IS IT TRUE April 3, 2014

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IS IT TRUE April 3, 2014

IS IT TRUE that we would like to belatedly congratulate the people of Evansville and the Evansville Sports Corporation on getting a good crowd out for the NCAA Division 2 national championship game at the Ford Center last Saturday?…an announced crowd of nearly 5,000 showed up for the final which is quite excellent for this particular tournament in recent history?…the first two rounds of the tournament as we previously reported had disappointing crowds of well below 1,000 people per session dragging down the overall attendance but the final game made up for it and got Evansville some good national TV exposure?

IS IT TRUE in examining the claims made by Evansville Mayor Lloyd Winnecke about the requirement of the Hilton Corporation to require that a prospective franchisee have final loan approval before being granted a franchise, the CCO took on the task to get a copy of one of the agreements and looked it over?…the document is nearly 400 pages long and rather than spend all night reading it we did a scan and that scan did not confirm the Mayor’s claim?…in the franchise agreement the fees, and estimated cost to establish the brand are all laid out very clearly but there does not appear to be a requirement to prove loan approval?…on the other hand having dealt with banking it would seem very uncharacteristic of any bank to commit to fund a loan without a franchise agreement in solidly in place?…if a bank did not require a franchise agreement to be in place with sufficient covenants and conditions to constitute a proven operating plan they may end up loaning money in expectation of a Conrad Hilton but end up with a Motel 6 as collateral?…the Mayor of course comes from the banking world and should understand such things?…perhaps he just got it backwards?

IS IT TRUE the fact that there is no franchise agreement in place between HCW and Hilton on April 3, 2014 would support the reasonable conclusion that they DO NOT HAVE FINANCING NAILED DOWN?…it has been exactly 24 days since the GOLDEN SHOVEL PHOTO OP when it was clearly stated that they did have financing in place and that the DOUBLETREE (Hilton brand) would be opening in the fall of 2015?…that is conveniently just before the next mayoral election?…today the development agreement has expired without HCW showing the ability to move forward?…we have been down this path three times before with Browning, Woodruff, and Kunkel?…here we go again with a dozen eggs on the face of City officials for FAILING TO VET THIS DEAL?…this agreement needs to be extended if this project is to stay alive?…that will take a public meeting of the Evansville Redevelopment Commission to do that?…the question then becomes how long should the extension be?…we wonder if the 80 days that Mayor Winnecke spoke of is sufficient or if 180 days would be more appropriate?…this is not getting any easier and the powers that be do not seem to be learning from their mistakes?

IS IT TRUE it would be wrong to blame Dunn Hospitality for this delay?…it is distinctly possible that this whole delay came about because of the management of getting a franchise agreement in hand pushed that task to the very last minute?…that the franchise agreement already in place between Dunn Hospitality and Hilton may indeed call for a market study to allow Hilton to grant another franchise that will compete with Dunn’s property?…that even the Hunden study said that any new hotel would be competing for the same business as the other hotels in town?…perhaps this is just the Hilton Corporation doing their job and VETTING THIS DEAL?…even if HILTON determines that they cannot enter a franchise agreement for a Doubletree in downtown Evansville there are other options?…Kunkel was planning to use the Sheraton brand, Browning was going with Marriott, and Woodruff was talking a Hyatt Place?…we were treated to beautiful renderings of each of these?…none of these brands would have a problem with competing with a Hilton brand?…they would all require a market study just as it seems that Hilton is doing?…Evansville is once again sitting in the corner, wearing a dunce cap, and thinking “WE GOTTA START VETTING OUR DEALS”?…this is looking more like Earthcare every day?

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40 COMMENTS

  2. “Evansville is once again sitting in the corner, wearing a dunce cap, and thinking “WE GOTTA START VETTING OUR DEALS”?

