
IS IT TRUE September 26, 2013
IS IT TRUE the approval of the downtown convention hotel is all but assured since a sharing of information with respect to the financing and sourcing of the non-public funds that are going into the hotel has been made known to most of the Evansville City Council?…the way is shakes out is that a local group of investors lead by Old National Bank will become a 25% owner of the hotel portion of the venture for the sum of $11.5 Million?…the City of Evansville as proposed Monday night will subsidize the project with $7.5 Million leaving HCW of Branson, Missouri with the task of bringing $27 Million to the table with a combination of loans and cash?…given that an outside investment group is in for $11.5 Million this will mean the hotel’s initial capitalization will be $46 Million and can act as its own comp for assessment purposes should the Office of the Assessor choose do assess it that way?…once upon a time in the chambers of the Evansville City Council former Ford Center project manager John Kish did indeed say that one of the other three attempts at a hotel would be assessed at construction costs?…if this is the case the property tax stream just got sweeter for the City of Evansville by nearly a factor of relative 2 to real market value?…it will be most interesting to see where this assessment falls since even after the constitutional mandate for market price assessment there are plenty of properties in the county that are currently assessed both well under to more than double what they would sell for if exposed to the market?
IS IT TRUE the City County Observer thanks and congratulates the local group of investors along with the Old National Bank for making the private investment they have agreed to make?…this breaks the mold for how things have been done in Evansville when it comes to letting local government fleece the taxpayers with overpriced construction projects?…THIS IS THE WAY THINGS SHOULD GET DONE?…we hope you all recall our call for private investment and stock placement example calling for exactly that to happen over two weeks ago?…we hope this will become the new paradigm for public-private partnerships in Evansville and the rest of the country?…it is time for such ventures to all be more balanced with respect to returns on investment and absorption of losses?…we hope all of our readers realize just how big of a financial risk the local investors are assuming to essentially “bet on downtown Evansvilleâ€?
IS IT TRUE next up for Evansville will be the cash war for the IU Medical School?…make no mistake about it this will be expensive and competitive?…it was stated in Monday’s City Council meeting that only $85 Million more dollars can be bonded without hitting the credit limit of the City?…for the time being anyone who truly supports attracting this medical school to downtown or even somewhere else in the City of Evansville needs to shut their trap about dog parks, skateboarders, the Zoo improvements, the Mesker Amphitheatre, Centennial Park, or any fun and games nonsense that someone may dream up?…the Indiana University Medical School is a transformational project of lasting substance?…this is the kind of thing that can create a legacy?…it is also the first project in many years to make headlines that is not just a fluff project created to torch public dollars?…the price of the incentive for the medical school may only end up being 3 or 4 times what the convention hotel will be but the impact will be hundreds of times what the impact of even a Ritz-Carleton would have been?…this is the big leagues in a place that has traditionally been bush league?…we do hope that the cost of the project does not get bid up beyond the capacity of Evansville to bond?…if that happens we can blame the obsession of the last two mayors with fun, games, and borrowing?
IS IT TRUE that our own TOP 10 nationally ranked Signature School has a waiting list that is growing and getting so long it cannot meet the demand?…this is what happens when success is attained on a national level?…this is a good thing and we encourage the other “businesses†downtown to do something that gets them a TOP 10 national ranking for 5 years in a row?…success will follow?…that is how the Evansville Aces could fill the Ford Center, or Roberts, or a giant pole barn?…winning fills the seats and the application queue?…this hotel deal looks like a win for the City of Evansville if it all plays out as planned?…it has been a while and the win is needed but there are still many pitfalls on the road to actualization of this entire project?…watch out for reduction in scope requests and hedging of bets to start before the ink in dry on next Monday’s resolution?