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IS IT TRUE? August 10, 2011

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The Mole #??

IS IT TRUE? August 10, 2011

IS IT TRUE that the City County Observer experienced a record of comments posted regarding any particular article yesterday?…that our two articles regarding the loans receivable accounts as reported by the City of Evansville in the 2007, 2008, & 2009 audits drew lots of questions and comments?…that the biggest objection to any particular loan made by the City of Evansville using public funds was a loan that was made back in 1982 to Citizens Bank?…that our readers found it to be very questionable that a 2% loan was made by the city to a bank in a year in which interest rates were well over 10%?…that it was even more objectionable that the City of Evansville has been serving as the bank’s bank for nearly 30 years and that the balance is still over half of the original principle?…that it is things like this where one giant business is given a financial advantage by the redistribution of public dollars that give city loan funds a bad name?

IS IT TRUE that if the successor to Citizens Bank which we believe is now Fifth Third Bank of Michigan would pay back the 29 year old loan in full that the $1.4 Million balance should be available for making loans to small businesses?…that if the only thing that the paid back money would be used for would be to build 6 more Front Door Pride homes that lose $100,000 per transaction that we would prefer that the loan is not paid back until the next administration is seated next January?…that making such a large loan to a BANK did not keep a corporate headquarters in Evansville and served pretty much as a Front Door Pride for Banks type of program?

IS IT TRUE that the issue of taxable income received due to getting low or no interest loans was raised?…that the IRS does have a rule that makes below market interest taxable as income?…that in an economic reality where the interest rate is 7% that a business that is granted a 3% loan should be declaring that 4% discount as income for taxation purposes?…that it is even preferred that the loan servicer should provide them with an IRS Form 1099 to document such earnings?…that we hope and trust that the City of Evansville and its below market rate loan recipients are aware and in compliance with these IRS rules?

IS IT TRUE that the changing nature of the City of Evansville’s loan portfolio has the City County Observer quite interested to get a look at the 2010 audit which should be available online in about 2 weeks?…that when this is available that we will post a link to the 2010 audit?…that we are also considering making another FOIA request to learn exactly what the present state of the loan programs are and what the receivables that the new administration will inherit?…that we hope that any remaining loan funds will not be raided for capital projects that are unrelated to for-profit small businesses during the final days of the Weinzapfel Administration?

EPD Reminding you to Drive Safely for tomorrow’s school opening

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News Release

August 9, 2011

Type of Event: School Opening
Date of Event: August 10, 2011
Location of Event: All Schools

SUMMARY

The Evansville Police Department would like to remind drivers that some schools have already opened and the Evansville Vanderburgh School Corporation schools open Wednesday, August 10, 2011. Please pay close attention to the location of school zones and the speed limits associated with these zones. The Evansville Police Department will be out in force enforcing these speed limits for the protection of children on the way to and from school.

Drive Safely!

IS IT TRUE? August 9, 2011 Special Evening Edition

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IS IT TRUE? August 9, 2011 Special Evening Edition

IS IT TRUE that contrary to some postings today that the Vanderburgh County Democratic Party is paying market rate rent on a long term lease at one of the Kunkel Group’s properties?…that the Democratic Party pays rents of $1,266.50 every month and that this fee is a fair market rate for comparable properties in downtown Evansville?

IS IT TRUE that Evansville, Indiana my just be represented at the Little League World Series this year?…that the Golfmoor Team is two games away from the series and is the #1 seed in the Great Lakes Regional in Indianapolis?…that the next game against Hamilton, Ohio will be televised nationally at 2 PM local time on ESPN2?…that Evansville is a baseball town and that the City County Observer encourages all of our readers to tune in and give a shout out for our kids on the Golfmoor Team?…that those who can’t tune in can do a silent cheer from your work location?

IS IT TRUE that the federal reserve has pegged a date to keep interest rates at or near zero for the first time?…that Chairman Ben Bernanke today announced that interest rates would be remaining very low until at least mid 2013?…that we wonder if this is a politically motivated move to keep the regulating uncertainty of the power of the fed to tighten out of the election year thought process?…that we also wonder if the fed really has leading indicators that are indicating economic malaise for the next 24 months to justify keeping the cost of money essentially free for banks?…that many people were surprised that a third round of quantitative easing or QE3 was not announced today?…that QE is basically a cutesy term that means the fed will print more money to buy financial instruments with?…that one could easily conclude that after running the printing presses at full steam ahead for two years that the folks in Washington are finally beginning to fear the “inflation monster” that President Reagan put back in its cage back in the 1980’s?

