Prime Lodging Provides Officials with Comparative Analysis

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The City County Observer publishes this analysis in its original form without bias, edit, or opinion?

Link to Analysis:

Comparative_Analysis_of_Downtown_Evansville_Hotel_RFP_Respondents

27 COMMENTS

  1. This report makes Kunkel look like a joke compared to Prime. It doesn’t look like they could even come up with the money to start construction.

    The only way they’d get chosen is if they are buddies with the mayor…oh wait 🙁

    any thoughts, jack?

      • We agree on something finally! I laughed too.

        Wouldn’t you say Kunkel’s misrepresentation of Hyatt’s contribution is borderline fraud?

      • LOL??? Is that the best you have after all of that bluster you have been spouting. You even posted the Prime guys name as getting his plan reamed today.

        Do a rebuttal or shut up. Tell us why Kunkel is better and why this report is wrong? Can you? Will you even try? LOL? BFD? LMAO? is for 12 year old girls. A six page analysis is for a real businessmen. Which are you jack?

        • I am sure glad that they are not in the vetting business, there is so much more to this than most of you realize. Don’t worry…..I have more to say, stay tuned!

          • I’m sure their political contributions to Weinzapfel wont effect their decision at all, right?

          • I think that I have clearly stated that I am not affiliated with kunkel in any way shape or form.

          • We agree that there is much more to be looked at in a real vetting process than this comparison addressed. The “analysis” did not address basic things like trade references, credit rating, pending litigation, and the list goes on. There really is much more to this than just who can get the money and do the construction and DATS a FACT JACK. You are beginning to make sense. I for one am looking forward to what more you have to say.

    • Prime presented very well. But, has anyone looked into the City’s $381,000 loan to Kunkle that was somehow changed into an interest free no repayment “loan” as of last City audit reporting. Any word from Mr. Davis or Mr. Winnecke on this SNAFU City project they will inherit after years of ERC/City bungling.

  2. Prime Lodging LLC does look like they know what they are doing and has the experience to make this project happen. Note the differences in the parking garage design and the criticism of the Kunkel plan. Also note the Senior Debt comparison. Looks like Prime is best. Still, I’d like to hear Kunkel’s rebuttal to this.

  3. I’d offer that the vetting firms would welcome the summary the comparison offers. Why would they care to get input that they can either confirm or refute? For them to have kind of emotional response to the Prime document would be outside the realm of their professional obligation to the process. It does however seem to have evoked an unfavorable response from Jack…as maybe it should if he’s in the Kunkel camp. I’d agree that it doesn’t show favorably for the Kunkel guys, but when you have zero experience in what your pitching you’re bound to get criticized…and why shouldn’t they? That said, I think Prime pointed out clear differences in the proposals and did very little speculation…the vetters should welcome the input. As far as the public is concerned, it’s good to hear more than just media banter for a change. Anyway…just my thoughts.

    • I will tell you just like I told everyone, I AM NOT WITH KUNKEL! I do however enjoy adding a little spice to the mix.

      • You might not be with Kunkel, but sounds like you have something to should Kunkel get the contract. Otherwise, all you would want at this point is a thorough and unbiased vetting of the proposals and the companies behind them.

  4. Has it occurred to any of you that what the city is doing is choosing the best hotel operator who will inevitably go bankrupt?

    • You make an interesting point. I do not recall any real long term successes with redeveloping downtown Evansville. In the end the cost of redevelopment is to high for the demand to pay for it. All who have tried for a long time now have found themselves in bankruptcy except for one.

      That would be the one that owns a casino to bring in the fools and separate them from their dollars.

      Kunkel has enjoyed some good downtown projects and maybe some prosperity but they all have been propped up with public money or sweetheart deals like Welborn for $10. If it were not for the public subsidies and the sweetheart deals they would have had a very different set of challenges and may very well have just stayed away from downtown. We shall see what the future holds.

      If the hotel was such a good deal wouldn’t other companies have been fighting to get a piece of it?

      • Given our current economic condition there should be companies lined up to take this project on. As we can see this is not the case. What we have are 2 VERY junior builders attempting to make something out of nothing, they are both trying to force this deal to be profitable. More often than not you cannot force profit, either it’s there or it’s not. In the case that you can force it is due to experience that neither company possesses. One company is proposing an occupancy rate of 58% and the other 65% for year 1 these notions are not founded and purely speculative. I am certain that 53% is a more realistic figure. One is proposing $100.00 a night and the other $112.00, once again neither are realistic. Couple both of these very simple facts and you will see that this project is bust!

        • Jack, that is a very well researched post and a realistic observation of the economics of this project. The 2010 STR report for the established branded hotels in Evansville shows a 57.7% occupancy rate and a $75.30 average daily rate. Thank you and welcome back. What you have posted about the assumptions of the two proposals is 100% accurate and your assumption for year one is rational, realistic, and conservative. Please feel free to post like this as often as you like.

  5. I heard that two police officers were awarded the contract to remove the debris from the Executive Inn. Can anyone confirm this? Comments?

    • Klenck Construction was reported to be the debris cleaner. We observed their workers doing work there. We have no reason to believe anything different.

      • I was told it was Officer Green and one of the higher ups (Hahn possibly). Wonder my information is completely false or if it was for a portion of the clean-up, or something else? Or, maybe it’s true and they sub-contracted the whole thing out to Klenck?

  6. Anyone else notice the fact that Prime Lodging isn’t asking for any city funds through the pre-construction phase of this project? It would seem that they are willing to bank $1.4M on their ability to get this done, while putting the city at zero risk. At least someone appears to be ready to put their money where their mouth is.

  7. Agree with you completely Jack on the VERY junior builder comment on the Kunkel side…looking at Primes combined experience building between the 3 players they have and it makes me wonder what it takes to make your experienced list?

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