined to rebuff Musgrave's latest offer.

He noted the property generates about $60,000 per year in revenue for the city and is in a "critical" location -- across from the Civic Center and at the end of the Cypress Street corridor.

"That's a valuable property the city needs to have or be able to control what is developed on it," McDaniel said. "The only way I could recommend an auction would be with an extra-high minimum bid to justify the loss of income."

The land's questionable acquisition helped kill library bond issues five years ago and earlier this month.

Musgrave deemed the property a political albatross that will be perpetually "cussed and discussed" until the city is rid of it.

But he blamed the recent election loss on a multitude of other reasons, including:

-- The location was "terrible," a factor Musgrave claimed the library panel's consultants noted.

The consultants actually backed a downtown library.

-- The $10.5 million cost did not include "several million" dollars in expenses -- items that were "purposely left out," Musgrave said.

City officials insist the figure included all expenses, save for the cost of acquiring the neighboring Greyhound Bus Lines property, appraised at $118,000.

-- Panel members were drafted by a "powerful elite group," harbored a secret agenda and crafted deals behind closed doors.

"What a joke," Musgrave claimed. "They conspired to mislead the public. The task force ... had it's own agenda and what the majority of the citizens wanted was not a part of that agenda."

Patton called the charges "absolutely false."

-- Musgrave said the bond issue's "kiss of death" was the panel's refusal to accept his offer to give the city the tower's lower three levels and $500,000. He claimed his proposal would have provided a library at no cost, negating the need for a bond election.

Consultants estimated the tower's renovation costs at $8.9 million.

Musgrave withdrew his offer after insisting the panel accept his proposal without benefit of discussion or executive session deliberations.

His proposal seemed to lose steam once panel members learned his attorney had purchased an interest in a competing site, One City Center.

Musgrave insisted he did "all within my power" to acquire the interest and assist the building's owners in making their site available. A One City Center owner disputed the claim.

"His presentation of the facts doesn't jibe with what I perceive them as," Patton said. "To tell the truth, it doesn't make a lot of difference. The thing failed and he's sitting there crowing about it. And he wants to bring the community together with that absurd display?

"As you can tell, I'm pretty chapped," he added. "He's again trying to manipulate the process."

Musgrave saved much of his criticism for the Reporter-News and its City Hall reporter, accusing both of "dirty tactics" and a "relentless" smear campaign. He tried to hand an "award" to the reporter, but the journalist silently rejected the offer with a nod.

 

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