Time 1:00 PM – 2:00 PM Subject SAFETY BOARD Location 301 Recurrence Occurs the second Wednesday of every 1 month effective 8/10/2011 until 8/10/2011 from 1:00 PM to 2:00 PM Reminder 15 minutes
TINA OWEN @ 7897 Categories ROOM 301
Time 3:00 PM – 5:00 PM Subject CONSTRUCTION & ROOFING BOARD Location 307 Recurrence Occurs the second Wednesday of every 1 month effective 8/10/2011 until 8/10/2011 from 3:00 PM to 5:00 PM Reminder 15 minutes
LINDA PENDLETON @ 7880 Categories ROOM 307
John Kish Details and Transparency of Arena Project Called for
John,
Per your June 30th construction cost, please respond to the following questions:
1) What is the $ 100,000 Change Order in favor of Hunt Construction? This change order occurred since the 3/31/2011 Report;
2) It appears that no retainage is being held back on Hunt Construction? If there are problems after Opening, won’t we look to Hunt to remedy those problems ?
3) Given the fact that Hunt is now reporting $ 95,901,131 of Scheduled Value (vs. $ 95 MM estimate), what steps will you be taking to try to bring the project in ‘on budget ‘ ??’ And, if the budget
overages are not corrected, we need to inform Hunt that the incentive has been breached in reference to the $478,000.
4) Given the many subcontractors on this project, how would you describe the “Warranty” the City will have after this Arena opens for events ? Has Hunt retained payments from those subs? And, if so, has Hunt deposited those retainages into an escrow whereby the City has legal control. This premise is applicable only if, so some reason, we have not withheld the appropriate retainages from Hunt?
John, we would like for you to appear before City Council on August 22, 2011 to answer questions related to the following topics. Please note: the City Council members will ask you questions which we will formulate based on the information you provide us. You do NOT need to prepare a presentation for us. Just be ready to answer any and all questions relative to the following topics:
A) Populous Contract (please provide us with electronic version);
B) Legal Bills incurred on the Arena Project (please provide a detailed accounting of all bills incurred, whether paid through the ERC, DMD, Mayor’s Office, City of Evansville, etc.). Be prepared to attest that the summary you provide is a complete accounting of all legal bills for this project;
C) An accounting of all soft costs for this Arena Project;
D) An accounting of all costs incurred on the Browning & Woodruff Hospitality hotel projects, both of which were terminated. Although, the hotel is not considered part of the Arena project; we consider a derivative and need to know the exact cost associated.
E) An accounting of all money which has been committed on both the Arena + Hotel projects; as well as identification of which Fund these amounts have been charged to in the City of Evansville’s accounting system; and
F) Disclosure of whom the $ 2,000,000 of Bond Issue Costs were paid to, and what services were provided;
G) Please provide (Electronic Version) all contractual service contracts associated to the Arena and Hotel projects to date and the work product. In addition, please make available to the City Clerk’s office for public access.
H) Indirect Costs: What other costs has the City incurred as a result of Arena Project, i.e. Water & Sewer Department. Please contact Mr. Gerrard for this information. I have been contacted by apparently, informed individuals that the Arena will be stressing our current sewer capacities. Consequently, if this is affirmed, what plan do we have to assure that the new condo, etc development downtown will NOT be adversely affected and the anticipated investment required to
remedy.
I) In your estimation, due to the downgrade from AAA to AA+ by Standard & Poors, will we be expecting any addition debt service costs associated with the Arena/Hotel project? In addition, due to this anticipated raise in the cost of capital, any loans the City i.e. Hotel Project, will grant consider increasing the interest rate accordingly. Also, what impact will this have on the pro forma’s presented by Verville and Kunkle. I know that is speculative, but, we need to cognitive.
This provides you two weeks to develop the responses. Please be prepared to receive additional questions from other members of Council.
Of course, if you have any questions, please let me know.
Thanks for your cooperation.
John Friend, CPA, CVA
Finance Chairman
Evansville City Council
IS IT TRUE that the Executive Session of the Evansville Redevelopment Commission that is scheduled for August 12, 2011 at 11:15 am in Room #307 of the Civic Center will NOT BE OPEN TO THE PUBLIC?…that the SPECIAL MEETING held afterward at 12:15 in the same location WILL BE OPEN TO THE PUBLIC?…that there is much speculation surrounding the outcome of this meeting?…that there are those who are expecting a decision to be announced with respect to the decision on the developer of the downtown Convention Hotel?…that the announcement that London Witte would be vetting the proposals was only communicated last Friday?…that if a decision was reached so quickly that we would like to see the criteria used during the vetting process?…that stranger things have happened with the ERC recently but that we still expect the vetting to take a little bit longer?
IS IT TRUE that we are hearing conflicting information regarding the downtown branch of the US Post Office?…that we have information from insiders that indicate that the retail part of the downtown post office will be closed soon?…that we have inside information that indicates that the USPO will keep “operations†at the Sycamore location up and running?…that the only thing that is true for sure is that the building’s owner has put it on the market?…that there seems to be allot of commercial property owners who are trying to capitalize on the opening of the new Arena by selling their holdings and exiting the downtown?…that if they saw the Arena as highly accretive to their property that they probably would not be doing this?…that if the Arena is to inspire investment that the properties need to be in the hands of investors with cash?…that the turnover of properties into new management is actually a positive indicator for future downtown investment?…that putting up a for sale sign does not always make a transaction happen?
IS IT TRUE that our friend and ally, Great Britain is experiencing a bit of domestic turmoil in the streets this week?…that looters under the guise of “social unrest†seem to be taking advantage of the rotten economy to help themselves to the property of others?…that this brings back memories of the aftermath of the Rodney King trials in Los Angeles?…that when a gang of looters headed for Koreatown in LA determined to create mayhem and loot the stores that the Korean’s met the mob with guns to protect their property?…that the mob backed off when faced with an organized and armed group of citizens?…that if the United Kingdom enjoyed the same 2nd Amendment rights that the United States enjoys that these looters would be back home on the couch drinking beer and watching soccer right now?…that private gun ownership is why we do not report to the British monarchy in the USA?…that the 2nd Amendment is one lesson that Great Britain could learn from the former colonies known as the United States of America?
IS IT TRUE that we are very pleased at the recent statistics that show a drop in the suicides in Vanderburgh County after last year’s record high?…that with the newly aware teams of litter pickers, the EPA ruling on sewers, the renewed awareness of the problems in our parks, the realization that there will be a new administration in the City of Evansville, and a renewed focus on improvement that maybe just maybe Evansville is about to hit an upswing?…that we wish everyone a good and prosperous day?
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?
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.
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 tyrannyâ€?…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?
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-constructionâ€. 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 Apartmentsâ€.
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 Museumâ€. 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 Dockâ€. 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.
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.
Time 1:00 PM – 2:00 PM
