IS IT TRUE? July 13, 2011

IS IT TRUE that a smiling new leader of the local office of VenuWorks was the speaker at the downtown Rotary Club yesterday?…that our Moles tell us that the presentation was slick and that the speaker is a very good orator?…that he even gets high marks for being a likeable chap?…that the question and answer session produced some fairly pointed questions from the audience that did not exactly get the answer that one would hope for?…that when point blank asked about the certitude that the Shrine Circus would be in the new Evansville Arena at the regular time this year that the speaker seemed to be hedging?…that answers like “that’s the plan” or “no one has told me that it won’t be” are not really as succinct as a simple “yes, they are signed on and the load outs are tested and ready”?…that VenuWorks does not yet have a final contract in place?…that under the current temporary consulting agreement that VenuWorks needs the approval of the Evansville Redevelopment Commission to sign any acts into the Arena?…that there is no public record of any approvals for anything at all?…that there therefore cannot contractually be any acts booked, skyboxes sold, premium loge seats sold, concessions contracts in place, sponsorships completed etc.? …that we think our readers get the picture?…that complacency, the cone of incompetence, or both have the people of Evansville behind the 8 ball yet again?

IS IT TRUE that a full walk around the new Arena leaves one wondering just how to get a herd of circus animals into and out of the place during late November?…that Hannibal got some well trained war elephants across the Alps to invade Rome?…that the recently abandoned work site known as the “Pile of Rubble” does not look nearly as inviting to pachyderms, tigers, lions, horses, zebras, or even clowns as the Alps do?…that the rebar sticking up could be a hazard to these circus animals?…that if the problem of the “Pile of Rubble” is not dealt with very soon that some types of entertainment will most certainly be complicated if not impossible due to the load out situation?…that someone needs to contact INDOT today to order some “tiger crossing” and “elephant crossing” signs for downtown Evansville?

IS IT TRUE and WE REPEAT that the construction company that has been removing the debris from the “Pile of Rubble” has pulled off of the job?…that last week when the Evansville Redevelopment Commission terminated the contract with Woodruff Hospitality LLC to develop a Hyatt Place hotel in adjacent to the Arena and the Centre that the responsibility for payment for demolition services was removed from Woodruff Hospitality LLC, who said it was already going to be paid by Kunkel who was not at the meeting?…that the responsibility at this point in the absence of a future deal will fall flat on the shoulders of the taxpayers of Evansville, Indiana?…that now famous modus operandi of READY, FIRE, AIM seems to have really resulted in a bullet through the foot for the Weinzapfel Administration and the Evansville Redevelopment Commission AND a kick in the butt for the people of Evansville?

IS IT TRUE that in all fairness what has turned into a litany of chaos with respect to the hotel project is not a laughing matter?…that this mother of all failures deserves a full process audit and a complete overhaul?…that there is too much power that has been vested in the Evansville Redevelopment Commission?…that the Evansville City Council willfully granted the ERC this power by an 8 – 1 margin along party lines?…that the Mayor of Evansville appoints three of the five members of the ERC which essentially gives the Mayor dictatorial power over all of the funds managed and allocated by the ERC?…that there is no way that a process audit will recommend that this failed situation be left intact?…that any process that leaves an unmitigated “Pile of Rubble” in any downtown that resembles the Hiroshima Monument more than a modern construction site is a process that screams out for change?

IS IT TRUE? July 12, 2011

IS IT TRUE that the construction company that has been removing the debris from the pile of rubble at the former Executive Inn site has pulled off of the job?…that last week when the Evansville Redevelopment Commission terminated the contract with Woodruff Hospitality LLC to develop a Hyatt Place hotel in adjacent to the Arena and the Centre that the responsibility for payment for demolition services was removed from Woodruff Hospitality LLC, who said it was already going to be paid by Kunkel who was not at the meeting?…that the responsibility at this point in the absence of a future deal will fall flat on the shoulders of the taxpayers of Evansville, Indiana?…that now famous modus operandi of READY, FIRE, AIM seems to have really resulted in a bullet through the foot for the Weinzapfel Administration and the Evansville Redevelopment Commission AND a kick in the butt for the people of Evansville?

