What is this EB-5 Program and is it right for the Downtown Evansville Hotel Project

The City County Observer has done some searching regarding the details of the EB-5 Program that has been proposed by Prime Lodging LLC as a primary financing source for the new downtown hotel. Excerpts from the article and a link to the discussion follow:

“Although it has been around for many years, the U.S. EB-5 visa immigrant investor program is now becoming an exciting potential source of capital for hotel development, acquisition and renovation projects. Some high-profile hotel projects are now being funded using this program, such as portions of the W Hotel and Residences Hollywood, one of the largest public-private partnership in California”

“approximately $118 million in financing is now being raised using the EB-5 investment program to finance construction of a 377-room hotel tower now being developed adjacent to L.A. LIVE to house both a Courtyard by Marriott® and Residence Inn by Marriott. In New York, another EB-5 investment program is seeking to finance a new Westin Hotel in the Flushing area of New York City”

“The good news for hotel developers and owners is these EB-5 investors are most interested in real estate development projects. And hotel development is one of the best investment options for the EB-5 investment program. That is because hotels create jobs in the U.S. (which is one of the key criteria for an EB-5 investment), and because hotels are an attractive asset class to the Chinese investors that currently are the majority of all applicants for the EB-5 visa program.”

“EB-5 is an immigrant investor visa category created in 1990 for foreign nationals who invest in a new commercial enterprise that will benefit the U.S. economy and create at least 10 full-time jobs. The name comes from the fact that this visa is the 5th category of employment based (EB) visas. Ten thousand visas are set aside annually for investors and their immediate family members under the EB-5 visa program. An EB-5 applicant will receive a visa for himself or herself, his or her spouse, and all of their children under the age of 21.”

“In order to qualify for an EB-5 Visa, an investor must invest at least $1,000,000, or $500,000 for a project in a “targeted employment area” (as discussed below), in an enterprise that will create at least 10 new full-time jobs for U.S. citizens and legal residents.”

http://hotellaw.jmbm.com/2011/07/eb-5_fundamentals.html

WNIN Kids Fest, presented by Bunny Bread will be held on Saturday September 17, 2011 from 10a-2pm. Last years, Kids Fest was a blast and we want you to join us this year for the fun.

2011 Kids Fest characters are

Cat in the Hat sponsored by MHS
Clifford the Big Red Dog sponsored by Barnes and Noble
Curious George
Princess Presto from Super Why
Abby Cadabby
A special appearance by the Bunny Bread Bunny.

On the Carpenter Home Stage sponsored by MDWise, we have some great acts from our community.

Tales and Scales
Revolution Gymnastics
Rawhide N Ruffles
VT Elite Fashion Club
Brice’s Taekwondo
Boom Squad, Inc

(Evansville, IN) – The Arts Council is excited to announce the third and final summer “Brown Bag” performance featuring Monte Skelton will be Wednesday, August 3, 2011. Monte is a talented and versatile saxophonist & musician, also playing the flute, clarinet, oboe, electric bass, and trombone, to name a few. A lunch hour with Monte will soothe your soul.

*THE REGULAR WEEKLY BROWN BAG SERIES WILL BEGIN OCTOBER 12, 2011*

All performances will take place in the Arts Council’s Bower-Suhrheinrich Foundation Gallery. The public is invited to attend, free of charge. The Gallery is located at 318 Main Street in Innovation Pointe.

Visitors are invited to bring a lunch from home or your favorite downtown eatery and spend the lunch hour listening and looking at all the BSF Gallery has to offer, including the current visual art display and a consignment shop filled with local artists’ works. The BSF Gallery hours are Monday – Friday, 9am – 5pm. Call 422-2111 for additional information or visit the Arts Council website at www.artswin.evansville.net for updates on current arts events in the Bower-Suhrheinrich Foundation Gallery, as well as those in our community.

