European Stars And Stripes (Newspaper) - January 4, 1989, Darmstadt, Hesse bitter feud poisons a City by William j. Eaton los Angeles times arly january Days in the aging Gulf coast resort City of Biloxi miss., Are spectacularly sunny and Bright but the civic atmosphere is dark and sinister poisoned by enough hatred fear and suspicion for a Faulkner novel of raging Southern passions. One of the oldest cities in America with a history of conflict Between French Spanish and English invaders Biloxi became famous As a wide open Good time town with an easy tolerance for gambling and other recreational vices. More recently it has suffered the ravages of economic decline and unsettling social change. And now just when some had hoped it would be rebounding Biloxi has been plunged into a paralysing melange of grand jury investigations personal feuds and charges and counter charges As thick and murky As the local seafood Gumbo. Biloxi s plight illustrates the special vulnerability of Small cities to civic conflict Large metropolitan areas can shrug off scandals but in communities where almost everyone knows almost everyone else and the cast of characters remains constant such crises leave scars that Shadow the future Long after their specific causes have faded. The investigation has Hurt Biloxi tremendously said Dianne Harenski an Independent member of the City Council who fears that the current upheaval will deter outside investment and crush Hopes for an economic revival of the City s worst off neighbourhoods. At the Center of Biloxi s present trouble Are two men Gerald Blessey the activist Liberal mayor who has been the moving Force behind a plan to revive the local Economy by redeveloping Biloxi s rundown waterfront. Royce Hignight a hard charging local Fri agent who has led an All out investigation of possible wrong doing involving Blessey his associates and the waterfront project. Opinions about Hignight and Blessey and about the current state and Federal grand jury investigations of the waterfront scheme Cleave Biloxi like an a. So Savage has the atmosphere become Blessey said that he is the subject of constant rumours of the most lurid sort including suggestions publicly rejected by the police that he is linked to the unsolved hit Man style slaying of a Biloxi judge and his politically Active wife in 1987. Blessey and his supporters portray the present controversy As a reflection of Long simmering tensions that Are endemic to the City and the Region the new South versus the old South the outs versus the ins reformers versus Good old boys advocates of change versus defenders of the status quo. And in their View the racism that has haunted Mississippi almost since its birth still dogs it today. Since Blessey s student Days at the University of Mississippi in the 1960s, he has been in the forefront of the state s civil rights Battles. Now considered the most Liberal office Holder anywhere in the deeply conservative state he takes Pride in his political Alliance with the Black Community and what he describes As his commitment to social change. His fiercely Loyal supporters View him As a progressive Leader whose efforts to energize a stagnant Community have earned the enmity of racists conservative ideologues and Fri agent Hignight. Gerald is a victim of his progressive ideas and Liberal ideas toward All people according to or. Gilbert Mason a Black Leader in Biloxi who strongly supports the mayor. That is one View. Blessey s critics paint quite a different picture. City Council member Robert a. Carroll the mayor s most vocal opponent portrayed Blessey As a self serving politician who throws City business to Bankers lawyers and auditors who contributed to his Campaign. Peter Halat a Biloxi attorney who has known Blessey since Grade school and plans to run for mayor himself considers Blessey arrogant. I be never heard Gerald admit that he s made a mistake Halat said. Audrey Lamey who once worked for Blessey declared he can be overbearing sometimes when he thinks he s right hell do almost anything to uphold his the present juror was set in motion two years ago when Blessey had a brainstorm. He had been to Boston and seen a Marvel of economic rejuvenation there called the Quincy Market a collection of spruced up warehouses and old Brick office buildings that became a bustling tourist Haven filled with trendy shops and restaurants. Why not Blessey suggested do something like that with Point Cadet the oldest most rundown Section of Biloxi s waterfront the mayor and others set to work. They drafted the blueprint for an economic melange of stores boutiques upscale restaurants and a 200-room hotel for tourists and conventioneers with port facilities for an off Shore gambling ship thrown in for Good measure. They pursued and won a $500,000 Grant from the Federal housing and Urban development department put together the greater Biloxi economic development foundation and the Point Cadet development corp. To carry Forward the project and scheduled Public hearings to present the plan to the Community. As Blessey and his supporters especially the City s Blacks described the project it was the answer to Biloxi s prayers More jobs for workers More commercial opportunities