IS IT TRUE August 26, 2013

IS IT TRUE August 26, 2013

IS IT TRUE there is some disagreement as to whether the $37.5 Million incentive that some wish to give to HCW is an investment or a gift?…in the absence of a detailed analysis on a realistic basis that there will be cash flowing into the coffers of the City of Evansville in sufficient quantity to qualify as a prudent investment with a respectable return on that investment this can only be considered to be an incentive or a gift?…there have been no such analyses put forward at this time?…there has been some bits and pieces of analysis including the reasonable assertion made by Mayor Winnecke that the bond payments will be $2.6 Million per year for 25 years?…the total amount repaid when the hotel and all of the accompanying parts like parking, sidewalks, apartments, retail, restaurant, storage for Ford Center, etc. will be $65 Million give or take interest rate fluctuations between now and a future date of bond issuance?…the real question that needs to be answered for the public is how the City of Evansville will recover at least that $65 Million over 25 years with if the present plan is implemented?

IS IT TRUE we can start with a legitimate expectation for an increase in property taxes of roughly $720,000 per year, an increase in COIT of $20,000 per year, and an increase in food and beverage taxes of some undocumented amount?…if skeptics and opponents would concede that all of these taxes will amount to $1 Million per year the task at hand for supporters of this spending is “where will the other $1.6 Million per year come from”?…using outside “sugar daddy” money like riverboat funds negates this as an investment vehicle so let’s just not go there?…if Mayor Winnecke or any other of the supporters comes forward with a clean and supportable analysis that makes this a worthy investment we would love to publish it as submitted?…for the record, we do not reject this as an impossible task?…we do consider it to be a necessary task?

IS IT TRUE that there is one clear way to shift the financial responsibility away from the taxpayers of Evansville and onto the people who truly support spending other people’s money to do this project?…that involves from a hotel perspective two possibilities?…the first possibility with respect to the hotel alone is for the supporters of this project including the Evansville Regional Business Committee (including Vectren and Old National Bank), the members of the Redevelopment Commission, Mayor Winnecke, the local union supporters of the project, and the other supporters of this project to pool a fund of $20 Million to provide the incentive themselves?…this scenario would result however in HCW owning 100% of the hotel at completion with entitlement to all profits and responsibility for all losses incurred going forward until they sell it to another owner?

IS IT TRUE if this is really a worthy investment the right course forward is for the supporters named above to put together a private placement memorandum (PPM) and raise the $42 Million construction cost through the sale of shares in the hotel portion of the venture?…the supporters named above in the aggregate certainly have the documented means to make this investment without missing a meal even if it eventually is worthless?…they also have the knowledge base to put together the paperwork and financial management?…HCW will not be left out in the cold either as the “Downtown Hotel Syndicate” could hire them to do manage the construction and the operation of the hotel?…this would be a real honest way for this hotel to become reality, would keep the oppressive hands of local government out of the pocket of those people of Evansville who do not wish to invest, and even provide upside potential if it all works out according to the propaganda?…this should be seriously considered?…the CCO will support the incentives of land and civic infrastructure in this scenario is implemented successfully?…we shall also sing the praises of those who make it happen?…some of us may even buy some of the shares?