IS IT TRUE October 1, 2013
IS IT TRUE now that the convention hotel deal has passed the Evansville City Council by a vote of 9 – 0 it is time to move forward with that project and see what lessons may have been learned in this 5 year and counting saga that started with former Mayor Weinzapfel proclaiming in 2008 that if that City Council voted to move forward with a downtown arena that Browning Investment was poised to sign on the dotted line to deliver a 4-Star Marriot hotel with a fine dining establishment aptly called JW’s?…lesson number one from this saga that has lasted longer than World War II is to keep your trap shut about deals that are not secure?…lesson number two is secure means that the financing is in place and the vetting is done?…lesson three is that as good as the new deal sounds financially lesson two is not yet behind us with HCW having until March to deliver on their part of the financing or we shall be back to square one again?
IS IT TRUE lesson four is that private investors in Evansville wanted a hotel so much that they were willing to lay $11.5 Million on the table to get one when they saw this opportunity slipping away?…unless this hotel performs to about double its own expectations with respect to revenue and profits these local investing Samaritans will in all likelihood see some of their money go up in flames?…there will of course be other ways of recovering money for this group like capturing depreciation and operating losses that can be used to offset other gains but even the best case pro-forma pretty much guarantees a loss on exit?…taking this risk for something they believe in and wish to see prosper is admirable in this group and the CCO thanks them for stepping up?…the real question is what other things private investors wish to see in Evansville enough to pony up the dollars to make it happen?
IS IT TRUE Mayor Winnecke did indeed reach out to the wealth of Evansville to cobble together a last minute deal that seems to have satisfied most of the people of the town?…Mayor Winnecke rightly identified a lack of any active angel investment group or venture capitalist in Evansville as one of the biggest deterrents to job growth and wealth creation from entrepreneurs during his campaign for Mayor in 2011?…Old National Bank president and CEO Bob Jones, the man who is the face of the investment group behind the hotel one told this writer in 2009 that “Evansville is the only city in the United States over 100,000 people that does not have a venture capital firmâ€?…Mr. Jones was right then and he still is as 4 years later there is still no active angel network or venture capital firm?…if this is so important, and the CCO assures its readers that access to capital is the backbone of entrepreneurship, it is time for Mayor Winnecke to have another conversation with the wealthy citizens of greater Evansville about establishing a venture capital fund with private dollars that has a mission to support entrepreneurs from THIS REGION whose ideas, ambitions, and plans have sufficient merit to VET well and deliver venture capital style returns on investment of over 35% per year?
IS IT TRUE since “JOBS, JOBS, and MORE JOBS†seems to be the justification for all public spending it is time for the elected leadership of Evansville to spend some time on a real job creation engine and that is innovation and entrepreneurship?…if you want to attract and retain educated young professionals this is the path to take?…the highly respected Kauffman Foundation recently reported that ALL (100%) NET JOB GROWTH IN THE UNITED STATES SINCE 1982 CAME FROM START UP COMPANIES?…the CCO would appreciate comments about whether things like hotels, dog parks, arenas, and ball fields are even close in the world of JOB CREATION to venture capital firms and entrepreneurship?…there are many reasons that Silicon Valley, CA had Intel, Oracle, and Apple before they had a modern convention center and a portfolio of downtown hotels?…the jobs and wealth created the atmosphere for private investment to follow with fun, games, hotels, and conventions?…Evansville has traditionally put the cart before the horse and then failed to ever get a horse?…now is the time to get busy and establish a venture capital firm that can leverage the IU Medical School to start Evansville’s first entrepreneurship revolution in nearly 100 years?…this is not a chicken and egg situation as some apologists would like to say?…if the investment funds are not put into place the entrepreneurs will silently go elsewhere as they have for many years?…a word to the wise is usually sufficient?…we shall know whether there is wisdom among our leaders soon but their actions with respect to this gaping hole in local opportunity?
These goons or investors as you call them would never risk money on an idea or an entrepreneur unless it was their own kid. No silver spoon, no investment. This is Evansville. We been chasing talent away for 50 years and it ain’t gonna stop because some big shots bought a hotel.
Well the moneyed folks have surely shown that they have the means. The real test will be if they have the brains to realize the difference in a toy like a hotel and a real game changing investment like the ideas and ambitions of our best young people. My guess is that the hotel will flounder and lose these guys money. Ten years from now when Bob Jones and Joe Wallace are sitting on a beach somewhere retired, Evansville will still not have any active investment group and the smart kids will still leave. The dumb ones of course will stay.
Fox 1, bingo, contact 2, 3, paint, contact lock 4. confirmed.
You surely hit the nail on the head about Evansville’s problem with carts before horses, and I am concerned that will be the case with those who push for a Medical School to be put downtown, without regard to other possibilities.
We must deal with maximizing the assets we have NOW, instead of hanging hopes and plans on pie-in-the-sky.
Speaking of carts before horses, it looks like Obamacare websites are crashing all over the country. Our damn government has lost the ability to boil an egg. This testing should have been done two years ago.
http://twitchy.com/2013/10/01/surprise-obamacare-health-insurance-exchange-websites-dont-work/
Websites crash when they get a lot of “hits” at once. People are really excited to get signed on for ACA, and this is to be expected. Happy first day of “Obamacare”!!
That makes sense. I hope lots of people are not discouraged and don’t try again. This could have been easily managed by a rolling sign up date like all states that start with A, B, or C sign up this week, D, E, F next week etc. Just another example of poor government planning and implementation. And doing it on a day the government is shut down is just stupid.
