IS IT TRUE? December 1, 2011

18

The Mole #??

IS IT TRUE? December 1, 2011

IS IT TRUE that today is the first day of the last month of the Weinzapfel Administration?…that it is also the first day in which the Evansville Redevelopment Commission has no active extension in place with City Centre Properties LLC to turn the McCurdy Hotel into 90 luxury apartments?…that it is time for the ERC to fish or cut bait on this project?…that even in the simplest of games using a stick and a ball after three strikes you are out and this is the 4th Strike for both City Centre Properties LLC and the Evansville Redevelopment Commission in its present embodiment?…that we are all out here in taxpayer land wondering if a 5th extension will be granted or if this lingering deal will finally be unwound so the Winnecke Administration can start with a clean slate?

IS IT TRUE that we put up a song today in honor of the 4 year relationship between the ERC, the Weinzapfel Administration, and City Centre Properties?…that we chose the old country classic “Delta Dawn” to commemorate this day as the ERC today is waiting for City Centre Properties to “take them to their mansion in the sky”?…that the other and most pertinent line in “Delta Dawn” is where it says “people around here all say she’s crazy”?…that as one of the CCO comment writers stated this morning, “no one is going to come forward with an interest in the McCurdy as long as it has a SOLD sign in the front yard”?…that the best course of action to take right now to create interest in the abandoned building formerly known as the McCurdy Hotel is to unwind the deal, be done with City Centre Properties LLC, and pay whatever pittance may be required to once again have a clean title on the building to attract an investor?…that as the CCO has written several times, this building was made to be a hotel, will pro forma as a hotel, may actually have enough value as a hotel to cover the refurbishment costs, and would make a statement about downtown Evansville that another 90 apartments next to a flophouse never ever will?…that it is time to get serious and that we hope to see the Winnecke Administration do so in a financially sane way?

IS IT TRUE that American Airlines has filed for Chapter 11 bankruptcy protection?…that the official line is that customers should see no change in day to day travel?…that in today’s Wall Street Journal in an op-ed titled “The AMR Union Warning” that one of the biggest factors that is attributed to the bankruptcy of virtually the entire airline industry in the United States is the wage and benefit demands of the unions that represent the airline workers?…that United, Delta, and American, along with others have had their day in receivership and that the only airlines that are even close to financial health are the ones that were able to extract union concessions at the point of a judges gavel?…that one may ask, “what does this have to do with Evansville”?…that aside from the obvious fact that we have an airport that in 2012 Right to Work will be the most emotionally charged issue taken up by the Indiana Legislature?…that the airline industry is a poster child for the damage that can be done when unions and management butt heads?…that somewhere in the financial failure of American Airlines there may just be a kernel of knowledge regarding Right to Work?…that whether Right to Work is passed in Indiana or not we desperately need for our state to be seen as a place where business can prosper and people can enjoy a good lifestyle?…that getting this right is a key to reversing business departures, brain drain, and population shrinkage?

IS IT TRUE that November was the highest month ever for the CCO in terms of internet traffic?…that since the elections there has been some fall off but only to the levels of September which was a record month when it happened?

RELATED ARTICLESMORE FROM AUTHOR

18 COMMENTS

  3. WHAT IS PROPERTY TAX ABATEMENT?

    A community initiated incentive that will give a company making a new investment (real or personal property) a phasing-in of their local property taxes. This incentive can be for 1 to 10 years on either new manufacturing equipment (could actually be used equipment, but new to the state of Indiana) or additional building space. In addition, an abatement (phase-in) is available for research and development equipment, logistical equipment and also information technology equipment. The phase-in is reviewed and passed by the local unit of government. This incentive will require a public meeting with either the City or Town Council with review by a local tax abatement review committee.

    WHAT IS TAX INCREMENT TAXING (TIF)?

    A very popular incentive for the enhancing of infrastructure within a community. The local or county redevelopment commission will declare a certain geographic area as part of a Tax Increment District. The taxes on that property are frozen. If development takes place on that property, the incremental increase can be used to provide infrastructure for that parcel. Time and duration of each TIF district is different depending on the amount of revenue needed and the total revenue needed for the project. Can be combined with tax abatement, which lengthens the time of the TIF. Process starts with a local Redevelopment Commission.

    WHAT ARE INDUSTRIAL REVENUE BONDS?

