From an ownership transfer to high tech ‘immersive’ technology to public park dedications, the city’s fictional claims could cost residents millions.
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OCEAN SPRINGS, MS —Newly obtained public records reveal the City of Ocean Springs never had an agreement in place to own the downtown parking garage — despite telling the State of Mississippi it did in order to secure millions in grant money for a private developer.
In both 2023 and 2024, city officials certified to the Mississippi Development Authority (MDA) that Ocean Springs would be transferred ownership of the newly opened downtown parking garage once construction was complete. But Board of Aldermen minutes and public presentations dating back to 2019 show that transfer was never part of the plan.
The garage is part of a larger mixed-use development located at 1515 Government Street that includes hotel rooms, condominiums, and retail space.
The city, along with their private partner, also made several other grandiose promises to the state that did not come to fruition, including nearly double the number of actual public parking spaces, the creation of a public park, and a “mind-boggling” high tech art display installed on the parking structure itself.
If MDA determines the claims were false or misleading, the city could be on the hook for a clawback of every dollar awarded — a financial hit close to nine million in public funds.
An ‘Agreement’ That Never Was
The 2020 Gulf Coast Restoration Fund (GCRF) application was submitted jointly by the City of Ocean Springs and OHOS Land LLC, the private company that purchased the land from the county in 2018.
On page three of that application, the developer assured the state:
“OHOS Land, LLC has entered into an agreement in which it will transfer ownership of the parking garage and amenities to the City upon completing construction.”
Claims like these were the foundation for the state’s $8.75 million award. MDA confirmed to GC Wire that the project was scored, approved by the Legislature, and signed by the Governor based on that same 10-page application and presentation.
But no such agreement ever existed. City minutes, meeting transcripts, and legal documents show there was never any contract or discussion eluding that the developer would transfer ownership of the garage to the city.
Instead, every public conversation — from 2019 through 2025 — described a lease, not a transfer of ownership.
And yet, in 2024, when MDA finalized the second amended grant agreement, signed by then-Mayor Kenny Holloway and then-City Clerk Patty Gaston, Ocean Springs re-certified that all the information in the original application remained “true and correct.” The notarized document explicitly states:
“The Entity certifies that all of the material information contained in the Application is true and correct as of the date of the Application and the date of this Agreement.”
It further warns:
“MDA will recover any expended grant funds if the assistance provided was based upon fraudulent information.”
In other words, the city reaffirmed the existence of an ownership transfer agreement that never existed at all.
More Promises That Never Materialized
The ownership claim was not the only false or misleading statement made to the state.
The Gulf Coast Restoration Fund application reads like a wish list of civic miracles — promises of technology, innovation, and economic transformation that simply don’t exist.
Nearly Half the Parking Spaces as Advertised
In their effort to obtain grant money, the city and their partner promised MDA and state lawmakers the garage would use the funds to create a four story structure with 305 public parking spaces.
Construction of the garage began in late September of 2023. That same year, and again in 2024, the group re-certified this promise, even though the structure being built would only be three stories and contain approximately 166 public parking spots.
‘Mind-Boggling’ Tech that Fizzled
The city and its partner told state officials the garage itself would be a high tech wonder, including a “large-scale video projection mapping and interactive immersive video display” that would cover an entire side of the garage:
“Spectators can watch this garage transform right before their eyes, and when interactivity is included, viewers can engage with epic-scale displays in ways that are absolutely mind-boggling.”
The group wrote the experience of interacting with an artistic video display the size of an entire building “really can’t be oversold,” but it was. “It’s simply like magic happening right before their eyes,” they added.
The state was told the display would captivate residents and tourists in a way that could “never happen with a traditional public artwork.” But weeks after re-certifying the implementation of this futuristic marvel, the establishment completed a static painted mural, the very type of “traditional public artwork” shunned in the application.
Public Park Not So Public
The group claimed to state grant-makers the greenspace in front of the parking garage would be classified as a public park. “The greenspace in front of the garage will serve as a public-use park,” the application asserts. But unlike other public parks in the city, this one costs money to use.
When GC Wire inquired about a family reunion on the grounds, we were directed to the sales office to discuss pricing and reservation options.
The application describes the area as a new city park open to the public, but in reality, the space is no different than the courtyard or event rental space of any other private business.
Wildlife Research Promise was for the Birds
In one part of the pitch, grant writers claimed the new development would “enhance research and innovative technologies in the region.” The application claimed their 12 condos and hotel would aid local scientists working at USM’s coastal research labs, simply by existing as places researchers might one day choose to live — a connection that defies logic.
Will the State Care?
Each of these claims helped the city and its private partner secure a state grant worth nearly $9 million, under a program designed to fund public infrastructure and long-term community benefit.
In reality, the result was a privately owned, mortgageable asset that taxpayers paid to build and now expected to pay to maintain.
The Mississippi Development Authority has the power to claw back every dollar of the $8.75 million grant if it determines the money was awarded based on false or misleading information. Whether it will is another matter. In practice, state agencies rarely audit politically connected grant projects unless forced to through pressure from the public and media.
For years, officials have defended the garage project as a “public-private partnership,” but the record shows the public took on all the costs while the private side kept the asset.
Now, Ocean Springs taxpayers are situated to fund the maintenance, insurance, and security of a parking structure the city does not own and has no say in its future — a project that began as a public benefit and ended as a private asset.
City Attorney David Harris was asked via email to verify the accuracy of the city’s claims, but has not responded as of publication.
On August 29, 2024 Nichols acting as “Attorney for QJR” instructed all staff and contractors of Securix Mississippi LLC to circumvent the Department of Public Safety and prior to sending files to the officers who alone had authority, keep doing what was done in Ocean Springs. They were told to violate the law and steal the privacy of Mississippians. They were to pretend to be law enforcement and enable illegal demands for payment. The privacy of over 20,000 Mississippians was violated. That email and other elements of the over $100 million in potential DPPA penalties against him, Wilkinson, Josh Gregory and others along with the record showing who controlled actions in Ocean Springs and made all the decisions will be posted on-line this week. Nichols also sourced and provided a demonstrably fake accounting to both a Federal Court and Chancery Court. All the proof will be seen online but the question remains: why do the People of Ocean Springs tolerate such things to happen?
Is the State Auditor in the loop yet?