IS IT TRUE? August 8, 2011 Special Evening Edition

IS IT TRUE that the downgrade of the debt of the United States caused a bit of a panic at the stock market today and that the words of President Obama only accelerated the slide in stock prices?…that the one thing that did not seem to get its price chopped by the debt downgrade was the debt that was downgraded?…that it looked as though investors were exiting positions in American companies to stick their cash into American debt?…that there was even discussion among the so called “financial elite” that many of the companies that are considered “bellwether” stocks actually have much lower bond ratings than the USA?…that these businesses do not have armies to back up their collection power?…that some folks will ask “just what on earth does this have to do with Evansville”?…that is in the next paragraph?

IS IT TRUE that in the middle of a discussion regarding how to price additional risk into debt and stocks as such risk is created a discussion that is most applicable to the Evansville IceMen and the Arena was touched upon?…that this discussion centered on just how illogical it is to increase the interest rate on the debt of a business that is growing rapidly and struggling with cash flow?…that the agreement was that what may be good for the debt holder (or leaseholder) in the short term may just destroy them in the long run?…that forcing the IceMen to pay more when less people attend is exactly the same as raising interest rates on a business that has marginal cash flow?…that if the City of Evansville wishes to be seen as competent in financial matters and as a good partner for future tenants or events at the Arena, they must assume some of the risk associated with playing in a $128 Million venue?…that if the eyes of the world were on the Evansville Arena and that if it were a stock that this is one stock that would be dropping like a rock due to instability and counterintuitive financial decisions?

IS IT TRUE if John Kish (Arena Czar) and the Mayor didn’t want Ice Hockey at the new downtown arena then the people of Evansville deserve to know why they spent nearly $2 Million on tubing and condensers to establish and maintain an ice surface in the new Arena?…that this floor ice system shall stay intact in a frozen state through most of the year even when basketball is being played above it?

IS IT TRUE our that one of our “MOLES” working for the state tell us that Indiana State Board of Accounts shall be conducting a 2010 “State Audit Exit ” interview with key members of the Weinzapfel inner circle on this coming Tuesday between 9:00 to 11:00 in the morning in the Mayors conference room? …that we hear that the 2010 State Audit should be an interesting read?

IS IT TRUE that if the Weinzapfel Administration was serious in talking with the Evansville IceMen Hockey management team then why did he allow the Arena Czar John Kish to go on vacation this week? …this would be a great time to allow Evansville City Councilman John Friend, CPA and Budget Chairmen, At Large City Councilmen Curt John, Attorney and 1st Ward Councilmen Dan McGinn, Attorney to sit down and talk directly with the “IceMen” management team to hammer out an agreement that both parties can prosper with? …that this is a great example of why the Mayor has made financial and legal mistakes time and again because never takes advantage of the free “Brain Trust” that the population of Evansville offers?

IS IT TRUE? Part 2 August 8, 2011

IS IT TRUE that in a meeting of the Vanderburgh County Commissioners on April 9, 2001 that it was discussed and adopted that the land where the Executive Inn was forced by covenant to remain a 3-Star Hotel for 10 years?…that the covenant transferred with the land and carries a $30,000 per month in liquidation damages if the hotel is not maintained for those 10 years?…that the covenant seems to have expired recently?…that the current owner of this land is the City of Evansville?…that the time that the City of Evansville has owned the land and/or had consigned the land to a surrogate is close to 2 full years?…that according to this covenant that was adopted by a Vanderburgh County Commission made up of David Mosby, Catherine Fanello, and Richard Mourdock that the City of Evansville may just be on the hook to the county for over $720,000 in liquidation damages?…that attorney Mike Schopmeyer was very careful to use the term liquidation damages and to point out that penalties are illegal but the liquidation damages are not?…that unless this has been amended or nullified that it would be the source of some very interesting damages?

IS IT TRUE that the McCurdy can has been kicked quietly down the road and that the City of Evansville probably hopes that it stays quiet because they have a real bad deal on their hands if the full financing does not work out?…that a first mortgage was recorded on 11/19/2008 in the amount of $1,663,862 and that Fifth Third Bank is the holder of that mortgage?…that as of August 4, 2011 that this mortgage is still on the rolls of the Recorder?…that there is a second mortgage of an undisclosed amount on the McCurdy Hotel that is held by the City of Evansville?…that this second mortgage refers to a development agreement that was not attached to the second mortgage?…that City Centre Properties purchased the McCurdy for a total of $818,500 and that the date of record of the transfer was 11/21/2008?

