Mamtek received $39 million in industrial development bonds from Moberly and authorization for up to $17 million of state incentives to build an artificial sweetener plant in the central Missouri city about 30 miles north of Columbia. Construction was halted on the partially completed facility after the company missed a bond payment in August 2011.
Bruce Cole, the chairman and CEO of Mamtek, has been charged with theft and securities fraud and is accused of using bond revenues to avoid foreclosure on his home in Beverly Hills, Calif. The federal Securities Exchange Commission also has filed a lawsuit against Cole seeking financial penalties. Last week, the remaining assets for the plant were sold at auction by UMB Bank, the trustee for bondholders.
Nixon's administration frequently has said no state incentives were paid to Mamtek, but Spence countered that the state incentives helped prompt Moberly to issue its bonds.
In the video, Spence then talks about the role that government should play. As someone who turned a small business into a multi-million dollar operation, Spence believes that government has to have small business owners back by reducing the red-tape and creating an environment that encourages business in Missouri.
Both of Missouri's gubernatorial candidates were invited to speak at Greater Bethlehem Baptist Church in north St. Louis earlier this week. Incumbent Democrat Jay Nixon was a no show, but Republican challenger Dave Spence was there. The ten minute video above is of Spence's prepared remarks. He also answered questions submitted by the audience.
Tuesday evening, there was a "debate" between Republican candidate for governor Dave Spence and incumbent Democrat, Gov. Jay Nixon, at Greater Bethlehem Baptist Church in north St. Louis. Nixon didn't show up. Spence was there with his campaign message and to take questions from the predominantly black audience. I will post video of his remarks later.
A couple of Spence's supporters spoke Tuesday evening including Stephanie Patton who is featured in the video at the top of this post. Stephanie recently appeared in a Dave Spence TV ad. I've covered her story on this blog:
In the ad, an African-American woman who used to own an adult day care business tells how a state worker berated her and hurled a racial epithet at her during an inspection. One problem: Mr. Spence’s opponent, Gov. Jay Nixon, wasn’t even governor when the alleged incident, outlined in a lawsuit, even occurred.
One of the most salacious aspects of Stephanie's story was the October 2008 inspection in which DHSS inspector, Cassie Blum, hit Patton and called her the n-word; however, those actions alone did not lead to the closure of Patton's business. They do beg the question: why does Cassie Blum still have a job?
The Court of Appeals for the Western District noted in their September 25th, 2012, opinion that DSS dragged their feet communicating with Stephanie [emphasis added]:
As a result of Peace of Mind's failure to maintain a medical model license, DSS terminated Peace of Mind's participation in the MO HealthNet program effective on the close of business of December 20, 2008, and stopped making payments to Peace of Mind. DSS informed Patton of its decision in a letter dated February 2, 2009.
The state of Missouri cut off Stephanie's funding and waited a month and a half to tell her. She had expenses for client care, rent, payroll, utilities, but was not compensated. The trial, circuit, and appeals courts all found that she was due $45,340, yet she has still not been reimbursed.
Stephanie tried to re-open her adult day care business in April of 2009. She incurred some expenses, but then the state refused to let her bill for clients. The simple fact is that Missouri's bureaucracy prevented her from working.
Since the 2008 inspection with Blum, Stephanie has lost her business, her car, her home, and suffered immeasurable emotional anguish, but the Governor refuses to meet with her. The courts have ruled, so why won't the state make Stephanie whole?
Update: Stephanie's story still hurts when she re-tells it as can be seen in the video above. When I spoke with her Wednesday, she commented that she didn't think she could get through the second part of her story, so she didn't even bring it up Tuesday night.
That part begins in January of 2011 just a couple months after the Administrative Hearing Court (AHC) had ruled in her favor in October of 2010. Stephanie knew her AHC case would have to wind its way through the appeals process, but she did not anticipate criminal charges from Attorney General Chris Koster.
Nonetheless, the criminal complaint had numerous side-effects. First, a warrant was issued for Stephanie's arrest, so she had to make bail and spend a few hours in jail. She couldn't find work even at a dry cleaners or convenience store because there was a criminal charge of theft against her. She had a few months of stress, to say nothing of the emotional toll, as a result of the criminal charge.
And, even after the charges were dropped, Stephanie was still marked in DHSS/DSS's computer systems. When she interviewed for jobs in the healthcare industry and, despite her record of having run an adult day care facility for eighteen years, she would be turned down because the computer system said she was ineligible for work in the healthcare field. Missouri's AG and the DHSS/DSS bureaucracy had made it illegal for her to work.
