For those of you who are interested to comb through it here is the Hunden Study that was originally supposed to cost $40,000 but ended up costing the taxpayers of Evansville $105,000.
For those of you who are interested to comb through it here is the Hunden Study that was originally supposed to cost $40,000 but ended up costing the taxpayers of Evansville $105,000.
Courier Press print Edition Sunday, 12/21/14.
There is something fishy about “The Story” re: the value of the ONB naming rights for the Centre:
1) It was revealed that there were concerns raised about the value as far back as March–the golden shovel moment;
2) The C&P also reports that the round of new bids solicited by Hunt Construction caused yet another round of analysis re: the value of the naming rights (stop right here: the project has a budget of $ 71 Million. Hunt’s work will ensure that it can be built for $ 71 Million, and that successful rebid was announced. That being the case, why would the value of the naming rights change ?);
3) The story from Joe Kiefer is that SMG was already trying to market the naming rights, and ONB approached the County. As an attempt to prop up that story, the Murat Center in Indy was cited very briefly . . . ;
4) The parties cannot even agree on the amount of the naming rights shortfall. Rick Huffman of HCW says it is $ 8 Million; Bob Jones of ONB says $ 6.5 Million. Gosh, this shouldn’t be that hard ?; and
5) Bob Warren of ECVB claims he wasn’t “in the loop” re: finances. He said they were aware there were “problems” for months . . . but they (City) said they were going to get it done . . .
And in the meantime, the Mayor’s Office hides all of these known problems from the voters !
Point 2, even more basic, the construction costs of the Hotel (whether over or budget) would have no impact whatsoever on the value of the naming rights for the Cente–a separate facility altogether. This story has been crafted, it’s not the truth.
I made a ‘D’ in my only accounting class, but I agree with you Atom. The value of the naming rights is expressed in the value of ONB plastered on the side of the building for drive-by traffic; the value of having that on the web site and newspapers when events are held at the ‘ONB Events Plaza’, etc. Naming rights are all about advertising equivalents, nothing to do with whether a Hotel which might support the entertainment facility was over/under budget on construction costs.
Also, Rick Huffman of HCW dubbed it a $ 78 Million project . . . hmmm, maybe Hunt Construction did not manage to keep it on budget with its rebid after all. Now its $ 7 Million over budget, and suddenly ONB is claiming their naming rights valuation fell short by $ 6.5 Million. Hmmmm, what a coincidence !
Hunden Report, Executive Summary pg. 11 tells you all you need to know:
“The surrounding markets to Evansville are nearly all larger and offer more in terms of hotels, function space, entertainment and accessibility than Evansville.
These markets, such as Indianapolis, St. Louis, Nashville and Louisville, are able to attract business that Evansville simply cannot.
EVEN WITH a new and large branded Hotel, Evansville will FIND IT DIFFICULT unless a group mandates a ‘southern rotation’ in its schedule of events”
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News Flash: Nashville is South of Evansville !
Captain Obvious: pursuing a convention industry in the City was never a viable idea. Why choose the convention business as a growth angle for the City ? This is a failure of leadership, the City’s own consultant warned them, and the answer is damn the torpedoes. Wow ! Need to remove Winnecke and Russ Lloyd. Surely there are smarter people than them–who can actually read a consultant’s advice and realize these outlays represented a huge risk. I cannot believe City Council would approve $ 20 Million with no due diligence and this portion of the report right there in front of them. Boo, Councilors.
LOL, yes, my map shows Nashville just South of Evansville ! So, when the Hunden report said Evansville would “find it difficult unless a GROUP mandates a ‘southern rotation’ in its schedule of events . . . . “. was he implying that this would be Indiana-only groups, who out of the goodness of their heart choose to visit Evansville over Indy for their convention in order to help us expand our Downtown ?
Such wishful thinking is not sustainable.
I think you’re right about looking to Indiana-only groups, Dixie. I KNOW you’re right about it being unsustainable.
Let’s go out for bids with no PLA involved. This is all union initiated problems. The mayor needs to listen to John Dunn, he knows the hotel business like trumpka knows the union business. So are we building a union or a hotel? When Winnecke announced the failed hotel to a union audience that should have been a message to non union workers, the local government is against you. Anyone who had a problem with this water meter deal, this is a union deal to benefit union workers initiated by your local government. The local government does not care about non union workers. Right to Work is Right for Indiana and non union workers. Remember the local government and unions are taking the food off the tables of non union workers.
Actually they took the food off the teamster union table. The meters were all changed twice in the last twenty years. It was done in house. If the program got behind the employees got overtime. Now they not only do not get the overtime they frequently end up fixing things after the company moves on. They also are expected to maintain the meters. I am surprised chuck let them get away with this.
Thanks for the link to the over-priced pile of horse crap, CCO. I’d forgotten how ridiculous it was.
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