IS IT TRUE? September 20, 2011 Special McCurdy Supplement

IS IT TRUE that it has been over a year since the last extension was granted to City Centre Properties LLC to get started on the refurbishment of the McCurdy Hotel the public will finally be given a presentation about the status of this project?…that it seems like this project has been a couple of months away from starting for the entire four years since the smile filled press conference to announce that the McCurdy would become luxury apartments?…that the USA is a different place now and that financing that was routine in 2007 is impossible to get now?…that downtown living which was a pretty hot market then is a pretty dead market now?…that the reason that the market is dead has as much or more to do with banks not lending and new rules from the government loan buyers Fannie Mae and Freddie Mac as it does with the properties themselves?…that like it or not it is time for the Evansville Redevelopment Commission to listen to what City Centre has to say and then bite the bullet of the realities of 2011 whatever that may be?

IS IT TRUE that the first question from the ERC to City Centre Properties should be “when are you going to pay your overdue taxes of $12,274.76”?…that if the habitual late payment of real estate taxes needs to be addressed in this meeting?…that without that on the table all of the rest of the explanations are meaningless?…that borrowing over $1 Million against a property and failing to pay $12k in taxes is no way to start a refurbishment?

IS IT TRUE that the realities of 2011 are that construction prices are higher than they were in 2007 but property values are lower?…that rents are also lower?…that demand is also lower for luxury of any kind?…that the McCurdy project which was financially thin when it was conceived may just not work with higher costs, lower demand, and of course the problems that come when a property sits empty for several years?…that then there is the 90 room hotel next door that only brought a bid of $325,000 at a failed auction and is currently offered for sale at $1.25 Million which only 10% of the 2007 estimate to refurbish the McCurdy?…that this morning is a time to hold ones rabbit foot and wish for the best but to prepare for the worst?

IS IT TRUE that the worst if it comes will reflect pretty darn bad on the deal making skills of the Evansville Redevelopment Commission?…that if the agreement with City Centre Properties is rescinded for failure to perform that a chain of events may be started that results in an auction of the property to satisfy the 1st Mortgage held by 5th 3rd Bank?…that if this happens there is an overwhelming probability that the City of Evansville will lose the entire investment of $1,403,000 and that some other party will own the McCurdy?…that if this unfolds in this manner that there should be a thorough audit of the process that allowed such a thing to happen?

IS IT TRUE that the other option that is available to the Evansville Redevelopment Commission is the do nothing option that will effectively kick this can down the road to the next Mayor of Evansville to deal with?…that we are betting that scenario two will be chosen as politicians and their appointed officials will put a negative consequence off as long as physically possible?…that businesses in most cases would never have invested and then subordinated the investment the way the ERC did the McCurdy investment of the people of Evansville’s money?…that if any banker did this with their employers cash investment that this would be a banker looking for a job in something other than banking?

IS IT TRUE that we hear that some interesting and newsworthy developments are taking place with the Old Post Office?…that we furthermore hear that the ERC and the City of Evansville may have another tempest in a teapot down there?…that we will be investigating this further very soon?

IS IT TRUE that it has now been 1,605 days since the announcement was made on May 14, 2007 that the McCurdy Hotel was to be refurbished into luxury apartments?…that it has now been 1,458 days since the Evansville Redevelopment Commission at the request of Mayor Weinzapfel approved the spending of $603,000 to purchase the parking lot?…that City Centre Properties and other developers of the McCurdy project are both listed as contributors to the Weinzapfel for Mayor committee for 2010?

IS IT TRUE that the big news but not necessarily surprising news is that Vectren has filed a request with the Indiana Utility Regulation Commission asking for yet another rate increase?…that it was just a month or so ago that the last Vectren rate increase went into effect?…that Vectren already charges their customer base the highest rate in the State of Indiana by about a 50% margin and higher than Henderson, KY by a 212% margin?…that like a spoiled child that is catered too regularly Vectren is now asking the IURC to let them have a new toy and they want their customers to pay for it?…that Vectren also has asked the IURC to guarantee them a 7.29% rate of return with the ability to raise their fee annually if they didn’t quite get their forecast right the first time?

IS IT TRUE that the shiny new toy in this case is an upgrade to their turbines in the Posey County plant that saves coal but costs $32 Million?…that the coal that is saved is coal that Vectren for the most part already owns?…that Vectren’s right hand pays Vectren’s left hand for their coal so saving this coal completely benefits Vectren and Vectren alone?…that the rates that we already pay were calculated based on the equipment that they already have?…that we have been told time and time again that Vectren is ahead of the game with EPA mandated equipment and that Vectren is compliant with EPA standards?…that Vectren continually tells us that the price differences that exist now will vaporize when the rest of the country catches up with them?…that assuming that is all true there should be no EPA driven reason to consider these turbine upgrades?…that this shiny new toy is a WANT as opposed to a NEED?

IS IT TRUE that the fee that Vectren has asked for is a seemingly harmless $1.08 per month per customer?…that based on the 141,000 customer base this fee will bring Vectren a revenue increase of $1.83 Million per year?…that a guarantee of a 7.29% profit on an investment of $32 Million will “GUARANTEE” Vectren additional profits of $2.33 Million per year?…that we guess the difference in those amounts must be from burning less of their own coal?…that burning less of their own coal is pretty much the same thing as paying them to keep their money in the bank?…that the net result of this request is that the people of SW Indiana send an additional $1.83 Million to Vectren that makes $2.33 Million in profits and keeps the coal that they would have burned in their reserves?…that at Vectren’s current price to earnings ratio of 18.64 that the value of Vectren’ outstanding shares will increase by $43.43 Million?