    No, they are not thinking that. I believe I heard our mayor say ‘If one believed in conspiracies…”

    • Don’t concentrate on that mess as much as the real issue at hand for the communities needs right now,The planets squeezing out again,and the Ohio river drainage basin is taking this one up the nose for a couple of days.
      Monitor your Paducah KY NWS site. http://www.crh.noaa.gov/pah/

      People are pros,use’um more “bang for your buck”, right there.

      Your most likely going to post up some CSO during the period,It all counts/mandate. We’re wondering about the media coverage there,with the bias as seen on the Hotel deal coverage,as seen from afar. Noting;the differing stands on the deals worth to the actual citizens there,the CCO has vs the others, whether or not, they will show the Flash flooding around your town like they used too.

      We’ve already seen some copious rainfall vs time amounts coming in on our systems models being impacted by this building ongoing event. Tremendous test southwest/west of Evansville at several urban and agri-model sites,the data is coming in real good the systems adapted per design,and really at two sites we couldn’t have tested them better with Fire hose “Wide open nozzle”. This things packing some Changed climate moisture energy brought in from way off.
      The storm system is heading right up the Ohio river drainage basin onto soils that aren’t really at the “best conditional to absorb” the copious runoff balance this is creating.
      Its what I would put focus on there now,if one is out, and about and you see overflow you should record the time date and location per event. Just in the case nobody else does.

      Ædificate climate*

      “build for climate change”

      • You hit that one on the head, V/R. I just came in from some morning errands. I was in the N. Green River – Lynch area and its bad. I hate to think what the south side is looking like.

        • Its very fixable,as well,EKB.
          If the improvement was taken on as a true metro application. We think your metro/”states” could solve the problem with that,the EPA mandate,Smart metros,which,I might add, also addresses the Warrick issues between Chandler,and Newburgh water systems.
          Some sustainability in “real” good jobs across the board with better logistical/transportation throughput commerce,and,the best location for your Medical complex put to bed with one project.
          Your metro like other areas around the nation need the change,climate change, is absolutely real,it affects every aspect of the American consumer,everyone.
          Our national well being is already being challenged daily by this. We’ve studied the data,the trending is flat undeniable. Its time,and time stands still for no one.

          The trending that I’ve seen is apparent also doesn’t bode well for other planet supplied geophysical conditions either.
          I’m confident that is under study,as well. So.

          BTW,we haven’t offered or taken,or formally proposed one red cent for any of this with your metro or its municipal funds,as of to date. Simple. Our testing isn’t completed yet,due to spanning, viability,standards,and reliability,including standing regulatory safety requirements.
          We are fully confident in the design and process developments as seen to date. Nothing we are doing is new science,its innovative science for sustainable environmental balance*,which when applied with defined purpose is “effective”.

          “ut fit un mundo hodie”

          “as the world turns,today”

        • Look on the bright side LKB, think of it as Mother Nature just flushing the john. All of the combined sewers are getting a good cleaning so Bee Slough shouldn’t smell like it’s normal stinkin’ self. It’s just a shame some of the stink coming from the Civic Center couldn’t be flushed with it.

  3. It would be a strange thing indeed to see any money actually put up for the sure-thing projects that seem to loom on empty lots in back of piles of trucked sand, very thin plastic helmets and suits. If you close your eyes you can almost see the swimming pool and tennis courts.

  4. I called the State Board of Accounts this morning.

    They confirmed that the entity being audited has ten (10) days after the Exit Conference to respond to the audit findings. However, they typically don’t “publish” (upload to website) until 30 days after the Exit Conference (gives the auditors who did the field work–who may be on other assignments–a chance to read the reply).

    The 2012 Audit Exit Conference was on 3-12-14. Add 30 days, and that would be a release date of April 11th. That is also the date of the announcement re: IU Med. School location. A good day to be in the news biz.

  5. I would have been shocked if the financing was in place. I’ll be pleasantly surprised if it is by this time next year. It’s time the mayor, et al, learns to use the word “vet” as a verb, not only a noun.
    It looks like the “fix” may be in on the placement of the Medical School, but finding the excuses for putting it downtown is becoming a problem for the “fixers.”

