Friend and Melcher Say “Do it Right This Time”

The fanfare of opening and reading into the records the fact that two companies (Kunkel and Prime Lodging) responded to the RFP to build and operate a downtown hotel adjacent to the new Arena and the Centre were followed by admonishments for the Evansville Redevelopment to do a complete job this time with respect to both the construction and the financial vetting process.

Vanderburgh County Commissioner Stephen Melcher spoke first regarding the need for a system of walk-bridges that connects the Centre, the new Arena, and hopefully a new hotel. Citing his 17 years of experience as an Evansville City Councilman and 3 years as a County Commissioner, Melcher invoked his knowledge learned by the late Bob Green in his efforts to support conventions and the Executive Inn. Of particular note was Commissioner Melcher’s advice to the ERC that they have an opportunity to do this right the first time. Melcher expressed the belief that underground tunnels were not the right solution but that a T-Shaped sky-bridge connection the three facilities would be perfect.

It was also noted that some damage has been sustained to the existing $3 Million sky-bridge that connected the Centre to the former Executive Inn. It is not believed that either proposal submitted today is inclusive of sky-bridges.

Following Commissioner Melcher to the lectern was Evansville City Councilman, Finance Committee Chairman, and CPA John Friend. Mr. Friend reminded the ERC of the failures of the previous choices to find financing and suggested that a third party vetting firm be hired to conduct a thorough financial, liability, and technical vetting process on both proposals. Councilman Friend further recommended that a committee of local elected officials consisting of himself, Councilman Curt John, Councilman Dan McGinn, Vanderburgh County Councilman Russ Lloyd Jr., and appointed ERC Commissioner Greg Elpers be formed to hire and vet the vetting vendor.

Councilman Friend furthermore suggested than the performance bond that was retained by the ERC from previous defaulting developers could be tapped to pay for the vetting process. It has not been established that such a bond was ever posted or retained.

The recommendations of both elected officials were “so noted” by Bob Goldman, the President of the Evansville Redevelopment Commission.

Sample Due Diligence (VETTING) Checklist

I. Financial Information

A. Annual and quarterly financial information for the past three years
1. Income statements, balance sheets, cash flows, and footnotes
2. Planned versus actual results
3. Management financial reports
4. Breakdown of sales and gross profits by:
a. Product Type
b. Channel
c. Geography
5. Current backlog by customer (if any)
6. Accounts receivable aging schedule

B. Financial Projections
1.Quarterly financial projections for the next three fiscal years
a. Revenue by product type, customers, and channel
b. Full income statements, balance sheets, cash
2. Major growth drivers and prospects
3. Predictability of business
4. Risks attendant to foreign operations (e.g., exchange rate fluctuation, government instability)
5. Industry and company pricing policies
6. Economic assumptions underlying projections (different scenarios based on price and market
fluctuations)
7. Explanation of projected capital expenditures, depreciation, and working capital arrangements
8. External financing arrangement assumption

C. Capital Structure
1. Current shares outstanding
2. List of all stockholders with shareholdings, options, warrants, or notes
3. Schedule of all options, warrants, rights, and any other potentially dilutive securities with exercise
prices and vesting provisions.
4. Summary of all debt instruments/bank lines with key terms and conditions
5. Off balance sheet liabilities

D. Other financial information
1. Summary of current federal, state and foreign tax positions, including net operating loss carryforwards
2. Discuss general accounting policies (revenue recognition, etc.)
3. Schedule of financing history for equity, warrants, and debt (date, investors, dollar investment,
percentage ownership, implied valuation and current basis for each round)

II. Products

A. Description of each product
1. Major customers and applications
2. Historical and projected growth rates
3. Market share
4. Speed and nature of technological change
5. Timing of new products, product enhancements
6. Cost structure and profitability

III. Customer Information
A. List of top 15 customers for the past two fiscal years and current year-to-date by application
(name, contact name, address, phone number, product(s) owned, and timing of purchase(s))

B. List of strategic relationships
(name, contact name, phone number, revenue contribution, marketing agreements)

C. Revenue by customer
(name, contact name, phone number for any accounting for 5 percent or more of revenue)

D. Brief description of any significant relationships severed within the last two years.
(name, contact name, phone number)

E. List of top 10 suppliers for the past two fiscal years and current year-to-date with contact
information
(name, contact name, phone number, purchase amounts, supplier agreements)

IV. Competition

A. Description of the competitive landscape within each market segment including:
1. Market position and related strengths and weaknesses as perceived in the market place
2. Basis of competition (e.g., price, service, technology, distribution)