IS IT TRUE that there are exactly 20 days remaining until we know whether the McCurdy Hotel will follow the Executive Inn down the primrose path of failure?…that unless this can gets kicked down the road with yet another extension on the already 4 year saga to start doing something that we will have another project that has fallen on the sword of NO VETTING and NO DUE DILIGENCE WHATSOEVER?…that if this was not a costly debacle that the people of Evansville will have to BAIL OUT that this would be a comedy of errors deserving of a top award for fiction in the comedy category?

IS IT TRUE that just today that the Wall Street Journal profiled the government of Hamilton County, Ohio and the City of Cincinnati as having made the worst deal ever that resulted in building two riverfront temples to sport?…that the Cincinnati Bengals home Paul Brown Stadium is already in need of over $40 Million dollars of deferred maintenance?…that the people of Hamilton County will also have their property taxes raised to cover the shortfall created because the stadium funding sources have not performed up to projections?

IS IT TRUE that much scrutiny is about to be focused on the remainder of the projects at the MLK Entertainment Complex?…that maybe, just maybe some of the members of the Evansville City Council will show up for next week’s meeting of the ERC and demand some real accountability for the expensive ‘Fling at Walnut and King”?

Subsidizing Private Enterprise is Poor Policy

By: Steven Stanek

Apparently no shuttered factory, half-built real estate development or bankrupt sports arena can convince starry-eyed local government officials that taxpayer subsidies almost always fail to start the engines of economic growth.

The latest evidence of this: the welcome some McHenry County Board members and Lakewood village officials have given a proposed $40 million sports complex at Routes 47 and 176.

The County Board’s finance committee has endorsed backing for $18 million of federal economic stimulus bonds, and Lakewood officials are mulling $5 million in additional largesse, including helping secure grants for more financial handouts; waiving annexation, platting, and permit fees; and giving $1 million of village taxpayers’ cash.

It apparently does not matter that taxpayer-subsidized developments have an astonishing record of failure.

Here are just a few examples, with which local officials surely must be familiar:

• The Motorola plant in Harvard. More than 1 million square feet of factory space has been standing empty since 2003. That’s as many years closed as the plant was open.

• The Woodstock Die Cast property development. Bankrupt and foreclosed.

• The McHenry Riverwalk Center project at Boone Creek and Green Street. Would be bankrupt if not for millions of dollars in giveaways by the McHenry City Council, including a recent decision to let the developer virtually abandon plans for public parking. Could yet end up bankrupt.

• The $25 million Libertyville Sports Complex. Has nearly drained the village’s $10 million “rainy day” fund to repay construction bonds. Village board recently raised three taxes to keep paying the bonds. Developer was Mark Houser: the same Mark Houser who hoped to build a minor league baseball stadium at McHenry County College and now wants to build one – using subsidized stimulus bonds, of course – nearer to Woodstock.

• The $55 million Sears Centre in Hoffman Estates. Bankrupt and taken over by the village just a few weeks ago. The 11,000-seat arena opened barely three years ago.

Nationally, similar examples abound. I could fill this newspaper with them.

Research shows even “successful” subsidized projects cost taxpayers. They divert government resources, skew private spending and investment decisions, shift tax burdens, and prompt local officials to favor subsidy recipients to keep the government “investments” looking good.

Those who back government handouts for projects such as this sports complex are enemies of business competition and fairness.

They have no qualms about backroom deals for political favors that no one else can hope to receive.

Failing or failed subsidized projects litter this and neighboring counties. Yet these cautionary examples apparently have no impact on some local leaders.

So maybe we should try this approach. If a developer admits a project cannot stand on its own, would you invest your money? Of course not. Yet that is what a developer admits when he says he needs taxpayer subsidies.

“Investing” tax dollars in a dubious project is as stupid as investing our personal dollars in one. And if a developer asks for subsidies just because he wants taxpayers to lower costs to boost profits, then the project does not need subsidies.

Either way, there is never a good reason to subsidize private projects such as this sports complex.

Practical and Easy to Understand Advice to Inspire Growth

10 Principles for Improved Business Climates

1. Keep total tax burden low.

2. Keep taxes on businesses low

3. Avoid corporate welfare

4. Remove privileges enjoyed by labor unions

5. Lower or eliminate minimum wages

6. Reduce workers compensation costs

7. Keep housing affordable

8. Reduce the burden of regulations

9. Discourage lawsuit abuse

10. Attract members of the creative class

Link to Full Study:

10 Principals for Improved Business Climates

The Evansville Vanderburgh School Corporation approved a three-year contract for new superintendent David Smith during its meeting this evening. The contract, which is nearly identical to the first year contract of previous superintendent Vince Bertram, is for $160,000, and includes provisions for one-year contract extensions after a successful first and second year completion.

