IS IT TRUE that the irrational exuberance of pending permits and construction is once again making its way into the mainstream media reports of the potential of downtown Evansville to be an attractive place to live?…the latest glee party has the announcement of the IU Medical School’s choice of downtown Evansville spreading pixie dust down at the McCurdy and making getting financing for its refurbishment evolve from impossible to a slam dunk with multiple banks coming forward to compete for the deal?…the 5th time around for the McCurdy will be subject to the same rules of collateralization and valuation that the first 4 failed attempts have?…unless pixie dust of the IU Medical School increases the cash flow of the McCurdy in magical ways the numbers will not be substantially different than they have been since the ERC invested $603,000 in the parking lot and handed a Carmel based donor to the Weinzapfel campaign $800,000 to make the impossible happen?
IS IT TRUE at last announcement the plans for the McCurdy were for it to be refurbished into an old folks home?…the IU Medical school will not increase the federal payments allowed to old folk’s homes nor will it increase the ability of the convalescent to pay, therefore if the McCurdy is to be a rest home the IU Medical School will not change things one bit?…if however the McCurdy is to be changed to apartments there will indeed be an increase in demand for downtown apartments and it may see some increase in value due to the opening (not to be confused with the announcement) of the IU Medical School?…the question then is just how much rent would need to be scheduled to borrow the $12 Million that it has been asserted is needed to refurbish the McCurdy?…a 70% loan to value would require a valuation of $17.15 Million for a bank to go forward with the financing of a $12 Million loan?…the payment on this loan at 7% amortized over 20 years would be $113,036 per month?…the occupancy assumption that a bank will allow will be 80% so with 93 units in the building, the collected rent per month will have to be $1,518 per month just to service the debt?…when one adds the cost of management, maintenance, utilities, etc. this will not be a viable loan amount unless these apartments will be renting for at least $2,000 per month?…we highly doubt that there is any student that is in the market for a $2,000 per month apartment so the real question is whether or not teacher’s will be so enamored with downtown that they will pay $2,000 per month?…we are skeptical about any location in Evansville, Indiana with no grocery store, no gas station, etc. commanding $2,000 per month for a one or two bedroom apartment?
IS IT TRUE the pixie dust is not as strong as some are inclined to delude themselves into thinking?…the only use of the McCurdy that will have a cash flow that will support a cash flow of $2,000 per unit per month is a historic hotel?…at a rate of $125 per day as a hotel with a 55% occupancy rate, the numbers work?…even at that rate there is the issue of coming up with a $5 Million down payment to meet the LTV requirements?…the pixie dust crowd needs to put their Tom Terrific thinking caps on and use their analytical skills instead of letting their creative side fill them with illusions as the “downtown or nothing” crowd has been doing since the dawn of the century?
IS IT TRUE the CCO has it on very good authority that the results of the 2012 audits of the City of Evansville and the Sewer and Water Utilities will result in ADVERSE OPINIONS?…there are those who will try to spin these ADVERSE OPINIONS as an improvement over the 2011 audits which were “DISCLAIMER” opinions?…the spin machine is wrong on this and is expected to try to whitewash the results with this spin?…a DISCLAIMER opinion means that the books are too messed up to even do an audit?…an ADVERSE opinions means the books were good enough to audit but that the audit team disagrees with the group being audited about the results?…it is our expectation that despite some public claims to the contrary the accounts of the City of Evansville were NOT RECONCILED for the year 2012?…it is also our expectation that terms like “non-compliant”, “materially incorrect”, and “overdrawn accounts” will be prevalent in the audit report if it is ever released to the public?…we furthermore expect it to be reported that the MIPS software that the Weinzapfel Administration botched up worse than Kathleen Sebilius botched the healthcare.gov software launch is still not sufficient to manage with and that the roots of all of these problems are that botched installation?
IS IT TRUE it should give us no comfort as our city leaders move forward to borrow $77 Million at bankrupt city interest rates of 7% that EVANSVILLE HAS NOT HAD A CLEAN AUDIT WITH RECONCILED ACCOUNTS SINCE 2010?…that is 40 full months without having the ability to balance the checkbook?…this is an unacceptable way to govern and certainly not a strong position for an entity hellbent to borrow $77 Million?
IS IT TRUE that we just posted the April 2014 political contribution reports for Marsha Abell and Bruce Ungethiem? …the reports ware listed below.  …that we also will be posting the finance reports for January 2014  for Abell and Ungethiem in tomorrow  CCO?