V. Marketing, Sales, and Distribution

A. Strategy and implementation
1. Discussion of domestic and international distribution channels
2. Positioning of the Company and its products
3. Marketing opportunities/marketing risks
4. Description of marketing programs and examples of recent marketing/product/public
relations/media information on the Company

B. Major Customers
1. Status and trends of relationships
2. Prospects for future growth and development
3. Pipeline analysis

C. Principal avenues for generating new business

D. Sales force productivity model
1. Compensation
2. Quota Average
3. Sales Cycle
4. Plan for New Hires

E. Ability to implement marketing plan with current and projected budgets

VI. Management and Personnel

A. Organization Chart

D. Compensation arrangements
1. Copies (or summaries) of key employment agreements
2. Benefit plans

E. Discussion of incentive stock plans

G. Personnel Turnover
1. Data for the last two years
2. Benefit plans

VII. Legal and Related Matters

A. Pending lawsuits against the Company
(detail on claimant, claimed damages, brief history, status, anticipated outcome, and name of the
Company’s counsel)

B. Pending lawsuits initiated by Company
(detail on defendant, claimed damages, brief history, status, anticipated outcome, and name of
Company’s counsel)

C. Description of environmental and employee safety issues and liabilities
1. Safety precautions
2. New regulations and their consequences

D. List of material patents, copyrights, licenses, and trademarks
(issued and pending)

E. Summary of insurance coverage/any material exposures

F. Summary of material contacts

G. History of SEC or other regulatory agency problem, if any

University Professional and Continuing Education Association (UPCEA) has awarded the 2011 Recognition of Excellence Award for Innovations in Outreach and Engagement to Naval Surface Warfare Center, Crane (NSWC Crane) and the University of Southern Indiana for the development of an Innovation Discovery Process.

Designed by Dr. Susan Ellspermann, director of CAR, and Gene Recker, manager of education and entrepreneurship for USI at Innovation Pointe, the Innovation Discovery Process identifies creative solutions to complex problems and brings together a diverse group of people to analyze projects that NSWC Crane engages as part of its core competencies. The process helps inventors understand the value of their contributions to NSWC Crane’s missions. Often these contributions are in the design and discovery of solutions to complex military applications that are protectable under patent protection. Over the past two years, NSWC Crane has used the process to increase patent production.

“This process allows us to fully realize the potential of the technology developed for the warfighter,” said John Dement, NSWC Crane technology officer. “We are strengthening our capabilities for the Navy as well as discovering and documenting technology that can be transferred to commercial use or transitioned to other Department of Defense applications.”

Joshua Mischler, USI-Crane partnership manager, made the award nomination.

“The success of the Innovation Discovery Process recognizes NSWC Crane as a leading innovator for ‘best practices’ among Federal Lab Consortium members for innovative practices,” he said. “The process brings together a diverse group of people to analyze NSWC Crane projects and helps inventors understand the value of their contributions to NSWC Crane’s mission.”

The Innovation Discovery Process also received the 2009 Federal Laboratories Consortium Midwest Regional Partnership Award and was the designation of “Best Practices”, at the 2010 Department of Defense Technology Transfer Integrated Planning Team Conference.

NSWC Crane and USI formed an educational partnership in 2007 to enhance USI faculty research and student learning opportunities while enhancing research and commercialization of technology residing at NSWC Crane. Located in Martin County, NSWC Crane is the third largest Navy installation in the world employing more than 2,000 scientists, engineers, and technicians. NSWC Crane provides comprehensive support for complex military systems spanning development, deployment, and sustainment in three mission areas: electronic warfare/information operations, special missions, and strategic missions.

Source: USI.edu

Time 8:30 AM – 9:30 AM
Subject ERC
Location 307
Recurrence Occurs the third Tuesday of every 1 month effective 7/19/2011 until 7/19/2011 from 8:30 AM to 9:30 AM
Reminder 15 minutes
SARAH @ 7825
Categories ROOM 307

Time 9:00 AM – 10:30 AM
Subject SECURITY SUB-COMMITTEE
Location 318
Recurrence Occurs the third Tuesday of every 1 month effective 7/19/2011 until 7/19/2011 from 9:00 AM to 10:30 AM
Reminder 15 minutes
Angie @ 5233
Sgt. Vernon Lutz @ 7971
Categories ROOM 318

IS IT TRUE that the two responses to BUILD AND OPERATE the downtown Convention Hotel are now in the plastic tubs of Tom Barnett and John Kish?…that the two responses were the tow that were expected, specifically the Kunkel Group and Prime Lodging LLC?…that the real process of decided which if either of these proposals has the resilience to really deliver a hotel and an experienced operator starts today?…that the Evansville Redevelopment Commission will meet this morning to officially accept and read the two proposals into the official record at 8:30 am today on the 3rd floor of the Civic Center?

