'A very odd reason for a no vote': Maddox, Carter-Smith intersect Washington Square project

Loews Hotel Chairman and CEO Jonathan Tisch swooped into Tallahassee for several hours three years ago to meet local officials and scout the Washington Square site where he intended to plant his flag. 

One of the first people he'd meet was then-City Commissioner Scott Maddox — the only elected official on the day's agenda — and his close associate Paige Carter-Smith, who joined Maddox in pleading guilty earlier this month in a long-running public corruption investigation.

It was a rare moment — an opportunity to meet with the billionaire, New York Giants co-owner interested in anchoring and managing the hotel within the 19-story, mixed-use development in the heart of downtown Tallahassee. 

When they touched down in the capital city on Nov. 3, 2016, Tisch and his management team came straight from Tallahassee International Airport to Cascades Park, where an informal meet-and-greet over coffee took shape and lasted about 20 minutes.

In attendance were five high-ranking city and county officials, three of whom later saw their careers and lives implode after accusations of wrongdoing led to criminal and civil convictions.

Maddox and Carter-Smith, who face long sentences in federal prison, were there, along with then-City Manager Rick Fernandez, who lost his job in 2017 and was later fined $6,000 by the Florida Commission on Ethics for taking FSU football tickets from a lobbyist. Maddox was removed from office last week by Gov. Ron DeSantis; Carter-Smith resigned last year as head of the Downtown Improvement Authority.

They were joined at the Edison's Power Plant Cafe by Assistant City Manager Wayne Tedder and Leon County Administrator Vince Long. 

Maddox and Carter-Smith arrived late to the meeting together, some in attendance noted. At the time, their inclusion in the meeting didn't raise questions. It would later be one of at least two intersections the duo had with the Washington Square project. 

Two months after Tisch's trip to Tallahassee, Maddox, Carter-Smith and a lobbyist sat down with Washington Square developer Walter Hall.

He told the Tallahassee Democrat the lobbyist, who he would not name, asked him if he wanted to meet Maddox. Hall accepted his invitation to meet for breakfast at the downtown DoubleTree Hotel.

Hall said he talked about the project's architectural plans, timeline and other details. No government business was discussed, he said. 

"When the meeting ended, Scott told me I should hire the lobbyist," Hall said. "We didn't."

When asked to identify the lobbyist, Hall said "I’m not going to disclose; he may be totally innocent and was just trying to help our project."

At the time, Hall didn't think much of the exchange and said, "I gave Scott the benefit of the doubt."

Ten months later, the Community Redevelopment Agency board voted to approve $6.6 million in tax credits for Washington Square at its meeting on Sept. 27, 2017. The measure passed in a 6-3 vote with Maddox as one of the dissenting votes. 

“I’m going to oppose the motion because I think the ask is too big, lack of infrastructure and public involvement," Maddox said at the time. "On what I see in the project itself, I appreciate the need to have it come back and fleshed out, but I wanted my vote to be cast as a message to when it comes back as a project.”

Looking back on that moment, Hall said he was not surprised by Maddox's guilty plea, but was "sad for the honest and respectable people who work for the city."

"It was a very odd reason for a no vote," he said, "especially with the energy the development will bring to the downtown district, number of public parking spaces and over $900 million economic impact the project will bring to the community over the next 30-years." 

Earlier this month, Maddox and Carter-Smith pleaded guilty in the ongoing corruption probe to charges of honest services wire and mail fraud and conspiracy to defraud the government. Maddox steered vendors and others with business before the city and CRA to Carter-Smith and their Governance lobbying firms, which he secretly controlled.

Maddox and Carter-Smith admitted taking money from city vendors, one of which was a fictitious FBI company, in exchange for their behind-the-scenes help at City Hall. They face up to 45 years in prison when they're sentenced in November.

Related:The ABCs of a corruption case: Your guide to the businesses and people linked to Scott Maddox

Federal charging documents portrayed the iconic capital city politician as vengeful, threatening to ruin one company executive for backing a political rival, and as greedy, telling an undercover agent $20,000 wasn't a lot of money for a bribe.

But Stephen Dobson III, Maddox's attorney, said Hall's story is false and that his client never instructed Hall to hire a specified lobbyist. 

"He was against this project all along because it did not involve public infrastructure," Dobson told the Democrat in an email. "Mr. Maddox has a long history of opposing CRA giveaways to developers. His position is clear on the record. This is an untrue accusation made by a developer who is suing the city and may be trying to save a failing project."