Stuck in the Middle with You

IS IT TRUE that the federal government of the United States of America is still a whirling dervish of spin doctors without a comprehensive solution to assure that the nation’s debt will be paid after August 3rd, 2011?…that the old song “Stuck in the Middle with You” with the lines “clowns to the left of you and jokers to the right” should be the official campaign song of both President Obama and whoever emerges from the magma of 11 Republican hopefuls to oppose him?…that the President did engage in some scare tactics on the subject of Social Security checks being able to be mailed that seems a bit uninformed?…that the so called “Social Security Lockbox” contains no money at all?…that what is on deposit in that lockbox is a great big stack of already issued debt backed by the faith and means of the United States Government?…that if the Social Security Administration sold some of this debt on the open market that the “Social Security Lockbox” would have enough cash in it to cover the August commitments to our nations retirees?…that will ease some of the burden for cash without raising the debt limit?…that hopefully our Congress and our President will log onto the City County Observer today and we will hear no more fear mongering aimed at the elderly?…that as long as the US debt instruments have a market that Social Security checks should not be in jeopardy?

And on the Local Scene

IS IT TRUE that proposed debt instruments down at the Executive Inn Dilemma are becoming a hot topic of discussion among the rapidly growing “VETTING CLASS” of Evansville?…that opinions and concerns are already finding their way into the media regarding the financing that has been proposed to build and operate a new Downtown Convention Hotel?…that skepticism is both justified and necessary in a decent vetting process and that we applaud the expression of any and all concerns?…that raising a red flag or a yellow flag of caution is not a sufficient condition to eliminate either proposal and that to do this part of the vetting process correctly will take more than a couple of weeks and maybe some new knowledge?

IS IT TRUE that the proposal from Prime Lodging LLC expresses the intention to arrange for $22.5 Million of senior debt through a program called EB-5?…that this is a legitimate program that is under the administration of the USCIS (United States Customs and Immigration Service)?…that this was designed to allow desirable foreign nationals (meaning those that are educated in critical need areas like engineering) that have money to come to America on a fast track?…that SW Indiana is certainly a place that could use an influx of brains and money?…that they do not have to move here, but they might in which case two problems are improved upon?…that no entity in Evansville has ever cashed an EB-5 funded check to do a major project like this before?…that there may be no one in the food chain down at the Civic Center that knows and EB-5 from the Space Shuttle?…that this is why Councilman John Friend was correct when he suggested professional vetting by competent people?…that the “we ain’t never seen this foreign money scheme in these parts before and we ain’t havin it” routine is not vetting?…that if and we do mean if the EB-5 program is real that it has favorable loan terms, job creation quotas, and makes the start up period for the hotel less challenging?…that this needs to be vetted for a reality check?…that we are beginning to think that a VETTING PROCESS may actually happen?

IS IT TRUE that to those who say “we don’t want none of that foreign money here”, our advise is for you not to cash your next check that has any federal government sources?…that it is foreign money?

IS IT TRUE that the Kunkel Group’s proposal is more conventional when it comes to financing?…that the senior debt is proposed to be gotten through an investment group in Irvine, CA?…that the terms of the loan in the proposal are not as favorable as the terms disclosed by Prime Lodging?…that the real issue regarding the terms of either proposed senior debt arrangement need to have at least two levels of vetting?…that the first level is simply can these guys really get the money?…that the second level of vetting is to ask the question “if they are successful in getting this loan, will the operation of the hotel be sufficient to service the debt”?…that we are encouraged to actually see vetting style questions being asked?

IS IT TRUE that if after professional vetting that neither proposal is acceptable to the ERC, EEDC, and the City Council then and only then will we be back to square one?…that if this scenario plays out that the next Mayor will have the hotel, the McCurdy, and consolidation kicked down the road and into his lap?

