IS IT TRUE Part 2 September 11, 2013 “What Should Evansville Pay to get a Convention?”

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IS IT TRUE Part 2 September 11, 2013 “What Should Evansville Pay to get a Convention?”

IS IT TRUE the claims of economic payback for conventions over a 25 year period and the cost of the total incentive package to entice a hotelier to come to Evansville is a pretty complex business model that has many assumptions and risks involved in its calculation?…in every advance mathematical model that involves differential equations the initial conditions changing slightly can alter the range of outcomes dramatically?…this was addressed implicitly in the movie “The Butterfly Effect” starring Ashton Kucher several years ago?…in a convention based math model each convention brings its own initial conditions and the most indicative of those is whether the Evansville experience for the conventions attendees is a good experience or not?…the ultimate irony would occur if there really was a 5-Star hotel with every amenity known to man but the combined sewers light up the aroma of downtown for every convention for one year?…is such a scenario where people were so offended by the smell of the sewers the entire investment in that 5-Star hotel would be negated by the smell and repeat business would not happen?…as we all know a $100 Million 5-Star hotel will not be happening anytime soon and the truth be told a $30 Million limited service hotel as was proposed by both Woodruff and Kunkel would be sufficient to provide the accommodations needed (as opposed to wanted) for the kinds of conventions that Evansville will have a real shot at bringing in?

IS IT TRUE let us pose the following question, “Would Evansville PAY any convention manager $200,000 in advance for each convention they would commit to bring to town?”…if this answer is yes then maybe the deal that is on the table is worthy of consideration?…if the answer is no the answer is clearly that this deal needs to be tabled until something better comes along?…Evansville currently gets about 35 conventions per year and Fort Wayne is represented to get 50?…if Evansville can aspire to perform exactly like Fort Wayne in attracting extra conventions then we can expect to bring in 15 more?…this does not speak to the quality of the conventions but only the quantity?…Fort Wayne’s extra 15 includes everything from a 50 person domestic low budget convention up to the Indiana Democratic Party that has been there once?…the note for the hotel incentive according to Mayor Winnecke will be $2.6 Million per year and the operating annual losses of the parking garage will be in the $100,000 range?…that amortizing those annual payments over the 15 new conventions that we expect to get calculates out to roughly $200,000 per convention?…we therefore reiterate our question?

Evansville, if a convention planner would commit to bring in a convention in 2014 before a hotel is possible would you pay that planner $200,000? Evansville if that planner would commit to a 25 year contract to bring a convention in every year for the next 25 years would you pay this planner $5 Million over the next 25 years?

IS IT TRUE we openly solicit economic arguments for and against paying such direct incentives from each and every member of the City Council?…we also would like to know how many members of the Evansville City Council would borrow $100,000 to make a personal investment in the hotel as proposed?…if the answer is NO ONE WOULD, that is very telling?

IS IT TRUE that in spite of the fact that the City Council voted 8 – 1 in favor of hiring Crowe-Horwath to VET this deal on Monday night, a contract is not yet even written and the vetting has not begun?…the inertia of the train called Evansville is slowing down a process that our leadership wanted to expedite?…at this rate the vetting may be done by Christmas?

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8 COMMENTS

  1. Everybody somewhat has an dog in this show,I do like the idea of an hotel downtown at the former location of the executive. But with some funding adjustments.
    The civic center itself is dated,gosh the thing looks like it is something that should be in an “1965 ish” presentation of an Eastern block gulag.
    There is need of some updating on that eyesore as well as an nice hotel nearby. Decent landscaping with recovered rain run off for non potable watering would be a start….Addition of some hybrid vehicle solar and wind powered charging parking spot in the front of the back forty would encourage an green city stamp from the Feds,heck they might be worth an metered use application..even.
    The whole enigma of the situation is we can adjust the size of the hotel needed and how its funded somewhat to come out better for everyone involved.
    Look: use the infrastructure improvements on some Bio-Technical advances in storm water, energy management and area urban renovation projecting.
    A city runs on more than conventions. We have to start the process of combined sewers river management,my question is this what is in the design that can improve on that problem? That’s true infrastructure planning.
    “Incremental progress” with new projects on the plate here can add up to some positive numbers in moving forward on multiple applications.
    You know with one goal to move life quality up an notch for everyone concerned.
    We don’t need to fight progress we need to use it to advance the whole community and all its needs forward That’s planning more like the elevation and evolution a whole metro location needs to move up and forward.
    Evansville has hotels,ball,fields,parks and recreation along with the arts and education growth needed to address the future communities affordable livability.
    All that and an billion dollar order to fix Evansville’s water management issues inside of 20-25 years.
    I say lets do it all, tie it together with one goal with several objectives in incremental applications.
    The goal is to grow your economy with the present technology and increase commerce to provide good jobs. Skilled jobs through advancing technology and progressive innovative concepts.
    No problem is anybody listening?
    I’m not into the political streaming I just want to see the place be what it is capable of. You all know you have the know how,its kind of getting a bit rusty though.

    Thanks for the available space to scrip this,I do hope its read.

  3. Looks like I have to change my blog name. I getting extremely interested in reading the CCO IIT, Joe Wallace, Brad Linzy and now V-is-to-r articles and blogs.

    They are extremely bright and I just love to read what they say.

    However I just don’t understand this Wayne Parke guy at all. How in the heck did he ever become party chairmen of the local Republican party?

    • Never Blog, you don’t have to be bright to be party chairmen of the local GOP. All you need is money.

      I guess Parke must have money.

  5. Enterprise revenues or taxation? I vote for enterprise revenues. Take the County Option Income Tax out of the financing scheme and see if you can peddle your bonds anywhere.

    Government is not supposed to be a burden on the individual.

    ___

  6. Would any council members borrow $100. to invest in the hotel??????? Don’t force the taxpayers and future taxpayers to do so.

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