IS IT TRUE September 30, 2013
IS IT TRUE tonight is the night that the hotel deal that involves subsidies of $20 Million will be the subject of discussion with the expectation to pass by a 9 – 0 vote of the Evansville City Council?…the next 8 hours should be spent by the members of the council reviewing the resolution to make sure that there are no last minute shenanigans snuck into or intentionally left out of the resolution and the development agreement that make this deal unsustainable from a direct tax projection perspective?…for the first time in a long time this deal as it is believed to be is indeed expected to pay for itself through the TIF that was established just for that reason?…at this point the two tax producing entities are the hotel and the apartments and they both need to be part of the deal or the deal will quickly be unsustainable?…if the apartments are taken off the table the only way to recover sustainability will be to eliminate the parking garage from the package?…if at any time in the future the elimination of the apartments is brought up Mayor Winnecke and the City Council need to be prepared to kibosh the parking garage to maintain sustainability of the entire deal?
IS IT TRUE with projects going forward sustainability needs to be part of a vetting litmus test for bonding and the use of public funds?…as was pointed out in last week’s City Council meeting the City of Evansville is only $85 Million away from their credit limit?…that may seem like allot of money but in reality it is only about 3 months operating expenses?…this is the equivalent of the average family in Evansville having several hundred dollars in the checking account and only $8,000 of unused credit limits available for a rainy day?…Evansville is probably only one needed medical school and a dog park away from having the credit card maxed out?…this is why the only prudent path forward right now is to put a moratorium on all public projects until the IU Medical School location and subsidy mystery is solved?…it would have been bad to lose a medical school for a hotel, real bad?…it would be absolutely idiotic to lose a medical school for a dog park, skateboard park, zoo improvements, etc. etc. etc.?
IS IT TRUE if one wants to see what happens when a government entity hits its credit limit look to the east and see what happens in Washington DC over the next few days?…yep for those who have been concentrating their attention at home and gleefully avoiding the national news there is an increasing probability that the federal government will have to “shut down†due to hitting its credit limit?…the federal governments credit limit is self imposed and can be increased by a vote of congress as opposed to a city that has to show the ability to pay the debt but nevertheless it is a serious issue that needs to be addressed?…this has happened before back in the 90’s and the reality for most people is that we won’t even notice it?…government workers who have vacation or sick time on the books will have to take some of the time to be paid but for the most part there will be little impact on everyday people in the short run?…if such a situation is prolonged it is much more serious but in the short term a government shutdown is no more of a bogeyman than the “sequester†that was touted as the end of the world as we know it but barely disrupted anything at all?…the biggest danger of a government shutdown is with the government itself?…that is because we may all figure out that we really don’t need these varmints as much as they would like to make us think we need them?
IS IT TRUE there is a bill in place and heading for the Senate that will avoid any shutdown if the Senate and the President will agree to postpone the individual mandate of ObamaCare for one year as it has already been postponed by the President by fiat for businesses?…since the government is not ready to implement ObamaCare anyway it seems like a prudent choice to go ahead and offer coverage through any exchanges that are ready starting tomorrow but to postpone the individual mandate for a year so the government implementers can get this functional?…in an informal poll of people who are without insurance when asked if they would comply there have been only two dominant answers?…those answers are NO, and “what does that meanâ€?
Joe, I think you are wrong on the part of government workers being able to use vacation time or sick leave to be paid during the time government is shut down. I was wondering where you got this information from?
From a government worker during the last shut down. Maybe the laws have changed since then.
Since it is already earned, it is available. It is part of the extra funding required to shut government down. It costs $100+ million a day more to be shut down than it does to operate. Way to save money!
I was reading in the Fedweek September 25th issue where it said that workers couldn’t use vacation time for the time period that they would be furloughed. In the mid 90’s the government came back and paid the federal workers for the time that the government was shut down. If the government shuts down again it’s possible the federal employees could get paid for the time they are off, but not guaranteed.
