Take That: August 11, 2011

IN RESPONSE TO: Vetting the Hotel Developers

“But the reason a week isn’t enough isn’t the numbers side–it’s the qualitative side. Any firm worth their salt would want to go out and interview the stakeholders in these two developers prior projects, not the least of which would be to kick the bricks. If they can’t find out how these developers did in the construction phase, and whether they’re making dough from the operations now, they’re not qualified to provide a recommendation. They’d want to do full background checks on the principals from each company. They would want to interview each company’s current and former bankers and bonding companies. One week doesn’t cut it under any scenario. Only Big Al’s Pawn Shop, Bail Bonds & Vetting Services could get it done in just one week ! Lastly, in my opinion, if there is a recommendation made in one week, then the fix is in; and whichever guy lost the deal was the strawman.” Alefellow

“The ERC had to vote in a public meeting to hire London Witte. If the ERC didn’t vote in a public meeting, Mr. Kish may be on an unintended and unpaid vacation in Indy.” Joe Biden

“That is the same as the ECVB deciding to sack Marilee Fowler outside of a public meeting. Wasn’t legal then, isn’t legal now.” Yusef

“Okay, here it is! The meeting on Friday is to select a developer……..that developer is ..The Kunkel Group! Remember where you heard it first!” Jack

IN RESPONSE TO: The City Loan Funds

“Can anyone explain why the City of Evansville’s own 2009 audit shows the City is subsidizing Kunkle Group with a $310,000 0% interest “loan” with no annual payments? Can anyone explain why Mayoral candidates Mr. Davis and Mr. Winnecke are silent on these issues? Do they have a gentleman’s agreement that neither will actively run for office by commenting on any of the City’s many current financial debacles?” TenBears

“check out the Kunkel Group second from the bottom. $ 310,000 loan in 2006 at 0 % interest, and a dash ( – ) in the ‘Annual Payment’ column. It’s not a loan if there is no Annual Payment–it’s a gift ! The vetters for the Hotel need to take a look at this matter to ensure that there is a valid reason for these “loan terms” or to determine if there were inside favors granted which might preclude Kunkel’s selection in the Hotel scurmish.” Yusef

“One wonders, Do these people sit up at night , worshiping the Devil and figuring out a way to scam their brothers and sisters out of that “All Mighty” dollar? It’s hard to reach any other conclusion,—except that they are Evil People.” Crashlarue

“Isn’t true that a zero percent loan is taxable income to the recipient?” Iam4IU

“ Disgraceful urban planning AND a disgraceful loan combined. Look at the bright side: we’ve only had it on the books for 29 years ! I believe in 1982 the prime was around 18 % and Citizens got a 2 % Loan ? They probably borrowed more than they needed on the building at 2 % and then turned around and loaned it out at 18 % +. Super Susie would frown at these revelations. Thankfully, the taxpayers are A-OK with it !” Franklin Mint

The Arts Council of Southwestern Indiana has hired a veteran legal counselor as its new executive director.

Nola F. Wright, who began work Tuesday, comes to the Arts Council’s top post after nearly 30 years as an attorney, working in private practice in Minnesota, as a criminal prosecutor with the Kansas Attorney General’s office, and for the last 18 months as corporate counsel for a CMI Inc., in Owensboro, Ky.

Time 9:00 AM – 10:00 AM
Subject Kathie w/ Area Plan
Location Room 318
Reminder 15 minutes

Time 10:00 AM – 12:00 PM
Subject MBE/WBE UTILIZATION BOARD
Location 318
Recurrence Occurs the second Thursday of every 1 month effective 8/11/2011 until 8/11/2011 from 10:00 AM to 12:00 PM
Reminder 15 minutes
DEBRA SPALDING @ 4961
Categories ROOM 318

Time 1:30 PM – 3:00 PM
Subject BOARD OF PUBLIC WORKS
Location 301
Recurrence Occurs every Thursday effective 8/4/2011 until 9/1/2011 from 1:30 PM to 3:00 PM
Reminder 15 minutes
Sharon Evans @ 4982
Categories ROOM 301

Time 3:30 PM – 5:00 PM
Subject ITAC
Location 318
Recurrence Occurs the second Thursday of every 1 month effective 8/11/2011 until 8/11/2011 from 3:30 PM to 5:00 PM
Reminder 15 minutes
GARY HECK @ 2468
Categories ROOM 318

Time 4:00 PM – 5:00 PM
Subject AREA PLAN COMMISSION
Location 301
Recurrence Occurs the second Thursday of every 1 month effective 8/11/2011 until 8/11/2011 from 4:00 PM to 5:00 PM
Reminder 15 minutes
KATHIE @ 5228
Categories ROOM 301

The University of Evansville is pleased to welcome Robert L. Pristash (“Bob”) as the University’s new sports information director.