IS IT TRUE that the City of Evansville through incentives of $800,000 and the purchase of a parking lot for $603.000 is now into the McCurdy Hotel for $1,403,000?…that was all cash paid out that came from taxpayers of Evansville?…that City Centre Properties has apparently gotten $800,000 from the City and taken out a loan in the amount of $1,663,862 from 5th 3rd Bank and received title to the McCurdy Hotel and the $603,000 parking lot all for the sum of $818,500?…that given the amount of cash that has been placed in the hands of City Centre Properties that it is confusing why the taxes are paid after penalties have been assessed and the general upkeep is only done after citations have been issued by DMD?

IS IT TRUE that the meltdown scenario at the McCurdy is one in which the financing to proceed with all of the refurbishment work is never secured and that City Centre Properties decides to hand the keys to the property over to the first mortgage holder 5th 3rd Bank?…that banks in general do not wish to own real estate?…that in such an event that 5th 3rd will most likely liquidate the McCurdy Hotel for whatever the market will bear?…that unless the market would bear an amount that has net proceeds in excess of $1,663,862 that the City of Evansville will lose all of their investment of $1,403,000 and will not have anything at all to show for it?…that this scenario is a driving factor in not wanting to rescind the agreement with CCP as was done with Woodruff Hospitality LLC when they were unable to find financing in a timely manner?

IS IT TRUE that if this is what some would call being good stewards of the taxpayers money that we really wonder what it means to be wasteful?…that there is a very real probability that if this whole deal falls apart that the City of Evansville will be out $1,403,000 and will not get the McCurdy Hotel back?

IS IT TRUE a highly regarded elected official in the City of Evansville told “CCO Mole 2” yesterday that he knows more about the plans concerning the proposed new arena in Owensboro , KY than the Arena in Evansville? …that we think his statement was sad but true?…that many of the things that have been written and talked about in the master plans of the past in Evansville are now under construction in Owensboro?…that at the present growth rates (or shrinkage rates as the case may be) that Owensboro will someday pass Evansville in population?

IS IT TRUE that the Editor of the CCO missed his weekly segment on the renown Les Shively radio show this week? …that “CCO MOLE #3” found out why he missed the radio show? …that “CCO MOLE #3” tell us that Mr. Wallace over slept?…that on the previous evening that Mr. and Mrs. Wallace went to dinner at Fandango Restaurant in Pacific Grove, CA?…that Fandango was original funded by Alan Shugart who was a friend and sometimes business associate during his early days in Silicon Valley?…that Mr. Wallace learned of his friend’s passing at dinner the night before and elected to stay up reminiscing with Shugart’s partner in Fandango about Al’s life?

IS IT TRUE that Alan Shugart was one of those people who just could not be mastered by outside forces?…that he earned a degree in engineering physics and had a good start on a career as a scientist at IBM before the entrepreneurial spirit came calling?…that Shugart started many enterprises including Fandango, a salmon fishing enterprise, a bar, a consulting firm in the disk memory business, and ultimately Seagate Technology that become the world’s largest manufacturer of disk drives in the world?…that Al became disgusted with California politics and ran his dog Ernest for congress in 1996?…that he also led a ballot initiative to include “none of the above” as an option in all elections in California?…that people like Alan Shugart are the kind of people that always create jobs and wealth in spite of the barriers that society places in their way?…that Alan passed through this world on his own terms and left many wealthy people in his wake?…that Seagate Technology transformed the economy of Scotts Valley, CA, the disk drive industry, and even a couple of countries?…that Evansville could use an Alan Shugart or two?

IS IT TRUE the Mayor and Dave Rector seemly think that Roberts Stadium has no value and should be torn down?…that by setting the budget for maintenance at unsustainably low levels during the last 4 years that the long list of routine maintenance tasks that need to be done at Roberts Stadium has grown to a fairly substantial level?…that one could easily conclude that the demise of Roberts Stadium has been manufactured?…that some have even used the word sabotage to describe the way that the City of Evansville has slowly but surely abandoned its stewardship of Roberts Stadium?…that using excuses like “the toilets and drinking fountains are old” to demolish a multimillion dollar building are laughable?…that what would be of value to any prospective investor in Roberts Stadium would be a thorough and complete inspection of the reality of its condition as opposed to Mr. Rector’s opinions that seem to be playing to the Mayor’s desires?