THOMAS JEFFERSON BRIEFING SHEET

THOMAS JEFFERSON WAS BESIDE HIMSELF. ALL THE EFFORT AND PLANNING THAT HAD GONE INTO THE APPLE CITY SCHOOL PRIVATIZATION PROJECT WAS IN DANGER OF GOING DOWN THE DRAIN AS A RESULT OF THE TERRIBLE NEWS THAT BETSY ROSS HAD BROUGHT HIM. THE PROFORMA ON THIS PROJECT ALLOWED FOR CONTINGENCIES OF ONLY $500,000 INCLUDING SOFT COSTS AND, ROSS'S REQUEST, IF GRANTED WOULD PLACE THE PROJECT IN SEVERE FINANCIAL DIFFICULTY.

FURTHER COMPOUNDING THE PROBLEM IS THE FACT THAT IF THIS PROJECT FAILED HE COULD SAY GOODBYE TO ANY FUTURE PROJECTS. THERE WAS NO WAY THAT THE COUNTY AND THE INVESTORS WOULD CONTINUE TO SPONSOR PRIVATIZATION OF SCHOOL FACILITIES IF THE INITIAL PROJECT WASN'T CLEAN AND PROFITABLE.

ON THE OTHER HAND HE AND BETSY ROSS WERE MORE THAN BUSINESS ASSOCIATES. HE HAD MADE A LOT OF MONEY USING HER FIRM AS HIS CONTRACTOR AND HAS BASED HIS ESTIMATES FOR FUTURE PROJECTS ON ROSS'S ABILITY TO PRODUCE THE DESIRED PRODUCT AT LOWER COSTS THAN HER COMPETITORS. TO USE ANOTHER CONTRACTOR ON FUTURE WORK WAS NOT AN ATTRACTIVE ALTERNATIVE. THERE WAS NO WAY HOWEVER THAT TJDC COULD PAY AN ADDITIONAL $250,000 ON THIS PROJECT.

JEFFERSON IS MEETING WITH ROSS IN A FEW MINUTES BUT IS NOT OPTIMISTIC OVER THE OUTCOME. HE HOPES THAT THE MATTER WOULD NOT END UP IN LITIGATION BUT UNLESS HE COULD SATISFY HIS SHAREHOLDERS THAT SEEMED TO BE THE ONLY ANSWER.

[Return to Exercise]

This entire exercise is copyright 1998 Dick Coughlin, All Rights Reserved.

Posted to ADR Resources by permission

This Website is by Stephen R. Marsh
Contact Information at:
http://adrr.com/smarsh/