Pristash, who previously served as associate sports information director at Marshall University in Huntington, West Virginia, will begin his new role on Wednesday, August 10. He will fill the position vacated by Bob Boxell, who retired in June after 29 years as UE’s sports information director.

“The Purple Aces have a great tradition of athletic and academic excellence, and I am excited to be a part of that,” Pristash said. “I am grateful to athletics director John Stanley and senior associate athletics director Dwight Merilatt for the opportunity they have given me.”

“When UE’s Department of Athletics began searching for a new sports information director, our expectations were high because Bob Boxell left a tremendous legacy of dedication and passion,” said John Stanley, director of athletics. “It was very important that we find someone who could continue and build on that success, and I’m thrilled to have found that person in Bob Pristash. He will bring experience, skill, and energy to his work of promoting University of Evansville athletics.”

Pristash will serve as the primary media contact for men’s basketball, directing press box operations for all of the team’s home games and traveling to all men’s basketball away games. His other responsibilities include designing and editing online yearbooks and game-day programs and updating content on GoPurpleAces.com.

Pristash, a native of Northampton, Pennsylvania, holds a Bachelor of Science in sport management from West Virginia University and a Master of Arts in athletic administration from Marshall University.

After completing his master’s degree in 2005, Pristash worked as a Web specialist at CSTV Online in New York City. In 2007, he returned to Marshall to serve as assistant sports information director.

Source: evansville.edu

University of Southern Indiana women’s basketball Head Coach Rick Stein announced that the Screaming Eagles will open their 2011-12 season November 12 when they host Midwest Region foe Saginaw Valley State University at the Physical Activities Center.

The announcement comes as the Eagles released their regular-season schedule, one that includes 26 games and 14 home contests.

USI, which captured the Great Lakes Valley Conference East Division title a year ago with a 16-11 overall record and a 12-6 mark in league play, opens the season with four straight home games before traveling to Louisville, Kentucky, for the Bellarmine University Thanksgiving Classic.

Included in the four-game home stretch, USI’s longest homestand of the year, are games against Principia College (November 15), Mid-Continent University (November 18), and Midwest Region foe Northwood University (November 22).

“When you put together a schedule you not only want to put together a competitive schedule, but one that fits your team,” Stein said. “I’m excited to have some games at home early, but the thing is that two of the games are against regional competition. Our team is going to be young, but at the same time I wanted to put together a schedule that will challenge them and get them ready for conference play.”

USI will square off with St. Catharine College November 26 to open the Bellarmine Thanksgiving Classic before closing the two-day trip November 27 against Coker College.

The Eagles open GLVC play December 1 when they visit defending GLVC Tournament champion Lewis University. The now 16-member GLVC will feature two eight-team divisions, with USI, Bellarmine, the University of Indianapolis, Kentucky Wesleyan College, Lewis, Northern Kentucky University, Saint Joseph’s College, and the University of Wisconsin-Parkside comprising the GLVC East Division.

USI wraps up its GLVC-opening weekend December 3 with a trip to Wisconsin-Parkside before returning to the PAC December 17 to take on Salem International University.

After closing the 2011 calendar year with a trip to Detroit, Michigan, December 30 to take on Midwest Region foe Wayne State University, the Eagles return to GLVC play January 5 when they host GLVC West Division adversary Missouri University of Science & Technology.

The Eagles play just four games against the GLVC West Division, but will get one of the top teams January 7 when they host Drury University. They finish their GLVC West Division slate with a trip to GLVC-newcomer William Jewell College January 12 and Rockhurst University January 14.

USI, which plays a home-and-home series with the teams in the GLVC East Division, begins a three-game homestand January 16 when it hosts Kentucky Wesleyan. The Eagles host Indianapolis January 19 and Saint Joseph’s January 21 before visiting Bellarmine January 26.

The Eagles host Northern Kentucky January 28 before embarking on a two-game road trip that sees them make stops to Saint Joseph’s (February 2) and Indianapolis (February 4).

USI begins its final three-game homestand of the season when it hosts Wisconsin-Parkside February 9. Games against Lewis (February 11) and Bellarmine (February 16) round out the Eagles’ 2011-12 home schedule, while trips to Northern Kentucky (February 18) and Kentucky Wesleyan (February 23) conclude USI’s regular-season slate.

