IS IT TRUE? August 12, 2011
IS IT TRUE that what the City County Observer truly seeks is to promote good public policy?…that when it comes to the Arena deals that are being negotiated good public policy constitutes having contracts that add strength and enhances the probability of success for the private businesses that are to be the major tenants of the Arena?…that today the subjects of most interest that are indeed private and for profit are VenuWorks, the Evansville IceMen, and the two respondents to the RFP to build a hotel?…that all three of these need to be vetted well for staying power so that a revolving door of teams, developers, and promoters due to poor up front choices?
IS IT TRUE that all VenuWorks, the IceMen, the Kunkel Group, and Prime Lodging are all relatively young businesses that are stepping up to assume risks in new and unproven markets?…that all of these businesses are in this fracas because they see an entrepreneurial opportunity to prosper by leveraging the people of Evansville’s investment in the new Arena?…that the Arena is a 50+ year asset and is not sitting on wheels so the threat of moving the Arena to Louisville is just not real?…that the City of Evansville is a municipality that has the authority to tax to meet its obligations and is assumed to have established staying power?…that the City of Evansville through a series of public meetings and committee sessions made the decision to borrow $128 Million to build the new Arena?…that the pro-forma developed and presented during those meetings included a hockey team, a management company, and of course held the assumption that a 4-Star hotel would be right next door?…that the survival of VenuWorks, the IceMen, and the hotel developer/operator are quite important to the City of Evansville?
IS IT TRUE that any deal that is made with any of these businesses or future businesses that involve dates at the Arena that does not promote and enhance the success of these businesses is a bad deal for the City of Evansville?…that it is a general rule that start-up businesses do not necessarily make a profit until the third to fifth years?…that the Arena itself needed to consider this during the planning stages and needs to consider this for ITSELF in the formulation of these contracts?…that the City of Evansville needs to make deals with companies that have solid business plans, depth of knowledge, and solid financial backing?…that to expect emerging businesses to assume all of the risk associated with the large risk that the City is taking is unwise?
IS IT TRUE that the City County Observer fully agrees that in the long term that the Arena needs to operate in a manner that it can fulfill the promises made by the Weinzapfel Administration during the public meetings that “NO TAX INCREASES†will be needed to fund the Arena operation?…that to expect that the Arena will cash flow in year 1 is unrealistic?…that the Arena secured over $30 Million in borrowed money to cover soft costs like the start-up period’s operational shortfall?…that we doubt if the early private investors have such a luxury?…that deals made now that kill the early investors in the “Arena dream†are deals that will kill the long term viability of the Arena?…that if the City of Evansville really wants a “WHITE ELEPHANT†downtown that the certain way to do this is to enter into agreements that do not allow VenuWorks and the Evansville IceMen to make a profit?…that we should all remember the BlueCats and what happened to them due to excessive costs and low attendance?…that if one thinks it was difficult for hockey to get a foothold in Evansville, one needs to imagine a second team deciding to come here if the IceMen fail?…that the same goes for VenuWorks?
IS IT TRUE that we expect to see the month of August end with solid deals on the table that allow both VenuWorks and the IceMen to believe in their business model and to feel as though the City of Evansville is their partner as opposed to their warden?…that we expect to see the month of September end with a good agreement in place with a thoroughly vetted hotel developer?…that to expect anything less would be to give up on the City of Evansville?…that we hope our expectations are met for the long term success of the people of Evansville as the myriad of other legacy problems comes home to roost upon the next administration?