for the business Community. This blend of commercial and recreational interests will preserve the history and culture of Biloxi while providing 1,400 jobs the mayor said adding that it would bring in an additional $1 million a year to the City in real estate and sales taxes. Not everyone was persuaded. City Council critic Carroll derided the idea of putting a new 200-room hotel and French marketplace in a waterfront location he Calls the stink zone especially at a time when some of the City s largest privately owned hotels Are on the Edge of bankruptcy because of a slump in tourism. The project also continues to be opposed by some of the More Well off West Beach and North Biloxi residents who would rather see municipal funds spent repaying streets and filling potholes than supporting � Blessey s scheme. It is not political opposition however but the year Long Federal and state investigations of the waterfront project that have kept Biloxi in turmoil those investigations plus heated controversy Over Fri agent Hignight s tactics. The Federal investigation has focused on whether City officials acted without Federal approval when they released $160,000 from the Hud Grant to cover the Developer s Start up costs town officials say that Federal officials told them verbally that they could make the move but that they never received written authorization. Thus far the investigation has yielded two indictments in mid october Reba Capers the executive director of the greater Biloxi economic development foundation and a Strong supporter of Blessey was charged with lying to a grand jury about Federal approval to release the $160,000. Charles Adamsjr. Of Syracuse n.y., who worked for the Northwest investment co., one of the companies formerly involved in the project also was indicted on perjury charges in connection with the expenditure. Blessey 46, said that he was audited by the internal Revenue service in an inquiry that began when two irs agents arrived at his Biloxi Home at 9 . One evening last Spring. After months of checking Over his personal finances he said the irs found nothing wrong with his tax returns. Nick Montgomery the irs agent who headed the investigation said that he could not comment on the mayor s statement. No one has yet been charged with improperly profiting from the waterfront project although that accusation percolates just below the surface in the rumours and innuendo that swirl through Biloxi. They say i m absconding with Money Blessey said in an interview but the fact is that i m As evidence he produced a financial statement showing that his net Worth As of aug. 15 was Only $1,889.88. City councilwoman Harenski who has ties to Carroll As Well As Blessey and who supported the waterfront project praised the mayor s personal integrity to say that Gerald Blessey took something for his own personal gain i Don t believe that. We have gone 100 percent above and beyond to make sure that All the i s were dotted and All the t s were the real problem Blessey and others contend is not improprieties on their part but the Bias of Fri agent Hignight. As Blessey sees it Hignight is cooperating with the mayor s political adversaries including Harrison county District attorney Glenn Cannon and Pete Johnson the newly elected state auditor to try to discredit the mayor and his political ally Mississippi gov. Ray Mabus. Describing her experience with Hignight Capers said in an interview he lacks knowledge to understand what we be done. His Lack of understanding has been staggering. But the worst thing it s unthinkable is his personal Bias. He makes it Clear by his bearing accusatory and Capers denied any wrong doing. I am not going to be intimidated and i look Forward to a fair hearing on these charges she said. Blessey has complained to the Fri that Hignight has been conducting a personal vendetta against him rather than an objective inquiry. And Many of those Hignight has interviewed some but not All of them Blessey associates describe him in terms that Bear Little resemblance to the traditional image of a professionally dispassionate Fri agent. Bob Landry executive director of the Point Cadet development corp., the corporation formed to carry Forward the waterfront development said that Hignight was arrogant and intimidating in his contacts with the office. He flashed his badge and said i want you to account for every Penny of Federal dollars spent in Biloxi on this project " Landry recalled. Sam la Rosa the City auditor said that he voluntarily turned Over records and his own work papers to Hignight after the Fri agent assured la Rosa that he could have Access to them at any time later when the auditor reminded Hignight of his Promise and asked to look at the files la Rosa quoted the Fri Man As denying that he made any such statement. He just lied la Rosa said. I know How people in Germany Felt under the Gestapo dealing with Royce Shirley Thornton a Petite red haired woman who is co owner of the factory restaurant which was included in the waterfront plan said that Hignight arrived unannounced one morning and quizzed her for three hours. He sat me Down and just pounced on me she Gulf of Mexico x is map Lisa Rivard said. He just really was