    • “It looks like the “fix” may be in on the placement of the Medical School, but finding the excuses for putting it downtown is becoming a problem for the “fixers.”

      EKB: That’s sure how it appears,in this case silence probably isn’t golden for someone. Best guess,that is “everybody” trying to beat out a living around that place.

      “Its gonna be a mess” (Al Roker)

  6. If the city is true to its word, 3/31/14 was the deadline for proving financing.

    At the least, the Mayor should state they have possession of the commitment letter. Without it there is no loan. This is a very simple question to ask. A follow up question would be how many stipulations it has a condition to fund and if these are usual and customary.

    • PRA (Public Records Access) Request (a.k.a, ‘FOIA).

      If you don’t ask, you won’t get it. If you DO ASK, and they say they don’t have it . . . then you have your answer.

  7. This does not look good for Old National Bank either. What an embarrassment for them.

    ___

    • + 1…I seriously doubt ONB wants to invest in (too small and doesn’t have the existing subsidary setup to facilitate that) or loan (much too risky for a bank that size given its risk management skills and risk appetite) to a hotel.

      In other words, it could turn out to be a blessing in disguise for ONB. Bob Jones should have had more than one sheet of paper in his hand when he addressed the city council. First one should have been a list of all those committed local investors. The second should have been a confidence letter from the lead bank. The third should have been franchise approval from Hilton. The third is 20/20 hindsight I admitt; to not have tacit permission at that point by HCW is very distubing. Somebody please call White Development!! I hope this works out because this is making the city look like a bunch of hacks.

      Would the Ford Center’s contractor been given the contract if it was going to be this much of an issue to build a lousy hotel? They could have paid me Kisch’s money and I would have made more promises about building a hotel than the Lucky Charms leprechaun because in the end that is all they got and a mosquito invested lot.

  8. Here’s a somewhat off-topic “chuckle” for many of the CCO “regulars”:

    Phyllip Davis has a “Letter to the Editor” in the Hillbilly Gazette this morning, in which he contends that the Promenade site can’t “handle” the IU Med School, but downtown can, of course.
    There are also more sensible cheers for the downtown location from Scott Danks. At least he has a vested interest there, so it makes sense for him to push for it to be put there. My guess is that his investment will do okay with or without the Med School, because it is a “niche” investment that fits where it is.

    • “Promenade site can’t “handle” the IU Med School, but downtown can, of course.”
      That’s just ridiculous jobbledygook(UK),of course it could they have the infrastructure set for site development evolution already.

      “My guess is that his investment will do okay with or without the Med School, because it is a “niche” investment that fits where it is.”

      Correct,that’s a win/win for them anyway it goes,I’d show’em our vision for that few blocks,which as it is successful in other regional’s already. They’d really roll,with the concept he showed awhile back.

      Didn’t due the fact as being the Councils Council,we figured that would be straight COI out of the barrel,the man seems to be just fine with his assessments of the buildings probable usage aspects however it goes.

      Our conceptualization would be more in line of using a master plan for your downtown that would work for the metros citizens and those district business improving its standing environmental infrastructures to standards,on a level playing field,with, allot more additional daily commerce. Actual destination building.
      We just hope they’re cool concept for the old EVSC building dresses the thing up as to separate its visual presentation form that horrible looking gulag building next door,right now it looks like a little gulag satellite extension.

    • Are you suggesting Danks can receive his treatments Downtown ? I.e., “easy in/easy out” from his office ?
      That would seem a nebulous reason to locate a medical school there ?

      • I was referring to his office/dining facility, but the “easy-in/easy-out” could be his motivation!

  10. “an announced crowd of nearly 5,000 showed up for the final which is quite excellent for this particular tournament in recent history?”