Why do we need this hotel? I have lived here all my life but why would anyone currently choose Evansville for a major event? I won’t say conventions because they are becoming rare these days, due to large business cutting travel and these type expenses to stay profitable. Simply because we have a new hotel? Simply because we can book X number of rooms? I think not…those cities are a dime a dozen.
I have already stated on this page that many private individuals stand to personally gain from this venture, not the city…This isn’t about jobs but lining the pockets of folks in the local real estate business and property owners affected in this deal.
The city needs the IU Medical Center and attractions of general interest like an Aquarium, Science Center and expansions at the Zoo.
Bravo to the Westside’s Franklin St Association which has driven a great deal of interest back in their area…lot’s of wonderful restaurants, bars, brewery, locally owned small shops,crafts, antiques, etc. How great for the downtown area as it is so close to a thriving hot spot!
We need a masterplan not tunnel vision.
Just Wow — spot on (not sure about lining the pockets of other interest though). If I were a hotel corporation, I would certainly not invest in building another downtown hotel when the current downtown hotel has an occupancy rate of a mere 70%. I would guess that this Doubletree corp would not even consider building the same without the contribution of millions from the city.
It’s a bad business venture on both the Doubletree people and the city.
I have lost my interest and loyalty to downtown. Too much shortsighted money has been spent over the years to revitalize this district, driven by the merchants and various administrations, all to no avail. Efforts have been to cover the main street walkway with canopies, brick the street, make it pedestrian only, open it to traffic, tear down Riverside One only to declare later that people living downtown is the key to revitalization. Now the answer is to contribute more millions — to not only revitalize downtown but to bring in convention business and to prevent the closing of the Centre, which was built to bring in convention business.
Main street is quite charming as it stands, if utilized in a destination and productive manner can succeed — take a cue from Franklin Street.
It appears you have been asleep for along time. Suggest you turn over and take a nap.
Joe, and thanks for this website. I really enjoy it and check it almost every day.
I agree with this Forbes article: http://www.forbes.com/sites/dougbandow/2013/09/30/the-republicans-must-stop-play-acting-and-force-a-government-shutdown/
It’s time for government to be scaled back by eliminating entire departments. If lawmakers don’t get out the scalpel now and make a real effort to shut down the unnecessary fat, we risk chaos when the whole things shuts down too suddenly.
Maybe it’s time to stock up on canned goods and ammunition after all.
ADVERSE COMPETITIVE EFFECT
IC 36-7-12-21
Negotiation of financing terms; adverse competitive effect studies; preliminary expenses
Sec. 21. (a) An economic development commission may enter into negotiations with one (1) or more persons concerning the terms and conditions for financing of economic development or pollution control facilities.
(b) The commission shall consider whether a proposed economic development facility may have an adverse competitive effect on similar facilities already constructed or operating in the unit. In the case of economic development facilities that are identified at the time of issuance of the bonds, the adverse competitive effect question must be considered before issuance of the bonds. In the case of a program financing under section 18.5 of this chapter, the adverse competitive effect question need not be considered before the
issuance of the bonds except for those economic development facilities that are identified at the time of issuance of the bonds, but it must be considered before financing any proposed economic development facilities from program funds.
(c) Preliminary expenses in connection with negotiations under this section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, or by any of their departments or agencies; or
(3) money of the commission.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.25-1987, SEC.49.
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The Evansville Economic Development Commission is required to make a determination before issuing any bonds.
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(b) The commission shall consider whether a proposed economic development facility may have an adverse competitive effect on similar facilities already constructed or operating in the unit.
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If my memory serves me right, I believe the consensus in the media was that, yes, 30% of the new hotel’s guests would be from convention business and 70% would be local.
As John Dunn stated, the new hotel will be taking business away from competing local hotels. I do not believe that there is anyone who believes that is not the case.
So where do we go from here? Ignore statute? Just asking.
This can’t be ignored!
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