IS IT TRUE that on Monday evening DMD Director Kelley Coures said that the CVS Building at Columbia and North Main’s fair market value for rent is $18,000 per year? … City Councilman John Friend, CPA said based on that level of rent the value the property would be between $180,000 to $200,000? …in this case we we wonder why the DMD Director Coures and his puppet Economic Redevelopment Commission paid $535,000 for that property?
IS IT TRUE Â most Commercial properties are valued based on the income method and the income (rent) times ten determines the value of the property? …by this formula $18,000 times ten (10) equals $180,000 fair maket value for the dilapidated and vacant CVS building in a questionable part of town?
IS IT TRUE we wonder why the City hasn’t established a TIF District in the Center City in the Lincoln avenue area?
IS IT TRUE Democratic Mayoral candidate Gail Riecken held a successful public forum at Memorial Baptist Church Tuesday?
IS IT TRUE this “Forum was on Leadership in Government and Business†featuring Gary Mayor Karen Freeman-Wilson? …it obvious that Mayor Winnecke and his key staff would had benefited if they would had attended this event?
IS IT TRUE we agree with out going City Councilman Conner O’Daniel voting against the funding of improvements to Vann-Pollack Park? …Mr. O’Daniels voted no on this issue is because he wanted to wait to see wait the upcoming parks master plans recommends what needs to be prioritized in the future?
IS IT TRUE that Mr. O’Daniel handled Councilman Weaver’s insulting and sarcastic remarks towards him extremely well? …that Mr. Weaver is known as an intellectual light weight when it comes to making sound business decisions? …we say three cheers to Mr. O’Daniels for putting Weaver in his proper place?
IS IT TRUE we were taken aback by the Director of the DMD Kelley Coures’ behavior towards members of City Council and general public at Monday’s’ City Council meeting? …Mr. Coures was rude, arrogant, authoritative and insulting? …we predict if Gail Riecken is elected Mayor Mr. Coures shall be the first to be given the political boot? …we feel there is no reason for a Department Head to display that type of behavior towards any elected official and the general public ever?
IS IT TRUE that Missy Mosby continued claims that her constituents want her to vote a certain way is becoming laughable? …if Miss Mosby is so in touch with the needs of her constituents why did she only win by a mere 14 votes in her primary race?
Good first paragraph. Your valuation is correct to the high side. Given the fact that the last business in that location shut down the revenue multiple would be closer to 6 making the value only $108,000, but the fact that the City of Evansville paid too much remains.
So, Joe . . .high side the previous owner of that particular piece of property put $355,000 in his pocket???? IS IT TRUE, that the previous owner is allegedly a BIG supporter of Mayor Santa Lloyd? My fellow bloggers wonder if this gentleman shows up on Santa Lloyd’s political contribution list??? Again where in hell is Steven Speilburg when we need him???
Dances . . . has anybody heard allegations that this Mayor approved acquisition for top dollar concerning two dilapidated four story apartment complexes located at Hayne’s Corner???
Heard allegations that the Mayor purchased two pieces of crap properties in Haynie’s Corner to the City and this Mayor a/k/a Santa Lloyd for an outragous high price in turn allegedly sold to Architecture Rennovators a/k/a Mike Martin at a ridiculous low price . . .hey, pressanykey . . . .do you know what the HUD data sheets reported on these two in and out transactions???
Don’t bother posting a thing on this dirge, its been intentionally molded over just as
the rest of old downtown Evansville’s stinking worthless valuations, are or have been,
due its archaic lousy stinking totally unhealthy combined storm water, and sanitary sewer systems. And those perceived accesses to a real twenty first century logistical pathway infrastructure to serve as the clean water balance of not only Indiana, but the entire Ohio River drainage basin for planet Earth.
What a elected load’o creeps and their cronies bailed real estate sectioned buddies. The federal government should lay waste to those idiotic plans immediately as soon as the sun rises. Creeps, they are out of control.
The place is little nothing more
than an festering monster failure at every viable touch point for valuation with that concern and ”
they” know it!
Its all outta line with todays responses and post up internet standards. But hell what else would one expect from that incursion of the citizens revenue base there.
Bust’um hard. Its the only salvation for real progress there……
This site is infected Its sloooooooowwwwwwww to bad we used to have debate as a option, now its 1980’s sloooooooooowwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww!
Friend has the ‘theory’ right re: the income method for determining a building’s value; but the practicality not so much. So Coures says the CVS will rent for $ 18,000 per year. Based on what ? Neighboring businesses that pay that amount of rent ? A business that moved in there to process opium would likely pay more rent than a buggy whip shop. A brothel that moved into the CVS would be willing to pay more rent than a food pantry would pay.