Stephanie was the collateral damage of a frivolous and, I believe, vindictive prosecution initiated by AG Chris Koster.
Throughout all of that, Stephanie tried to arrange a meeting with Gov. Nixon. With an out-of-control Attorney General, who else could she appeal to? All she wanted to do was petition the government for a redress of grievances, but Nixon's office repeatedly stonewalled and re-buffed her.
Stephanie Patton is one reason why you should vote against both Nixon and Koster next Tuesday. Dave Spence and Ed Martin simply have to be better.
Dave Spence is the Republican candidate for Governor in Missouri. He's running against 26 year career politician and current Governor, Jay Nixon. Under Nixon's leadership, jobs have fled the state and the economy has stalled. Spence turned his small business into a a multi-million dollar operation. He knows how to do the same for Missouri.
Nixon has criticized Spence for serving on the board of Reliance Bancshares, a bank that received TARP funds; however, Spence only joined that board after it had voted to take the TARP money. The Jefferson City News Tribune did an in-depth report on Spence and Reliance Bank:
Spence says his banking tenure actually cost him financially, drained him physically, took time away from his family and sometimes left him quite frustrated. If it now is a political liability, that's only because his opponents are ignoring the extent to which he tried to help out the financially strapped bank before finally resigning in March 2011 — eight months before he entered the governor's race as a self-financed, political newcomer.
In the video above, Dave Spence talks about TARP and his time with Reliance Bank.
I interviewed businessman Dave Spence last Friday. Spence is the Republican candidate for Governor in Missouri. He's running against 26 year career politician and current Governor, Jay Nixon. Under Nixon's leadership, jobs have fled the state, the economy has stalled, and foreclosures outpace the national average. Spence turned his small business into a a multi-million dollar operation. He knows how to do the same for Missouri.
...DHSS's actions were the result of a racially discriminatory animus and that DHSS's actions deprived Patton of due process and equal protection of the laws, in violation of U.S. Const. amend. 5, 14 and 15, and Mo. Const. art. I, §§ 2 and 10.
The state appealed again and on August 8th, 2012, Judges Karen King Mitchell, Victor C. Howard, and Cynthia L. Martin of the Missouri Court of Appeals, Western District, heard the case. Harvey Tettlebaum of the law firm Husch Blackwell represented Patton at the appeals court hearing.
I attended the August 8th hearing and drew the sketches displayed here.
The Western District Court of Appeals handed down their ruling this past Tuesday (embedded below). In part they ruled:
We seriously question whether Patton raised her constitutional claim at the "first available opportunity." The complaints Patton filed with the DHSS did not include allegations -- either explicit or implied -- of DHSS acting with a discriminatory animus toward Patton. In fact, there is no evidence in the record as a whole that Patton ever registered a complaint or concern with DHSS that Blum had called her a racial epithet and illiterate. In contrast, the record as a whole leads to the inescapable conclusion that the first time this complaint was registered was during Patton's testimony. This does not appear to comport with the obligation to raise a constitutional claim at the first available opportunity.
However, we are not persuaded that the Departments preserved an objection to Patton's late assertion of a constitutional claim. The Departments did not object to Patton's testimony as untimely. Instead, the Departments took the position at hearing that the AHC did not have "jurisdiction" to decide the constitutional issue being raised by Patton.17See
transcript at 169 ("[D]iscrimination is not something that, or constitutional issues are not something that this Commission has the jurisdiction over, and case law sets forth that the first notice to raise constitutional issues would be at the circuit court level,not at this level. And so by not testifying here they're not waiving their first availability to introduce evidence. The factual record would be made on the circuit court level where the court has jurisdiction over it."). This objection suggested that Patton was required to wait to assert her constitutional claim -- a position in inherent conflict with the position taken by the Departments on appeal. [emphasis added]
In other words, the state argued "Heads--I win. Tails--you lose." Judges Mitchell, Howard, and Martin should be commended for calling the the state out on this. However, that Chris Koster's attorney would stoop so low to make contradictory arguments underscores the importance of replacing Koster with Ed Martin in November to restore a sense of justice to the Attorney General's office.
The ruling continues:
We need not determine whether Patton's testimony was sufficient to raise and preserve a constitutional claim or whether the AHC acted
sua sponte
in addressing the constitutional claim because we find in any event that the AHC's conclusion that DHSS acted with discriminatory racial animus toward Patton was legally erroneous.