GLVC Tournament play opens with seeds four through 12 meeting on campus sites February 26 for the right to advance into the quarterfinals. The quarterfinals, semifinals, and championship are March 1-4 at the Prairie Capital Convention Center in Springfield, Illinois.

The NCAA II Midwest Region Tournament will be played at a site to be determined March 9-12, while the NCAA II Elite Eight is March 20-23 in San Antonio, Texas.

View the complete schedule here.

Source: USI.edu

Time 1:00 PM – 2:00 PM
Subject SAFETY BOARD
Location 301
Recurrence Occurs the second Wednesday of every 1 month effective 8/10/2011 until 8/10/2011 from 1:00 PM to 2:00 PM
Reminder 15 minutes
TINA OWEN @ 7897
Categories ROOM 301

Time 3:00 PM – 5:00 PM
Subject CONSTRUCTION & ROOFING BOARD
Location 307
Recurrence Occurs the second Wednesday of every 1 month effective 8/10/2011 until 8/10/2011 from 3:00 PM to 5:00 PM
Reminder 15 minutes
LINDA PENDLETON @ 7880
Categories ROOM 307

Details and Transparency of Arena Project Called for

John,

Per your June 30th construction cost, please respond to the following questions:

1) What is the $ 100,000 Change Order in favor of Hunt Construction? This change order occurred since the 3/31/2011 Report;

2) It appears that no retainage is being held back on Hunt Construction? If there are problems after Opening, won’t we look to Hunt to remedy those problems ?

3) Given the fact that Hunt is now reporting $ 95,901,131 of Scheduled Value (vs. $ 95 MM estimate), what steps will you be taking to try to bring the project in ‘on budget ‘ ??’ And, if the budget
overages are not corrected, we need to inform Hunt that the incentive has been breached in reference to the $478,000.

4) Given the many subcontractors on this project, how would you describe the “Warranty” the City will have after this Arena opens for events ? Has Hunt retained payments from those subs? And, if so, has Hunt deposited those retainages into an escrow whereby the City has legal control. This premise is applicable only if, so some reason, we have not withheld the appropriate retainages from Hunt?

John, we would like for you to appear before City Council on August 22, 2011 to answer questions related to the following topics. Please note: the City Council members will ask you questions which we will formulate based on the information you provide us. You do NOT need to prepare a presentation for us. Just be ready to answer any and all questions relative to the following topics:

A) Populous Contract (please provide us with electronic version);

B) Legal Bills incurred on the Arena Project (please provide a detailed accounting of all bills incurred, whether paid through the ERC, DMD, Mayor’s Office, City of Evansville, etc.). Be prepared to attest that the summary you provide is a complete accounting of all legal bills for this project;

C) An accounting of all soft costs for this Arena Project;

D) An accounting of all costs incurred on the Browning & Woodruff Hospitality hotel projects, both of which were terminated. Although, the hotel is not considered part of the Arena project; we consider a derivative and need to know the exact cost associated.

E) An accounting of all money which has been committed on both the Arena + Hotel projects; as well as identification of which Fund these amounts have been charged to in the City of Evansville’s accounting system; and

F) Disclosure of whom the $ 2,000,000 of Bond Issue Costs were paid to, and what services were provided;

G) Please provide (Electronic Version) all contractual service contracts associated to the Arena and Hotel projects to date and the work product. In addition, please make available to the City Clerk’s office for public access.

H) Indirect Costs: What other costs has the City incurred as a result of Arena Project, i.e. Water & Sewer Department. Please contact Mr. Gerrard for this information. I have been contacted by apparently, informed individuals that the Arena will be stressing our current sewer capacities. Consequently, if this is affirmed, what plan do we have to assure that the new condo, etc development downtown will NOT be adversely affected and the anticipated investment required to
remedy.

I) In your estimation, due to the downgrade from AAA to AA+ by Standard & Poors, will we be expecting any addition debt service costs associated with the Arena/Hotel project? In addition, due to this anticipated raise in the cost of capital, any loans the City i.e. Hotel Project, will grant consider increasing the interest rate accordingly. Also, what impact will this have on the pro forma’s presented by Verville and Kunkle. I know that is speculative, but, we need to cognitive.

This provides you two weeks to develop the responses. Please be prepared to receive additional questions from other members of Council.

Of course, if you have any questions, please let me know.

Thanks for your cooperation.

John Friend, CPA, CVA
Finance Chairman
Evansville City Council