Also during the meeting, several administrative positions were approved. They included:

Daniel J. Ulrich, chief academic officer, filling the position which will be left vacant by the departure of David Dimmett. Dimmett will leave the EVSC on July 15 to join Project Lead the Way.
Ulrich has served the EVSC since 1978 in a variety of leadership and teaching roles, but has been the director of career/technical and adult education since 2005 at the Southern Indiana Career and Technical Center. He holds BS and MS degrees from Indiana State University and a Master’s plus additional hours from the University of Southern Indiana.

Susan K. McDowell Riley, deputy superintendent for academic affairs and accountability.
This position will oversee the work of the Office of Academic Affairs and the Office of Performance, Assessment and Research. This work is closely intertwined and the position will place McDowell Riley in good position to direct the impact of data on instruction. She has been with the EVSC since her start as a special education teacher in 1974 and has also been a school psychologist, led the work of the Office of Psychological Services and Testing and has been assistant superintendent for Performance, Assessment and Research since 2008. McDowell Riley holds a BS degree from Indiana University, an MS from the University of Evansville; and her PhD from Ball State University.

Pat Tuley, chief financial officer and chief human resources officer, replacing the position left open by the advancement of David Smith to superintendent.
Tuley has served the EVSC since 1996 when he started as manager of the Book Fund and Supportive Services. He moved on to the positions of manager of purchasing, director of support services, director of school facilities and finally to his current position as chief operating officer. He has a BS degree from the University of Southern Indiana and is currently studying for his Master of Business Operational Excellence from The Ohio State University.

Stacy Mauser, chief technology officer, replacing Mike Russ, who retired June 30.
Mauser holds a Bachelor of Science degree from Indiana State University and is currently studying for the Master of Business Operational Excellence from The Ohio State University. Most recently she has been the manager of information technology since 2005. Prior to that she was the supervisor of network/PC support and the PC networking specialist.

Erin Ramsey, director of Early Childhood Education, replacing Valerie Bostick who is now principal of a private school in Florida.
Ramsey is currently the director of public relations for the Indiana Association for Childcare Resource and Referral. She previously held the position of Executive Director of 4-C of Southern Indiana. Ramsey will work as the Director of Early Childhood Education at the Center for Family, School, and Community Partnerships. Ramsey has a BA degree from California State, and a Master of Public Service Administration from the University of Evansville.

Jay Hille, principal for Washington Middle School, replacing Rance Ossenberg, who retired.
Hille has served as the Assistant Principal at Washington Middle School for the last four years. He was previously principal at Christa McAuliffe. Hille holds a bachelor’s degree from Murray State and a master’s degree from Oakland City University.

Wall Street Journal and Cincinnati.com Cite Faulty Financial Projections and a Failed Maintenance Plan as the Reasons

Cincinnati.com reports that the Bengals are have requested a $43 Million infusion for repairs and improvements to Paul Brown Stadium that was only opened 10 years ago. This figure is reported to be four times the amount budgeted by Hamilton County and the City of Cincinnati when the two stadium complex for the Reds and Bengals was built 10 years ago. The amount does not include an $8 Million scoreboard that the Bengals also say is necessary to remain competitive in offering a good NFL experience.

The total upkeep on the two stadiums over the ten year period has only amounted to $12.4 Million or $1.24 Million per year. Mark Rosentraub, a professor of sports management at the University of Michigan, said stadium maintenance is no different than making home repairs – just on a larger scale. Rosentraub estimates that the annual maintenance for the Cincinnati stadiums could be as high as $4 Million per year and that ignoring a maintenance program will just lead to deterioration and big ticket items in the future.

At the same time the Wall Street Journal is reporting that the sales tax revenues in Hamilton County, where one in seven people lives beneath the poverty line and budget cuts have left gaps in the schools and sheriffs department, has residents bracing for more belt-tightening. The county is being forced to consider a rollback of a property-tax break promised as part of a 1996 plan to entice voters to pay for two new stadiums.

