In this short video excerpt, Justin Jeffre talks to Stephen Leeper about 3CDC and the Fountain Square Project.  According to Leeper, 5/3 is earning about 6% interest on the loan 3CDC has taken for the rehab project.  Coincidentally, the CEO of 5/3 sits on the 3CDC board.

Take a close listen to Leeper’s answer in the video frame at the bottom of this article (requires Flash player).  Leeper says the loan is “private money,” and he assures Jeffre that the City didn’t borrow it, but that 3CDC borrowed it.

As we all know, however, 3CDC maintains the future garage revenue until the debt is paid down.  With the verification that 5/3 earns 6% interest on a $15 million dollar loan, it becomes clear that 5/3 has several personal interests at work in this project.

5/3 has just renovated the area outside of their building in a project that earns them interest on a $15 million dollar loan, and one of the guys who brokered this deal is President and CEO of 5/3 Bank.

Don’t expect The Enquirer to tell you any of this.  Margaret Buchanan, President and Publisher of The Enquirer, sits on the 3CDC Board, too.

This does not necessarily mean anything unjust is happening. Perhaps the new square will be the most fabulous thing for the City in the last century.  Perhaps it is totally acceptable for 5/3 to have people on the Board that decided to renovate the area outside their downtown tower in a deal that earns them interest.

But aren’t these details newsworthy?  Why isn’t this stuff reported?  What does Buchanan have to hide?

UPDATE, 7:24PM: There has been some confusion as to the purpose of this column.  As now appears in bold, the column does not attempt to indicate any wrongdoing on behalf of 5/3.  They are well within their rights to improve the City in a manner that benefits their building.  However, we do believe these details are at least newsworthy.  The Enquirer should have better coverage.

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