Communication Builds Our Community
Communication Builds Our Community
Contract Extension Requires Start on New Duplexes
The BizLINC incubator was opened with fanfare but has encountered multiple problems since. Former CFO Charles Young, left, was arrested after being accused by his partners of defrauding the company.
A request for an additional grant of $900,000 to extend a controversial contract with Florida Development Corporation has been met with a renewed demand for action on previous agreements with the Lake Wales Community Redevelopment Agency.
An agenda item to be discussed at Tuesday's CRA meeting will require FDC, operators of the BizLinc business incubator, to initiate the construction of a new residential duplex on one of five lots they purchased from the CRA for $$33,757 on July 20, 2023. The original agreement committed the group to beginning construction of five new duplexes within 180 days. No explanation was given for the long delay.
The item is apparently in response to a request to the city commission for a new contract that would extend the original $1.2 million contract to operate the BizLINC business incubator for another three years.
If FDC meets the terms of the proposed amended development agreement by starting the construction of a duplex within six months, the company will than have an additional 12 months to begin construction on the other four lots. The agreement states that "should FDC fail to meet these terms, the City will seek to execute the reverter clause set forth in the contract."
The reverter clause would require FDC to return all five lots to the CRA.
Former FDC and BizLINC CFO Charles Young was arrested on two counts of Grand Theft more than a year ago and is awaiting adjudication.
In the original agreement, FDC warranted that it is "a non-profit corporation" even though it is registered as a for-profit corporation by the Florida Department of State.
The BizLinc incubator received a grant three-year grant of $1.2 million after it was presented as a means to train and encourage entrepreneurs who would reinvigorate the former commercial district of Lincoln Avenue in the city's predominantly-minority Northwest neighborhood. So far, no new businesses have opened in that area, aside from two who are operating within the FDC building at 225 Lincoln Avenue. One is a state-licensed fingerprint service
FDC has been dogged by problems since entering into the initial agreement with the City of Lake Wales. Originally operated by a leadership trio of Chief Operating Officer Derrick Blue, President Frank Cornier, and Chief Financial Officer Charles Young, the partnership dissolved into acrimony after Young was accused of defrauding the corporation. He was dismissed some three months before a complaint was filed with the police which eventually resulted in his arrest on charges of grand theft.
The company was also the subject of unflattering news coverage that highlighted apparent shortcomings in business operations, including failures to pay city and county business taxes, formerly known as occupational licenses.
Non-working email addresses and telephone numbers, and evidence of plagiarism and fake testimonials on the company's website were also cited.
Lake Wales Deputy Mayor Robin Gibson, seen here being interviewed during the ribbon cutting of BizLINC, contributed $50,000 toward architectural designs for the BizLINC building based upon the contract assertion that FDC was a non-profit company. While operating on city-provided funds, FDC charges their students for the use of the building.
Other businesses then operating without business tax receipts at the incubator address included BizLinc, LLC, BluePrint Ventures, LLC, and The LINCubator, LLC, all operated by COO Derrick Blue. The LINCubator was dissolved by the Florida Division of Corporations in September for failing to file an annual report.
FDC has also been sued by three individuals who claim that they provided a $260,000 investment in the company but have since been denied access to relevant financial records. FDC is denying their claims of partial ownership of the company. The three jilted investors, Lamar Dula, Mike Ross, and Jim Landrom, are all fraternity brothers of Young.
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