IS IT TRUE it was reported that construction has started on the downtown hotel?….most people
fall into the category that sees the value in downtown development?….none of us really want to
live in a suburb of nothing?
IS IT TRUE assuming that we want a strong downtown, people fall into three categories thereafter?….the first category is those who have no problem with a hotel but object to the tax payer’s involvement in funding the project?….this group of people see the inherent unfairness of subsidizing one private business to compete against those who did not receive a leg up from government?….this is a tricky topic given that business on its own would not build a hotel with 244 rooms in downtown Evansville?…the government has an idea of what’s good for the community but must make a financial offering to help pay for the project to get it done?…the question for these people is what are the odds that any business requiring public dollars to get started will thrive over the long haul?…when we say long haul, we mean at least the length of the 20 years of bond payments?
IS IT TRUE the second category of people are those who recognize that government must at times invest public monies to leverage some amount of private investment?….the Mayor’s office would point to the Arts District as a good example?….the Arts District, with the Department of Metropolitan Development’s math, has garnered about 2.5 million in investment with the City putting in 500,000 of that total?….these people are just as unconcerned about restaurants that must compete with the new subsidized restaurants in the Arts District as they are hoteliers that must compete with the subsidized hotel?….it’s a bit of a greater good argument- what’s best for the community?….it has little basis in conservative views on economic policy?….it’s also probably a NIMBY (not in my backyard) argument, in that hotels and restaurants and barber shops are fine, but don’t go subsidizing someone in my industry?…..these people simply want what they want without any reflective thought on the hotel’s ability to make a profit or the future in general?…they just know it will be grand for 3-5 years before the drapes and carpets need replaced, and the hard truth of lack of profitability of the business sets in?…and after all, it’s the elusive, faceless tax payer’s money anyway?….the hard question that persists is why did this business model need a subsidy to get started if it’s going to be so great once it’s opened?
IS IT TRUE the third category of people were skeptical to begin with but made their way to the compromise that 20 million in City and County combined tax payer funding was loads better than the originally filed 38.5 million bond request?…..they agreed that downtown development is important and found their way to accepting the original deal?….and then something happened?….the price went up, the building got shorter and the amenities and quality of the project were reduced?….to make matter worse, government and its partners fumbled around for years with false start after false start that ate up at least a million dollars in wasted services?….to add injury to insult, the local government had the audacity all through the mistake laden process to act as if nothing had happened?…they called people who questioned the wisdom of continuing the project in light of the changes and medical school approval obstructionist and claimed they were being political?….their overall response in a nutshell was, “look, we’re still getting a hotel, so shut up alreadyâ€?
IS IT TRUE the devil is always in the details?….the end does not always justify the means?….it is a very real possibility that the cost of any endeavor can ultimately outweigh the value of the finished product?…..for those that crunch the numbers, the issue was never that the hotel would pay for itself?….we’ve always known, even before the price went up, that the bond payments would not be recouped by property taxes or sales taxes in the new sports district?…the argument was that although the City would be upside down after revenue at least 500,000 a year, the economic activity generated by the hotel would put money in the pockets of employees and local businesses?….those are the folks that are supposed to pay it forward by putting their income back into the local economy in all sorts of ways?….ultimately there’ll be some number collected in income taxes from the souls specifically benefiting financially from the development?
IS IT TRUE it all begs the question of just how many endeavors can the City of Evansville go upside on in an attempt to generate economic activity for its citizens?…..where is the point where all of the upside down numbers could have been invested very differently or just handed out as wads of cash to residents?….the Victory Theater was going to transform the downtown, and it annual operating deficit is 700,000 before capital expenses are calculated?….the arena is 600,000 upside down every year on top of a 8.2 million bond payment and varying capital investment needs?….the zoo runs 3.2 million to the upside down every year and is screaming for a 40 million investment?…..Goebel Soccer Complex, Swonder Ice Arena, CK Newsome Center and all of the pools also operate at a deficit?….should we even strive to break even with this idea government sponsored economic activity?….we certainly don’t need to make money, but the concept of breaking even is largely driven by the need for the ability to keep investing?
IS IT TRUE the medical school will cost 3.5 million annually in bond payments and is the only medical school in the state of Indiana built by a municipality?….no one disputes that there will be a positive economic impact?….it won’t have a positive effect on City coffers, but the goal again will be to drive economic activity to employees and local business owners?…it’s just as laudable a goal as all the ones before, except now the City’s credit card is all but maxed out?….the idea (again) in breaking even on these ventures is to be able to keep doing them?…the devil is always in the details?
Brilliant IIT!
