IS IT TRUE that our article yesterday regarding the tax liability of ZERO for one Front Door Pride house inspired comments and elicited several direct responses?…that one of these responses was from the Deputy Treasurer of Vanderburgh County who proceeded to explain to us exactly how such a thing happens?…that this is a clever scheme that that begs for answers?…that the explanation that we received is believed to be legal but does show favoritism?…that just two weeks ago that the City County Observer submitted a word to both the Webster’s Dictionary and the Urban Dictionary?…that the word is SNEGAL and is defined as “SNEAKY BUT LEGAL”?… that SCHEMES like the one that takes residential properties off of the tax roles for a couple of years in a LEGAL way are the reason the word SNEGAL will be a part of the English language in the near future?

IS IT TRUE that the buyers of the Front Door Pride homes are not a part of the SCHEME and are in many cases not even aware of the favoritism that is awarded to them?…that the buyers of these homes are innocent as sheep when it comes to taxation of their property?…that the following is a narrative of how this little SCHEME works?

IS IT TRUE that the first step of this scheme starts when the City of Evansville or any city for that matter acquires a property that is zoned residential?…that the second step in the scheme is to TRANSFER OWNERSHIP OF A PROPERTY TO A 501-C3 NON-PROFIT?…that the third step of this scheme happens when the 501c-3 non-profit is granted an exemption in the amount of the previous assessment under the “other” category?…that in the case of the Front Door Pride program that the entity that is used to hold the properties is called Hope of Evansville?

IS IT TRUE that step four of this scheme is to construct a new dwelling on the property and place it on the market?…that pricing does not matter to this scenario?…that the next step is to wait for a buyer?…that if a buyer is never found that these properties are permanently off of the tax rolls?…that the time to find a buyer is currently about a year during which time there are no taxes paid on these homes?…that when a buyer is found the clock starts for going back onto the tax rolls?

IS IT TRUE that the property taxation system in Indiana has a time lag of between 18 and 24 months to catch up to a transaction?…that is why the taxes that were just paid were the 2010 taxes that were due in 2011?…that those taxes are usually based on assessment that happened in 2009?…that in the case of a property that was held in a 501c-3 non-profit that is transferred to private ownership that the ZERO tax obligation does not change until the roughly the first May 10th, following the second March after closing the transaction?…that the buyers of the Front Door Pride Homes that were held by Hope of Evansville inherit at least 3 and in special cases 4 tax payment cycles with ZERO tax liability due to the time it takes to a) remove the full assessment exemption, and b) reach the time when a year has passed when taxes are actually due?…that if you or I were to purchase one of the six Phase 2 FDP homes that are currently on the market today that the first date that we would be getting a real tax bill based on the sale price of the house will be due May 10, 2013?…that to enact and embrace a system that is this inefficient and preferentially benefits a select few is just asinine and needs to be changed so that it is fair to all Hoosiers?

IS IT TRUE that this convoluted system actually works as it was designed but that it has serious design flaws?…that simply changing assessments immediately upon sale is one step to eliminate part of this loophole?…that immediate elimination of all 501-c3 based exemptions upon sale will cut a year off of the time lag that is inherent in our system of taxation?…that this system is SNEGAL but is not SNEGAL on the part of any buyer?…that the SNEGALITY that deserves some examination lies in the basis for transferring the property to a 501c-3 in the first place and in the complacency with the removal of the exemptions granted that were based solely on the fact that a 501c-3 non-profit organization was used to hold the property?

IS IT TRUE that Casino Aztar has announced plans to make a few improvements to their property including replacing some totally worn out carpet, improving the ventilation, and adding a skywalk across Riverside Drive to connect Le Merigot to the Casino?…that the skywalk budget is $3 Million?…that the planners for the skywalk system that will need to be put into place to connect the Hotel, Centre, and Arena over at the MLK Entertainment Complex should take note of that price and budget for a similar amount?…that the City County Observer predicted a $3 Million price for a skywalk at the MLK Entertainment Complex last August?…that some of the internal management rumblings at the time were spewing numbers as low as $300,000?…that Fort Wayne spent $3 Million for a skywalk, Aztar is spending $3 Million for a skywalk, and that the Arena will have to do the same?…that is unless that do some Rube Goldberg imitation of a classy skywalk to connect the three structures as they should be connected?…that we wonder what line item in the Arena budget that the $3 Million for the skywalk will be coming from?

