December 28, 2011
News Advisory
Mayor-elect Lloyd Winnecke will hold a news conference at 10 a.m. on Thursday, December 29, to announce the next step in determining the future of Roberts Stadium and how the public can be involved in the process.
The news conference will take place at Roberts Stadium inside Gate 1. Media may park in front of the building near the entrance. A tour of the stadium will immediately follow the news conference
IS IT TRUE? December 28, 2011
IS IT TRUE that today we would like to start out by reminding the people of Evansville that the Weinzapfel for Mayor campaign received numerous campaign donations from City Centre Properties, its owners, and its affiliated companies during the four years that CCP was seeking financing to convert the McCurdy Hotel into luxury apartments?…that we furthermore would like to reiterate our call for the Weinzapfel for Mayor campaign to return each and every dollar that it received from City Centre Properties, its owners, and its affiliated companies to the Evansville Redevelopment Commission as a down payment on the return of the $800,000 incentive that was awarded to City Centre Properties to embark upon this project?…that the ERC itself should demand the return of these political contributions that clearly had their source in public coffers?…that the President of the ERC Bob Goldman has stated that the ERC should take whatever actions are necessary to get their $800,000 back and that a good first step would be to take a vote of “his†commission this morning to demand the return of every one of those public dollars that were passed seamlessly from the ERC to CCP to the Weinzapfel for Mayor campaign?…that such things may be legal but they shouldn’t be?
IS IT TRUE that in keeping with their disdain for transparency the Evansville Redevelopment Commission has not posted an agenda for the meeting that is scheduled to begin in 10 minutes?…that the City County Observer sincerely hopes that the Winnecke Administration is more transparent and surrounds itself with appointees who actually believe in the people’s right to know what is being done with their money?…that the time for sneaky closed door meetings, backroom deals, and crony capitalism should finally be ended in Evansville?…that we cautiously use the word “should†because we know that many machine operatives supported the Winnecke campaign to keep the old boy deals intact?…that it will take much diligence to make local government in Evansville transparent and equal?
IS IT TRUE that the ERC posted an agenda one minute before the meeting began and that the entire agenda is to hold a vote to assign the CCP agreement to the newly formed and never VETTED McCurdy Development LLC and to extend the agreement for the fifth time?…that at the start of the special meeting that County Councilman and incoming City Controller Russ Lloyd was in attendance but that no other members of the Evansville City Council were recognized?…that Ford Center Project Manager John Kish was interested enough to attend?…that several members of the Mole Nation have advised us that there has been some talk of the City of Evansville extending Mr. Kish’s contract to manage the new hotel and maybe some other projects here in Evansville as he demonstrated good management ability with the Ford Center.
IS IT TRUE that if the ERC does not ask one simple question and gets an answer of at least $2.5 Million that this deal should be terminated and the mess needs to be cleaned before starting anew?…that simple question is “how much equity do you have to invest in this project that is available right nowâ€?…that NO DOUGH, NO GO should rule this decision?…that NO TAXES NO TRANSFER should also rule the deal?…that the day of handing out public money to unproven and penniless companies should come to an end?
The agenda of the Evansville Redevelopmemt Commission was just posted with the intention to assign the and extend for the 5th time the agreement between City Centre Properties and the ERC. Assignment of the agreement will be to McCurdy Development LLC and an extension of a to be determined length will be voted on today.
Randal Lloyd of McCurdy Development began his presentation by introducing himself and asking for the agreement to be assigned to him and extended to February 29th, 2012. Sara Miller asked some questions regarding the details of the financing being proposed and received no answers.
Mr. Lloyd stated that his group that includes Ben Kunkel of the Kunkel Group needs to do some VETTING of their own to see if the project is worth doing and will not do that unless assignment is made. He furthermore offered no details about the financing and asked the ERC to take a “leap of faith”. Lloyd furthermore stated that he thinks that there may be more incentives somewhere without identifying them.