Factual, informative and a pleasure to read. Whoever wrote this one is
“one amart cookie.” …
Regards
Gail Riecken’s 2pm event today (September 3rd) discussing the need for a stronger hotel, versus the “less-than-great” hotel as it is currently proposed, continues to reinforce her vision and commitment to a strong, developing downtown Evansville – including embracing the innovations of well-managed public/private partnerships discussed so well in the CCO’s IIT today. Go Ms. Riecken! Downtown Evansville is a major priority, and Ms. Riecken is correct to demand we continue the progress we have achieved downtown.
Riecken is smart. She knows the super-majority of Evansville voters want a stronger downtown…a major reason that commitment is a central part of her Mayoral campaign.
The “well managed” public/private partnerships of which you speak and are so fond( as is the current mayor), Don, are losing millions of Evansville taxpayers’ money every year. Mrs. Riecken endorses that?
Mrs. Riecken ( as did the current mayor) also knew the a super majority of Vanderburgh county citizens wanted city/county consolidation. Smart?
We need to continue to properly structure preservation and development incentives for the Riverside and Haynies’ corner historic residential neighborhoods as well. Critical neighborhoods that serve as growing adjunct to the Indiana University Medical School projects. All are critical features of a healthy downtown.
We’ll see what she says at 2p.m. Not sure how you’d know 7 hours in advance of her press conference what she’s going to say.
I just looked at her web site and didn’t see anything about the hotel, as now constituted, being a ‘central part of her campaign’. It was mentioned briefly in the interview with Brad Byrd. It is a mystery how you would know a ‘super-majority’ of Evansville voters want a stronger downtown. I’m not even real sure what a ‘stronger downtown’ means. Also not sure what ‘super-majority’ means in the context of Evansville voters support for something that will, at best, not have a positive impact on most of them. Sounds good though. If you are referring to old downtown’s new found ability to vacuum up public dollars it is indeed already a ‘strong downtown’. It is the Oreck Commercial and Dyson Ball of downtowns.
You continue to laud the public money bait & switch Pancaked Hilton while showering unconvincing praise on Gail Riecken, in effect trying to burnish your credibility by peppering your comments with her name. It is what you are here for and you’re doing a pretty good job.
I think I’ll wait to see what she says this afternoon. Her latest comments on it fall quite a bit short of the ‘all-in’ position you assign her.
The hotel is pretty much a done deal. Any project plan changes at this time would cost two to three times more. and ol Ed Hafer would be happy to draw up a third set of plans for a couple million more. Gail Riecken is just blowing political smoke here.
Downtown Hotel,
. . . . and since the City will have no ownership whatsoever in the Hotel, the peasants will NEVER KNOW the operating results of this enterprise, as it won’t be a public record.
Yet we the taxpayers will get all bills when repairs and or its time to renovate , they will prolly renovate every other year also
Over the past several decades evidenced by our decline in population, Evansville seemingly has lacked vision and the fortitude to stay with the plan. IS IT TRUE that our ol Ed Hafer has made another score with a New Plan contract. Maybe this is why we stray so much because we are always in the planning stage. Then when we do something instead of More for Less . . it is Less or More. Drove by the Quality Inn next to Applebees yesterday and witnessed the sign that said “Indoor Pool” Amazing that a facility like this one has an indoor pool. Wonder what those conventioneers will say the first time they bring their wives and kids to our downtown Motel and need wet-suits to swim in the outdoor pool from Sept to May. ONLY IN EVANSVILLE!!!
A lifelong resident of Evansville, at first I was disappointed that I had to take an offer $10,000 Dollars below a professional estimate by a appraisal agent of a Large and Local financial institution to sell my Home in Evansville,,– but sometimes you have to face reality, and cut your losses, or in this case your impending losses,– with the per capita Bonded debt continuing to rise, coupled with out of control deficit spending by the Politicos of Evansville, the drain on the Taxpayers Wallet–was/is– Stark and Real,–and it looks more and more like I will have “saved” money (in a shorter time span than I thought), that would have other wise been lifted from my retirement Income had I continued to be a resident.
In retrospect,–I’m counting my Blessings on escaping a Once Great City–that is running—>down hill. Evansville,–It’s epitaph,–“They blew it all on Old Downtown.”
Crash,
As a should-be-retired-by-now person, where did you find a good place to live when you left Evansville? I have been mulling so many ideas around and I still have no clue. With no family other than my spouse, one could either say that I have unlimited choices or none depending on how much I need to cling to the familiar and to a few friends here on not.