IS IT TRUE that the first deadline to find financing for the Hyatt Place hotel came and went on May 31st and that no financing has been secured?…that the expected valuation of the completed product has not increased from the $18 Million – $20 Million figure that the City County Observer published in August of last year?…that commercial real estate has actually fallen in value since that time?…that the banking community has not eased their lending standards since then with respect to collateral requirements?…that in a world that expects to see 30% – 50% in equity taken up front the conventional loan limits for this venture will be in the range of $9 Million – $14 Million?…that with an overall construction cost (including skywalk, parking, restaurant, etc.) of something like $32 Million that a gap of between $18 Million and $23 Million still exists?…that the money in the gap with either have to be contributed as paid in equity by the developer and investors, financial incentives, or loan guarantees?

IS IT TRUE that John Kish has finally gone on record about the level of difficulty that the financing of a hotel deal in downtown Evansville will be?…that in 2007 that Mayor Weinzapfel was all smiles with the news of a 4-Star hotel fully financed deal with no public money needed?…that in 2010 all were confident that financing a deal with Browning would be secured until it wasn’t?…that when the RFP went out in the fall of 2010 it did not have an adequate vetting process to assure that the eventual developer would be committed to perform?…that when the internal change of control of Woodruff Hospitality LLC occurred this spring that the representatives of the City of Evansville were still confident that financing would be secured?…that yesterday after the first contractual milestone was missed that confidence is still asserted by the same Mr. Kish?…that if confidence built hotels that Evansville would already have three new ones under construction?

IS IT TRUE that maybe just maybe yesterday’s realizations will smash the rose colored glasses once and for all?…that there is one way to assure that this hotel is financed and that all of the parties involved should have known it for 4 years now?…that the valuations and collateralization ratios have not changed materially since that 2007 day when the Mayor was announcing what turned out to be a pie in the skywalk dream?…that when Junior wants to buy a car by borrowing more money than the car is worth, that the only way for Junior to do so is if Daddy guarantees the note?…that we trust that all of our readers are astute enough to understand that metaphor?

IS IT TRUE that the City County Observer is unwavering in support of the need for the downtown convention hotel and that we welcome the acknowledgement of the financial reality that faces this development?…we as a community are too far into this whole MLK Entertainment Complex project to hobble it now by not finding a way to get a hotel in there by whatever means is necessary?…that TIME IS NOW OF THE ESSENCE?

Lloyd Winnecke, Republican candidate for Mayor of Evansville released a jobs plan today that essentially returns to the fundamentals of economic development that Gage and the Coalition for Economic Development were founded in in 2007.

In his plan Winnecke refers to leveraging the technology transfer agreement that was signed between Gage and the Crane Navsea back in 2008 and to returning to getting to know local businesses that was also established by Gage under the name EnGage in 2007. The plan also calls for returning to the basics of promoting entrepreneurship that was the fundamental tenant in establishing Innovation Pointe.

The entire plan is available on the link below.

Winnecke-Jobs-Plan

Mass Email from information@vanderburghdemocrats.com

Keeping the Majority

City Council Fundraiser
for

Missy Mosby
Stephanie Brinkerhoff Riley
Connie Robinson
John Friend
Jonathan Weaver
Conor O’Daniel

Hosts:
Mayor Jonathan Weinzapfel
Curt John

June 29, 2011
5pm-7pm

Main Gate Sports Bar and Restaurant
529 Main St
Evansville, Indiana

$50 per person
Sponsorships Available

For more information contact Missy Mosby at (812) 453-6479 or call453misy@yahoo.com

The Vanderburgh County Democratic Party
200 SE 6th St
Evansville, IN 47713
(812) 464-9100
http://www.vanderburghdemocrats.com

Authorized by The Vanderburgh County Democratic Party, Mark R. Owen, Chairman.