Stephen Webster, an attorney for Carter-Smith, noted that she was no longer involved in lobbying activities at the time of the meeting.

“Paige Carter-Smith met only with representatives of this development upon their request in her capacity as executive director of the Downtown Improvement Authority or at the direct request of a board member," Webster said in a statement. "She at no time had any discussions with these developers about any lobbyists.”

A project in peril

Flash forward and the Washington Square development and accompanying Loews' Hotel face an uncertain future with mounting legal troubles.

On Tuesday, Circuit Judge John C. Cooper continued an emergency injunction hearing to Aug. 21. He is expected to rule on the development's request for a declaratory judgment regarding an ongoing dispute between Fairmont Tallahassee and the city over terms in a parking garage easement that grounded the project this summer. 

An attorney for the project told Cooper, it is on "life support" and is facing an estimated $8.8 million in liens from its general contractor and one subcontractor who haven't been paid. 

Back story:Washington Square slaps city of Tallahassee with lawsuit, demands damages in easement dispute

The court hearing shed more light on how the project evolved and who's corralling resources to see it complete. 

Among those key players is Thomas DiVenere, an equity investor and a principal in Snell Development based in Los Cabos, Mexico, and Vail, Colorado. The development company structures and finances hotel and hospitality projects.

During his testimony, he talked about knowing Hall and his partner Ken McDermott for several years and how he grew interested in the Washington Square project. DiVenere said he was involved in negotiating the hotel management agreement on Fairmont’s behalf with Loews Hotels and Resorts about two years ago.

However, he said he's been more involved in the last six months. The projected cost for the massive project swelled from an initial estimate of $90 million to $153 million. 

Construction came to a screeching halt this summer amid the easement dispute. Fairmont's lawsuit maintains the project is sustaining financial blows, including the potential loss of investors, future tenants and an anticipated monthly income loss of at least $737,000 per month.

More:What will it profit to gain a parking garage but lose a city? | Gary Yordon

'A big deal for Tallahassee'

The Loews entry in Tallahassee's hospitality market would be game changing, and a flurry of emails leading up to Tisch's visit illustrate how a Loews commitment could be a monumental moment for the capital city.  

Hall was instrumental in the planning from the beginning. In a thread of emails on Oct. 11, 2016, to Tedder, he made sure to point out the Tallahassee ties and why Loews appeared to be a good fit. 

"With Loews having eight hotels in Florida aside, their VP of Operations grew-up in Tallahassee (Dale McDaniel), graduated from FSU, has family in Tallahassee, and is actively involved in the FSU Hospitality program, Loews was a natural fit for our development," he wrote.  

"We would like the visit to be very low key, no press, pictures, etc," Hall added. "After we have planning approval of our building design and are ready to start construction, we will make a public announcement and have formal ground breaking event."

Tedder, the planning department director at the time, responded with remarks such as, "This is a big deal for Tallahassee" and "Looking forward to seeing this hotel rise up!"

Once Tisch arrived, he left an impression of tempered enthusiasm, County Administrator Vince Long recalled. But he didn't ask many questions.

"He wasn’t a glad handler. He was pretty no nonsense, which again is what I would expect from a billionaire hotel developer,” Long said. “You could tell, from his standpoint, he seemed very satisfied that they had done their homework. He seemed genuinely interested and enthusiastic about the project.”

Loews representatives remained tethered to Tallahassee as recently as January when several officials met with economic and Tallahassee Chamber of Commerce officials.

Cristina Paredes, who heads the Tallahassee-Leon County Office of Economic Vitality, said she made a 15-minute presentation in Jan. 4 for a team of Loews executives breezing through Tallahassee. She said Hall requested the presentation. 

She offered a snapshot analysis on key economic indicators and developments on the horizon in the capital city. Jonathan Tish wasn't on the latest tour, but his son, Alex, was.

"We talked about how we are climbing up in the rankings at that point in time,” said Paredes, who pointed to the city's major festivals and growing industries. "The reception was positive. They had some good questions. The conversation was good and quick paced. I thought it went well.”

Yet remarks made during and after the court hearing indicate the high-rise hangs in the balance. Several inquiries to gain clarity from Loews on its involvement in Washington Square have been met with silence. 

Contact TaMaryn Waters at tlwaters@tallahassee.com or follow @TaMarynWaters on Twitter.