The City County Observer makes the Powerpoint presentation that Hunden Strategic Partners made to the Evansville Redevelopment Commission available to our readers without bias, edit, or comment. We encourage all of our readers to reach their own conclusions from this information.
How much did Hunden’s 13 page power point cost?? This could have been done by a sophomore business student at USI. The City Administration/ERC scam on the taxpayers continues.
So is the entire amount of Kunkel money over the $500k cash the supposedly have coming by refinancing his existing properties and selling tax credits? This is sounding more and more like the McCurdy.
Prime Lodging who?
“This could have been done by a sophomore business student at USI.” (JoeBiden)
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What makes you think it wasn’t?
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I do not think it advisable to let Weinzapfel drop this project in Kunkel’s lap and then let the whole project blow up in Winnecke’s face.
Hell, Kunkel went over a year without paying property taxes on the former Unclaimed Freight property on Governor Street. One assumes because they did not have the where-with-all to make the payments.
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It is in no way appropriate to lock in any project of this magnitude in the last days of any mayor’s term. That is insanity. The landscape is changing daily. The phrase “stop and think” seems to come out in my postings a lot lately but I see little sign of thought at all (with a few exceptions) coming from the very people whose job it is to think diligently.
Write or call your city council rep and any at-large councilpersons. Tell them that you expect thoughtful consideration not rubber stamping in these last days of December. When will the Kunkel business come before the City Council? Is it being ramrodded through at tonight’s meeting?
This consultant’s study is a disgrace to anyone who has ever done consulting.
Pg. 10: Have to have $ 2.5 Million in Equity to do the deal.
Kunkel: $ 562,000 in Bank; $ 1,000,000 from a refi of other loans; $ 500,000 “tax credit deal” by 12/31/2011; $ 500,000 “tax credit deal” by 12/31/2012. I am SPEECHLESS ! The “consultant” put 100% probablility on the refi and the two tax deals !!! Wonder if John Friend might take a peek at these tax deals ?
Pg. 11: Memo to ERC: (think of the Jeff Foxworthy “you might be a redneck”): You might be in a dream state when the Hotel Developer you’re going to hand $ 8 Million + to has to get an SBA Loan !!!
Also, I now know why Sara Miller decided it was time to cut bait. The Bankers at ONB would have taken this proposal out with them tonight to laugh at it over beer. This proposal would be DOA for a loan at ONB. Ms. Miller would have suffered permanent CLM (career limiting move) syndrome if she bought in to this. I have a great idea: wait for Spring 2012 (the last of the two tax deals to be done). Escrow that $ 2.5 Million for Kunkel. And then decide . . . .
The clear answer on this should have been “C”, None of the Above. Whatever licensing agency handles “management consultants” needs to get a copy of this.
Editor:
Was this Powerpoint responsive to the FOIA request, or is the entire study still forthcoming ?
Also, I did NOT see a recommendation for Kunkel in this presentation. Hard to miss in 13 pages. Yet, Kish said that Kunkel was recommended ? Where might the Hunden recommendation reside ? Is there an extra charge for us to actually see that, or was Hunden too embarrassed to put their name on it ?
This presentation is a sorry excuse for vetting anything. It looks more like a 4-H project than professional vetting. Maybe the company should change its name to Dumb-Dumb Strategic Partners.
No Credit report referenced? D & B dismissed as not relevant?
Assumes 100% tax abatement which is not even legal?
Kunkel putting up 10% equity yet $2.5 Million is not 10% of the project cost, it is closer to 8%?
Equity is from refinancing other properties and cashing in tax credits?
Only $562,000 cash in bank right now? Where is the working capital?
How does refinancing increase earnings by $2 Million?
Amateur hour at its best and 4 of Evansville’s village idiots bought it. I wonder if 5 more village idiots (city council) will buy it too?
The Donald,
Strongly agree with your next to last bullet. Also, pg. 10 shows $ 1,000,000 of the $ 2,500,000 “Equity” as coming from a refi.
A refi would imply that Kunkel had other properties whose loans had been paid down over the years. If they refinanced them, they could take cash out of those properties. If that process raised $ 1 Million in Cash, the Kunkel entity has NOT increased Equity–they simply have $ 1 Million in cash to throw at this project which is offset by new debt they taken on for their other projects. Kunkel is betting the ranch on this deal–must be of the mind that “Big Brother” will bail them out.
I believe the D& B reports are relevant . . . even more so if Hunden knew how to spell Dun. Was it a freudian slip to spell it Dunn ???
Good catch on the Dun misspelling. That shows a level of idiocy like referring to Goldman Sachs as Goldman & Sachs. I am sure there is a parody for the ERC in that one.
How about Evansville’s version Goldman Sacks!
One more thing. Did Hunden even attempt to vet the other people? This whole silly little slide show is just about Kunkel and it does not endorse them anywhere. There should be a side by side comparison.
Man alive, the ERC makes the old CVB board and their Opus One party look like scrooge in the spending department. Can we go back to the good old days when the worst thing exposed was pissing away $3,000 on a dinner?
Does anybody else seem concerned that it would take 55% occupancy for full debt service? That sure seems like a stretch to me. Seems funny anybody else would need at least 10% up front cash in hand and fool proof business plan to get this kind of deal through a bank review. Not abatement and refinance to get cash.
If the 55% occupancy is correct, which is a far far stretch, and talk about operating at the edge of the cliff, people would be lined up to get on this development. permanant finacing? Thats a joke, this whole deal is based on the come. Unbelievable!
Why didn’t they include hitting the lottery sometime in the near future. Hell, its possible.
I’ll say it again…..we (the taxpayers) are going to foot the bill for this hotel to the tune of $20-$30m (gotta figure in the graft factor) and in less than 10 years we will get the deed to the hotel after Kunkel (hotel group) is bankrupt (and grinning)….the handwriting is on the wall….. if the city council approves this every aye vote should be impeached for dereliction of duty. 😉
JMHO
Man, this Kunkel deal is weak. Makes the mind wander . . . is Kunkel just the stalking horse, brought in to fail and drive up the amount of public money from $ 8 Million to $ 25 Million so that we can get an “established” developer–say from Indy– in here ? Hey, I am just a 6th year sophomore at USI who has been pummeled by other posters, this is just my opinion, party on !
Of course it is weak. A house of cards in more ways than one.
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