    Industrial Revenue Bonds are a low-cost mechanism of financing a project. Projects that total new investment of between $1,000,000 to $10,000,000 (with $10,000,000 being the maximum amount of any one project) both are eligible and make economic sense. The local Economic Development Commission will lend the tax exempt status of the local community to the project with the company receiving a substantially lower interest rate on the bonds. There is substantial cost associated with both the issuance of the bonds and legals fees. Your first step is to consult your local banker and then call the FEDCO Office and we can refer you to appropriate legal counsel who will then determine eligibility of project.

    WHAT IS THE COUNTY ECONOMIC DEVELOPMENT INCOME TAX CREDIT?

    Each employee who is working in Fulton County is paying a percentage of their income into a fund that is designated for economic development activities. In some cases, the money has been earmarked for certain infrastructure improvements in the community or county that may directly benefit a company. Many times, a company may reap in-direct benefits from the CEDIT revenue because of those improvements.

    WHAT CAN FEDCO DO?

    The offices of the Fulton Economic Development Corporation can offer you several services to assist in your retention and expansion decision. We can provide your company data which highlights Fulton County’s vibrant community and business environment. Information on the following can be provided or presented: • Business Climate • Education and Workforce Dev. Data • Economic Impact Analysis • Market Information • Site and building information

    SITE SELECTION SERVICES

    FEDCO works with existing and prospective companies to help locate available sites and buildings for expansion or start-up through a comprehensive database of available properties. The FEDCO staff has considerable experience in the site selection process and works closely with area real estate professionals to provide this current and valuable resource.

    STATE (INDIANA) INCENTIVES

    Through the assistance of the Indiana Economic Development Corporation and the Indiana Department of Workforce Development, many companies have been able to be assisted in their expansion and growth plans.

    WHAT IS THE INDIANA ECONOMIC DEVELOPMENT CORPORATION (IEDC)?

    The IEDC is a public-private partnership established to assist the entire state of Indiana in marketing, and other general economic development programs. Fulton County is served by the regional office out of South Bend.

    WHAT IS THE 2016 (SKILL ENHANCEMENT FUND)?

    A very popular program that will assist a company in the training or re-training of its workforce. The IEDC will assist a company in the training of new hires for a company or the re-training in a certain process for current employees. The ultimate goal of this program is to make Indiana’s workforce very competitive in a world-wide economy and thus enhance the productivity of our companies. This program is done on a reimbursement basis (company incurs the cost and then seeks reimbursement from IEDC) for the training provided. Various forms of training can be utilized (supervisors who train, use of Ivy Tech State College, outside training vendors, etc.) The IEDC will not exceed over 50% of a training budget for any given company.

    WHAT IS THE INDUSTRIAL DEVELOPMENT GRANT FUND (IDG)?

    When faced with a location decision, many companies desire to find a site that has ample infrastructure available (gas, water, sewer, etc.). In many cases, it is not available. The state of Indiana will assist communities in bringing that needed public infrastructure to a site for a particular project or company. The state will assist the community in the expansion of water, sewer and road infrastructure. They will also help in the creation of a rail spur and also fiber optic lines. The company will work with the local community in determining the best location for the plant and then will work with the IEDC in formulating cost estimates for the project. IEDC will commit a certain amount to the project, which will go directly to the local unit of government.

    WHAT IS THE ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY FUND (EDGE)?

    A company may want to locate in the state of Indiana and there exists a gap between the Indiana offer and what another state is offering, EDGE can step in and fill that gap. If your payroll tax credits exceed your state income tax, you can receive the difference between the two. State approval is necessary for EDGE credits.

    WHAT IS THE HOOSIER BUSINESS INVESTMENT TAX CREDIT?
    The Hoosier Business Investment Tax Credit is a tax credit applied toward capital investment made in the state of Indiana. It can actually equal up to 30% of the total capital investment. That investment may include the purchase of equipment, new computers and related equipment, costs associated with the modernization of existing equipment, onsite infrastructure improvements, construction of facilities, costs associated with retooling existing machinery and equipment and costs associated with the construction of special purpose buildings.

    • This came from Fulton county’s website, but all of this State aid is applicable to Vanderburgh county as well.

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  4. Two questions for the esteemed economist Morton Marcus:

    On December 31, 2011 what will the municipal debt per household be for the City of Evansville?

    What was the municipal debt per household on December 31, 2003?

