
IS IT TRUE October 1, 2013
IS IT TRUE now that the convention hotel deal has passed the Evansville City Council by a vote of 9 – 0 it is time to move forward with that project and see what lessons may have been learned in this 5 year and counting saga that started with former Mayor Weinzapfel proclaiming in 2008 that if that City Council voted to move forward with a downtown arena that Browning Investment was poised to sign on the dotted line to deliver a 4-Star Marriot hotel with a fine dining establishment aptly called JW’s?…lesson number one from this saga that has lasted longer than World War II is to keep your trap shut about deals that are not secure?…lesson number two is secure means that the financing is in place and the vetting is done?…lesson three is that as good as the new deal sounds financially lesson two is not yet behind us with HCW having until March to deliver on their part of the financing or we shall be back to square one again?
IS IT TRUE lesson four is that private investors in Evansville wanted a hotel so much that they were willing to lay $11.5 Million on the table to get one when they saw this opportunity slipping away?…unless this hotel performs to about double its own expectations with respect to revenue and profits these local investing Samaritans will in all likelihood see some of their money go up in flames?…there will of course be other ways of recovering money for this group like capturing depreciation and operating losses that can be used to offset other gains but even the best case pro-forma pretty much guarantees a loss on exit?…taking this risk for something they believe in and wish to see prosper is admirable in this group and the CCO thanks them for stepping up?…the real question is what other things private investors wish to see in Evansville enough to pony up the dollars to make it happen?
IS IT TRUE Mayor Winnecke did indeed reach out to the wealth of Evansville to cobble together a last minute deal that seems to have satisfied most of the people of the town?…Mayor Winnecke rightly identified a lack of any active angel investment group or venture capitalist in Evansville as one of the biggest deterrents to job growth and wealth creation from entrepreneurs during his campaign for Mayor in 2011?…Old National Bank president and CEO Bob Jones, the man who is the face of the investment group behind the hotel one told this writer in 2009 that “Evansville is the only city in the United States over 100,000 people that does not have a venture capital firmâ€?…Mr. Jones was right then and he still is as 4 years later there is still no active angel network or venture capital firm?…if this is so important, and the CCO assures its readers that access to capital is the backbone of entrepreneurship, it is time for Mayor Winnecke to have another conversation with the wealthy citizens of greater Evansville about establishing a venture capital fund with private dollars that has a mission to support entrepreneurs from THIS REGION whose ideas, ambitions, and plans have sufficient merit to VET well and deliver venture capital style returns on investment of over 35% per year?
IS IT TRUE since “JOBS, JOBS, and MORE JOBS†seems to be the justification for all public spending it is time for the elected leadership of Evansville to spend some time on a real job creation engine and that is innovation and entrepreneurship?…if you want to attract and retain educated young professionals this is the path to take?…the highly respected Kauffman Foundation recently reported that ALL (100%) NET JOB GROWTH IN THE UNITED STATES SINCE 1982 CAME FROM START UP COMPANIES?…the CCO would appreciate comments about whether things like hotels, dog parks, arenas, and ball fields are even close in the world of JOB CREATION to venture capital firms and entrepreneurship?…there are many reasons that Silicon Valley, CA had Intel, Oracle, and Apple before they had a modern convention center and a portfolio of downtown hotels?…the jobs and wealth created the atmosphere for private investment to follow with fun, games, hotels, and conventions?…Evansville has traditionally put the cart before the horse and then failed to ever get a horse?…now is the time to get busy and establish a venture capital firm that can leverage the IU Medical School to start Evansville’s first entrepreneurship revolution in nearly 100 years?…this is not a chicken and egg situation as some apologists would like to say?…if the investment funds are not put into place the entrepreneurs will silently go elsewhere as they have for many years?…a word to the wise is usually sufficient?…we shall know whether there is wisdom among our leaders soon but their actions with respect to this gaping hole in local opportunity?