Congressman Jack Kingston continued his crusade Tuesday to help subcontractors from the Moody Family Housing project during a town hall meeting held at Mathis City Auditorium with Undersecretary of the United States Air Force Bill Anderson.

Valdosta Mayor John Fretti opened the meeting by addressing the subcontractors. “I don’t know if we’ve had a more of a disturbance in our community besides high crime, although this definitely feels like a crime,” Fretti said. “There are some unfortunate things that have taken place in this country, and there may be some loopholes that have allowed this to happen. The city of Valdosta is concerned about you, and we appreciate your patience on all of this.”

“This is a serious matter to address, even more so serious if you are directly affected with the anticipation of living at Magnolia Grove or as a sub-contractor involved in construction,” the Undersecretary of the United States Air Force said. “This a commercial deal, not a MILCON (military construction) project where the Air Force served as a lessor of the land.”

Anderson continued, “The most important aspect is to find a ‘white knight,’ if you will, or a buyer to take over the project. On April 1, a letter of intent was signed with Hunt-Pinnacle and the first serious negotiations were held on May 1 to discuss status, the first of many negotiations to go.”

Anderson revealed that the Moody Family Housing project would be one of four projects to be sold to Hunt-Pinnacle, both national construction and construction management firms. The other three are housing projects at Little Rock AFB, Ark., Patrick AFB, Fla. and Hansom AFB, Mass. “It will bring more value as a bundled package.”

All four of the base housing projects were awarded to Carabetta Construction, in partnership with Shaw Infrastructure, which did business as American Eagle Communities. All four went under following non-payment of subcontractors and the subsequent filing of liens against the development. Those liens, in excess of $10 million, remain unsatisfied. Valdosta attorney Wyn Miller, representing the court-appointed receiver John K. Dukes, stated that those whose liens were perfected, meaning that they had gone through all the proper legal steps of filing lawsuits according to court set guidelines, were the most protected.

“These liens mean that they have to pay attention to us locally,” he said.

Anderson continued, saying that the current process, the negotiated sale of the Moody Family Housing project, is the most ideal non-legal approach. He discouraged legal action, as did Miller, who said Southern Circuit Judge H. Arthur “Mac” McLane has filed a stay in order to prevent a complete bankruptcy of the project. “Everyone would lose then,” he said.

Though accepting responsibility for the project gone awry, Anderson was not the creator of the housing project but rather the inheritor of a huge disaster to clean up. Tuesday’s visit to Valdosta was Anderson’s second after a visit six weeks ago to speak with affected subcontractors and airmen as well as viewing the incomplete homes.

Anderson was unable to provide information in response to questions about where the money paid to Carabetta went, since it didn’t go to the subcontractors. He referred to an internal Department of Justice investigation that is incomplete.

“We have learned a lot of lessons from the way this was conducted,” said Anderson. He was also unable to answer questions regarding why the bonding required on the project was inadequate to cover the actual costs of construction.

Rebecca Walker of All Around Roofing, a subcontractor on the Magnolia Grove housing project, has been a primary fighter from the beginning of the project’s failure, having suffered personal losses within her family and business as a direct result of the non-payment to subcontractors.

“I want to know who is in charge, who dropped the ball. And if it was you, I think the person should lose their job. I would lose my job if I didn’t perform successfully,” Walker said to Anderson. “At the end of the day, you still have your job or position and all of your income but all of these people in this room lost money and no one is being found responsible.”

Anderson didn’t directly answer the question, but referred to the current Department of Justice investigation. He added, “The scope of the project will also have to be downsized because money was lost in the system due to loss of home structures and equipment. Some of the project will have to be demolished as a result of incomplete construction activity and partially constructed homes; the value placed in cash flow will be lost.

“Everyone is better off with the process that is in progress. This is a faster course of action to get money back to subcontractors whereas other processes would take longer and create more risks. I do not think the taxpayers’ money should bail out the contractor,” said Anderson.