The tax hit is just the latest in a string of unforeseen consequences from what has turned into one of the worst professional sports deals ever struck by a local government—soaking up unprecedented tax dollars and county resources while returning little economic benefit the Journal went on to report.

Excerpts from the WSJ Article.

“A preliminary PricewaterhouseCoopers audit of construction costs, reviewed by the Journal, found that there were insufficient financial controls on the part of various project managers and contractors hired by the county.”

“The auditors, citing “blurred accountability,” said they hadn’t been given enough information for a full accounting. “Each party suggested that we speak to other parties about specific details of the changes,” they said in the report.”

“It’s the monster that ate the public sector,” says Mark Reed, Hamilton County’s juvenile court administrator.”

“County Auditor Dusty Rhodes initially supported the stadium deal—partly as a matter of civic pride. But now he feels differently about the costly legacy that has grown in the arenas’ shadow—and believes there’s plenty of blame to go around. The county, he underscores, has used some of the tax dollars earmarked for the stadium on things like a road project and a new waterfront development. “They just went nuts spending this money for stuff that was not envisioned,” he says.”

“Some local officials had cautioned that the stadium expense was too great. They warned that the projected $300 million in economic benefits, outlined in a report commissioned by the county, were exaggerated. Tom Luken, a former Cincinnati mayor and councilman, actively campaigned against the deal. “Anybody with half a brain can figure that this is a bad deal,” he says. “As it turned out, it was even worse than they painted it.””

” Late last year, officials announced they would have to break their promise about reducing property taxes for 2011.”

“Recently, as local officials mulled new ways to stretch the budget, one commissioner suggested making up for the tax hike by cutting another property-tax levy: one that funds health services for the poor.”

“Harold Flaherty, a former schoolteacher, says he is livid about the sports pact. “It staggers my imagination that we should pay for this,” he says. “I think it’s the dumbest thing we ever did.” Mr. Flaherty, 77, will pay about $240 more in property taxes this year due to the rollback.”

In the spirit of exposing surprises before they grow into unmanageable quandaries like the downtown hotel, the McCurdy, and the Evansville Parks have from failed maintenance programs and absence of planning, we encourage our readership to familiarize themselves with the shortcomings of other cities that have chosen to bet their economic futures on investing public dollars into temples of sport. Now it is possible that the due diligence, proper vetting, and exemplary management has gone on in Evansville that was not in Cincinnati. We certainly hope so but as Mrs. Doubtfire once said “Effie, brace yourself.”

Cincinnati.com article

http://news.cincinnati.com/article/AB/20110130/NEWS0108/101300319/Bengals-seek-43M-stadium-fixes

Wall Street Journal Article

http://online.wsj.com/article/SB10001424052748704461304576216330349497852.html

Time 8:30 AM – 9:30 AM
Subject DESIGN REVIEW
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 8:30 AM to 9:30 AM
Reminder 15 minutes
SARAH @ 7825
Categories ROOM 318

Time 9:00 AM – 12:00 PM
Subject PTABOA
Location 301
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 9:00 AM to 12:00 PM
Reminder 15 minutes
TIFFANY COLLINS @ 5269
Categories ROOM 301

Time 9:30 AM – 10:30 AM
Subject SUBDIVISION REVIEW
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 9:30 AM to 10:30 AM
Reminder 15 minutes
KATHIE @ 5228
Categories ROOM 318

Time 12:00 PM – 1:00 PM
Subject ENFORCEMENT/TREATMENT SUBCOMMITTEE
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 12:00 PM to 1:00 PM
Reminder 15 minutes
CYNTHIA OWEN
Categories ROOM 318

Time 1:00 PM – 3:00 PM
Subject VANDERBURGH ALCOHOL BOARD
Location 301
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 1:00 PM to 3:00 PM
Reminder 15 minutes
Scott Bedwell 812-882-1292
Categories ROOM 301

Time 3:30 PM – 5:00 PM
Subject ELECTRICAL BOARD
Location 318
Recurrence Occurs the second Tuesday of every 1 month effective 7/12/2011 until 7/12/2011 from 3:30 PM to 5:00 PM
Reminder 15 minutes
LINDA PENDELETON @ 7880
Categories ROOM 318

Time 5:00 PM – 6:00 PM
Subject COUNTY COMMISSIONERS
Location 301
Recurrence Occurs every Tuesday effective 7/5/2011 until 7/26/2011 from 5:00 PM to 6:00 PM
Reminder 15 minutes
KRISTIN @ 5241
Categories ROOM 301

Greetings from Hunny, a 1 ½-year-old spayed Beagle. Hunny is a super sweet girl that loves to run and play. She loves children and after an afternoon of running around in the backyard, Hunny will be right there beside them to take a nap. Hunny is looking for a family that will be consistent with her training and that will give her lots of love. She enjoys the company of other dogs but would very much like to meet any potential K9 roommates before going home. For more information on how to make Hunny a part of your family, call (812) 426-2563 or visit www.vhslifesaver.org.