The ERC consented that they are not prepared to let City Centre Properties LLC and Mr. Steve Scott off the hook for liabilities until someone else moves forward with the project. Ms. Miller of the ERC was diligent with her questioning and was getting no answers to satisfy her.
The question came up about why this action can’t wait until after January 1st when a new ERC is in charge and attorney Brad Salmon answered that McCurdy Development has 45 days to get this financed. Local Attorney Marco DeLucio spoke and stated that there is no written proposal to them to approve and that by approving this extension and assignment that the ERC would be locking the Winnecke Administration into an undefined agreement with an unknown entity unnecessarily. When asked by ERC President Bob Goldman who he was representing Mr. DeLucio responded that he is representing himself.
The issue of the mortgage on the property that is held by 5th 3rd Bank came up as an important component to secure to be able to go forward. Mr. Lloyd needs the consent of the ERC to secure that note for 5th 3rd and if he can’t then the responsibility for the situation falls back to Steve Scott and City Centre Properties LLC?
A series of people including incoming City Council members Al Lindsey and Stephanie Brinkerhoff-Riley spoke before the ERC and expressed opposition to this assignment leap of faith scheme.
The ERC voted on the resolution and tied at 2 – 2 which is not sufficient to move forward.
Check back as this is a developing story.
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Time 11:30 AM – 12:30 PM
Subject HUMAN RELATIONS COMMISSION
Location 307
Recurrence Occurs the fourth Wednesday of every 1 month effective 12/28/2011 until 12/28/2011 from 11:30 AM to 12:30 PM
Reminder 15 minutes
BONNIE @ 4927
Categories ROOM 307
Time 1:00 PM – 2:30 PM
Subject EPD DIVERSITY COUNCIL
Location 307
Recurrence Occurs the last Wednesday of every 1 month effective 12/28/2011 until 12/28/2011 from 1:00 PM to 2:30 PM
Reminder 15 minutes
Roberta Lenfers
Categories ROOM 307
Time 2:30 PM – 3:30 PM
Subject ERA
Location 307
Recurrence Occurs the fourth Wednesday of every 1 month effective 12/28/2011 until 12/28/2011 from 2:30 PM to 3:30 PM
Reminder 15 minutes
Lana
Categories ROOM 307
Time 2:30 PM – 4:00 PM
Subject ITAC
Location 318
Recurrence Occurs the last Wednesday of every 1 month effective 12/28/2011 until 12/28/2011 from 2:30 PM to 4:00 PM
Reminder 15 minutes
TIM VANCLEAVE @ 5848
Categories ROOM 318
IS IT TRUE? December 27, 2011
IS IT TRUE that tomorrow is the day that the Evansville Redevelopment Commission is poised to hear a proposal from a newly formed group from Bloomington, IN to assume the position of developer for the conversion of the abandoned McCurdy Hotel to 80 or 90 luxury apartments?…that a partner and leader of the new entity that is called McCurdy Development LLC is a St. Wendel native named Randal Lloyd?…that Mr. Lloyd once held a job in Bloomington that was the equivalent of what Evansville calls the Director of Metropolitan Development?…that would make him for local purposes the Tom Barnett of Bloomington?…that perhaps some of the skills perfected in such a position would be valuable in the refurbishment of a historic hotel and perhaps not?…that we will be curious to see just how applicable his experiences actually are and how his ability to attract capital to a project that is rather challenged from a pro-forma perspective as apartments continues to be?
IS IT TRUE that from a construction cost perspective McCurdy Development seems to have a little bit more of a realistic expectation of what the cost to refurbish a vintage hotel into 80 or so apartments will be?…that it has been reported that McCurdy Development is owning up to a new estimate of $13 Million for the job to be completed?…that this works out to $162,500 per apartment?…that we assume that the figure includes returning the lobby and other common areas to their former grandeur?…that a good rule of thumb is that the rent for such units will need to be in the range of 1% of the cost per month or $1,625 to make the project cash flow?…that renting out 80 apartments at a price of $1,625 per month in downtown Evansville is a very aggressive goal?
