IS IT TRUE May 1, 2012
IS IT TRUE that the 2012 rendition of the Evansville Redevelopment Commission has a line item on its agenda today that calls for the formal action of placing the deal that was made with City Centre Properties into default?…that while this is a necessary and correct action it is 3 years and $1.403 Million short of the desired result?…that there is one installment of real estate taxes due on the property and another one coming due in 10 days?…that while this action will most certainly free up the private partnership of the Kunkel Group and Bloomington developer Randall Lloyd to be able to move forward with converting the McCurdy into 90 or so apartments NO ONE SHOULD FORGET THAT THE CITY OF EVANSVILLE SQUANDERED $1.403 MILLION ON THIS PROJECT BY FAILING TO VET THE PROJECT AND ITS PRINCIPALS AND BY FAILING TO GRASP THE REALITY OF THE VALUE OF THE UNDERLYING ASSET UPON COMPLETION?…that every time that the Evansville Redevelopment Commission, the Evansville City Council, or any surrogate of either group runs off starry eyed with their mind oblivious to economic reality something like this happens?
IS IT TRUE that it will be interesting to see if yesterday’s announcement with regard to the former owner of the Riverhouse will make financing more difficult for the McCurdy?…that it was announced to the media yesterday that Todd Van Natta who had bought the Riverhouse for nearly $5 Million seems to have been under FBI investigation for a couple of years and that now Mr. Van Natta is under “probable cause†for bank fraud?…that reading the complaint specifically for the Riverhouse it is alleged by the bank that the loan terms were changed at the last minute and that they did not even have a loan officer present at closing?…that sure seems like a strange way for a bank to conduct business?…that what was allegedly changed was the definition of what the down payment was?…that the original deal called for a 20% down payment and an 80% loan?…that somehow that was changed to a situation where the down payment amount became a credit for future repairs which essentially made this deal slightly over a 100% loan?…that all being taken at face value and having been through several closing one must wonder just how that $8,000 check from the bank to Mr. Van Natta’s company found its way to the closing?…that another curiosity is just how did the Riverhouse appraise at nearly $5 Million to get the transaction to the point of closing in the first place?
IS IT TRUE that the saga of the Riverhouse and its next door neighbor the McCurdy have been real black marks on valuations in Downtown Evansville for the last 3 or 4 years?…that the Riverhouse eventually went to auction and only garnered a bid of slightly over $300,000?…that the for sale sign is getting dusty and faded and given the difficulties encountered the Riverhouse may be in for a long haul before a buyer comes along?…that when a 90 room hotel in need of repairs brings less at auction than the parking lot next door brought from the Evansville Redevelopment Commission that there is a terrible disconnect and misunderstanding with respect to values?…that the CCO hopes that the McCurdy project is able to move forward to completion and that someone will actually go in and close the windows on the upper floors that have been open all winter?…that there will most certainly be some damages from this typical neglect of what could be and should be a beautiful and functional building on Evansville’s riverfront?
IS IT TRUE that the key phrase in the long dissertation of the FBI agent who has deemed that the Riverhouse escapade is worthy of probably cause are the words “material misrepresentationâ€?…that this means that the FBI agent is alleging that Mr. Van Natta stated things on loan applications that were not accurate and that he knew it when he did it?…that we are quite interested in seeing the outcome of this unfortunate situation of alleged “material misrepresentation†play itself out?