IS IT TRUE? Part 2 August 10, 2011

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IS IT TRUE? Part 2 August 10, 2011

IS IT TRUE that the Executive Session of the Evansville Redevelopment Commission that is scheduled for August 12, 2011 at 11:15 am in Room #307 of the Civic Center will NOT BE OPEN TO THE PUBLIC?…that the SPECIAL MEETING held afterward at 12:15 in the same location WILL BE OPEN TO THE PUBLIC?…that there is much speculation surrounding the outcome of this meeting?…that there are those who are expecting a decision to be announced with respect to the decision on the developer of the downtown Convention Hotel?…that the announcement that London Witte would be vetting the proposals was only communicated last Friday?…that if a decision was reached so quickly that we would like to see the criteria used during the vetting process?…that stranger things have happened with the ERC recently but that we still expect the vetting to take a little bit longer?

IS IT TRUE that we are hearing conflicting information regarding the downtown branch of the US Post Office?…that we have information from insiders that indicate that the retail part of the downtown post office will be closed soon?…that we have inside information that indicates that the USPO will keep “operations” at the Sycamore location up and running?…that the only thing that is true for sure is that the building’s owner has put it on the market?…that there seems to be allot of commercial property owners who are trying to capitalize on the opening of the new Arena by selling their holdings and exiting the downtown?…that if they saw the Arena as highly accretive to their property that they probably would not be doing this?…that if the Arena is to inspire investment that the properties need to be in the hands of investors with cash?…that the turnover of properties into new management is actually a positive indicator for future downtown investment?…that putting up a for sale sign does not always make a transaction happen?

IS IT TRUE that our friend and ally, Great Britain is experiencing a bit of domestic turmoil in the streets this week?…that looters under the guise of “social unrest” seem to be taking advantage of the rotten economy to help themselves to the property of others?…that this brings back memories of the aftermath of the Rodney King trials in Los Angeles?…that when a gang of looters headed for Koreatown in LA determined to create mayhem and loot the stores that the Korean’s met the mob with guns to protect their property?…that the mob backed off when faced with an organized and armed group of citizens?…that if the United Kingdom enjoyed the same 2nd Amendment rights that the United States enjoys that these looters would be back home on the couch drinking beer and watching soccer right now?…that private gun ownership is why we do not report to the British monarchy in the USA?…that the 2nd Amendment is one lesson that Great Britain could learn from the former colonies known as the United States of America?

IS IT TRUE that we are very pleased at the recent statistics that show a drop in the suicides in Vanderburgh County after last year’s record high?…that with the newly aware teams of litter pickers, the EPA ruling on sewers, the renewed awareness of the problems in our parks, the realization that there will be a new administration in the City of Evansville, and a renewed focus on improvement that maybe just maybe Evansville is about to hit an upswing?…that we wish everyone a good and prosperous day?

24 COMMENTS

  1. Told you so Mr. Editor! Would you like for me to tell you which proposal will be chosen too?

  2. Just a bit more info., do you really think that Kish is on vacation or is he really with Mr. Witte aiding in the vetting process?

    • If you want to go private with any discussions please use “contact us”. A direct email is there.

    • I think that you are correct. I also am certain that no substantial vetting has been done yet. If a choice is made on Friday and a decision is made next Tuesday it will be without the benefit of the full vetting process that the ERC is justifiably paying for. You are exactly correct on the dates that Mr. Kish wanted. It seems as though he was not leaving enough time for a full bore vetting process to play out. To really have done this right I will venture to postulate that the soonest announcement will come on August 30th and the latest on September 13th.

      That is assuming that at least one of the current bidders passes muster. If neither of the current bidders is approved through the vetting cycle then Evansville is in for a long and expensive experience to get a hotel downtown.

  3. Was there an actual “announcement” re: London Witte CPA’s being selected last Friday to do the vetting? I thought there was “speculation” they would be selected ?
    There is no way in the world that there is already an announcement ready re: the selected hotel developer: the consultants have not made enough money yet to already have a decision !!! They will “need” a couple of moneys to thoroughly maximize their billable hours !!!

    • That’s funny! However, I do find it disturbing that everyone was singing the blues about how much it will cost to have the proposals vetted and now they are ready to select a developer after only a couple weeks and people are crying about that too. I am beginning to wonder why I even read this stuff, it’s nothing more than people wanting to b***H about everything and anything! Cities can be likened to a plant, in order for them to grow it takes time and water. With a city it takes time and money. Anyone who is crying simply doesn’t want Evansville to grow. Throwning up a hotel in any other city doesn’t even make the news however, here it’s on the news every 2-3 days.