IS IT TRUE that it is of upmost interest to learn the whereabouts of the $800,000 that the Evansville Redevelopment Commission advanced to City Centre Development and the status of the taxes on the McCurdy that are still reported to be delinquent?…that most have assumed that the $800,000 never really changed hands and that City Centre paid that to the ERC for the McCurdy when the $1 lease for the $603,000 parking lot was signed?…that it is probably safe to assume that were it not for the approximately $1 Million first position loan held by 5th 3rd Bank on the McCurdy that assignment of the contract while unpalatable may not be terribly difficult?…that the real challenge facing the ERC in finding a future developer will be to get the 5th 3rd position satisfied and set aside?
IS IT TRUE that there is a loan on the books of the City of Evansville that was made to a predecessor to a predecessor of 5th 3rd Bank way back when the 5th 3rd Building was going up that may just hold the solution?…that if the City of Evansville and 5th 3rd Bank traded paper for these two loans that should have never been made in the first place and counted the slate clean that the way would be paved to start over down at the McCurdy with some interested and reputable developer?
IS IT TRUE that the City County Observer continues to hold the opinion that the highest and best use of the McCurdy hotel is as a VINTAGE HISTORIC HOTEL?
The Case for the Resurrection of the McCurdy as a Historic Hotel
By: Joe J. Wallace
Much adieu has been made over the delays and obstacles faced by the City of Evansville in their quest to entice or incent a developer to invest in a downtown hotel. The stated reason for needing a hotel serve The Centre as the convention business of Evansville is simultaneously resurrected from the grave that what will be at least a four year period without a hotel has put in into.
The travails of the city government in first failing in the effort to finance a deal to turn the McCurdy into apartments coupled with the ongoing saga of the preferred convention hotel to replace the old Executive Inn has forced Evansville to take a good hard look into the economic mirror. My analysis and articles have consistently predicted that the McCurdy is not a financially viable project as apartments and the four year saga that failed to result in financing has proved that analysis. Similarly, my analysis that the market value of a new 220 room hotel adjacent to the Ford Center is not sufficient to attract an experience private developer has also been proven by the continuing struggle to get to the starting line on that project with at least $11 Million (including the present value of proposed tax abatements) if taxpayer dollars needed to seal a deal.
Faced with these realities, I along with a few others have floated the idea of resurrecting the McCurdy not as apartments but as the Grand Historic Hotel that it should rightfully be. The McCurdy enjoys the distinction of being on the National Register of Historic Places. Furthermore the intrigue of staying in a hotel that has hosted celebrities such as Katherine Hepburn, Clark Gable, Senator Joseph McCarthy, and even President Richard Nixon lays the framework for a successful marketing plan and who knows, maybe even some assistance that is not available for new construction.
The Numbers
As an apartment building with 90 residential units at market rates of $1,000 per month and an 85% occupancy rate that is typical for Evansville the McCurdy will have an expected revenue stream of $76,500 per month. As a hotel that has 160 rooms at a typical rate of $85 per night and 58% occupancy the expected monthly revenue of the McCurdy increases to $240,000 per month, an increase of 214%.
As a hotel the McCurdy will utilize much of the elegant old dead space such as the lobby and a rumored beautiful top floor restaurant and ballroom. All of these activities have the potential to increase the revenue as profit centers of their own.
Simply stated, if the problems securing a financial package to turn the McCurdy into apartments were valuation related, as a hotel the valuation will be roughly 3 times higher and may just get the deal into the realm of financial reality.
The Benefit to the Community
A recent study concluded that there is an immediate need to add about 160 rooms to downtown Evansville to support conventions. The McCurdy will fill that need while enabling Evansville to re-energize one of its most prominent historic structures in its highest and best use. This will buy the lot where there Executive Inn was several years in which the convention business can be re-established and expanded such that a private investor may find it attractive to bring the 4 Star Hotel that was first promised to the MLK Entertainment Complex.
