IS IT TRUE? November 28, 2011

14

The Mole #??

IS IT TRUE? November 28, 2011

IS IT TRUE that tonight, November 28, 2011 there will be a hearing of the Indiana Utilities Regulatory Commission at THE CENTRE beginning at 5:30?…that the topic of discussion is the proposed “dense pack” project and the way that Vectren is proposing to finance it?…that this meeting is OPEN TO THE PUBLIC and that the PUBLIC WILL BE ALLOWED TO SPEAK?…that those who complain that the IURC is a rubber stamp group that never comes to Evansville and won’t listen to regular people need to make a point to be at this meeting?…that this is an opportunity to start an education process between the IURC, Vectren, and the people of Evansville that should have started many years ago?…that this is a repeat but we know it as it seems as though people need at least 5 reminders to commit anything to memory?

IS IT TRUE the City County Observer checked the Assessor’s website today and that that the McCurdy Hotel owned by City Centre Properties LLC of Carmel, IN has officially been declared to be delinquent on their tax bill?… that City Centre Properties that owns tract #82-06-30-020-005.002-029, aka the McCurdy Hotel has failed to pay their Fall 2011 installment of their real estate taxes?…that the tax bill on that property that was due last week was $10,268.66 but has now a penalty of 5% is now $10,782.69?…that if they don’t pay this by December 10th they will be popped with another 5% penalty?…that the choice not to pay this tax bill serves as an early indicator that City Center Properties LLC either does not have the means or intention to move forward with this project without public money handed to them to do so?…that it is now a high probability that these taxes will not be paid by the time that the current 30 day extension expires on November 30th?…that all we can say is “here we go again” on the McCurdy Hotel project?

IS IT TRUE that the CCO is glad to see and hear that the Courier and WIKY have actually chosen to jump on this bandwagon and help out with informing the people of Evansville just how poorly their hard earned tax money is being managed?…that by choosing not to pay these real estate taxes but never failing to contribute to the “Weinzapfel for Something” campaign that City Centre Properties LLC is basically giving one big middle finger to the ERC and the people of Evansville?…that we wonder if there will ever be any negative consequence associated with these blatantly non-compliant actions?

IS IT TRUE that there are only 2 more meetings this year of the ERC and that means that there will only be 2 more meetings ever with the Weinzapfel Administration pulling the strings?…that the next scheduled meeting is for December 6, 2011 and that McCurdyGate will have played itself out for the 4th time by then?…that the best course of action for the ERC would be to schedule a special meeting on December 1, 2011 to put a fork in this turkey if the taxes are not paid and the financing is not secured in writing with dates, numbers, and names?…that once again the failure to VET has bitten Evansville on the backside and this kind of oversight has to be ceased?…that every day that the ERC and the Weinzapfel Administration let this fiasco continue is a day that a qualified developer cannot come forward?

IS IT TRUE that the CCO has been made aware that there was at one time an interested party (local) in turning the McCurdy back into a classic hotel as it should be?…that if City Centre Properties LLC fails again to get that last signature that has been needed for 18 months that it is time to start legally unwinding this deal and for the Weinzapfel Administration to eat the losses, absorb the humiliation and enjoy a big Christmas Crow for many meals?…that there are only so many times that a can should be kicked down the road without looking as effective as the STUPOR COMMITTEE?

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14 COMMENTS

  1. I hope somebody will bring up the idea of “maintenance” on this dense pack technology?

    The advertisement talks all about the capital investment which should last, 36 years… Talks all about the “net” impact, after considering specifically the offset of smaller coal demand… Ironically and/or conveniently, there is no mention of the impact “net” of other EXPENSES.

    Any 36 year asset that I’ve ever seen, requires periodic and at times – very significant – maintenances expenses.

    What about paint every couple years?
    What about the energy usage?
    What about periodic overhauls & labor?

    Can we ask, how dense, is the IURC?

    • eville taxpayer i have questions of my own to ask vectren ,feel free to ask vectren yourself !!!

    • 1) they don’t paint the insides of turbines where the technology will be installed

      2) the new technology is basically a more efficient way for the turbine to use the steam generated by coal fired boilers, therefore less coal will be used to produce the same amount of electricity, so less energy will be used, about 5% according to Vectren

      3) Vectren used to rebuild their turbines every 2-3 years but these days they are stretching that to 5-8 years. The new technology won’t affect that schedule

    • $1,403,000 plus the time value of that money, any legal fees, and future costs for another project. This and the taxes that may go uncollected.

  3. Editor: would you mind itemizing the composition of the $ 1,403,000 ?

    Thanks,

    The Biscuit

    • $603,000 for parking lot
      $800,000 for incentives of $10,000 per apartment x 80 apartments.

      There is a potential for up to another $160,000 if they do the project and squeeze 96 units into the building.

  4. Ed, Thanks. Has the $ 800,000 already been paid to City Centre properties?

    If the $ 800,000 has already been paid, that is pure folly. If the $ 800,000 was paid prior to these bozos having their loan approved, fraud charges should be pressed unless City Centre returns the money. Also, if the $ 800,000 has already been paid, and City Centre has no expenses on the project, and still refuses to pay their property taxes . . . hope to see a rope swingin’ soon in my crystal ball. It is beyond belief that anyone would give out “grants” before a loan approval. What costs would a developer have before their financing was in place ?

    Also, will the City “get back” the $ 603,000 parking lot–i.e., in default, does that revert to the City ?

    • They bought the McCurdy from the City with the $800,000 sort of like me giving you $5 to buy a beer from me.

      The recorded sales price on the assessors website is actually about $821,000

  6. It sounds like the $ 800,000 was “soft money” (City gives CCP $ 800K; CCP gives the $ 800K back to buy the building). In other words, the City is only out a dilapidated, vacant building if they can’t get the McCurdy back (plus the opportunity of someone developing it). My guess, the City will get the building back in exchange for agreeing not to sue and writing off the delinquent property taxes.

    The $ 603,000 for parking is most surely a “hard money” outlay. If the City gets back title to the parking lot, then the City is only out the difference of the current value of the parking lot and the bloated, insider deal for $ 603,000.

    I am missing something ? Seems like Fifth Third got in the mix somehow ? If this project never got off the ground, how could Fifth Third have outstanding amounts due/collateral ? Geez, the City gave these guys everything. What is Fifth Third’s role in this transaction?

    • There is the potential for a loan from 5th 3rd to be in first position. Worst case subject to the fine print is that the property goes to auction, 5th 3rd gets a short payoff and the city is out $603,000 and the building. Some 3rd party bidder would own the building and the parking lot.

      • maybe if 5/3 gifts the property and lot to the City, the City could lower that Citizens Bank loan circa 1982 to build the downtown HQ from 2 % to 0 %, and put 5/3 on the same footing as Kunkel on loans ?

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