IS IT TRUE? June 1, 2011

IS IT TRUE that Centre City Properties is not the only assessment that does not reflect the reality of the situation?…that houses that have been and remain in the Front Door Pride program just make ones head spin when trying to figure out a basis for assessment and taxation?…

IS IT TRUE that the first wave of Front Door Pride houses included a house located at 401 Southeast 3rd Street?…that this house like the other Front Door Pride houses cost the City of Evansville approximately $200,000 to build?…that the cost to build does not include any cost to acquire and prepare the land for construction such as demolition of a previous structure, grading, sewer taps, etc?…that this home sold in a transaction recorded on June 24, 2010 for the amount of $130,000?…that the assessment of this home as per the Vanderburgh County Assessor’s website this morning is exactly $64,000?…that the maximum taxes reported by the assessor are curiously listed as $1,280 which would correspond to 2% which is the maximum levy for a rental house?…that the actual taxes for this home are exactly ZERO?…that an exemption in the amount of $64,000 under the category of “other” is recorded making the taxes on this property ZERO until further changes?…that we wonder how completely destroying the tax base on a property that seems to be in good condition and well maintained is even remotely close to establishing a sustainable city?…that actions like this are the economic equivalent of cutting off ones nose to spite ones face?

IS IT TRUE that the second wave of eight Front Door Pride houses that took nearly a year to attract their first buyer last November is still in search of a second buyer?…that the remainder of the houses that cost from $178,305 to $207,262 to build are still sitting empty six months since the last buyer came along?…that at the rate of selling that the City of Evansville through Project Hope is sitting on six years of inventory just from FDP phase 2?…that no private business of any kind could survive holding a six year inventory?…that the sale that did happen was recorded last November 24th at a price of $130,000 for a home that cost the City of Evansville just under $200,000 to construct?…that this house is located at 1228 Culver and does not seem to have gotten a full exemption to property taxes?…that the assessment of this $200,000 house that sold for $130,000 is $53,000?…that the buyer has filed for a homestead tax exemption but still is paying $347.94 per year in real estate taxes?…that at this rate of taxation that the City of Evansville will recover the losses incurred from building this home in 201 years assuming a zero interest rate?…that the life of the house will not be 201 years?

IS IT TRUE that increasing the tax base and attracting private investment were two of the main reasons to pursue the Front Door Pride program?… that in a market that costs $200,000 to enter, years to sell at a $70,000 loss, in a neighborhood that legitimately delivers comparable values of $65,000 is never going to attract private investment?…that the gap is just too large?…that the value gap may even exceed the expected value over the life of the homes?…that now the City of Evansville is planning on building 40 more of these houses but they will be rentals?…that it is widely accepted that rentals hurt property values?…that this is turning into a money pit and that much of the money being thrown into this pit was originally programmed for a business loan fund?…that is a story for another day?

IS IT TRUE that John Kish stood before the Evansville City Council and stated that the assessment of the new downtown hotel would be based on cost of construction?…that there is strong precedent from the Front Door Pride program and the Constitution of the State of Indiana that market value is the only acceptable method of assessment?…that given those rules that the new downtown hotel will be fairly assessed at between $15 Million and $20 Million as opposed to the projected cost to build of $32 Million?…that if it is not that the developer can appeal the assessment and win on the precedents set by the Front Door Pride program and the McCurdy?