The AHC concluded that DHSS,
as an agency, acted with a racially discriminatory animus toward Patton. The only evidence in the record to support this legal conclusion was the testimony by Patton that a single DHSS employee, Blum, directed a deplorable racial epithet toward Patton and called her illiterate. There was no evidence presented at trial that Blum's statements could be legally attributed to DHSS as a whole or that DHSS was even aware that the comments were made. Evidence that a single agency employee made a racial remark to Patton is insufficient as a matter of law to support a conclusion that the entire agency thereafter acted in its handling of Patton with racial animus.
See
James v. City of Jennings
, 735 S.W.2d 188, 191 (Mo. App. E.D.1987). Even if the single (and wholly unacceptable) comment by Blum could be legally attributed to DHSS, standing alone that comment does not rise to the level of a constitutional violation in the absence of other evidence connecting the comment to subsequent agency action.
DeWalt v. Carter
, 224 F.3d 607, 612 (7th Cir. 2000) ("The use of racially derogatory language, while unprofessional and deplorable, does not violate the [U.S.] Constitution.");
Blades v. Schuetzle
, 302 F.3d 801, 805 (8th Cir. 2002) ("[W]e believe that the use of racially derogatory language, unless it is pervasive or severe enough to amount to racial harassment, will not by itself violate the fourteenth amendment."). The AHC erred in finding otherwise.
The Departments do not argue that the AHC's error in finding that the DHSS acted with racially discriminatory animus requires reversal of all other conclusions reached by the AHC affecting DHSS. And in any event, as we have already discussed, the AHC's conclusion claimed to be erroneous in the Departments' fifth points relied on is defensible, independent of the AHC's finding on Patton's constitutional claim. Thus, although we agree with that the AHC committed legal error in finding that DHSS acted with racial animus toward Patton thus violating her constitutional rights, that conclusion was harmless. [emphasis added]
I had to laugh at that last bit. Surely Judges Mitchell, Howard, and Martin know full well that had they sustained Judge Chapel's finding that DHSS acted with racially discriminatory animus the budgetary damage from the resulting civil rights lawsuit would cause plenty of harm. Maybe they were being ironic.
I can understand why the judges do not feel that the evidence proves the culpability of DHSS; however, I think their conclusion rests on the assumption that this is an isolated incident. If a civil rights suit is brought against the state--as I believe it should be--we will see whether that assumption is correct.
The actions of Missouri's regulatory agencies had a devastating effect on Patton. Her business was shutdown. Her car was repossessed. Her home was foreclosed on. And so much more.
Yeah. There's still racism in America. It's in our government.
Patton is a modern day civil rights hero.
But there's also a problem with out of control regulations and bureaucracies. Because regulations weigh more heavily on small businesses like Patton's; because regulations can and do destroy small businesses, it is no wonder that we live in a world dominated by large corporations. It's only the large crony capitalist companies that can weather a hostile regulatory environment.
The image above captures the ineptness of the Obama administration perfectly. It also frames the top issue of the 2012 election cycle--it's the jobs, stupid--and the news on that front continues to grow worse for Democrats. The jobs data is so bad that it may well swamp down ballot candidates like liberal Missouri Governor Jay Nixon (D-MO).
At The Corner, Ramesh Ponnuru notes the correlation between states with Democrat governors and higher unemployment:
It turns out that the population-weighted average unemployment rate in states with Republican governors is 7.6 percent. The number for states with Democratic governors is [sic] 8.8. In other words, blue America (defined in terms of governors) has a higher unemployment rate than red America. Make of that what you will.
The largest losses among the eight states bordering Missouri came in Tennessee which lost 19,600 jobs--less than half of the 41,000 recently unemployed in Missouri.
In November, voters will decide whether they want to continue the abysmal jobs performance that has prevailed under Governor Jay Nixon or whether they want a businessman and entrepreneur to take the reigns of Missouri government and put the Show Me State back to work. Republican gubernatorial candidate Dave Spence has recent, relevant experience creating jobs in the private sector. Nixon hasn't worked in the private sector in twenty years. The choice seems obvious.
Greg Fettig and Monica Boyer are the heroes of the coalition of Indiana Tea Parties that defeated Dick Lugar (R-IN). Under the united banner of Hoosiers for a Conservative Senate, Fettig and Boyer led the grassroots effort that saw Tea Party favorite Richard Mourdock win the Republican nomination for US Senate this past May. Their role was pivotal because it enticed other people and organizations to help Richard Moudock's campaign.