    Incorrect. It did better just last year in Atlanta. The message from this sports corp in the other paper was basically this: This tournament was a success because we told you it was a success. That’s basically how every editorial over there works in general. The fact that they have to keep reminding you that it was a success suggests that perhaps it wasn’t.

    I don’t know how you can claim success on one game (which barely accounted for half of the entire seating capacity) yet not a word about the whole entire rest of the tournament. That reminds me of Weinzapfel taking credit for Berry Plastics and then saying Whirlpool left on their own account.

    The next two stops have capacities a fraction of the Ford Center version 2.0. Why is that?

    • Wasn’t it in conjunction with the Division 1 Final Four? That would explain why the attendance was better last year. I think that if you compare it to other similar cities that Evansville did do fairly well in comparison.

      • So now we’re just looking at Evansville size markets. That strikes out Atlanta, Louisville, and northern Kentucky/ cincy which takes the comparison back quite aways to when this city itself was damn near selling out the glvc tournament.

        Looking ahead , the next two cities are using much smaller facilities . Why is that? Why would Sioux falls stick it in their Pentagon over their old and new city arenas?

        By their own admission this tournament only had an impact of $250k. The ball field tournaments are even projected hire than that.

        Speaking of ball fields, why would a sports Corp who markets themself with the Evansville name and tells us we must build this hotel said nothing while the complex went out to the county, far far away from downtown and all of our baseball assets?

        • Re: GLVC tournament, they only did well when either USI or KW were playing. Was the D2 tournament a smashing success, no but considering no teams of local interest were involved it did as well as could be expected if not better.

          • You’re not following me here. The tournaments are not the problem, just like the youth ball field tournaments are not the problem. The problem is the incompatible facilities or the incorrectly located facilities. Barring a few exceptions, any visiting tournament on any level should be welcomed, but trying to make them into something they are not just to try to justify building a facility that doesn’t need to be justified is not something I support.

            With Roberts we had a whole list of bands that turned down the city. But now on the flipside we are seeing the negative consequences of not having the proper facilities to handle ue basketball and these tournaments. What makes it even worse is that we already lost these tournaments previously (boat show too) due to cost. Now we turned around and did the same thing.

            And once more, why should I believe any of these organizations are serious about downtown and the hotel when they just let a several thousand visitor complex go as far away from the area for the second time without any objection. All the while our historic baseball district rots. Just doesn’t make sense to me.

          • The GLVC tourney was full because the coaches of both teams USI and KW lived in the area. they would be out all year promoting the programs and d2 basketball whether at walmart or a summer fest.
            The current USI coach and his family still live in Carbondale , IL after 5 years. Cant promote/talk to a potential local fan in offseason when your 100 miles away.

        • It does make sense that in the hometown of Don Mattingly there might be baseball tournaments played in his old “stomping grounds.” In the area of the “A League of Their Own” stadium there might even be a museum having to do with baseball. It even makes sense that families who are participating in the tourneys may opt to stay just down Main St. in a “convention hotel.”
          I think that may be the problem, Jordan. It makes too freaking much sense for Evansville, IN, and worse yet, there isn’t enough “intrigue” and tainted money involved.

          • Gotcha, I agree with that and the points you made in another thread. They were well thought out.

  12. Evansville Mayor Lloyd Winnecke never said Hilton required a final loan approval before being granted a franchise. He stated the exact opposite, which was that the franchise agreement needed to be in place before the bank would sign off on the loan. You really need to get your facts straight before going on a rant.

    • We got that straight from a quote attributed to the Mayor in the article the CP published. Perhaps they misquoted him.

      Here is the exact quote from the CP.

      “The Downtown hotel is to be completed in fall 2015, city officials have said. But Mayor Lloyd Winnecke said Tuesday the objection within the Hilton organization could cause a delay in final approval of private financing. That approval is required to obtain a franchise license with Hilton.”

      We had our facts straight.

      Do you not find it interesting that they do not have final financing approval or a franchise agreement 3 weeks after claiming in public to have both?

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