IS IT TRUE Centre City Properties LLC has accomplished a milestone?…that as owners of the McCurdy Hotel that Centre City has finally written a check to the Vanderburgh County Treasurer to pay SOME TAXES that were overdue on the historic hotel?…that SOME is the operative word here and not ALL?…that sometime after the May 10, 2011 due date that a payment of $10,771.55 was made toward an overdue tax bill of $23,046.31?…that included a penalty of $2,985.34 most of which was levied after May 10, 2011?…that the strange amount paid by Centre City was sufficient to bring the property taxes to within 6 months of being current?…that it would certainly be a show of good faith in pursuing this project if CCP were to take another step and pay the $12, 274.76 needed to bring the taxes current?…that one can basically stay 6 months to a year behind on property taxes forever without fear of the tax auctioneers hammer?

IS IT TRUE that the land on which the McCurdy sets is assessed for taxation purposes at $505,400?…that this land includes the parking lot that the City of Evansville purchased for a price of $603,000 exactly 1,345 days ago?…that we must assume that the City of Evansville’s purchase price was based on market value?…that the State of Indiana has a constitutional mandate to assess properties at market value?…that if this assessment is at market value that the land that the actual structure is on must have a value of NEGATIVE $97,600 unless of course the City of Evansville overpaid for the parking lot in the first place which they are not supposed to be able to do?…that either this land is assessed inconsistently with its market value based on an actual sale?…that this violates the constitution?

IS IT TRUE that the improvements to the McCurdy Hotel property are assessed at $316,200?…that every improvement is given a grade of F for condition?…that the assessors website does not have any record of the square footage of the structure?…that scaling from the map the structure itself appears to be in the 90,000 to 100,000 square foot range?…that the assessment is then in the $3 – $4 per square foot range or comparable to a dish towel?…that the recorded sale price of the entire McCurdy property is $818,500?…that the total dollars spent by the City of Evansville to acquire the parking lot and the hotel on behalf of Centre City Properties was $1,403,000?…that something does not smell right about an assessment of $821,600 for a property that the City of Evansville paid $1,403,000 for?…that it appears that this property is under-assessed by $581,400 costing the taxpayers of Evansville $17,442 per year if this assessment was correct?

IS IT TRUE that in all fairness that in its present condition the McCurdy would not draw a bid of $1.4 Million or even $821,000 at a public auction?…that even though the accounting was done wrong back in 2007 and 2008 that the property has degraded along with its next door neighbor the Riverhouse since that time?…that based on a recent auction at the Riverhouse that both 90 room hotels have a market value of only about $350,000 in their present condition?…that an eroding tax base due to devaluation is already a big problem in Evansville and is getting bigger?…that Centre City Properties could appeal the assessment based on the Riverhouse auction and get an even bigger tax reduction than they already are receiving?

IS IT TRUE that it has now been 1,491 days since the announcement was made on May 14, 2007 that the McCurdy Hotel was to be refurbished into luxury apartments?…that it has now been 1,345 days since the Evansville Redevelopment Commission at the request of Mayor Weinzapfel approved the spending of $603,000 to purchase the parking lot?…that City Centre Properties and Scott Kosene the developers of the McCurdy project are both listed as contributors to the Weinzapfel for Mayor committee for 2010?

IS IT TRUE that there are now 518 days remaining in the two years that the EPA had given the City of Evansville to present an acceptable solution to the Combined Sewer Overflow problem?…..that this plan is an expensive and complex endeavor that needs immediate attention to avoid the embarrassment and expense of another round of fines?

IS IT TRUE? PART 2 May 31, 2011

IS IT TRUE that the Vanderburgh County School Board is already releasing snippets of information regarding the search for a new superintendent to replace the soon to be departed Dr. Vince Bertrum?…that they officially expect a “shallow” pool of external candidates?…that the response to that low expectation is to seriously consider looking inside?…that undergoing a national search only to settle for a local candidate has been code for limited salary budget for public positions in the past?…that Evansville may be creating the “shallow” pool of external candidates by underpaying relative to national numbers?…that this predisposition to underpaying public positions relative to national scales holds Evansville back?…that this is a counterproductive attitude that pervades local government and non-profits in Evansville and has for years?…that it would be great if a local candidate turns out to be the right candidate to replace Dr. Bertrum?…that if the EVSC finds a local candidate but does not pay them a national wage that in a couple or three years this great local candidate will be our next brain drainer when some other locale recognizes it and pays a national wage?