From my observation of
Indiana's Republican primary for US Senate, I believe that the strategy to get a conservative candidate elected boils down to three steps. These three steps are driven by the candidate:
Richard Mourdock accomplished step 1 when he announced his candidacy in February of 2011. Over 70% of Indiana's Republican county chairmen endorsed Mourdock's bid for US Senate when he announced. Winning the support of the grassroots is step 2 and Fettig's book--Tea Party on Safari--details what happened in Indiana. It's a messy, almost ungovernable process fraught with treachery and ankle-biting time wasters. If the grassroots can coalesce around a particular candidate, then the money to push that candidate across the finish line should be available from PACs--step 3. In Mourdock's case, steps 1 and 2 effectively cleared the field so that the race was always Lugar v Mourdock. Lugar couldn't ignore the competition as Roy Blunt did in Missouri when he ran for Senate in 2010.
With those steps in mind, here are my observations about a couple of the primary races decided this past Tuesday here in Missouri.
In the governor's race, Bill Randles had overwhelming support from the grassroots, but he never really had the backing of the party. As a result, his campaign never attracted the money it needed to boost Randles name recognition with radio and television ads. Fred Sauer's entrance into the race split the vote ensuring that Dave Spence would win and that neither Randles or Sauer had a serious chance in the primary.
The Republican primary for US Senate in Missouri was fascinating to watch. None of the candidates really had the backing of the party, though I think Akin probably scored better on that than either Steelman or Brunner. Steelman is a bit of a pariah among some Republicans who blame her for damaging Kenny Holshof in the 2008 Republican primary for Governor resulting in his defeat later that year. Akin had much better grassroots support than either of his competitors. Steelman was able to win some key endorsements including Sarah Palin; however, they didn't translate into the sort of primary spending she needed to pull out a win.
Republican candidate for Governor of Missouri, Dave Spence, speaks in south St. Louis Sunday afternoon. The St. Louis GOP held its annual picnic Sunday at Carondelet Park drawing Republican politicians from across the state to meet the voters and deliver their stump speeches.
The Republican Party of St. Louis held its annual picnic Sunday at Carondelet Park in south city. Republican politicians from across the state were there to meet the voters and deliver their stump speeches.
Over the next few days, I'll be posting video of Missouri Secretary of State candidates Scott Rupp and Shane Schoeller; Treasury candidate Cole McNary; Gubernatorial candidates Bill Randles, Fred Sauer, and Dave Spence; candidates for Congress in Missouri's First Congressional District Robyn Hamlin and Martin Baker; Attorney General candidate Ed Martin; and St. Louis city Sheriff candidate Vroman Sternberg.
Dave Spence is running for Governor of Missouri. He faces Bill Randles in the Republican primary and, if he wins the primary, he'll face Jay Nixon in November. Spence talks about his plans to revitalize the economy of Missouri. He also notes Nixon's pay-to-play approach to running the state.
Ed Martin, Cole McNary, John Brunner, representatives from the Todd Akin and Sarah Steelman campaigns, Dave Spence, Shane Schoeller, Ann Wagner, Jim Lembke, Dwight Scharnhorst, Rick Stream, and Lloyd Smith all spoke at the new west county campaign office that Ed Martin opened this past weekend. Thanks to Bob Keough for shooting the video above.
Ed Martin, a GOP candidate to be Missouri's next Attorney General, held an open house at his campaign office in west St. Louis county. Most of the photos above were taken Wes Bradley. Thanks Wes!
ST. LOUIS • Months after he first discussed the goal of seeking the Republican nomination for governor, St. Louis businessman Dave Spence remains a virtual unknown to most party activists across Missouri.
Thus begins Jake Wagman's coverage of Dave Spence in the Post Dispatch this past Saturday. Spence is a political newcomer, so I expect him to make some mistakes along the way. I think he could have announced his candidacy better, but I also appreciate the fact that he was willing to engage a grassroots organization like the St. Louis Tea Party. The photo above was from the Tea Party's Christmas Party last December. Since my initial criticism was about the fact that he didn't engage grassroots for his announcement, I see his willingness to meet with Tea Partiers in December as a course correction. Hopefully, he remains on his new heading.
The Post Dispatch provides a good introduction to Spence, so read the whole thing. Below, I will focus on what I think Spence's strategy should be to earn grassroots support.
In addition to Spence, Bill Randles has announced that he's running for governor. Randles has already begun to build a base of grassroots conservative support; however, Randles hasn't been able to raise much money. This race looks to be one between Randles grassroots boots on the ground and Spence's TV and radio driven air war. Ultimately, one of these two men will face Gov. Jay Nixon next November. Nixon raised over $17M in his 2008 campaign and has a reputation as a moderate Democrat. He will be hard to beat.