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    • from: CityData.com

      Evansville government finances in 2006 (per resident)

      ———-

      NEW for 2005 – Long Term Debt Outstanding Unspecified Public Purpose: $191,733,000 ($1644.59)

      ————–

      2006:

      Long Term Debt Beginning Outstanding – Unspecified Public Purpose: $188,041,000 ($1612.92)

      Long Term Debt Issue, Unspecified Public Purpose: $10,127,000 ($86.86)

      Read more: http://www.city-data.com/city/Evansville-Indiana.html#ixzz1fIZuJzVd

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  5. ERC + Brownfield Corp.+ Metropolitian Development equals Connie Robinson and Dewesse Williams and Weinzappel.

  6. Is there any truth to the rumor that a certain City Council person rented office space at the Small Business Development Center that was located in the ORR Building located on the Lloyd Expressway?

    Also rumor has it when this Council person left owning a couple thousand dollars in back rent?

    Finally, rumor has it that the out going mayor forced them to forgive not only this council person’s debt but others.

    Finally, I must ask is this ethical business conduct for elected officials?

    • Wow Jack-O-Lantern if there is any truth to this could be a bombshell. I’m no attorney but this could be considered influence peddling.

      • Landlord, I’m gonna take this one step further. If these assumptions are true the information by Jack-o-lantern should be handed over to the white crimes division of the inspector general’s office.

  8. “EVANSVILLE — The historic McCurdy Building in downtown Evansville will be developed into more than 80 upscale apartments, Mayor Jonathan Weinzapfel announced at a press conference in his office Monday.

    Indianapolis-based developer Scott-Hilliard-Kosene is handling the $7.2 million project, which also involves developing retail space on the ground floors of the facility.

    “We’re thrilled with this project,” Weinzapfel said. “This is great news for the community. And this is great news for downtown.”

    http://www.courierpress.com/news/2007/may/15/mccurdy-building-to-be-developed-into-upscale/
    ——-

    “Last week, the Evansville Redevelopment Commission approved a resolution to purchase the parking lot adjacent to the McCurdy for $603,000, an amount that Commission president Bob Goldman said left a bad taste in his mouth.

    Mayor Jonathan Weinzapfel defended the commission’s decision, saying it was the only viable option to provide parking at the McCurdy.
    …..
    “So that left buying the parking lot at 118 to 120 SE Riverside Drive, adjacent to the McCurdy. The city had two independent appraisals conducted. One on Feb. 6, 2006, valued the lot at $475,000 and a second on April 21, 2006, at $420,000.

    The initial offering price for the parking lot was $447,500, the average of the two appraisals. It’s a process that’s required by law when a government entity such as the Redevelopment Commission purchases property.

    The owner of the parking lot, Safe-On-First LLC, created by Evansville businessman John M. Dunn, countered with an offer of $603,000. Dunn wouldn’t negotiate, Weinzapfel said. The city used Downtown Tax Increment Finance funds to purchase the parking lot.

    “In the overall scheme of things, when you’re looking at an $8.2 million investment, the fact that you’re adding (at least 80) housing units in Downtown Evansville — it was a price we were willing to pay to make sure this deal was going to happen,” Weinzapfel said.”

    http://www.courierpress.com/news/2007/oct/09/mccurdy-deal-defended-mayor-developer-say-needed/

  9. Speaking of rumors…I heard from very reliable sources that Linda Durham’s former second in command at Knight Township Trustee’s office is now gainfully employeed in a full-time position at the Evansville City Garage. As political hat-tricks and impaired judgement goes I have to give the outgoing Mayor and his puppets an A+ for this one.

    • Wow! Someone needs to follow up on that one. This would be the crowning achievement of the year for the Status Quo!

  10. For all of the rednecks on this board who refuse to watch PBS, you missed ‘Frontline’ last night re: regional airlines. Oh My ! You are going to love the fact that these regional carriers who use the name of their “big brother” carrier to get people to the hub have little or no safety training, the pilots are paid by the hour (and only paid when they are in the air–could be paid for 2 hours in a 16 hour day), the regional carrier pilots can’t afford hotel rooms, so they pool their money for a “crash pad”, 10 bunkbeds in a rented apartment with one bed ! Oh, and by the way: if your regional plane goes down, your survivors can’t sue the big carrier, they can only sue the regional. People think they are buying the safety of American Airlines, but American Air Express is the only company you’ll be able to sue. Best kept secret in the airline industry !

    • This is no secret. It has been a known fact for well over a decade that the pilots of little jets don’t get the same salary or benefits as the pilots of the big jets. Not only that, but the regional carriers have been reporting net losses for many, many years. If you don’t like flying out of a podunk airport like Evansville you can always fly out of Louisville.

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