IS IT TRUE? December 23, 2011

12

The Mole #??

IS IT TRUE? December 23, 2011

IS IT TRUE that the MAGICAL MYSTERY DEVELOPER has been identified and that once again the Kunkel Group has a tie to something proposed in downtown Evansville?…that there is nothing wrong with that but with as in all projects that involve financing these days it will be very important that the CASH DOWNPAYMENT that will become equity in the project needs to be secured, proven beyond the shadow of a doubt, and locked away before the Evansville Redevelopment Commission signs onto another open ended, whenever you are ready we are ready agreement with anyone?

IS IT TRUE that the official name of the newly formed Bloomington based business that is the latest in line to turn the McCurdy Hotel into apartments will be called McCurdy Development LLC and includes Ben Kunkel and Randal Lloyd among its partners?…that from a construction cost perspective McCurdy Development seems to have a little more of a realistic expectation of what the cost to refurbish a vintage hotel into 80 or so apartments will be?…that it has been reported that McCurdy Development is owning up to a new estimate of $13 Million for the job to be completed?…that this works out to $162,500 per apartment?…that we assume that the figure includes returning the lobby and other common areas to their former grandeur?…that a good rule of thumb is that the rent for such units will need to be in the range of 1% of the cost per month or $1,625 to make the project cash flow?…that renting out 80 apartments at a price of $1,625 per month in downtown Evansville is a very aggressive goal?

IS IT TRUE that at this rent level the annual expected revenue at 85% occupancy including some retail space will be about $1.4 Million yielding a value of roughly $10 Million at a typical GRM (gross rent multiple) of 7?…that given a post construction value of $10 Million that at 70% loan to value a loan of $7 Million should be possible to secure?…that will only leave a GAP OF $6 MILLION to be made up for with equity or economic incentives?…that there have already been economic incentives of $1.403 Million squandered on this project so the CCO wonders just how deep the well of the ERC is?…that unless McCurdy Development LLC comes forth with cash equity of about $3 Million and incentives of another $3 Million are made available that the City of Evansville will be in for another ride on the “MAD HATTER’S TEA PARTY” from Disneyland to get this thing financed?…that we shall cross our fingers that next Tuesday’s special meeting will include a financing plan that addresses the financial plan?

IS IT TRUE that as with the other BALLS & CHAINS that the Weinzapfel Administration has been heaping onto the incoming Winnecke Administration that it is our firm belief that the decision on the McCurdy needs to be made by what shall surely be a different cast of characters on the ERC?…that holding special meetings by an outgoing ERC presided over by and outgoing Director of DMD to assign and bless yet another deal that is of importance has pushed the envelope of arrogance and hubris past the point that the City of Evansville has ever seen or shall ever see again?…that the True Colors of the Weinzapfel Administration have completely obscured the façade in the last 6 weeks?

IS IT TRUE that we are certain that the paparazzi seeking missile known as Mayor Weinzapfel will be at the front of the pack for pictures next Tuesday morning or before taking credit for searching the world over and finding a substitute developer for the McCurdy in a week?…that we wonder exactly why this knight on a white horse did not show up two years ago?…that we wonder just how much of an impediment the $800,000 in incentives paid to City Centre, the $603,000 parking lot, the roughly $1 Million mortgage at Fifth Third Bank, and the allegedly outstanding bills of over $300,000 will be to the assignment of the development agreement?…that with secured notes like that on the McCurdy this special meeting may struggle to maintain specialness?

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12 COMMENTS

  1. Background on Lloyd:

    http://www.firstcapitalusa.com/about/executive.php?sec=1_3

    * * * * * * * * * * * * * * * * *

    from: TOPIX.COM

    Bloomington developer looking to take over stalled Hotel McCurdy project

    Full story: Evansville Courier & Press

    Randal L. Lloyd, who has ties to Evansville, told the Courier & Press Thursday evening he had reached an agreement with City Centre Properties to take over the long-delayed McCurdy project.

    * * * * * * * * * * * * * * *

    Randal Lloyd seems pretty sure of himself. I did not know that City Centre Properties was still controlling this project and could cut a deal with whomever they wished.

    * * * * * * * * * *

    “Randy Lloyd (First Capital Group/Partner/Real Es), (Zip code: 47401) $250 to JOHN EDWARDS FOR PRESIDENT on 10/31/07

    Look out Evansville taxpayers, this 11 hour Weinzapfel deal has crone written all over it!

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  2. Is it true that Lloyd Winnecke is no leader at all if he does not speak up about this last minute cronyism by Weinzapfel?

    Is it rue that Winnecke’s first test as mayor is NOW!

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    • Press, if Mr. Weinnecke does not publicly object to this, it appears he accepts the last minute actions of the departing regime. Either way, Mr. Winnecke must speak up so as not to be perceived weak or indecisive as he is sworn in next week.

  4. The system is broken. The public may as well not exist, except to pay the bills.

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  5. The blind squirrel ERC may have accidentally found an acorn in Mr. Randal Lloyd. Attached is his information, and his business qualifications are impressive:

    http://www.firstcapitalusa.com/about/executive.php?sec=1_3

    At minimum, Mr. Winnecke needs to appoint all new members to the ERC that actually know what they are doing. With this change, the McCurdy project may succeed. Whether the McCurdy is used for apartments and/or condos or a hotel, the main goal is that it is done right and becomes an asset for the community. A new and competent ERC is needed to make that happen.

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