IS IT TRUE: March 24, 2012

13

The Mole #??

IS IT TRUE: March 24, 2012

IS IT TRUE that it has now been 24 hours since the City County Observer offered Earthcare Energy a free supportive story if they will send us a third party assessment of their proposed technology that was conducted under real operating conditions as set forth in the report from Concurrent Technologies where they recommended to the Air Force that they should conduct such tests if they really wanted to consider implementing a solution utilizing the Langson device to capture step down pressure from gas transmission lines and turning it into electricity?…that we will extend this offer indefinitely as the financial projections in the “Investment Summary” do not even merit being read for anything but consistency until a real world 3rd party validation by a recognized testing company like Concurrent Technologies has been completed and made available to the people of Evansville?…that between our two 4 year universities, a decent number of companies, and wayward engineers who want to see Evansville do the right thing that there really are a fair number of people who will understand such a report?

IS IT TRUE that GAGE leader Debbie Dewey and two other people one of which is a high ranking Vectren official made the “touch the prototype” pilgrimage to Langson Energy’s Carson City, Nevada facility this week and have verified that the unit in the youtube video does exist?…that no one really doubted that the lab model shown working with a shroud over the “invention” and running at an intake pressure of 70 psi in the youtube video existed?…that running in a controlled condition at pressures that are 90% below real world conditions does not constitute TECHNICAL VETTING?…that even in her letter to the City Council there are no references to any real world testing being completed?…that proclaiming this to be ready for production based on a lab model at fractional operating conditions is the equivalent of pronouncing a new car from a company that has never produced cars to be ready to produce because they have a prototype that will go around the block at 10 miles per hour?…that the CCO will be doing our best to post a copy of this letter prior to Monday’s City Council meeting?

IS IT TRUE that we also have it on good authority that the Evansville City Council will be calling for a vote on this on Monday night?…that the sponsor of the resolution is none other than Finance Committee Chairman Councilman John Friend, CPA?…that Councilman Friend has shared with the CCO that he is not comfortable with the state of the financial projections in the “Investment Summary” provided to the Council through GAGE?…that there are many questions that he has expressed a desire to get answers for including why Earthcare claimed to have a patent when one does not yet exist, whether the number of jobs is estimated at 39 as it says on page 3 or 120 that is in page 5, who will be buying the $10 Million in stock referred to on page 9, and where they intend to borrow the $25 Million referred to on page 9?…that Councilman Friend also expressed a need to see in the pro-forma exactly when the $2.5 Million per year payments will start being made to the City of Evansville as there is no provision to do that in the 5 year financial projections?

IS IT TRUE that in all reality this concept maybe the best thing since sliced bread for Evansville but the untested nature of the device and the inconsistencies within the “Investment Summary” are so far from being ready to be evaluated for investment purposes that the only reasonable action for the City Council to take is to defer a decision on this loan until a real world test is published and a pro-forma that reads like an adult wrote it are made available?…that Ms. Dewey does write in her letter that the patent that has been applied for really does not matter to the success of the project?…that the patent application is only on the concept of combining existing commercially available parts to capture let down pressure and convert it to electricity?…that she even admits that another entity could enter this market but that Earthcare would have a two year head start?…that there are many computer companies that do not exist that had a two year head start on companies like Dell and Apple?…that Earthcare is projecting to lose $26.7 Million during their first two years anyway?…that if this business is a large as studies indicate that there will be many players in this game and some of them with have hundreds of millions of dollars backing them?…that two years and an application patent that may someday be issued, and a $5 Million loan from the City of Evansville will not be sufficient capitalization to compete in such a market?

IS IT TRUE that despite what Earthcare has asserted that there are already players in this market?…that a simple Google search reveals three?

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13 COMMENTS

  1. just once I’d like to see the city council get all the answers before they spend my tax dollars. seems like the more things change, the more they stay the same.

    • Normally I would agree with you, but it was well known that a vote for Winnecke back in November was a vote for more of the same. Not sure why anyone would be surprised.

      • Please clarify how the mayor’s name and affiliations are applicable to the decisions to be made by the city council whether to fund Earthcare Energy’s proposition.

        Same question for Henry below: How would Rick Davis’s election as mayor made a difference in the city council’s decision regarding Earthcare Energy?

        • Does the Mayor not sit at the top of the Board of GAGE?

          Is GAGE not promoting this Project?

          __

          • Yes, but the mayor (R) has no vote on the city council (8D:1R) who holds the purse string vote on this issue, right?

            And my second question was with regard to what difference it would’ve made on this specific issue even if the mayor were Democrat, and if he were Rick Davis.

  3. Earthcare couldn’t have gotten a liars loan from AIG before they went broke and changed to Springleaf. But shaking the darn fools on the city council down for $5M looks like taking candy from babies.

  4. There is no scenario where the City has any business getting involved by loaning real taxpayer money to this type of business investment. None! This was a very poor recommendation. Pull the plug and move on.

    If it is good deal, private capital will invest.

      • It is my understanding even though the money would come from the City Bond Bank, no actual bonds will be sold. The City Bond Bank has money in a checking/savings type account and will actually be making a loan to Earthcare. If Earthcare does not repay the loan,Evansvile (the City Bond Bank) will have lost $5 Million.

        An investment in a startup company is risky and this business adventure is very risky based on the information that has been released.

  6. Hey, I know why we can’t loan anyone 5 mil smackers for Sketchy Thneed Gizmo-we don’t have the money.

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