Take That: July 21, 2011

IN RESPONSE TO: IS IT TRUE July 17, 2011 Subject: Awarding of Government Contracts

“I find it unusual that an RFP for a hotel in the $30M range is only advertised for one week before the proposals are opened. How can a prospective builder put together a package in this short of a time? They cannot. This is a done deal with a builder, and is a complete waste of time for any other prospective builder to submit a proposal. Can we be assured the winner is indeed the best propsal, or is this another “behind closed doors” deal?” wsaa2009

“Between the downtown condos, the Whirlpool industrial park, and now this hotel project, I do not believe it is unreasonable for people to wonder about the connection between Ben Kunkel and the mayor of Evansville.” Pressanykey

“On the connection between Mr. Kunkel and the Mayor, it may be as simple as Kunkel is willing to do projects in Evansville and the Mayor wants them to get done. Kunkel may be the builder of last and only resort for downtown Evansville. The hotel will be another measuring stick for outside interest. Evansville has not exactly had outside or inside investors beating the door down. Kunkel just seems to hang around and take what is offered when no one else is interested.” Mister Bill

“Let’s cut to the chase: Mayor Whiney-Boy’s reputation is ruined. His fall from grace with his own party and voters was based on gross corruption and negligence. Worse yet, he was crooked long before he became incompetent, and all he has to show for it is a campaign fund with more than one million dollars in it, with no chance of putting it to good use other than to give it to other politicians. The chances of that happening are slim and none, and slim just died…” Dr John Not the Night Tripper

“There is always the option of donating the entire campaign to a non-profit. Of course if that non-profit needed to hire an executive director with mayoral experience and use the new donation to pay him wouldn’t that just be peachy?” TheDonald

In Response To: ERC Password Restrictions on Public Information

“It would be interesting to know who authorized the password entry (my bet would be an appointed official), and who ordered its removal (my bet would be an elected official). But then my gambling record sucks!…. I think the password requirement probably reflects an “I’ll show those pests a thing or two” attitude. And while board members and appointed officials may get by with such arrogance, whoever has that attitude should never be elected to public office.” Soon2B

“The Regime wanted password control to identify any dissident taxpayers that dared to access this public information.” Joe Biden

“Just a programming oversight…..that’ll be how it’s spun, a simple mistake not meant to harm or restrict access, blame it on the IT department, maybe someone can file a FOIA request to see who ask the IT department to impose the password protection?” blanger

“I am sure that you are correct on where the finger will be pointed. Do you have any idea at how low the probability of a password being put onto the ERC page on the very day that the proposals for the hotel are received? We are talking about a 1 in a million chance here. There probably are no more than 5 people in the world that have the codes to enable the password protection option. Someone will talk.” Mapmaker

IS IT TRUE that with respect to the post this morning that discussed the insurance recommendation study that ONB was paid $100,000 to perform for the Evansville Redevelopment Commission, Mole #16 has informed us that the entire study has not been posted on the ERC website?…that we are relieved to hear that there is more to a $100,000 study that 3 spreadsheets that for all practical purposes could have been completed with a dozen phone calls and 2 hours on the computer?…that we anxiously await the release of the entire study and hope that we will be impressed by the amount of work that one needs to do to earn a $100,000 fee for making a recommendation?…that as was pointed out by CCO poster Beerguy that we are quite curious to find out if there were any commissions earned on any of the insurance purchases made by the ERC based upon the paid recommendations of ONB Insurance?

IS IT TRUE that the University of Southern Indiana and GAGE are working together on a study that has the purpose to help Evansville “find its identity”?…that this statement alone that is attributed to a USI marketing professor sort of implies that whatever that identity is that it is wandering in the wilderness lost?…that this could be good fodder for Hoosier comedian David Letterman if he were to hear of this metropolitan identity search?…that all joking aside, how does a city find something that it does not seem to have ever had?…that the method chosen is to survey 200 residents about what they think Evansville’s identity is and also what their “ideal city” would be?…that GAGE and USI are planning to concoct a list of words that will be carefully chosen to draw out the identity of Evansville from these 200 people?…that these touchy feely perceptions are alleged to have value to augment the recently released “Competitive Realities” study?…that we really wonder how one study based on uninformed perception using a protocol of “leading the witness” would have any value whatsoever to an outside assessment done by experts in the field?…that if any taxpayer money is being spent on this that we would like to know how much and where it came from?…that some of the hoards of obese people that will most surely be included in the study make be offended at the president of GAGE’s metaphor about taking “one bite from the elephant at a time”?