IS IT TRUE that attorney extraordinaire Les Shively will be out of town on Thursday and has already taped his radio show for WGBF 1280 am that the City County Observer is a regular guest on?…that we encourage our readers to tune in and listen to Mr. Shively from 8 to 9 on Thursday and are looking forward to rejoining the program on August 18, 2011?…that getting the subjects that need the attention of the public to push forward good public policy is what the City County Observer is all about and that we take every chance to do so without fear of reprisal and without seeking the praise or favor of elected officials?

IS IT TRUE that Thomas Jefferson said “when the government fears the people there is liberty but when the people fear the government there is tyranny”?…that a free press that has no fear of the government is the backbone of a free and transparent society?…that it is time to put what Jefferson said into practice once again and instill a healthy fear of the people into our over confident elected officials?…that we are grateful for our readers who share that vision for Evansville?

Redevelopment Commission Announces Executive Session

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Friday August 12, 2011 is the day, the topics are numerous

Notice_of_Exec_Session_08-12-11

The10 Highest Paying Jobs in America

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These people may just respond to the economy by saying “What Recession”

10. Attorney

9. Pilot

8. Air Traffic Controller

7. Information Systems Manager

6. Natural Sciences Manager

5. Podiatrist

4. Engineering Manager

3. Chief Executive Officer

2. Physician

1. Dentist

Check out the qualifications and salaries on the following link

http://www.investinganswers.com/a/10-highest-paying-jobs-america-2939

City of Evansville Loan Funds: Year to Year Differences, 2007 – 2008 – 2009

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CCO Examines State Board of Accounts Audits for 3 Consecutive Years

After posting the Loans Receivable from the 2009 Audit we received many inquiries about just what the purpose for these particular loans were for and what were the details involving the granting of such loans and the differences in their terms. The two groups of loans that attracted the most interest were the loans that were made to Citizens Bank, the Kunkel Group, and the Evansville Convention and Visitors Bureau.

Citizens Bank

With respect to the Citizens Bank loan in the amount of $2,300,000 in the 2009 summary the loan was reported to have been made on March 25, 2008 at an interest rate of 2% with a remaining balance of $1,367,419. The things that prompted some questions were the large discrepancy in the balance for such a new loan, the fact that there was no Citizens Bank in 2008, and the close proximity in time to the loan that was made by Fifth Third Bank to City Centre Properties for the McCurdy Hotel project.

An examination of the City of Evansville Audits for the years 2007 and 2008 does actually yield some new information that may explain some of the questions raised by our readers. In both audits the date of the loan is reported as March 25, 1982 and the purpose given for the loan is “business-construction”. The original loan amount and the interest rate are unchanged.

These discoveries lead one to believe that a favorable loan was made to Citizens Bank back in 1982 for a construction project and that the loan is continuing to be assumed by each successive company that has bought the former Citizens Bank of Evansville. As the interest rate is only 2% it is in the best interest of Fifth Third Bank to simply service this debt rather than to pay it off.

The real question is why would the City of Evansville extend a loan to a bank?

Kunkel Group

There have been three loans made to the Kunkel Group that are reported on the State Board of Accounts Annual Audits of the City of Evansville. All three loans are reported in each of the years of 2007, 2008, and 2009.

The earliest loan in the amount $221,250 that was made on December 15, 2005 and carried an initial interest rate of 0% for the Renaissance on Main project and had been paid down to a balance of $22,300 by the end of 2009. The interest rate reported on this loan in 2009 had been raised to 7.25% and has an annual payment of $4,072.

The second loan listed to the Kunkel Group is in the amount of $310,000 and originated on December 20, 2006. The 2007 and 2008 audits show an interest rate of 3% with an annual required payment of $62,000. On the 2009 audit this loan that was also for “Renovations – Downtown Apartments” had been altered to reflect an interest rate of 0% with no annual payment required. The balance as of December 31, 2009 was $310,000.

