Hotel Incentive Funds to Pay for Debris Removal

9

Executive Inn

No One on ERC Knew Who Would be Paying for the Debris Removal Until Today

In a sideline to the sideshow that the downtown Convention Hotel project has become the issue of the slow moving removal of debris was brought up by John Kish, the MLK Entertainment Complex project manager. Mr. Kish voiced concern about the urgency associated with getting the debris pile that used to be the Executive Inn removed so that the Arena project is not negatively impacted by it.

The attorney for Woodruff Hospitality LLC addressed the Evansville Redevelopment Commission and stated that Woodruff Hospitality LLC is of the opinion that the Kunkel Group has assumed financial responsibility for paying for the demolition of the Executive Inn and the removal of associated debris. Mr Kish acknowledged that he has been told the same thing. No representative of the Kunkel Group spoke at the meeting and neither Ben Kunkel nor Chuck Harper were in attendance.

In another twist to getting the debris removed Mr. Kish said that a change order was needed to the original contract that is of a large enough dollar amount that it will have to go through a competitive bidding process? The duration of time that Mr. Kish estimated for the entire process required to finish the debris removal completed was 60 days. In the best case this will put completion of debris removal into late September only a few weeks before the scheduled opening of the new Arena.

The prospect of a legal battle over exactly who will pay for the demolition and the debris removal prompted Mr. Kish to recommend to the ERC that the funds that have been approved for incentives to some eventual hotel developer for cleaning the debris. The question of “who is Klenk Construction (demolition contractor) working for?” was asked by a member of the Evansville Redevelopment Commission. That question prompted the discussion of who will pay and the end result of this is that the taxpayers of Evansville will pay.

The debris removal project can not start until the ERC meets again on July 19th to authorize the expenditure of the Hotel Incentive Funds to pay for the demolition and debis removal. The nature of the change order was not disclosed.

9 COMMENTS

    • Someone at the ERC should call Klenk Construction I’ll bet they know who signed the contract for demolition.

  1. HILARIOUS !! This sounds like Midwestern drama at its finest ! The entire fiasco of who Klenck will be paid by reminds me of that scene in Austin Powers in the bathroom stall: ” Who does # 2 work for ?”; “Who does # 2 work for ?” (gurgling sounds). Getting worked up about the tab for tearing down the old Hotel is equivalent to rearranging the deck chairs on the Titanic !

    I recommend that Barney Rubble be appointed as special liaison to the ERC to provide management assistance on the pile of . . . rubble . . . which preoccupies the ERC. You would think that august tribunal would be a bit more concerned about Hotel Round # 3.

  2. Considering the dysfunctional Arena project and its’ collateral expenses, a half billion dollars in sewer mandates and Vectren’s parasitic grip, we have passed the tipping point.

    Evansville and Vanderburgh County are tumbling out of control. …

    There is a reason why financing has not materialized. This Downtown Arena project was a fools notion from its’ inception.

    The chickens have come home to roost and the excrement is piling up.

    The taxpayers are left to clean up the mess.

    • You can say that again…

      BUT, remember, TAXPAYERS – I.E. VOTERS – CAUSED IT!

      Remember the first Weinzapfel election? Weinzapfel’s criticism of Lloyd for STOPPING a million dollar project, treated as valid in the press, a progressive hero?

      We, (not specifically me, but we, collectively) “mandated” this kind of black box, hopey changey, progressive VETTING!

      We can hope not, but to me there is no indication yet that Rick D. or Lloyd W. are even interested in much more than putting their spin and nameplate on the heaping mess.

      Like the misinterpreted Weinzapfel stadium mandate… I fear the Davis primary win is going to be misinterpreted as true tipping point, “change”.

    • The chicken poop is piling up quite high too. This fiasco makes the excessive spending that got the whole CVB board fired look like the good old days. I would gladly pay 5 bottles of Opus One to avoid a completely inept performance that is going to cost the taxpayers millions of dollars.

      If these members of the ERC are allowed to stay on this board then whoever appoints them needs to be fired for breach of fiduciary responsibility. No private business in the country would survive being run like this. You want to talk about vetting? Who vetted these stooges? What does it take other than being a loyal brainless subject of Mayor Weinzapfel to serve on the ERC?

      • The Donald, in answer to your the question posed in your last sentence: 1) Ethical flexibility; and 2) chapstick (lots of it).

  3. So what are the backgrounds of the people who have been appointed to the ERC anyway? I know Goldman is a pawnbroker. It looks like Miller is a VP at Old National in commercial lending and Elpers is a financial professional as well. The other two are not digital enough to figure out what they earn money for.

    Here are some questions for Miller and Elpers. Miller, would you recommend approval of ONB’s money to be loaned out on this hotel? If not then why would you support investing the people of Evansville’s money in these people. Elpers, is this how you conduct business on your job? Why is it so easy to vote yes to stupidness when it is just public money at stake. You two should have known better.

    Mr. Goldman, how much would you loan out in your pawnshop for the hotel that you support putting over $10M of public money into? I bet the answer is ZERO.

    Carter and Phillips, why are you on the ERC and who put you there?

  4. “That question prompted the discussion of who will pay and the end result of this is that the taxpayers of Evansville will pay.” (CCO)

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

    Will this cost be added to the final cost of the arena if the taxpayers are stuck with the bill in order that the arena opening not be dampened by the unsightly mess?

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