There are those who would say that “six blocks is too far to walk†so the McCurdy can’t fill the needs for a convention hotel. Those people are wrong. Chicago’s McCormick Place in particular is further than that from any hotel and is booked nearly every day of the year for some convention. Six blocks may seem like a long way to a sedentary local resident, but to the kind of people who will be flying in for conventions walking six blocks is a routine part of life.
The McCurdy as a hotel would also be a short yet pleasant stroll to the Aztar complex. For visitors who are reluctant to take that walk I am sure that Aztar will send a shuttle for them. It is also a certainty that the McCurdy could provide shuttle service to the MLK Entertainment Complex. The early successes of the Ford Center and the 55 year success of Roberts Stadium prove that these kinds of venues do not need a hotel to sell out concerts and ball games of local interest.
Long Range Vision
At some point in the future there is the potential to have a Historic Hotel on the Evansville waterfront and a 4 Star Hotel that serves the Centre. The most logical path to that reality is to first develop the McCurdy as a hotel while re-establishing the convention business base and to follow that up with a real 4 Star Hotel funded with investor dollars in a better economy.
By following this approach downtown Evansville will get the 160 rooms that it needs now and the time to establish the business base and value that will minimize public funding requirements of a future 4 Star Hotel. It is time for any interested developers in resurrecting the McCurdy Hotel to its former elegance and operating a profitable business that will benefit Evansville to come forward before time and the distractions on MLK cause it to be too late.
IS IT TRUE? December 27, 2011
IS IT TRUE that today the City of Evansville and the Department of Metropolitan Development are in violation of the 30 day time period to respond to a request under the Freedom of Information Act?…that this particular request dealt with the so called FREE Johnson Controls project that would cost $51 Million except that it saves so much money that it is FREE?…that what we want to understand from this contract is exactly what the cash flows are expected to be from this project that is advertised as being FREE and what FREE really means when the dollar amount of $51 Million is still be slung around?…that we really would like to see graphically where the cash flow goes and what the sources are to be assured that the City of Evansville is not getting bamboozled once again by snake oil of our own making?
IS IT TRUE that the signal strength of the internet access points will not be sufficient to penetrate walls and will not compete with either of the local internet suppliers?…that adding this weak and uncompetitive service is also touted to bring greater Evansville’s national internet ranking from its present 368th out of 370 into the top 90?…that this is just pure speculative hogwash and when asked how the calculation was made local leaders did not even know?…that maybe this whole $51 Million deal may turn out to be FREE and CASHFLOW NEUTRAL but we doubt it?…that what is really insulting is the claim that it will raise our ranking in the internet world without competing with the two providers that have us in 368th and expecting us to believe that we will rise to the top 90?…there is no basis whatsoever for that claim to have been made and the folks that made the claim know it?…that this makes about as much sense as an NBA team signing a 50 year old that can’t jump or shoot (can’t compete) to play point guard and claim that his presence with take them from the cellar to a playoff contender?
IS IT TRUE that there are only 5 days remaining until for the first time since January 1, 2004 that the Weinzapfel Administration is not in charge of the governance of the City of Evansville?…that these 5 days represent the last opportunity for this admitted opportunist to chart the spending course of the City of Evansville for as far into the future as executive orders and special meetings of elected officials like the Evansville Redevelopment Commission and the Evansville City Council will allow him to?…that even at this late time in the stages of this administration it will take diligence to stop last minute spending of a very bold proportion?…that on Wednesday one more such spending commitment is coming before the ERC for consideration?
IS IT TRUE that Big Rivers Electric and Henderson Power and Light are finally starting to own up to what they will be spending to comply with the EPA regulations that are looming down the pike?…that yes these are the same ones that Vectren has already made the investments to get in front of that ran the rates up on this side of the money saving bridge?…that Big Rivers was reported today to be saying that they will be investing about $100 Million and that will translate into only about a 2% increase to the ratepayers?…that we tend to believe the $100 Million number but are pretty skeptical about the 2% increase?…that we expect the increase to be much more than 2%?