IS IT TRUE if you want to know what Evansville’s identity is just read the “Competitive Realities” report?…that it is all there for the reading?…that it is not flattering?…that a better use of tax money would be to spend it teaching the people of Evansville how the world sees us and letting the chips fall from there?…that if you want to know what a current snapshot of Evansville is, think about Snooky with a southern accent?

IS IT TRUE that one of the positive attributes that the Competitive Realities study identified was our central location?…that it pointed out the well known fact that Evansville sits nearly at the center of the population of the United States?…that A third grader can look at a map and identify that Evansville is closer to the center of the country than Chattanooga and Davenport?…that the center of the US population is in a corn field in Pike County?…that the question of interest is what does that really mean to anyone’s economic potential?…that this trivial dot on the map started being tracked in the 1800’s when it was near Dayton and has been migrating across Indiana since then?…that it has not magically created even one crumb of prosperity anywhere.?…that it its present migratory trajectory it will be in Arkansas in 30 years?

IS IT TRUE that why people think this is of economic importance is just mystifying…that it is of no more significance that the world’s largest ball of twine unless you invest in something that gives people and capital a value adding reason to stop here on their way to someplace else?…that capitalizing on a central location with a state of the art airport, multiple interstates, and intermodal logistics as Louisville, Memphis, and Indy have done is what matters?…that the dot in the cornfield means nothing?…that strategic infrastructure is required to capitalize on location?…that finding a way to create or find an identity to create a few jobs or enable some entrepreneurs to start a profitable enterprise near the transitory dot on the map would be worthy of spending some thought and public dollars on?…that if we don’t the ball of twine will pass us by like it has Dayton, Muncie, Anderson, etc. etc. etc. without bearing any economic fruit?

IS IT TRUE that this is a link to a map of the median center of population of the United States from 1880 until now?

http://en.wikipedia.org/wiki/File:USCenterPop_Median2010.png

TheDonald’s Parody on the House at Pooh Corner or “the Front Door Pride House at POO Corner” deserves a high five

TheDonald on July 19, 2011 at 7:57 am

Weiny the Pooh
Doesn’t know what to do
Got a money jar stuck on his nose

He came to me
Seeking help and advice
and from her no one knows where he goes

He wandered much further today than he should
and he can’t seem to find his way back from the hood

So help him if you can, he’s gotta get
back to the front door pride house at poo corner by 1
You’d be surprised there’s so much to be done

Count all the bucks in the hive
Drink all the beer in the dive

Back to the days of Jonathan Weiny
Back to the days of Jonathan Weiny
Back to the days of poo
pooo – pooo -poooo

Apologies to Winnie the Pooh and Christopher Robbin

The University of Southern Indiana women’s basketball team ranked 15th in the nation amongst NCAA Division II institutions in team grade point average according to the Women’s Basketball Coaches Association.

USI, which amassed a 3.511 team GPA in 2010-11, missed the top 10 by .023 points. The Screaming Eagles, who ranked fourth amongst Great Lakes Valley Conference teams, finished 2010-11 with a 16-11 overall record and a 12-6 mark in conference play.

The Eagles, who captured the GLVC East Division crown, placed seven players on the GLVC All-Academic team this past season and had four players earn the GLVC Council of Presidents’ Academic Excellence Award.

“I am extremely proud of our players and our team for this accomplishment,” Head Coach Rick Stein said. “Our team works extremely hard to excel both on and off the court. To be recognized as one of the top 15 academic programs in the country is outstanding.”

The Eagles also earned the USI Student Athlete Advisory Committee Team GPA Award earlier this spring.

Source: USI.edu

Time 1:30 PM – 3:00 PM
Subject BOARD OF PUBLIC WORKS
Location 301
Recurrence Occurs every Thursday effective 7/7/2011 until 7/28/2011 from 1:30 PM to 3:00 PM
Reminder 15 minutes
Sharon Evans @ 4982
Categories ROOM 301

Time 4:00 PM – 5:00 PM
Subject BOARD OF ZONING
Location 301
Recurrence Occurs the third Thursday of every 1 month effective 7/21/2011 until 7/21/2011 from 4:00 PM to 5:00 PM
Reminder 15 minutes
KATHIE @ 5228
Categories ROOM 301