IS IT TRUE that the Weinzapfel Administration has recently been accused of running in a READY—FIRE—AIM manner?…that the 3+ years spent since that day in 2008 when Browning and the Mayor stood side by side to announce plans for a 4-Star Hotel may have just concluded the READY phase of that process?…that we hope that the City of Evansville is truly finished with the whole READY phase but realize that there is a possibility that we may have to visit READY again if neither of these proposals VET properly?…that Mole #3 tells us that the finger is on the trigger and that FIRE is the most preferred next step of some of the “powers that be”?…that many of the supporting cast for past actions of the “powers that be” have finally realized the errors of their ways?…that there is strong opposition within the ranks of the supporting cast to the URGE TO FIRE?…that cooler and saner heads must prevail this time?…that the following several months are not a time to FIRE?…that with all due disrespect given to the mistakes of the past IT IS TIME TO AIM?…that this may be Evansville’s last shot in the foreseeable future to actually secure a Downtown Convention Hotel?

IS IT TRUE that John Kish, project manager is now on record as saying that the approval process typically takes about three months?…that it is exactly 3 months and 3 weeks or 112 days until Election Day 2011?…that in a short 112 days we will all know whether it will be Lloyd Winnecke or Rick Davis who will become the Mayor that will assume responsibility for executing the decisions that are playing out right now?…that that there are 166 days remaining in the Weinzapfel Administration?…that the two candidates for Mayor of Evansville need to focus like a laser on what is being done in these 166 days that will have lasting effects into their administrations?…that the part of the process that we shall call AIM that includes a thorough VETTING of these two Downtown Convention Hotel proposals shall have a significant impact on the launch of either a Davis Administration or a Winnecke Administration?…that a binge of READY – FIRE – AIM decisions that commit the dwindling number of available dollars well into the future could severely handicap the initial conditions of the next administration?

IS IT TRUE that it may just be a good idea for the two candidates to start getting in front of some of the spending commitments that may be in the READY stage in the waning days of the Weinzapfel era?…that Evansville is just a couple of MISFIRES away from having problems that may not be solvable in any preferable way?…that such MISFIRES must be avoided?…that if a VETTING COMMITTEE is indeed formed that it would be in the interest of the candidates to attend these meetings for preparation purposes of launching the next administration?

IS IT TRUE? July 18, 2011 Special Evening Edition

IS IT TRUE that at this hour two and only two proposals to BUILD AND OPERATE a Downtown Convention Hotel have been submitted and are in the hands of Mr. John Kish, Project Manager?…that it is fully expected that these two proposals would be submitted?…that one of those proposals is from the Kunkel Group and the other is from the newly formed Prime Lodging LLC?…that most of Evansville has some familiarity with the Kunkel Group but that Prime Lodging LLC is a business that we who are interested all should get to know during the forthcoming VETTING PROCESS?

IS IT TRUE that Mole #3 tells us that Evansville City Councilman and Chairman of the Finance Committee John Friend has quietly been working behind the scenes to try to put together a group of 5 professionals made up from the current Evansville City Council, the Vanderburgh County Council, and the Evansville Redevelopment Commission?…that the purpose for this exercise has been to define a VETTING PROCESS and to put the responders to the hotel RFP through a rigorous VETTING PROCESS so that the dreaded third strike of failure does not whiz by the ERC once again?…that there are certainly 5 people between those 3 bodies that have the correct kinds of experience and academic background to do these tasks?

IS IT TRUE that Mole #3 furthermore tells us that the Mayor of Evansville has been cautious about embracing the VETTING PROCESS and that the Mayor has raised objections to some of the highly qualified professionals that could make this VETTING COMMITTEE an apolitical competent committee that could serve not only to VET the hotel responders but other things like the Arena Management Team as well?

IS IT TRUE that as far as the Downtown Convention Hotel is concerned, it may be too late in the game and too much of a political hot potato to put together a competent local VETTING COMMITTEE?…that if between the Evansville City Council, the Vanderburgh County Council, and the ERC if the “powers that be” cannot come to agreement on an objective and apolitical VETTING COMMITTEE that it may just be time to REACH INTO THE POCKETS OF THE TAXPAYERS OF EVANSVILLE and PAY FOR AN OUTSIDE PROFESSIONAL FIRM TO VET THE PROPOSALS?

IS IT TRUE that if there would have been a third party VETTING VENDOR two years ago that the City of Evansville and the Evansville Redevelopment Commission would not be sitting with egg on their faces looking like Curly, Larry, and Moe right now?…that some lessons are quite expensive to learn the hard way?…that the ERC should authorize whomever does the VETTING to teach a seminar in VETTING and that it should be required for elected and appointed officials to attend?…that NO PASS NO SERVE should be the mantra of Evansville going forward?