IS IT TRUE? July 12, 2011

IS IT TRUE that for the 10th day in a row the trailing calculation for time online using the 3rd party measurements of Alexa.com and trafficestimate.com has the City County Observer slightly ahead of the Courier & Press?…that the lead has actually expanded from 1% when we passed the CP last week to 9% as of this morning’s traffic reports?…that the newest underdog that we are identifying with is the US Women’s Soccer Team that really pulled that win over Brazil out of their guts a couple of days ago?…that we congratulate Team USA’s women but still have to smile and pinch ourselves regarding out trafficking the Courier & Press in online minutes?

IS IT TRUE that the new superintendant of the EVSC now has a contract?…that this contract looks very much like the contract signed by his predecessor Dr. Vince Bertrum’s last contract?…that the deal for the new superintendant that the extensive countywide search unearthed pays him a base salary of $160,000 with bonus and auto allowances that will bring him up just shy of the $200,000 mark?…that Scrounger Dogs of Evansville are howling loudly about how excessive this pay package is and that “this guy don’t need dat much money”?…that if Evansville would have been paying competitive wages for school officials and teachers when they were pups that the Scrounger Dogs of Evansville may not use words and phrases like “don’t need dat”, “ain’t got no”, “I seen it”, “baby its code outside”, and “I toad you dat I sowd dem taters to dat preacher man from Kentucky”?…

IS IT TRUE that as much as the “Scrounger Dogs of Evansville” may envy the new superintendants compensation package and really believe that it is excessive, that in reality it is at the lower end of acceptability for this position?…that it still pays less than the superintendant’s job across the money saving bridge in Henderson that is about 25% the size that EVSC is?…that it is substantially below the average for comparable sized cities?…that it is only slightly higher than the overall national average that includes every rural county and micro school district in the country?…that it is better than the Otters pay in the big scheme of things but that it is not even close to the big leagues?…that if the new guy does a great job, which we certainly hope he will, has ambition, and is willing to relocate that we can expect to be looking for his replacement in 3 – 4 years when he “Brain Drains” to a locale that is willing to pay for talent on a national level?…that if history is our guide that another school board will start yet another extensive countywide search in 2015?

IS IT TRUE that Mole #3 still tells us that there are a couple of sitting members of the Evansville City Council who are being stonewalled or even flat out refused to see the insurance report regarding the insurance advice that the City of Evansville spent $100,000 for?…that for sitting members of the governing body of the City of Evansville that approves the budget to be refused any financial information is simply not acceptable?…that the City County Observer has offered to do their bidding for them by writing a FOIA request for them but that they have not taken us up on our offer?…that we are beginning to think that it is more fun to complain about that which they are refused than it would be to actually use legal means to beat it out of those who refuse to supply the information?…that any member of the City Council that is reluctant to use applicable state and federal laws to get documents that they have requested and been denied needs to think about why they asked in the first place?…that writing a FOIA letter is a five minute job that anyone who is capable of serving as a competent member of any City Council should be able to master for the first time in 15 minutes?…that we will do it for them in 5 minutes for FREE?

Time 9:30 AM – 10:30 AM
Subject COMMERCIAL REVIEW COMMITTEE
Location 318
Recurrence Occurs every Monday effective 7/4/2011 until 7/25/2011 from 9:30 AM to 10:30 AM
Reminder 15 minutes
KATHIE HOLLEY @ 5228
Categories ROOM 318

Time 5:30 PM – 7:00 PM
Subject CITY COUNCIL
Location 301
Recurrence Occurs every Monday effective 7/4/2011 until 7/25/2011 from 5:30 PM to 7:00 PM
Reminder 15 minutes
LYNN BUHR @ 4993
Categories ROOM 301