
As I have been reporting for months now,
John Elkington the CEO of
Performa Entertainment And Real Estate Inc. who has a management contract with
Beale Street Development Corporation the group whose responsible for the redevelopment of what is now known as The Historic Beale Street District to manage the district,and collect rents has refused for
25 years to turn over one dime to BSDC or the City of Memphis.
Not until I started reporting this matter and went before the City Council along with BSDC and merchants from the district was anything being done to fine out where the millions of dollars that was being collected was going. The former council voted in November of last year that Elkington and his company should be audited to fine out where money belonging to the citizens of Memphis was located. Well I'm proud to be the first to let you know that the process of finding the people's money has begun.
Within the next few days every business in the historic district will receive
Chancery Court subpoenas commanding those business to produce certain documents pertaining to
"The City of Memphis vs. Beale Street Development Corp" the matter has to be against BSDC because Elkington has no contract with the city at all. Performa has for many years been in breach of its contract with BSDC where he was to collect rents, take out his commission and operating expense and turn over the balance to BSDC who is the only partner with the city concerning the district who in turn would turn over the balance after taking out it's approved budget.
The problem has been that the City of Memphis has acted as though it had an agreement with Elkington and not BSDC. BSDC has for 25 years attempted to force Elkington to abide by it's contract but has not had the funds to put up a great battle. The budget of BSDC has to be approved by the mayor who has never approved the budget which has made BSDC survive only by being able to sell food and beverages on the street which the city has on several occasion tried to force the organization off the street. it has appeared that the City of Memphis wanted BSDC out of the picture so that Elkington could have total control without accountability.
John Elkington for many years had former city councilman
Rickey Peete under his thumb. Peete blocked any attempt from BSDC to get it's partner the City of Memphis to join in and force John Elkington to abide by the contract which the city and BSDC were joined to. Peete had a conflict of interest in the affairs of beale Street because he was also the President of
The Beale Street Merchants Association. The City Council for many years turned a deaf ear to the cries of
Randle Catron the director of BSDC because not only did Peete have control of the council, but Peete made sure that
The Beale Street Merchants Association Political Action Committee made donations to the campaigns of council members. But now without Peete's protection Elkington ship has sprung a leak and is sure to sink real soon.
I have been privy to the subpoenas and their contents which will become an anchor around Elkington's neck. All the businesses have 6 areas of documentations to produce. including all internal and external prepared financial statements for the period of 2002 through the present. Also all Federal Income tax returns,general ledgers including all supporting journals and ledgers must be produced. All contracts,agreements,correspondence,and financial records related to Common Area maintenance payments,signage,or other expenses paid for occupancy. I have provided a copy of the subpoena for
B.B. Kings Blues Club which reads the same for all of the businesses.
While the businesses on Beale have 6 areas of documentation to produce, Elkington has 21 areas of documentation to produce, including the organizational chart of Performa Entertainment and Real estate. Performa will be force to expose all it's subsidiary entities which it has an ownership or partnership and interest in. This is going to be interesting since it's reported that Elkington has an interest in several of the businesses on the street including the newest club,
Club Zero, and
Lee's Landing Garage,.This will also force Elkington to produce all the partners in Lee's Landing which has been a secret for some time.
It is known that Elkington has a relationship with
E.W. Moon who was the developer of the garage and also a partner with Elkington on a Pine Bluff Arkansas project. I am also aware that the
FBI requested and received from BSDC documentation concerning Moon's involvement in the garage,hmmm I wonder if this is a part of the reason that it's reported that Moon is going before a Federal Grand Jury?
Elkington must produce any and all Federal Income Tax returns for Performa and related entities for the last 6 years. Not only must he turn over all his financial records and ledgers, he must turn over all his contracts and lease agreements which means now we will know just how much Budweiser and Pepsi paid him for the naming rights for Handy park. He must provide for all the income Performa has received for the last 6 years which will show how money was spent on his other projects around the country. There's much more but I have provided a copy of the paperwork that Elkington has yet to receive.
I'm sure that Elkington after reading this will be looking for a raft or a log to float on knowing that his ship is about to sink. I also predict that Elkington will be seeking a way to cut a deal so as not to have to reveal documentation that could not only sink him but perhaps get him indicted for misuse of federal and local funds. There was over
$20 million in federal dollars that went into the redevelopment of Beale Street. This inquiry will also produce whether or not Elkington is treating all the businesses the same and if the businesses he has interest in is getting any benefits that other businesses are not.
The city council must also seek to find out how his for profit business was given Handy Park for just
ONE DOLLAR A YEAR so that Elkington can make a profit. Elkinton charges those interested in using the park for an event at least
$2500. I have had a city council man trying to get a copy of that contract for several weeks but even the councilman and his staff has been stonewalled.
HERE'S SOME OTHER THINGS THAT THE CITY NEEDS TO BE AWARE OF:There was one business that was omitted from receiving a subpoena: Club Superior, 159 Beale, a business I'm told Elkington has an interest in.
Also there's a vacant club at the corner of Fourth and Beale (
The Old Club Royale) that I'm told from a reliable source that Elkington sold the lease to for several hundred thousand dollars, The lease I'm told was sold to a group of doctors as an investment and that their attorney is
Jack Maggot.CLICK DOCUMENTS TO ENLARGE AND READ