IS IT TRUE? July 15, 2011
IS IT TRUE that just as the City County Observer has been reporting for two weeks now it appears as though there will be two and only two bidders on the RPF that was issued by the Evansville Redevelopment Commission to build a new downtown Convention Hotel where the two ROCK PILES are currently sitting behind the new Arena in Downtown Evansville?…that one company that is planning to bid is the Kunkel Group and that the other is an newly formed business called Prime Lodging and is headed by Chris Verville who like Kunkel was peripherally involved with Woodruff Hospitality LLC?…that just as the CCO predicted, no business that is not already familiar with the project has come forward with any intention to respond to the RFP?
IS IT TRUE that the former American General a wholly owned subsidiary of AIG that was acquired by a private equity group and renamed Springleaf has quietly had a layoff?…that 65 Evansville based employees have been let go during the last couple of days?…that we hope to see these employees find new jobs very soon?…that the newly attracted SS&C that is readying the 3rd floor of the Innovation Pointe Building for occupancy may be a great place for these people to submit applications?…that as we recall, the press releases from GAGE and Mayor Weinzapfel boasted that SS&C would be hiring up to 500 people in the next few years?…that this is an opportunity for them to get a head start on that hiring and prove the optimistic press releases to be correct?
IS IT TRUE that in the Competitive Realities study that was released by the Southwest Indiana Coalition for Economic Development last week that one of the areas in which Evansville was chided for being short on was in dollars to spend on marketing this region to the outside world?…that the words used were something along the line of dreadfully under the budgets that comparable cities have for that task?…that this writer has some experience with such budgets?…that the marketing budget that the Coalition has to tell the world what this region has to offer is less than one-tenth (10%) of what some other comparable places spend on that most important task?…that SCROUNGER BUDGETS in the economic development field when compared to competing cities have been the norm here for years and it shows?…that the public budget will have to provide unemployment, training, interview coaching, etc. to the unfortunate 65 people that the former AIG laid off this week will exceed the budget for marketing this area to the world by many times?…that we are once again penny wise and pound foolish?
IS IT TRUE that the City of Los Angeles has been considering spending $300 Million of public money to assist in constructing a $1 Billion football stadium to attract an NFL franchise to town?…that Los Angeles has not had a team in well over 10 years and that the economy of the city has not missed a beat from the absence?…that both the Raiders (now from Oakland) and the Rams (now from St. Louis) both tried to shake the City of Los Angeles down for money back in the 90’s?…that both were unsuccessful and ended up following through on their threat to leave town?…that both Oakland and St. Louis have had some very public money troubles for caving in to these shake down techniques and “buying†teams?…that the City of Los Angeles after learning of the travails of Hamilton County, Ohio has put their plans on hold for a later date?
IS IT TRUE as was pointed out in the City County Observer this week that subsidizing professional sports stadiums with public money is reverse redistribution of income?…that doing what some cities do by heavily subsidizing temples to sports do is simply taking money from productive middle class taxpayers and giving it to ballplayers and team owners?…taking from those who work and giving to those who play ball for a living would have the founders of the United States turning over in their graves?
“that on company that is planning to bid is the Kunkel Group and that the other is an newly formed business called Prime Lodging and is headed by Chris Verville who like Kunkel was peripherally involved with Woodruff Hospitality LLC?…that just as the CCO predicted no business that is not already familiar with the project has come forward with any intention to respond to the RFP?”
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And the announcer sez……everyone take your seats, act three is about to begin! (popcorn, peanuts, cotton candy! is heard in the background, along with screams from the sideshow horror ride!)
Aside from all the considerations that local government and the Corps of Engineers have given American General during their expanding years, did American General ever get any incremental tax deals from the Evansville City Council? I don’t know. I’m just asking for obvious reasons. Anybody know?
The short answer is YES! From the CP article dated July 18, 2006.
“The company will invest $35 million in adding to its downtown headquarters complex at 601 N.W. Second St.
The project will create another 150 full-time positions over the next five years and will allow the company to maintain its current workforce in downtown Evansville.”
“Other parts of the incentive package include a 10-year real property tax abatement and 10-year personal property tax abatement by the city. Indiana incentives include $2.25 million in tax credits and a $400,000 training grant.”
It looks like the total value of the tax abatements and incentives was about $8 Million for a $35 Million investment that committed to create 150 new jobs. Sounds almost identical to a certain hotel project to me. American General or its successor should have 1,550 jobs in Evansville by now to be in compliance with the tax abatement. I wonder how that is going and who is going to hold them accountable for any shortages?
Link to article:
http://www.courierpress.com/news/2006/jul/18/a-new-gateway-american-general-announces-project/
Thank you for that precise information, Joe. It’s exactly what I suspected. Broken promises in exchange for corporate welfare. Somebody grow some balls and stop this crap!
In response to the last two paragraphs of IS IT TRUE.
http://www.cato.org/pubs/regulation/regv23n2/coates.pdf
Many economists have come to the same conclusions as the authors of this study. Economic impact studies are done by cities to report what the city leaders want to hear. The studies make false claims. The methodologies used in the studies are flawed.
Construction of a new stadium is a creation of a public good. Just as building highways, streets, sewer and school systems are public goods. As such, local governments should be fiscally responsible with these projects. In almost all examples, they are not.
FLOW:
When a project is the right thing, in the right place, at the right time, things just flow; they gain a momentum of their own; it’s a beautiful sight.
FORCE:
When a project is the wrong thing, in the wrong place, at the wrong time, it’s like trying to move a mountain, practical realities and common sense offer resistance at every turn; it’s an ugly sight.
While an Hotel will someday manifest at MLK/Walnut Ave, this Downtown Arena project and it’s collateral liabilities is a “BLUNDER GRANDE!”
When these warmed-over/re-named developers eventually re-fumble the ball, will we just let them form a new company in their brothers-in-laws names (Egg on Face Inc) and try, try again?
The cost of seeing a concert, or game, or even residing in Vanderburgh County skyrockets and “X” millions more of precious resources will be sucked down the drain to make it happen. This is hardly progress.
While some may be forced to “live with it,” many will choose to relocate, outside the “Zone of Dysfunction” and the “Vortex of Bonded Debt” that tugs at the heels of the good folks of Evansville. …
IMHO
Where is the press conference on the American General job cuts? Johnny jumps on board if a local gas station hires a new employee, where is he now? Oh that’s right he still has a job at least until Dec. 31st. This isn’t American General’s first set of job cuts 2 years ago they wiped out the entire retail department. How many jobs I don’t know but several. Once again no press conference. Worst Mayor in the history of this city. Maybe Curt John, Watts and the rest of the (no one wants your kind of government gang) can open a night club in the American General Finance building.
When is the City of Evansville and the ERC going to stop with the amateur hotel developers that with all probability will not be able to get the project financed, and entice a top notch, proven hotel developer such as White Lodging. Our neighbors to the North are having a big laugh at the “3 ring circus” going on down on Walnut St.
Only when all of the Mayor’s buddies have washed out for the third time. It is infuriating to watch Biily Bob, Jimbo, Bubba, and Billy Mack Junior embarrassing the town with their idiotic proposals that do not reflect any financial understanding of what this project entails. Can’t we attract something other than a bumpkin to bid on this hotel? You are right about White. They did a great job at a higher price in Fort Wayne. Evansville in the mean time is getting serious looks from Curly, Larry, and Moe.
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