City’s number 2 man, Morgan McCallister vows not to pay Black Company headed by Alven Square, until an attorney general opinion says its O.K. even if he will be seen as a racist, “then I’m a racist.” Though no one on the I-20 Board called him a racist, the majority black board, accepted his self description, especially Rev. James Jackson.
In a Tuesday meeting that spiraled from a technical budget dispute into a raw confrontation over race and authority, Monroe City COO and Chief Engineer Morgan McCallister vowed that the city would “indefinitely” withhold a $502,036 payment to a Black-owned development firm, despite the contract having been approved by the I-20 Economic Development Board.
Whether it was playful irony or confession, his repeated description of himself as a “racist” didn’t sit too well with the I-20 Board’s majority black membership, who said his actions rather than his words fit his self description.
Alven Square is the first black enterprise to receive funding from the I-20 District, but may have to fight in court as Morgan McCallister, who holds the city’s checkbook, vows not to pay the company despite board approval.
Only Mayor Friday Ellis or the courts can override McCallister’s self-described “racist” resistance.
The standoff centers on a $4.5 million infrastructure project along the I-20 corridor, spearheaded by local businessman Alven Square and developer Charles Theus of DZE, Inc. While McCallister cited legal concerns regarding the “Cabela Test” and the project’s return on investment, his own repeated self-identification as a “racist” during the proceedings ignited a firestorm over whether the opposition is fueled by fiscal caution or deep-seated bias.
A Defiant Admission
The tension reached a breaking point when Board Member Rev. James Jackson asked McCallister whether the city had ever withheld funds for a project after a contract had been signed and board approval granted.
McCallister, who also serves as an advisor to the board, did not answer the procedural question directly. Instead, he went off script with attacks against his critics.
“I guess you are going to say, I’m a racist,” McCallister retorted. He spoke several times on the issue each time telling predominately African-American board, “Can the racist say something?” At one point he turned to a reporter for the Ouachita Citizen and added: “You can quote me, the racist said, I will never write a check for $300,000 to Charles Theus.”
The newspaper did not report any of McCallister’s self described racist statements.
Though no board members had used the term prior to his outburst, McCallister’s repeated use of the label—which he claimed was how Black board members viewed him—became the focal point of the meeting.
The “Only One Real Problem”
Rev. Jackson was quick to address the racial subtext that has hovered over the project since its inception. The DZE, Inc. contract, approved in January, is the first project the I-20 Board has ever funded with a Black developer, and it was met with immediate resistance from McCallister and Mayor Friday Ellis, despite the Mayor having initially voted for the project’s development agreement.
The mayor said later that he voted for creation of the contract with DZE, but has not returned to an I-20 meeting since. Instead, McCallister, who is both the city’s Chief operating Officer and City Engineer, told the board that the city hadn’t given its green light to the project.
“You only have one real problem—and that is they [Square and Theus] don’t look like you,” Jackson told McCallister during the exchange. “That’s the real problem.”
McCallister, quoted bible scriptures and characterized himself as a Christian then blamed the pastor for using the race card, in response to McCallister’s self descriptions.
“From one believer to another, I’m asking to refrain from the race card because you’re out of line.”
Rev. Jackson never called McCallister a racist, but he pointed to his refusal to pay the black developer as indicative of a bias.
Legal Loophole or Obstruction?
McCallister is not an I-20 board member, but as COO of the city, controls the city’s checkbook. He has no legal authority not to honor contracts approved by the board.
He maintains that his refusal to cut the check is rooted in his duty as the city’s chief engineer to protect public funds. He argued that the project, which includes drainage and road improvements in an area near Parker Road, does not meet the state’s criteria for public expenditure because it lacks a clear “return on investment.”
The I-20 board differed with McCallister in debates about the project last year, and concluded that because the project included a donation of land for drainage and other residuals, there was a clear return on the I-20 board’s investment. The board rejected McCallister’s claims and approved the project, but McCallister appears dug-in and risks a court fight and increased costs because of delays and possible fines.
McCallister’s self description is a problem
The city of Monroe has no control over I-20 funds. McCallister’s unprecedented refusal to honor the board’s contract obligation, combined with his self-description as a racist seem certain for a court showdown.
Board President Juanita Woods characterized the withholding of funds as “premeditated” and questioned the city’s legal right to override the board’s vote. She said McCallister’s description of himself explains his actions.
“What is the purpose of this board if this board, as a majority ruling, cannot pass something and let it be law?” Woods asked. “Then why does this board exist?”
The I-20 Board’s legal counsel has already reviewed the project and deemed it legal, a point Woods emphasized to McCallister. Under state law, the city acts as the fiscal agent for the board, meaning its primary role is to disburse funds as directed by the board’s majority.
Legal Action and Retaliation
The dispute appears headed into a courtroom where the city’s top administrator’s description of himself as a racist stopping a black developer is certain to front and center. A spokesperson for DZE, Inc. confirmed that it’s attorneys are preparing several actions, which may include a Writ of Mandamus to compel the city to pay its legal debt.
Under state statutes, the I-20 Board could face a daily penalty of 5% for failing to disburse the funds, up to a maximum of 15% of the total invoice. If the city’s action causes the penalty, it will be liable for the penalty, which could be up to $75,000.
The fallout may also paralyze other city projects. Rev. Jackson warned that if McCallister continues to block the DZE payment, he will move to halt all vouchers for all other I-20 Developments until the Attorney General reviews every single part of every agreement for legal compliance, however long that takes.
As the meeting concluded, McCallister, visibly emotional, predicted that his actions would probably spill over into the City of Monroe because Woods and city council chairman Rev. Rodney McFarland will retaliate against him by opposing the Mayor’s future agenda items.
But for the developers and board members, the issue remains a simple matter of law and equity: a signed contract and a developer who, for the first time in the board’s history, does not “look like” the man holding the checkbook.