In other words, forget what a particular type of business paid or will pay. Focus on the real estate aspect. What is that building worth, FMV, to any commercial buyer ? By the way, I think Friend is spot on re: the $ 535K being grossly too high, would be nice to see an appraisal–not as a way of not changing this transaction, but maybe an ordinance by City Council on the PROCESS for acquiring real estate ! That may also address the insider trading of certain realtors who are associated with the city/city council.
What is so curious? Why is it that the two appraisals are usually not far apart? Reason: When appraisers are studying the subject property, they always determine the purpose of the appraisal . . .if the purchaser is financing the deal the valuer knows that the risk is much higher . . why, if the Bank losses on the deal sever consequences could befall them, such as investigation from the FDIC auditor or worse, the FBI . . but when you have a politician paying cash from the uninformed taxpayer . . .well game on . . .so, imagine sitting in the Mayor’s conference room and a statement is make, “we think the property value is X” what do you think? knowing that appraisals have many latitudes to cover their behinds . . .rather have scrutiny from the public vs the FBI . . .case in point . .remember the Witstein investigation . . .sold a house at a ridiculous price and the subsequence appraisals used that particular sale as a comparison on the remainder of the homes . . .
@Indy:
I agree that a City Ordinance which spells out, in detail, a standard procedure for the City when acquiring properties, would be an excellent checks-and-balances safeguard to ward off the predatory realty people. Would also like that to encompass a provision whereby any level of potential conflict of interest (i.e., seller is a political contributor, relative, known associate) has to be disclosed as part of the purchase by the City.
A “follow the money” inquiry might answer any “why” questions we might ponder. Who was the previous owner? Who did the appraisal? Who were the Realtors? Which bank and what agent? What were the terms? Were any or all of these – campaign contributors – family or friends of the administration?
Everything considered: – we all know “why” this transaction manifested. …
@bubbageek:
Brad Byrd, News 25, claims to have an investigative team for their news.
Can someone forward this on to Channel 25 to start an investigation ?
CVS is only appraised for $196k.
It really looks like the CVS yellow elephant is worth nothing.
‘Our’ city council continues to let Winnecke send his hirelings to insult them with impunity (one of his attorneys actually told the council ‘this hotel will get the job done’). It is within their power to claw back the 20 million for the morphed-down hotel. Not doing so leaves them open to suspicions of being in on the score or so pitifully afraid of a weak, vulnerable and possibly corrupt administration that they too do not deserve to be in office. The mayor’s Ahab-like quest for a hotel, any hotel, can be stopped, take the harpoon out of his hand.
Kelly Coures and Missy Mosby are the face of the Winnecke Administration (some less fortunate administrations only have one, this one is unsurprisingly two-faced).
Bandana. Kelly Coures appears to me as nothing more than a big-mouth Jonathan Weaver. Same condescending attitude, only louder. It’s past time for him AND his agency to be reigned in.
All of the above information re: the CVS building on North Main and the two dilapidated properties in Haynie’s Corner (please people . . . spell it right) is very interesting, and deserves much more research. If the City is overpaying to a connected owner, and then basically giving it away to a renovator, that is just wrong and needs to be stopped ! The fleecing of the citizens if true.
Along those lines: what were the two properties on 4th Street where the City refused to release the appraisals as public record documents ? And that occurred at the same time the head of the ERC (Ed Hafer) abruptly resigned (and was given a key to the City) ? Are these two plot lines related ?
wouldn’t the info on these transactions be public record….again C&P “reporters”????
‘
It seems that the “Is it true” discussion of the CVS property purchase reflects no knowledge of real estate nor finance by anyone — neither Kelley nor the writer. Annual rent for that property at $18,000 per year would be only $1,500 per month. That seems awfully low expectation except that it is in a poor business economic location and has no rental stream at the time by a tenant; that rental stream would have to be negotiated with a buyer, and he would only agree to whatever price by also taking into account the location and his time and cost of developing a tenant that could support that price with a profit to him. A ten-times multiple on even a correct income basis would be awfully high for that.
More significantly, values are on a “multiple†of the actual or presumed “net cash operating income†derived from the rent; not on multiples of the rent itself. At $18,000 per year rent, or even a lot more, that property is not going to have any net operating income. Any price multiple presumed is going to have to be further discounted for the time and cost it takes to develop that net operating income. Maybe there are other reasons for the high price paid, but don’t call this a multiple of rent or of net operating income to determine a fair market value that was supposedly paid.
In any case one has to reach very high in the sky to justify, as is being done by any multiple manner, the price paid by the city for that property.
Because nobody votes primaries but she did win and she is so well liked she didn’t even have an opponent. Looks like to me everyone voted for her opponent that wanted to just think if it would have been a large turn out it would have been a land slide for her. Missy is one of the hardest working Council Persons for 2nd Ward and the City of Evansville.
Comments are closed.