Because of his money advantage, I believe that Spence will win the primary unless Randles rapidly raises a lot more money. Basically, Spence will be able to buy the name id that Randles can't afford and that's what will win the primary for him. However, Spence has to be careful not to alienate Randles's supporters because Spence needs them to join him in the Fall for the fight against Nixon.
To do that, Spence needs to be accessible. He could host get togethers around the state like Ed Martin's "Ask Ed Anything" events. Speaking engagements will also help. He has to make a point of engaging the people who've come to see him. Often those people have come because they have a question for the candidate, so he needs to allow time at the end of those speeches to mingle.
I think there need to be several debates between Spence and Randles and they need to be held around the state so voters have an opportunity to see these candidates. At least a couple of debates should occur during the legislative session so that these men can comment on the Republican controlled General Assembly and their own legislative priorities. Spence should expect to be attacked by Randles (which isn't to say that Randles will attack him, merely that Spence should be prepared), but Spence needs to be gracious in his self-defense if he wants Randles supporters to help him in the Fall.
Ultimately, I would like to see Jay Nixon defeated in November. If Spence plays his cards right during the primary he could gain additional grassroots support in the Fall. The primary fight in Missouri's 2nd Congressional District between Ed Martin and Ann Wagner is also shaping up to be one between Ed's ground game and Ann's air campaign; however, that district is solidly conservative, so many grassroots activists will be looking for something else to do once the primary is over. Spence (and Randles) should build bridges to those activists during the primary so they can leverage those grassroots against Nixon in the Fall.
It was great to see a good crowd in south county Thursday night for the St. Louis Tea Party's After Party Christmas Party. GOP gubernatorial candidate Dave Spence was there with his wife and one of Democrat Governor Jay Nixon's goons. The goon, a video tracker who followed Spence around the mix and mingle event filming his private conversations with potential voters and volunteers, was ultimately run-off by GOP Congressional candidate Martin Baker.
Baker is running in a majority Democrat district. He's a fighter who is willing to stand up for conservative principals and take the abuse that sometimes comes with that. If you've got $10 or $20 dollars, please consider sending it to Baker and/or Spence who only entered the governor's race a month ago.
I think this was one of the first events where Dave Spence mingled with his potential voters. The video tracker obviously disrupted the one-on-one conversations to some extent. I think Spence handled that well. He was able to meet most of the people in the room and talk with them sometimes at considerable length. Hopefully, being followed around a room by a cameraman recording all of your conversations was only mildly irritating for political newcomer Spence.
David Catanese of the POLITICO reports on possible Missouri gubernatorial candidate Dave Spence: If Kinder's out, I'm in:
St. Louis packaging executive Dave Spence told POLITICO Monday he will run for Missouri governor in 2012 if Lt. Gov. Peter Kinder passes on a campaign.
“I know Peter Kinder, I consider him to be a friend. But if there's an opportunity, I'd like to be part of the solution," he said in an interview. "If he decides not to run, I'd do it with two feet."
Spence, a 53-year-old executive at Alpha Packaging, met with the Republican Governors Association last week after his name circulated in GOP circles as a possible replacement candidate.
This is not how you jump start a Republican campaign. Spence leaked his political ambitions not to a media outlet with a right tilt like National Review or the Wall Street Journal, but to the left-leaning Catanese at Politico. He's donated to notorious liberal Senator Chuck Schumer. And he's seeking the help of establishment Republicans.
Dave--Mr. Spence, if you prefer--you've obviously had some difficulty getting the helium into your trial balloon, so let me offer a suggestion. Elections are won and lost at the ballot box. That means that you have to appeal to the average, grassroots voter. There are basically two hordes of average, grassroots voters: Tea Partiers or Occupants (as in Occupy Wall Street). You need a strategy to reach out to one of those groups. I suspect that you're not in what the Occupants call the 99%, so you've got to target your message for Tea Partiers.
Now, I've noticed that you've got a nice home in a good neighborhood with great yard (h/t: MOScout). That 7,700 sq. ft. golf green is pretty sweet. You should have the St. Louis Tea Party over! You'd get to know the conservative grassroots, maybe recruit some campaign volunteers, and we'd learn more about your policy preferences. We could have a cookout. That sand trap is big enough... we could spit three or four pigs and bar-b-que them in that.
Tea Party Conservative who began blogging at http://RebootCongress.NET when TARP passed. Email me: contact@RebootCongress.net. Help support my work: Donate Bitcoins