      • jack, I was just kidding about “they haven’t had time to rack up enough billable hours”. I am stating that I don’t think a thorough vetting process could be accomplished in three business days (announced last Friday, must be done today–Wednesday–or they couldn’t announce the outcome of it this Friday). I am not ‘singing the blues’ about the cost of vetting, so long as it is an independent process (and for that, I WILL likely be singing the blues, and having to drink tasty ales to overcome my sorrow). I don’t think there is any way in the world that they announce the winner of the sweepstakes on Friday . . . I am guessing they will fire Kish on Friday and send him packing on the next Scapegoat Air flight to Indy.

        • That makes no sense, John Friend just requested his presence at the council meeting in 2 weeks.

          • If Kish gets the heave-ho on Friday, then I guess he won’t have to show up at the council meeting in 2 weeks to face the ” Friend(ly) Fire”. Cunning strategy by the rocket scientists at ERC.

  4. If this meeting had anything to do with Kish it would have been pursuant to IC 5-14-1.5-6.1(9) However, the session is pursuant to IC 5-14-1.5-6.1(b)(4) which states the reason for the metting involves one or more of the following reasons “Interviews and negotiations with industrial or commercial prospects or agents of industrial or commercial prospects by the Indiana economic development corporation, the office of tourism development, the Indiana finance authority, the ports of Indiana, an economic development commission, the Indiana state department of agriculture, a local economic development organization (as defined in IC 5-28-11-2(3)), or a governing body of a political subdivision.

    • Jack, Kish is an industrial agent, and a damn fine out to boot ! A (b)(4) kind of guy !

      • Okay, here it is! The meeting on Friday is to select a developer……..that developer is ..The Kunkel Group! Remember where you heard it first!

        • Jack: if your prediction is correct , there should be an immediate investigation conducted by the Vandy Co. Prosecutor. I hope you are wrong !

        • What about the 2006 $381,000 “loan” from the City to Kunkle Group at 0% interest with no annual payments after apparent modifications that earlier had interest and annual payments? What is the status? Unpaid? Nothing due? Paid in full? Even the clueless ERC and any real businessman would want to get in front of this potential conflict of interest with the City and a debtor to the City. Are Mr. Davis and Mr. Winnecke even aware all of this is going on? Last I heard they were busy preparing to discuss the all important issue of bike trails.

  5. Let me add a little to this, what Verville is proposing is EXACTLY the same as Woodruff proposed (which didn’t work)! The only exception is the name of the company. EVERYTHING from design to financing is identical, Chris is the strawman that you are looking for!

    • I think that the difference in the proposals of Woodruff and Prime is in the presence of investor equity of $3.5 Million in the Prime proposal. The Kunkel proposal listed Ben Kunkel as putting up 2.0 Million in equity and using $1.0 Million from Hyatt bringing the initial equity of the proposal to $3.0 Million.

      Either amount that can be verified should be sufficient to go on to the next phase of vetting. The long term financing means nothing if the owner equity is not in place and verifiable. Woodruff’s problem was that they did not have the $3.0 Million in equity investment. That was the deal killer.

      Now if both companies have the cash and are willing to escrow it then then London Witte can move on to the real viability of each proposal and the financing that they have proposed.

      There is no way that a full vetting of both proposals has taken place in this time frame. There is a possibility that one or both could have been eliminated for a number of reasons.

      If one has been eliminated then the other still needs to be fully vetted. If both are eliminated it is back to the old drawing board.

      That said, Jack may still be correct if the vetting process has been short circuited. I for one am looking forward to learning exactly what London Witte used as objective criteria.

      • Yes, you are absolutely corret in everything that you just stated. It didn’t take a vetting process to tell us that Prime’s financing is not really a viable but that’s what the people wanted. Is it true that Prime lodging has already been KO’ed?

        • The BIGGEST difference is the amount of the forgivable loan from the city that Prime is wanting. It doesn’t even meet the initial requirements of the proposal that the city put out there. Is it possible that they could be done vetting because they only had to look at one proposal?

  6. To be specific Kunkel is proposing a 3.5 million amortizing loan and 4.5 million in the form of a forgivable loan. Prime is asking for a 7.28 million forgivable loan from the city. This is where one of many problems lie within their financing. The city stated in it’s proposal package that it would give an 8 million dollar loan with no more than 4.5 of it being forgivable. That within itself is enough to tell Prime that their proposal doesn’t meet the minimum requirement and therefore shouldn’t even get out of the stall. Why would the city want to spend the money to vet a proposal that doesn’t meet the minimum requirements? Don’t make me get started on the EB-5 madness.

  7. Nice thought, however those boys are not even in my league. No matter what this city thinks this hotel is beans in comparison to projects that I am currently involved with. Keep guessing and maybe one day I will let you know.

    • Sounds like you’re either not from Evansville, or you’re a part of the Arena project.

      Or maybe just exaggerating.

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