Or they could be afraid. You have far more hope in government creating solutions than I have.
I think the “excited people” signing up enmass is a ruse to explain away lukewarm interest and a logistical failure. I don’t put it past Borerack one iota to boldface lie to the public, his track record in that respect is undeniable.
I read his morning that 700,000 visited the Oregon website yesterday and only 40,000 signed up. Is that 700,000 different people or just hits from the same 40,000 who signed up getting kicked off the site because of crashes. It is too early to tell but the expectation is lots of interest and few takers. With a $95 penalty if you don’t buy a $4,000 policy in the first year why on earth would a young healthy person ever sign up? Just one more thing the government spent three years on that is effed up to the hilt.
“We have met the Enemy,–and it is us”–Pogo
Since Government has no money of it’s own, –only, what it takes from those that earn it,–and then tells us that they going gift it to someone to build a hotel, and “Trust us, “WE” know what’s good for you”,–and the people can’t figure out what’s wrong with this picture,–Tomorrow looks bleak for the babies yet to be born, for they will come in to the world loaded with Debt to pay, that has been piled on to their lives, and Future, by,(–whomever you think is responsible),
specifically, ————(fill in the blank).
Is it true…..Old National Bank president and CEO Bob Jones, the man who is the face of the investment group behind the hotel one told this writer in 2009 that “Evansville is the only city in the United States over 100,000 people that does not have a venture capital firmâ€?…Mr. Jones was right then and he still is as 4 years later there is still no active angel network or venture capital firm?… (CCO)
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Jones had only been here a year when he told you that Joe. I am sure it didn’t take him long to understand how things work here i Evansville from an investment viewpoint.
There is wealth in this city and county. These individuals have a network sufficient for their purposes, and investing in companies, start-ups or otherwise, that they believe will pay higher than market dividends is one of those purposes.
It would be misleading to report that we have no venture capital here. One only has to look at the ownership of many businesses in the area, or even land for that matter.
Most Angel investments lose money, making it imperative that successful investors have a through knowledge of the business plan of the company and the market they are entering.
The investment capital is here, the challenge is finding the right investment. These individuals did not get to where they are today by being imprudent with their investments, but they do take calculated risks. Unlike many, they can afford to sometimes take risk.
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Correction: Jones arrived at ONB in 2004. He had been here 5 years when he told you that Joe. He surely must have known about the availability of private capital in the area by then.
Bob Jones in my opinion is a very competent and aware individual. I have no reason to doubt what he says.
What Bob said and what I stand by is that there is no venture capital “firm” in Evansville. That is absolutely true and I think that has always been the case. As for angel investment, there was a group that tried to get going several years ago but finding deals was like finding needles in a haystack. They have since ceased having public meetings. That does not mean that friends and family deals are not done between people who know each other. What it does mean is that entrepreneurs without direct connections to wealth have nowhere to go for local funding. Thus the determined ones look elsewhere and the others assimilate into jobs and defer their entrepreneurial ambitions.
Joe:
Must agree with you on access to venture capitol in your Evansville / county area.
Its a fail that costs the area daily. 🙁
This is something most haven’t run into in more innovative locations.
Vibrancy counts too.
Recently discussed concepts with an young business person who has an idea that will really pop an sustainable attraction to the community he locates the venture in.
He is now talking to some friends of mine in Portland OR.
Heard they have made him an outstanding support offer “all in”.
He and his wife are leaving within two weeks to look at an selected enterprise zone type location that sounds like an match for their business concept/plan.
Met this fellow in Nashville Tn. at an innovation seminar.
When he told me what area he was from. Oh boy, my suggestion, look at standing vibrancy of infrastructure support required to make good numbers in an successfully blended start up phase.
Thinking some might be right about the capitol shielding that seems to prevail in your area concerning newer blends of conceptual innovative ventures and that movement forward.
Wow! I think he does have an one of kind original theme of design.
The couple are at this time ready to leap forward,taking an young family on an exciting innovative course. Personally observed the frustration felt by this couple.
Its likely we’ll read good things about that business concept.
They are about to enter an industry that is projected “by the numbers” to have huge positive impact on whatever community accepts them.
They’re Idea and vision makes people feel good,and provides advanced ground level environmental balance.
I predict that concept and business plan will franchise out across the nation in as little as 3-4 years.
One thing for sure, for Evansville, two really good high paying jobs will open up soon when they make that move to the west coast.
His concept has many full time jobs at start up, as planned.
One location…..
We worked on his concepts mechanical service infrastructure along with planning to balance the through put for best customer contact point selections.
Touch point employee numbers indicates 31 FTJ High point 36 FTJ per location. (strong numbers)
Added benefits include 9 vehicles to support and sustain materials inventories. leasing or purchase inventory.
Store front logistics show an main street location could work,however certain other metro points,have far better infrastructure for customer through put commerce. —>(funding stonewall?)<—His thoughts.
Downtown the concept also needs additional receiving connections to main functional customer touch points.
No decent access to building delivery storage.
(fixable with logistical support timing)
Very limited customer parking accessibility downtown.(fixable).
He'll go coastal,they show support in the whole conceptual theme,its an unlocked customer number/per operational hours number.
Evansville might see an plan franchise on the I69/164 traffic corridor
in the distance future.
Customer contact timing does forecast that.
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