Today, Lloyd Winnecke, the Republican Candidate for Mayor of Evansville Released a plan that addresses specific shortcomings in the transportation infrastructure of the City of Evansville. In the plan called “Moving Evansville Forward”, Mr. Winnecke addresses the following 5 specific areas for improvement.

1. IMPROVING OUR CITY ROADS AND HIGHWAYS

2. INVESTING IN PUBLIC TRANSPORTATION

3. FINISHING INTERSTATE 69

4. STRENGTHEN OUR AIRPORT

5. UTILIZE RAILWAYS

The full text of the plan is on the following link.
Moving_Evansville_Forward_Winnecke

Margaret McMullan, a University of Evansville professor of creative writing and the author of six novels, has won the top prize in the 2011 Eugene and Marilyn Glick Indiana Authors Award program. This annual award recognizes the contributions of Hoosier authors to the literary landscape in Indiana and across the nation.

McMullan won the National Author category, which recognizes a writer who has Indiana ties but whose work is known and read throughout the country. The award includes a $10,000 prize.

“I am so honored to be named this year’s national recipient of the Eugene and Marilyn Glick Indiana Authors Award,” McMullan said. “I moved to Indiana about 21 years ago to teach at the University of Evansville, and I’ve grown to love this state, its people, and its strong literary heritage. I feel privileged and humbled to be a part of it.”

This spring, nominations for the Indiana Authors Award were submitted in the categories of National Author, Regional Author, and Emerging Author. From the pool of nominees, McMullan was selected as the National Author award winner by a 10-member, statewide award panel.

McMullan will be honored at the Indiana Authors Award dinner on October 29 in Indianapolis. She also will serve as the keynote speaker.

The Eugene and Marilyn Glick Indiana Authors Award is a program of the Indianapolis Public Library Foundation and is funded through the Glick Fund, a fund of the Central Indiana Community Foundation.

To learn more about the Indiana Authors Award, please visit www.indianaauthorsaward.org.

Source: evansville.edu

Tuition and fees for the next two academic years were set today by the University of Southern Indiana Board of Trustees at its regular meeting. Indiana undergraduate residents will pay just over $252 more in fees for the 2011-2012 academic year and $293 more in 2012-2013.

The credit hour fee was approved at $193.07 for Indiana resident undergraduate students for 2011-2012. It will change to $202.83 for Indiana resident undergraduate students in the next year.

Required by state law, a public hearing about the planned increase in tuition and fees for USI students was held on May 23, 2011. “The USI Board of Trustees is committed to providing affordable, quality higher education and has a history of maintaining an affordable fee structure,” said President Linda L. M. Bennett at the hearing. “USI is the most affordable baccalaureate-degree granting institution in Indiana.” There was no public response to the increases at that time.

The trustees also approved the 2011-2012 operating budget of $93.7 million. More than 54 percent of the budget is from state appropriations and 42 percent is from student fees, with three percent from other income. The budget will fund instruction and instruction-related costs, student services, and general administration and maintenance.

At the trustees? annual meeting, Ted C. Ziemer Jr. of Evansville was elected board chairman. Appointed to the board in July 2007, Ziemer has served as a member of the Long-Range Planning Committee and as a member and chair of the Finance/Audit Committee. He has represented the trustees on the USI/New Harmony Board of Directors (now the Advisory Board) since 2008.

As chairman, he replaces John Dunn of Evansville who has served on the Board of Trustees since 2006. Dunn was appointed chair in 2007. Under his chairmanship, the University appointed Linda L. M. Bennett as president upon the retirement of H. Ray Hoops. The trustees approved a resolution of appreciation to Dunn and applauded him for his dedicated service to the board and to the University.

Ziemer also has a strong record of service to the USI Foundation. Since 1976 he has been on the Board of Directors for the USI Foundation, which he chaired for six years.

New student trustee Susan Ellsperman attended the meeting. Recently appointed to the board by Governor Mitch Daniels, Ellsperman is a biology major with an emphasis in pre-medicine. She is from Newburgh, Indiana, and will graduate in May 2013. She is captain of the women?s soccer team and attends USI on the Harold W. Ashley Endowed Presidential Scholarship. With a 4.0 GPA, she was named to the 2010 soccer 1st team All-Great Lakes Valley Conference, 1st team All-Region, and 1st team Academic All-Region. She is the daughter of Michael and Melody Ellsperman of Newburgh.

Vice chairs for the year are W. Harold Calloway and Jeffrey L. Knight, both of Evansville.

Source: USI.edu