antagonistic. He had me in tears once or twice. He s very rough and Gruff sort of a Gestapo like atmosphere. He told me i d better make up my mind which Side i was on and if i picked the opposite Side i d be the opposite Side she said referred to mayor Blessey and his advisers on the waterfront project. Robert Simmons the City director of Community development said Hignight warned him that he could be sentenced to 5 or 10 years in prison unless he decided to come clean with information about Biloxi corruption. Simmons asserted that he knew of nothing improper. The real Tough part was at the grand jury. It was threatening Simmons said in an interview. Hignight pounded the desk saying you re not telling us All you know " Larkin i. Smith the Republican sheriff of Harrison county made a Point without mentioning any names there s a problem with Fri agents who remain in an area a Long period of time and become involved in local just when some had hoped i would be rebounding Biloxi has been plunged into a paralysing melange of grand jury investigations personal feuds charges and counter charges As thick and murky As the local seafood Gumbo. Politics and express opinions not based on fact but on Rumor and innuendo. The Fri should see to it that it does t take place. If if does they should take appropriate on the other hand Federal authorities former Fri associates and other defenders insist that while Hignight s style can be bruising he is a very capable agent who has done excellent work in years Long investigations of corruption by major political figures in Mississippi. In Washington Fri sources said that Hignight has a reputation for tenacity he never lets for his part Hignight interviewed at the Fri office in the adjacent town of Gulfport grinned recently As he told a reporter i m still Here. I Haven t been he declined to comment on the specific allegations or on other aspects of the controversy. I have no Side of the Story he said. I can t comment on anything. There s really not much i can say that s Bureau but his voice rising in anger he rejected any suggestion that he might run for Public office after retiring from the Fri. I m a career Fri agent he said. I make Good Money and i m six years from retirement. I make More Money than these politicians do anyway so Why would i want their jobs. That s perhaps the most Faulkner an and poisonous twist to the controversy Over Blessey and the waterfront project is How critics have spread the idea that the two Are somehow linked with two sensational and still unsolved murders in Biloxi the killing of Vincent and Margaret Sherry. Vincent Sherry was an interim circuit judge at the time of his death a former criminal defense attorney who had represented Many people accused of drug dealing before he was named to the Bench. Active in politics he called himself a conservative Democrat. Margaret Sherry a conservative Republican gadfly who had narrowly lost to Gerald Blessey in a bitter mayoral election in 1985, had been expected to run again for the office next july when Blessey plans to retire. She often said that she had evidence to blow the lid off City Hall but never disclosed any major allegations during her lifetime. Their bodies were discovered with .22-caliber Bullet wounds in the head the telltale Mark of a hit Man s murder for hire. No weapon was found and there Are no clues. Despite exhaustive inquiries police admit that they have no motive no suspect and Little Hope of finding the killer now that the Trail is cold. Gerald and Margaret hated each other was the Way their associates described their political and personal antagonism. Blessey has said that the two of them had a War of words and a War of ideas and that was coincidentally Fri agent Hignight lives across the Street from the Sherry Home and reportedly had ties to Margaret Sherry both when she was a member of the City Council from 1981-85 and after her election defeat. Initially Hignight joined a police task Force to investigate the murders. However George Saxon Public safety director of Biloxi said that the Fri representative accepted assignments but never reported any findings and two weeks later dropped off the team on grounds that Fri agents were not allowed to take part in such joint activities. Shortly after the twin slayings a member of the City Council said that Hignight linked them to the Blessey administration by asking Don t you think that control of a $36 million budget is enough to commit murder Over the Council member however asked not to be identified by name for fear of retaliation saying i Don t want to do Battle with Royce other Law enforcement officers including sheriff Smith a Republican who recently was elected to Congress have declared repeatedly that there is no connection Between the Sherry murders and Blessey or the City administration. As his time in office dwindles and the waterfront project remains under a Cloud Blessey admits he s growing morose. The whole investigation is so irrational it just does t seem fair he said recently. The truth is on my Side. I la be exonerated. But he said with a sigh impatience is the worst of my Many Page 14 the stars and stripes wednesday january 4,1989 the stars and stripes Page 1