The final loan in the amount of $150,000 was made on June 20, 2007 and carries an interest rate of 6.25%. The balance at the end of 2009 was $105,420 and the annual payments were reported to be $26,512. The purpose for the loan is listed in the 2007 and 2008 audits as “Renovations – Downtown Apartments”.

Evansville Convention and Visitors Bureau

There are two loans made to the ECVB according to the 2007 and 2008 audits.

The first loan in the amount of $500,000 was made on February 25, 2005 at a 0% interest rate with and annual required payment of $125,000. The purpose for this loan was reported as “African American Museum”. The balance was reported to have been paid down to $2,000 by the end of 2009.

The second loan in the amount of $400,000 was made on June 20, 2005 at an interest rate of 0% and an annual required payment of $150,000. The purpose for the loan was reported as “LST Dock”. The loan does not appear at the end of 2009 but every indication is that it was paid off.

Remainder

There are numerous loans recorded at interest rates of between 3% and 5% with the bulk of the loans being for construction projects associated with real estate. There are three notable exceptions where the loans were made for the purpose of purchasing capital equipment.

The bulk of the loans were made in 2007 and earlier.

VHS Pet of the Week: “Wascally Wabbit”

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Greetings from Wascally Wabbit, a 1-year-old neutered male Rabbit. This little guy got off to a rough start in life and is now looking for just the right family to give him all of the love and attention that he needs and deserves. He loves to cuddle and enjoys munching on carrots. He has lived in a home with an older child and would enjoy having that special someone to bond with. Wascally Wabbit’s adoption fee is $30. Wascally Wabbit is one of ten rabbits currently up for adoption at the VHS. Rabbits are the third most surrendered animal in animal shelters and require a lot more care and responsibility than a hamster or a gerbil would. For more information on how to make Wascally Wabbit or any one of our wonderful rabbits a part of your family visit www.vhslifesaver.org or call (812) 426-2563.

Downtown Today: 8/9/2011

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Time 8:30 AM – 9:30 AM
Subject DESIGN REVIEW
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 8:30 AM to 9:30 AM
Reminder 15 minutes
SARAH @ 7825
Categories ROOM 318

Time 9:00 AM – 12:00 PM
Subject PTABOA
Location 301
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 9:00 AM to 12:00 PM
Reminder 15 minutes
TIFFANY COLLINS @ 5269
Categories ROOM 301

Time 9:30 AM – 10:30 AM
Subject SUBDIVISION REVIEW
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 9:30 AM to 10:30 AM
Reminder 15 minutes
KATHIE @ 5228
Categories ROOM 318

Time 12:00 PM – 1:00 PM
Subject ENFORCEMENT/TREATMENT SUBCOMMITTEE
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 12:00 PM to 1:00 PM
Reminder 15 minutes
CYNTHIA OWEN
Categories ROOM 318

Time 1:00 PM – 3:00 PM
Subject VANDERBURGH ALCOHOL BOARD
Location 301
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 1:00 PM to 3:00 PM
Reminder 15 minutes
Scott Bedwell 812-882-1292
Categories ROOM 301

Time 3:30 PM – 5:00 PM
Subject ELECTRICAL BOARD
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 8/9/2011 until 8/9/2011 from 3:30 PM to 5:00 PM
Reminder 15 minutes
LINDA PENDELETON @ 7880
Categories ROOM 318

Time 5:00 PM – 6:00 PM
Subject COUNTY COMMISSIONERS
Location 301
Recurrence Occurs every Tuesday effective 8/2/2011 until 8/30/2011 from 5:00 PM to 6:00 PM
Reminder 15 minutes
KRISTIN @ 5241
Categories ROOM 301

Indiana joins suit against Brown Mackie, Art Institute parent company

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Zoeller: For-profit colleges wrongly received more than $12 million in student aid

INDIANAPOLIS – Today the State of Indiana filed a joint complaint in a whistleblower lawsuit against Education Management Corporation, alleging the for-profit college company and two of its subsidiaries received more than $12 million in state financial aid after making false claims and misrepresentations to the state.

Indiana Attorney General Greg Zoeller’s Office joins three other states and the federal government in seeking redress from Education Management Corporation (EDMC) by filing a complaint in intervention in the whistleblower lawsuit. The states and federal government allege the EDMC defendants violated a federal law that bans incentive compensation for college admissions employees based on the numbers of students they enroll. By using a system where college recruiters’ compensation was tied to enrollment numbers, EDMC and two of its subsidiaries operating in Indiana violated Title IV of the Higher Education Act of 1965, the lawsuit alleges.