Actually I am up for any suggestions from anyone. The only must is we have to take our many pets with us and find appropriate quarters for them. So actually leaving Evansville will eliminate the “assemblage permit” not to mention the chicken permit. Funny I did not need either of those for the first 13 years we owned our home here but all of a sudden like magic “Poof! A permit.” Oh and did I mention that one cannot put a house up for a showing with pets in it? Guess I will have to own 2 houses for awhile. Lucky me.
Actually we are lucky. I think dogs are better than most people any day. But I still would be interested in where you looked and where you found a good place for you as a retired person to settle.
Thanks!
Can’t wait for the second annual ground breaking event. Too bad Winnie was not able to bring in the USC Marching Trojans . .too busy with football games and such. . .understand that the corporate jet has been chartered for the HCW guys and the Opus 1 will soon be delivered. Bottoms up!!!!
Marching Trojans ? My condoms never do that !
That’s probably a healthy sign!
Isn’t it true the Victory Theater, the Arena, the Zoo, Goebel Soccer Complex, and all the city pools, are actually “owned” by the city? Isn’t it also true the city will have ZERO ownership (or management influence) in the Hotel or the Med School, a fact even more troubling since the Med school could have been located on Burkhardt, at USI, or in Warrick county at no cost to the city taxpayers but with Evansville and Vanderburgh county reaping the same benefits (maybe not downtown though.)
The $60,000,000 + interest of Evansville’s taxpayers’ money amounts to no more than a bribe to locate the Med School downtown.
“IS IT TRUE it all begs the question of just how many endeavors can the City of Evansville go upside on in an attempt to generate economic activity for its citizens?…” (CCO)
* * * * * * * * *
With that question you have reached the heart of the matter. From the taxpayers position, city government is only one piece of the equation. There is the School Corporation budget, that is even larger than the city budget, that is also part of the equation. Add in local income and sales taxes for a more complete picture of the cost to the taxpayers who must, by statute, make the payments on the debt service.
We have also been the unfortunate victims of decades of neglected sewer upgrades, and are now faced with skyrocketing increases in user fees brought about by an EPA unfunded mandate.
Vectren jumped on the bandwagon by successfully lobbying the IURC to institute a program where by they could upgrade their neglected underground gas infrastructure on an expedited schedule and pass the cost along to the end user in their regular monthly bill. Vectren is using is wholly owned subsidiary, Miller Pipeline Inc., to make the upgrades, and it appears that the IURC has no problem with that.
All of this happening at a time when hundreds of so called “livable wage” jobs have fled Evansville and employee benefit packages have been reduced or eliminated, unless you are a public employee. Because government keeps expanding, federal, state, and local, the public workforce keeps expanding. Even part time city council members and school board trustees receive benefit packages that exceed their salaries in actual worth.
Unless, and until we see an influx of decent paying jobs into Evansville and Vanderburgh county, there needs to be a drastic reduction in the amount of PUBLIC SPENDING and UPSIDE DOWN projects being put forth by not only local government, but also the local school corporation. I consider any project put forward by the school corporation that makes use of any legislatively provided loophole in “circuit breaker” to be an upside down project. They are spending money that was not originally intended, by the people who voted for property tax caps, for them to spend.
CCO: in my opinion, today’s IIT is the best in a long time. Good info.
A note to Jack Pate and the Editorial Staff of the Evansville-Courier&Press:
How could any local citizen who reads your product take today’s editorial, (9-3-15) on page 10A, seriously? Of course it is income driven. After what your newspaper did to Stephanie Brinkerhoff-Riley for exposing exactly what was going on behind closed doors, for you to use this Hoosier State Press Association release in an effort to make it look as if YOUR newspaper cares about local government transparency, is truly laughable.
No one cares about the Courier’s anonymous opinions. They will never be more than safely within what the editors perceive as the status quo or at best nipping around the edge of needed change. They are by design incredibly unlikely to truly move the conversation anywhere. They bitch here and there about their perception of transparency and occasionally about the police and prosecutor but never with any real understanding of what we’re all supposed to do about it or the balls to say it if they do indeed know. They are weak minded fools.
Truth itself becomes suspicious when placed in your POLLUTED vehicle. Get your boss of the committee and we will talk.
They would have you believe that this med school will have hundreds of future doctors in it every year. Not even close. At best 30? The rest will be students that would already be at usi, ue, and ivy tech.
On the surface it’s great. Until you understand the true gain vs what the taxpayers have to front.
What’s going to happen when JQH builds a embassy suites with attached convention/ball space out near vandy Warrick line? Most of the businesses and amenities as well as ease Of access is there.
The new downtown taxpayer fleeced in will have minimal occupancy.
Exactly.
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