IS IT TRUE that even after a weed whacker and some mowing was done at the McCurdy Hotel that it still looks dilapidated?…that ivy covers half of the sidewalk on the north side of the property and that the beanstalk to the second floor is still in place?…that we have it on good authority that the Shriners are planning to get the lot into good shape for their upcoming Shrinersfest?…that they want to avoid the embarrassment of having visitors in town seeing the state in which that once elegant building has been allowed to degenerate into?…that we thank the Shriners in advance for their contributions to Evansville and encourage everyone to attend the Shrinersfest to support their noble efforts?

IS IT TRUE that university tuition at a particular institution is nearly always uniform with respect to a student’s major?…that employment prospects and expected earnings bear no resemblance to each other with respect to major?…that a bachelor’s degree in any engineering discipline this year is commanding multiple offers that exceed $60,000 per year in most markets?…that a bachelor’s degree in some majors are not commanding any job offers at all for most students and are drawing less than $30,000 offers for the students fortunate enough to be hired?…that the so called “name” university graduates can expect to receive offers that are double the amount than graduates of the lesser known colleges?…that the big name schools charge up to 4 times as much and justify that by the salary and opportunity advantages that they offer?… that there should be different prices for different degrees?…that we wonder how recruiters look a kid in the eye and say it cost $30,000 for four years of tuition to get a credential that commands $30,000 per year at best while charging the same for a degree that will command more than twice as much?

IS IT TRUE that a drive by of the Executive Inn reveals that it was not on the ground last Friday as the plan was?…that we can look forward to being rid of the remains of that place this week?…that it is better late than never and that we are more interested in how the financing for the construction for the new hotel is going?

IS IT TRUE that the last three days have been a welcome break from the daily routine of people’s lives all across the country?…that we learned this weekend that outdoor music festivals in Louisville have now banned smoking?…that this was the first time that the City of Louisville that enacted a comprehensive smoking ban several years ago had moved the ban outdoors?…that event organizers report that this was the highest year for attendance?…that the City of Evansville needs to learn a lesson or two from Louisville in the public smoking department?…that Louisville’s Brown and Williamson Club is non-smoking?…that being last is better than never and that the time has come for the City of Evansville to promote public health with a comprehensive smoking ban?…that even all indoor areas of Churchill Downs are non-smoking and that after many bad years the track is doing okay again?…that Churchill Downs fought smoking restrictions like a cat fights a bath only to have their paranoia disproven?

IS IT TRUE that if you believe the mainstream media that one neighborhood in Evansville acted as if the moon was full last weekend?…that three young men took the life of a pizza delivery guy into their hands and pistol whipped him for the change that he carried and maybe a pizza or two?…that the thought process that enables one to rationalize committing such a crime for such a paltry payoff is mind boggling?…that we doubt very seriously that this act of cowardice can be blamed on the economy?…that these three knuckleheads should have learned better by this stage of their life?…that statistically speaking that they will all three find a cell to live in at some point in their lives?…that there were two more crimes of violence one involving a knife and another involving a gun in the same area?…that the good people of this neighborhood need to take the bull by the horns and start turning these criminals in?…that someone saw these things happen and either through fear or apathy has not come forward?…that the words “I DIDN’T SEE NOTHIN” are the words that drove Evansville’s crime rate up and that an attitude of not being willing to turn in perpetrators costs us all a degree of safety and some property value?

