Mayor Greg Davis’ no-bid contract upsets taxpayers

Southaven taxpayers may end up paying as much as $4 million for a fire station built through an unusual no-bid contract negotiated by Mayor Greg Davis.

General obligation bonds were issued for the station that has been open nearly 2 1/2 years, yet the city doesn’t own it.

Proceeds from a 2008 bond issue were steered to other projects and Davis instead entered a deal with two businessmen who built and own the 11,000-square-foot station and lease it to the city.

Businessmen David Gary Murphy and Stephen M. Gross, who contributed thousands of dollars to Davis’ unsuccessful 2008 congressional campaign in the months leading up to the lease signing, are charging the city more than $30,000 a month in rent.

Commercial Appeal
1/15/12