
Evansville Redevelopment Commissioner Ed Hafer in an email to City Council Budget Chairman John Friend, CPA admits that the ERC voted unanimously in favor of the downtown hotel project without having current projections and pro-formas from the developer. An excerpt from the correspondence from Hafer to Friend is as follows
“With respect to the information you are seeking; I believe you are under the
impression that I have far more information than I actually have. All I have are
early projections as to the hotel operations and a one page pro-forma that was
completed in February that is very close to the final room count, but I do not
know if it conforms to their latest assumptions with regard to occupancy rates,
room rates, expenses etc.”
To Which Councilman Friend Responded as follows:
“Ed
Not sure if you received my email concerning confirmation that I can meet
with Rick Huffman tomorrow at 1 pm at my office. During our meeting with the
Mayor, last Tuesday morning, when I asked for the Business Plan, you pointed to
reports in front of you and indicated that you would have to speak with Rick
Huffman about releasing what clearly appeared to be an extension document. Now,
you are indicating that you do not have a comprehensive document, in some
circles a private prospectus and in others, a Business Plan. Please don’t tell
me that the ERC would take up such a multi-millions dollar project without the
benefit of receiving the comprehensive business plan, with pro forma information
over at least three years, the assumptions and assertions, management team
expertise, those sort of things. If this is the case, obviously, this would be
outside of the definition of “Best Business Practices” Please note that I will
be expecting to receive a comprehensive business [prospectus] Plan with all the
necessary assumptions, etc. therein tomorrow from Mr. Huffman…. Thanks, John