Controversial promises uncovered in a recently leaked backroom meeting have now evolved into official city policy, according to Ocean Springs Mayor Kenny Holloway.
A newly acquired recording reveals that Mayor Kenny Holloway isn’t just quietly making zoning workarounds for select developers — he’s now openly admitting that taxpayer-funded incentives are being used as leverage to control private development.
In an obscure interview, Holloway outlined a process that sidesteps public input and the Board of Aldermen, placing key development decisions entirely under his control. The interview, buried in a video conversation with journalist Ricky Matthews, confirmed what many in Ocean Springs had long suspected:
- Private developers who play by the mayor’s rules get taxpayer incentives.
- Those who don’t are left out.
- And these deals are happening behind closed doors.
The video seemed to get little traction when it was posted in September, showing no likes or shares as of publishing time.
How a Backroom Deal Became Official Policy
Last week, GC Wire published a leaked recording of a May 2024 private meeting between condo developers and the mayor’s top officials. The discussion centered on how to push through a luxury condominium project on Front Beach without triggering public scrutiny.
Among the workarounds introduced:
- Adding a small snow cone cart to the property to give the illusion of a mixed-use project that would qualify under zoning laws.
- Avoiding the rezoning process entirely, sidestepping public hearings.
- Circumventing the Board of Aldermen, keeping approval within City Hall.
Then came the developers’ biggest request: Could the mayor secure taxpayer money for the project?
Holloway hesitated. “Uh, I’d have to present it to them, yeah,” he said.
His staff, however, was quick to commit.
“We’ll help with that,” Grant Coordinator Caroline Martin said.
At the time, it looked like a one-off favor for a well-connected developer. But just a few months later, Holloway admitted that this kind of deal is now standard practice — but only for some.
The Mayor Says the Quiet Part Out Loud
Just a few months after the leaked private meeting took place, Holloway removed any doubt about how development projects are handled in Ocean Springs.
“If you’re gonna do this, and you want the city to bless it or help with it or whatever, whether it’s a TIF or grant, you’re gonna have to do it the way we want it done,” he said.
That wasn’t a slip of the tongue. It was a statement of policy.
Tax Increment Financing (TIFs) and state grants are meant for public infrastructure or projects that benefit the city as a whole — not private development. But if you’re a developer, don’t think these gifts are for everyone. The mayor explained these public incentives are given only to developers who align with his vision for Ocean Springs.
“Because, and I don’t want to degrade a development, but there’s a heck of a lot of difference between a Holiday Inn and a Hilton Curio Hotel,” he said.
Holloway was openly admitting that certain developments will receive financial backing from the city while others won’t—based on what he wants to see built.
“A Holiday Inn or a box hotel is not gonna fit in Ocean Springs unless it’s out on the Interstate somewhere. But if you’re gonna be where the action is, if you’re gonna be downtown, you’re gonna have to do something that is unique, that is over the top,” he continued.
The takeaway? Developers who build what Holloway wants get public money. Those who don’t, don’t.
Who Gets Blocked, Who Gets Helped?
While the mayor and his team have actively pushed forward condo projects behind closed doors, they have simultaneously blocked apartment developments, citing infrastructure concerns.
The city’s moratorium on apartment complexes has been in place since early 2024.
But if infrastructure is the problem, why are large-scale condo projects still moving forward?
- Apartments? Moratorium.
- Luxury condos? Let’s add a snow cone cart and call it mixed-use.
- Hotels? Only if they’re “over the top.”
- TIF incentives? Only for developers who build what Holloway wants.
This isn’t about responsible planning — it’s about who gets to build and who doesn’t.
Who Gets the Deals and Who Doesn’t?
Holloway says he wants developments that “fit” the city’s vision.
But that vision conveniently aligns with developers who have personal ties to him.
Take the condo project at the center of last week’s leaked meeting.
Steve Bryan, the developer, didn’t just walk into City Hall and get taxpayer-funded incentives by chance. He had an inside connection. His associate, Jimmy Gouras, is a longtime friend of the mayor.
That relationship got Bryan a private meeting with top city officials — something other developers don’t get.
Meanwhile, other developers face a different reality:
- Some are forced through the full rezoning process, with public scrutiny and no workarounds.
- Some are denied entirely, told their projects don’t fit the city’s “vision.”
- Some don’t even get a response to their proposals.
Who decides what makes one project worthy of incentives while another is shut down? According to Holloway’s own words, the answer is: Holloway.
Is this Policy Ethical? Is it Legal?
The revelations about secret meetings, zoning workarounds, and taxpayer-funded incentives for hand-picked developers raise serious legal and ethical questions.
Mississippi Ethics in Government Laws
- Miss. Code § 25-4-105(1) states that public officials cannot use their office to secure a financial benefit for themselves or others.
- Helping a developer bypass zoning laws while withholding similar assistance from others could constitute favoritism or abuse of power.
Mississippi Open Meetings Act
- Miss. Code § 25-41-1 et seq. requires public business to be conducted transparently.
- Decisions about zoning, development, and public incentives must be made in public meetings—not behind closed doors.
Use of Taxpayer Money
- Miss. Code § 21-45-9 states that TIF funds must be used for public benefit, not private gain.
- If TIF money was used to support a private condo project, that could be a serious legal violation.
Discriminatory Development Practices?
- Blocking apartment complexes while allowing luxury condos to proceed could open the city to Fair Housing lawsuits.
The Right Connections
Mayor Holloway’s own words confirm what many in Ocean Springs have long suspected:
- Backroom deals are shaping the city’s landscape.
- Developers with the right connections get special treatment.
- Taxpayer money is being used as leverage to control private projects.
And now, thanks to leaked recordings and Holloway’s own admissions, the public finally has proof.