Time 8:30 AM – 9:30 AM
Subject DESIGN REVIEW
Location 318
Recurrence Occurs the fourth Tuesday of every 1 month effective 12/27/2011 until 12/27/2011 from 8:30 AM to 9:30 AM
Reminder 15 minutes
SARAH @ 7825
Categories ROOM 318
Time 9:30 AM – 10:30 AM
Subject COMMERCIAL REVIEW COMMITTEE
Location 307
Reminder 15 minutes
KATHIE HOLLEY @ 5228
Categories ROOM 307
Time 9:30 AM – 10:30 AM
Subject GIS USER GROUP
Location 318
Recurrence Occurs the last Tuesday of every 1 month effective 12/27/2011 until 12/27/2011 from 9:30 AM to 10:30 AM
Reminder 15 minutes
Laura Howell @ 5071
Categories ROOM 318
Time 1:00 PM – 3:00 PM
Subject VANDERBURGH ALCOHOL BOARD
Location 301
Recurrence Occurs the fourth Tuesday of every 1 month effective 12/27/2011 until 12/27/2011 from 1:00 PM to 3:00 PM
Reminder 15 minutes
Scott Bedwell 812-882-1291
Categories ROOM 301
IS IT TRUE? December 26, 2011
IS IT TRUE that there are only 6 days remaining until for the first time since January 1, 2004 that the Weinzapfel Administration is not in charge of the governance of the City of Evansville?…that these 6 days represent the last opportunity for this admitted opportunist to chart the spending course of the City of Evansville for as far into the future as executive orders and special meetings of elected officials like the Evansville Redevelopment Commission and the Evansville City Council will allow him to?…that even at this late time in the stages of this administration it will take diligence to stop last minute spending of a very bold proportion?…that on Wednesday one more such spending commitment is coming before the ERC for consideration?
IS IT TRUE that on Wednesday December 28th at 10 am in Room #307 of the Civic Center the ERC will convene to hear at least an idea and maybe as much as a full blown proposal to assign the contract that City Centre Properties LLC has with the ERC to turn the McCurdy Hotel into 80 – 90 apartments?…that it seems as though a knight on a white horse by the name of Randal Lloyd of Bloomington, IN is partnering up with Ben Kunkel of the Kunkel Group to offer the ERC an escape path from the labyrinth that they have built themselves into?…that this may actually be a good thing but that this incarnation of the ERC needs to remember the word VETTING and engage in a VETTING exercise with respect to assigning this project?
IS IT TRUE that the McCurdy at present is still in a state of default on its latest real estate taxes?…that in the real world that private homeowners and developers live and work in that real estate taxes have to be paid for a title to be transferred?…that liens on properties have to be released for titles to transfer and that a lien is recorded by 5th 3rd Bank on the McCurdy Hotel?…that to complicate matters even more that City Centre Properties holds a 40 year lease that is presumed to be “PAID IN FULL†since it is only $1 on the parking lot of the McCurdy Hotel?…that yes this is the one that the City of Evansville paid $603,000 to buy so they could lease it out for $1 for 40 years?…that prior to any serious discussion about what can be done going forward these three things obstacles must be removed?
IS IT TRUE that if there was ever a project that is in a complete state of disarray that the McCurdy is it and that a last minute ratification of a presumed quick fix or a smoke and mirrors trick that grabs yet another headline for illusionary political purposes is yet another BALL AND CHAIN hoisted onto the Winnecke Administration and yet another middle finger right in the face of the people of Evansville?…that the ERC should listen and make full public disclosure of whatever is said on Wednesday and then make their recommendation to the next ERC if they wish to spend their last 4 days VETTING this new group to do so?
IS IT TRUE that this ERC has spent 8 years without recognizing or practicing basic VETTING techniques and that it appears as though we are all 48 hours from the potential approval of a $13 Million project to an UNTESTED and UNVETTED company for a project in downtown Evansville?
