State Senate leader Rogers says he's not liable for bad hotel loan
by Jon Gillooly
jgillooly@mdjonline.com
June 02, 2010 12:00 AM | 3301 views | 12 12 comments | 18 18 recommendations | email to a friend | print
WOODSTOCK - Senate Majority Leader Chip Rogers insists he has no liability for a Calhoun hotel known as "Methamphetamine 6," even though he was among the guarantors who took out a $2.2 million loan to buy the Oglethorpe Inn in January 2009.

Meanwhile, a Democrat challenging Rogers on Nov. 2, on Monday called on Rogers to publicize all documents related to the deal.

Bartow County Bank, which lent the money to Tich Hospitality LLC in January 2009, filed suit last month in Gordon County Superior Court against Tich Hospitality; a separate company, Tich Properties LLC; Tom Graves; and Rogers, claiming the loan is in default.

The bank wants its money back, plus daily interest of about $310, as well as attorney's fees and costs.

Rogers and Graves are the two organizers of Tich Properties, according to corporation filings on the Secretary of State's website.

Graves is among Republican candidates for Georgia's 9th Congressional District seat, formerly held by Nathan Deal.

Rogers, whose district includes parts of Cobb and Cherokee counties, said: "My name was only included as I was an original guarantor on a real estate loan. I have retained counsel to clarify that I have no ownership role. We believe this will be brought to a successful conclusion. Nowhere in the claim have I been accused of any wrongdoing."

An Atlanta newspaper has reported that John Edens, the operator of the Oglethorpe Inn, signed a contract with Rogers and Graves in November to transfer ownership of Tich Hospitality and the Oglethorpe Inn to his company, Durrant Demarco. No record of a corporation by that name can be found on the Secretary of State's listings.

On Tuesday, Edens told the Journal that his attorney had advised him not to speak to reporters.

"Senator Rogers is a good guy," Edens said.

Meanwhile, Democrat Patrick Thompson of Roswell, Rogers' opponent, tried to call attention to the lawsuit at a sparsely-attended news conference on Tuesday.

"I'm calling on Rogers to fully release all documents relating to this deal so the voters can fairly judge whether he deserves to be returned to office this November," Thompson said. "Sen. Rogers likes to represent himself as a clean-cut senator who operates above-board, in the best interest of Georgians and his Cherokee County constituents. Voters are having doubts and are owed full disclosure about this and other business dealings Rogers is involved in. They also need to know if he properly reported all his dealings when he filed his regular state disclosure forms."
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billevelyn
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August 05, 2010
In the end it is merely a reflection of business acumen. I don't know if anything was illegal, the judge will sort that out.

However, I do recommend the both of them read Hotel Finance for Dummies and take a remedial business course. Hotel Management would be a good one.
anonymous
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August 05, 2010
People create LLCs, to limit personal liability and banks take property collateral to secure them. The crux of the matter is, did they sign personal loans?

Why did the journalist use the pejorative term, "Methamphetamine 6?" Is this a hit article?
CobbTaxedEnough
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June 03, 2010
This is a private business matter for Chip Rogers. However, it does call his judgement and ethics into mind. He is responsible for the repayment of any loan on which he is a signer.

Makes me wonder if I should vote for the people

Chip Rogers is endorsing -- like Sam Teasley, another real estate buddy of his -- who is clueless.
Cobb Voter
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June 03, 2010
If the loan is in default, and he was a guarantor, how is he justifying that he has no liability?
Ripped Off Tax Payer
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June 03, 2010
Rogers’s thinks’ he can get away with anything and he has! His time might be up a lot of us Republicans will vote for someone else not just a Republican; under his leadership the party is in trouble!!
Curious One
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June 02, 2010
This is a political business deal that has gone South and Chipper just released himself from liability - can't wait to see what the bank, that is suing him, thinks of his "self release" ? The loan agreement would state in very simple turns the conditions of release or assignment. What was the down payment senator Chipper ? Why would a reliable bank make such a horrible loan with lousy collaterial, little to no down payment, and release of liability - per the senator - ?
Cobb Resident
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June 02, 2010
If he's a guarantor on the loan, he has legal responsibility to pay for it and the Bank has avenues to puruse its claim. This is a business matter, not a question of political ethics. No citizens are hurt by the default and Rogers didn't use his political influence to help himself. He's not to blame for the "Meth 6" sales -- sounds like they were trying to develop a run-down property and like so many real estate deals these days, ran into financial problems.
Arthur Williams
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June 02, 2010
To all the good people of GA, this is an example of whats wrong with this country. 1-Why would this man get a loan that he was not responsible for? And why couldn't any of you get a loan that you are not responsible for? This is not about politics, this is about connections and the raping of the banks and system that we the taxpayers bail out. GA is one of the states with the highest rates of bank failures. Almost all the banks were small banks giving loans to the well connected for real estate. For the life of me I want to know how the bank gives out a loan for his benefit and when it comes time to pay it back, its not his responsibility. Now I will inject politics. How do you people vote for this man or any other well connected, take advantage of the middle class, and demonize the lower class kind of person?
GoodScout
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June 02, 2010
We WILL hold them accountable -- but only if we are willing to vote against them this November. It's been years since I voted Democrat, but I'll gladly do it against Rogers this fall since they guy running against him is a conservative Democrat and a trustworthy Scoutmaster to boot! Good bye, Chip, and all the sleeze you represent!
Oh, What I meant was
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June 02, 2010
Oh, what I meant to say when I signed was that if Imade money, great, but if it goes sour I am not really invovled. Please somebody hold these idiots accountable!
SeaIsland
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June 02, 2010
Rogers, "I was an original guarantor on a real estate loan."

Enough said.

Any HINT of an ethics issue and you will not get my vote!
WDSTK&
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June 02, 2010
Can't believe the man, when you look at the people he is endorse in other races.
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