IS IT TRUE that this request if granted will enrich the Vectren Corporation’s net value by $43.4 Million and that money will be coming via direct transfer of wealth from the working people of SW Indiana?…that in a part of the country where families already work 9 hours per month (2nd highest in Memphis Power study of 50 utilities) to pay for electricity, where we have to squeeze police cars to 10 year lives, where Fire Engines are cannibalized for parts, potholes go unfilled, parks can’t even be mowed, and the president of the Evansville City Council made a serious statement about removing the bulbs from street lights to save money, THIS IS NOT AN APPROPRIATE TIME TO FORCE THE PEOPLE OF SW INDIANA TO BUY VECTREN A NEW TOY?

IS IT TRUE that the City of Evansville is putting the finishing touches on a $128 Million Arena yet our sewer system is under EPA order to spend about $500 Million?…that the message this sends to the world is that we can play ball in luxury but can’t relieve ourselves without concern for walking through the grass?…that these kinds of decisions tell the world about misplaced priorities?…that buying spinner rims for a car that barely runs is a poor decision?…that buying a Rolls Royce when there is a leak in the trailer roof is a poor decision?…that buying Vectren a new toy with the peoples forced contribution is the same kind of decision as buying those spinner rims in this economy?…that it is time for the BUCK TO STOP even if it is just a BUCK A MONTH that we are being asked for?…that BUCK may be bus fare to work for some poor soul whose car won’t start and who can’t afford to pay their Vectren bill?

IS IT TRUE? Part 2 September 19, 2011

IS IT TRUE that in Sunday’s activity report for the Evansville Police Department there were five separate entries that were meth related?…that these were all for possession, dealing, or both?…that while one-pot labs grab headlines when houses explode from reactions gone bad the street drug scene just continues to plague Evansville?…that the CCO is proud of the officers of the EPD who lay it on the line every day in giving their best effort to keep our city safe?…that this is becoming a hard job to keep up with?

IS IT TRUE that the Evansville Redevelopment Commission has released the agenda for the meeting that they will be holding tomorrow morning at 8:30 am in the 3rd Floor of the Civic Center?…that the last line item on the agenda is an update on the status of the McCurdy Hotel project?…that as the Koala Bear in “Disney’s Rescuers Down Under” always says “This Ought to be Rich”?…that a quick check of the Vanderburgh County Assessors web page indicates at 2:36 pm today that there are still $12,274.76 in overdue taxes that are due?…that as much as we would like to believe that tomorrow’s update will be positive, owing back taxes is not an indication of good things to come?…that nevertheless the CCO does hope to see the McCurdy Hotel brought back to its long lost grandeur?…that we believe that the best and highest use for the McCurdy is to be a vintage elegant hotel as opposed to the four year old plan of converting it into luxury apartments?

IS IT TRUE that much to many speculators surprise the subject of a report by the VETTING company for the downtown Convention Hotel does not appear on the agenda?…that once in the very recent past one of the agendas had no mention of the VETTING and low and behold that lead VETTER showed up to address the ERC?…that for this person to have been in attendance took some scheduling and planning so it is highly probably that the ERC knew he was going to attend and just casually decided not to put him on the agenda that time?…that we wonder if such a thing could happen again?…that we will know in the morning?

IS IT TRUE that it was just announced that Cincinnati business Vantiv that was formerly known as CMC will be laying off about 75 of its 205 Evansville based employees?…that these layoffs have been deemed necessary by the headquarters as part of consolidating its Evansville based call center operation back to the home office area of Cincinnati?…that Vantiv is actually the Card Processing Solutions entity for Fifth Third Bank?…that this is not the win one for Evansville news that we were hoping for this week?…that we are willing to make a bet that there will be no smiling politicians cutting ribbons, congratulating each other, and sending out press releases about this news?…that the cast of characters that were celebrating and taking credit for attracting 40 jobs last week will run into a hole and hide when it comes to explaining the loss of these 75 jobs?

IS IT TRUE that Evansville resident Benjamin Magenheimer has filed a lawsuit against the Parks and Recreation Department of the City of Evansville for having him escorted out of the Evansville Zoo for carrying a handgun and not concealing it?…that his attorney will likely be asserting that Mr. Magenheimer’s 2nd Amendment rights were violated by the Parks Department?…that if this incident could have been avoided or accommodated that the City of Evansville would be spared some embarrassment and whatever settlement is reached could have been spent to repair some of our crumbling parks?…that the United States Constitution has been a pretty good way to govern and continues to be?…that some people just don’t seem to appreciate Constitutional rights as much as others?

IS IT TRUE that Evansville’s families and children who were at the Zoo when this happened were treated to something that should never happen in a free country of laws?…that a number of Evansville children watched a man who was living completely within the law of the land and keeping the peace surrounded by armed officers and escorted from the property for nothing but exercising his constitutional right to bear arms?…that this should be an example of the 2nd Amendment to the Constitution for every Civic class in EVSC for the next 50 years?…that if we are to keep our freedom we had best start teaching our children just what freedoms that we still have?