IS IT TRUE that the Evansville Police report included what sounds very much like a gang rumble that started in a Westside club and ended on the streets of the Southside on Washington Avenue between Kentucky Ave. and Highway 41?…that guns, knives, and injury were involved and that several of the partiers ended up in the emergency room?…that of course the cooperation level of the witness pool was “I DIDN’T SEE NOTHIN”?…that good people that happen to live in bad neighborhoods have the power to reduce crime in these neighborhoods by being willing to provide witness to the police?…that to refuse to do so enables the decline of the neighborhoods?…that this summer is not starting out well in the violent crime department and that we hope that cooler and more diligent minds prevail?…that we do not want to see the violent crime in Evansville increase by another 14% in 2011?

IS IT TRUE that the end of May brings with it the requirement that some financial milestone be achieved by Woodruff Hospitality LLC with respect to the new Downtown Evansville Convention Hotel?…that to date even though Arena Project Manager John Kish made a statement to that effect that he has not enlightened the public as to what that contractual requirement happens to be?…that the City County Observer should be finding out on or before June 16th as a result of our Freedom of Information Act request of May 19th?…that Mr. Kish should in the interest of transparency willingly inform the public of the end of May and end of June milestones and of the status of achieving them?…that the taxpayers of Evansville who are already subsidizing the hotel have a right to know the status of the project?

IS IT TRUE that on the riverfront in Louisville’s Belvedere Park there are engraved pavers with the cities along the Ohio River?…that Evansville is among these cities?…that beneath the Evansville paver that someone with some sidewalk chalk had written the words “Fattest City in America”?…that a little bit of water removes sidewalk chalk?…that water will not remove the distinction of being the fattest city in America but that discipline and willpower will?…that the City County Observer encourages all of our readers to eat healthy this week and walk a mile or so each day?…that if everyone does this Evansville will lose its dubious title of “Le Ville de Gras” in a couple of years?

Memorial Day was originally known as Decoration Day because it was a time set aside to honor the nation’s Civil War dead by decorating their graves. It was first widely observed on May 30, 1868, to honor the sacrifices of Civil War soldiers, by proclamation of General John A. Logan of the Grand Army of the Republic, an organization of former sailors and soldiers. On May 5, 1868, Logan declared in General Order No. 11 that:

The 30th of May, 1868, is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village, and hamlet churchyard in the land. In this observance no form of ceremony is prescribed, but posts and comrades will in their own way arrange such fitting services and testimonials of respect as circumstances may permit.

During the first celebration of Decoration Day, General James Garfield made a speech at Arlington National Cemetery, after which 5,000 participants helped to decorate the graves of the more than 20,000 Union and Confederate soldiers buried in the cemetery.

This 1868 celebration was inspired by local observances of the day in several towns throughout America that had taken place in the three years since the Civil War. In fact, several Northern and Southern cities claim to be the birthplace of Memorial Day, including Columbus, Miss.; Macon, Ga.; Richmond, Va.; Boalsburg, Pa.; and Carbondale, Ill.

In 1966, the federal government, under the direction of President Lyndon Johnson, declared Waterloo, N.Y., the official birthplace of Memorial Day. They chose Waterloo—which had first celebrated the day on May 5, 1866—because the town had made Memorial Day an annual, community-wide event during which businesses closed and residents decorated the graves of soldiers with flowers and flags.

By the late 1800s, many communities across the country had begun to celebrate Memorial Day and, after World War I, observances also began to honor those who had died in all of America’s wars. In 1971, Congress declared Memorial Day a national holiday to be celebrated the last Monday in May. (Veterans Day, a day set aside to honor all veterans, living and dead, is celebrated each year on November 11.)

Today, Memorial Day is celebrated at Arlington National Cemetery with a ceremony in which a small American flag is placed on each grave. Also, it is customary for the president or vice-president to give a speech honoring the contributions of the dead and lay a wreath at the Tomb of the Unknown Soldier. About 5,000 people attend the ceremony annually.

Several Southern states continue to set aside a special day for honoring the Confederate dead, which is usually called Confederate Memorial Day.

Only Two Places in the World Duplicate this Festival: Louisville and Washington D. C., City County Observer is Evansville’s Media Representative at Festival

For additional information click on: http://www.abbeyroadontheriver.com/index1.php