Named as defendants in Indiana’s portion of the complaint are EDMC and six EDMC-owned schools in Indiana: the Brown Mackie College campuses in Fort Wayne, Indianapolis, Merrillville, Michigan City and South Bend, as well as The Art Institute of Indianapolis.

The complaint alleges a total of 16,814 student financial aid awards were claimed by the six EDMC schools that falsely represented their compliance and eligibility to the state. By claiming more than $12 million in student financial aid for which it was not eligible since 2003, EDMC defrauded the State of Indiana, the lawsuit alleges.
“Paying recruiters incentives based on the number of students they enroll is a violation both of federal aid regulations as well as the responsibility to the students that the school serves. This violation renders the company ineligible to receive funds under the Indiana financial aid programs, and using the False Claims Act we will seek to hold EDMC accountable by making it pay civil penalties,” Zoeller said.
In his separate role enforcing the state’s consumer protection laws, Zoeller said he will closely monitor the situation to ensure that students’ interests are protected. He emphasized that the State’s intervention is in its initial stages and that the lawsuit’s allegations are not directed at students, but at the colleges and EDMC. Students who wish to report issues relating to transactions with the college can do so by contacting the Consumer Protection Division at 1-800-382-5516 or at www.IndianaConsumer.com

The State Student Assistance Commission of Indiana (SSACI) is in charge of awarding student grants and has already announced student aid awards for this year. Students can confirm their award amounts by checking eStudent, SSACI’s online grant status web application, available at www.in.gov/ssaci/ At this time, SSACI does not anticipate the pending litigation will impact student award offers. For-profit colleges in Indiana are regulated by the Commission on Proprietary Education (COPE), which has the ability to investigate student complaints. Students with questions about their financial aid can also contact their school’s financial aid staff.

To prevent abuses by college recruiters who sign up students without regard to their likelihood of success or ability to repay loans, Congress passed the Higher Education Act (HEA) that specifically forbids colleges from paying recruiters incentive compensation based on the numbers of students recruited. The whistleblower lawsuit alleges EDMC violated Title IV of the HEA by improperly compensating its college recruiters with bonuses such as expensive vacations to Puerto Vallarta, Cancun, Las Vegas or other destinations based on the number of students they recruited to enroll.

The lawsuit originally was filed by private plaintiffs in the U.S. District Court for the Western District of Pennsylvania. In June, Indiana filed its notice of intervention in the lawsuit against Pittsburgh-based EDMC. Also intervening are the states of California, Florida and Illinois and the United States.

Indiana’s portion of the lawsuit seeks civil penalties of at least $5,000 for each false claim submitted, treble damages, attorneys’ fees, litigation costs and interest.

Under the Indiana False Claims and Whistleblower Protection Act, a company insider who knows of fraud against the state can become a whistleblower and file a private lawsuit on behalf of the state. After investigating the allegations, the state then can intervene and join the case as plaintiff. If at the end of the case the defendant pays a judgment or settlement, then the whistleblower – also known as a “relator” – is eligible for a percentage of the recovery, usually between 10 percent and 30 percent.

Zoeller’s office has participated in a number of whistleblower lawsuits, called qui tam (pronounced “key tam”) cases, filed against pharmaceutical companies that submitted false claims to the State for reimbursement of illegal drug-marketing schemes. Settlements of those cases have resulted in nearly $24 million in payments to the Indiana Medicaid program since January 2009. Zoeller and his staff have given presentations around the state to health care workers about their legal right to bring whistleblower lawsuits under the False Claims Act.

The EDMC case is the first time Zoeller’s office has used a whistleblower lawsuit to seek civil penalties due to false claims paid out of state financial aid, rather than out of Medicaid.

Zoeller noted the cooperation between Indiana, the United States and the three other states in bringing legal resources to bear to seek repayment and halt EDMC’s improper compensation scheme for recruiters.

City of Evansville–Outstanding Economic Development Loans

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Over $4 Million in Outstanding Loans

Loans Receivable – Economic Development Loan Fund

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