IS IT TRUE? Part 2 July 24, 2011 Mayor’s Letter to IEDC Supports EB-5 Requirements

IS IT TRUE? Part 2 July 24, 2011 Mayor’s Letter to IEDC Supports EB-5 Requirements

IS IT TRUE that the EB-5 program is a program instituted by the United States government in November of 1990 for the purpose of attracting foreign capital and expertise to the good old USA?…that all locations within the United States are eligible to utilize this program?…that Evansville, Indiana is a part of the United States of America?…that therefore Evansville is eligible to EB-5 investment?

IS IT TRUE that the minimum investment per qualified immigrant under the EB-5 program was established at the beginning of the program to be $1,000,000?…that the minimum amount is reduced to $500,000 in cases of investment in “targeted employment areas,” which are either rural areas or areas which experience unemployment of at least 150 percent of the national average rate?

IS IT TRUE that on April 4, 2011 that Mayor Jonathan Weinzapfel of the City of Evansville sent a letter to representatives of the Indiana Economic Development Corporation?…that the purpose of this letter was to support the designation of Census Tract 17 in the City of Evansville as a Targeted Employment Area?…that this letter was clear that the reason for this support was to aid Woodruff Hospitality LLC in developing a Hyatt Place Hotel next to the new Arena?…that the letter also contained speculation with regard to employment levels that are also requirements for approval of EB-5 investments?

Evansville Hyatt Mayors ltr of support 4-4-2011

IS IT TRUE that Woodruff Hospitality proposed EB-5 financing and that John Kish and Mayor Weinzapfel were not only aware of this but were actively doing things to achieve the Targeted Employment Area status that would reduce the investment level requirements for the foreign investors?…that prior to entering the underwriting phase for EB-5 projects that the land must be secured?…that the deal for Woodruff Hospitality to “close” with the City of Evansville for the land was predicated upon Woodruff Hospitality LLC successfully raising approximately $3 Million of up front equity?…that the reason that the Woodruff Hospitality deal went south had nothing to do with the EB-5 program?…that the real problem was that the $3 Million was never successfully raised?

IS IT TRUE that if Woodruff Hospitality would have been successful in raising $3 Million that the deal with the city would have closed and the hotel project would now be awaiting the completion of the underwriting process and the funding process to consummate?…that if on July 3, 2011 that Woodruff Hospitality would have “closed the deal” with the City of Evansville, that in about 4 or 5 months the EB-5 loan (if approved) would fund and the hotel would break ground?…that under that scenario the grand opening would have been SUMMER of 2013?

IS IT TRUE we really wonder why a funding program that was perfectly acceptable to Mayor Weinzapfel and John Kish until July 5th is now the subject of negative speculation about “them foreign investors”?…that we wonder why EB-5 was just fine before so why is it such a tempest in the teapot now?…that it all once again comes down to Woodruff Hospitality LLC not finding success in raising the local money needed to close the deal?…that Prime Lodging LLC has submitted in their financial package letters stating that they have $3.5 Million in equity that is ready to go?…that the Kunkel Group has submitted a statement from Mr. Ben Kunkel regarding his intention to invest $2 Million in the project if his business is chosen?

IS IT TRUE that the “key money” program with Hyatt is what it is and will be equally available without regard to which developer “wins” the bid?…that the “key money” is paid upon opening the hotel and not as up-front equity?

IS IT TRUE that if the Evansville Redevelopment Commission wants to do something that should be quite simple to establish the viability of these developers that they need to ask these prospective developers to “SHOW ME THE MONEY”?…that this would be the up-front equity money and not a fully funded loan?…that no financial institution whether EB-5, a hard money lender from California, or a local bank is going to fully commit or close a loan without both a contract with the City of Evansville AND the transfer of property on which the hotel will sit?