IS IT TRUE March 31, 2017

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(Todays IS IT TRUE is a repeat from yesterday because many people had problems posting on this site)

IS IT TRUE before you read rest of todays IS IT TRUE comments please click the attached link concerning Addendum Number Six to the Agreement for Professional Management Services and License for Uses of the Evansville Arena between the City of Evansville and VenueWork/ VW Sports LLC? …attached is the link to Addendum Number Six to the Agreement for Professional Management Services and License for Uses of the Evansville Arena between the City of Evansville and VenueWork/ VW Sports LLC?

Link to  Addendum Six

IS IT TRUE that Addendum Number Six to the Agreement for Professional Management Services and License for Uses of the Evansville Arena between the City of Evansville and VenueWorks/VW Sports LLC  has some very interesting language about what happens to the profits and losses associated with the operation of the Evansville Thunderbolts?…in Section 6 of this agreement it is clearly stated that:  “VenuWorks assumes the operation of the SPHL franchise pursuant to the terms of its operating lease by and between VenueWorks/VW Sports LLC  and Evansville Professional Hockey, LLC (the “Hockey Operating Lease”) shall be entitled to utilize facility staff and resources reasonably necessary in connection of its operation of the SPHL franchise. During any such period during which VenuWorks operates the SPHL franchise, all operating expenses of the SPHL franchise shall be deemed an expense of the Facility and all operating revenue of the SPHL franchise shall be deemed the revenues of the Facility.”

IS IT TRUE the translation of this addendum agreement into common language it seems that all of the financial losses associated with the Evansville Thunderbolts are covered by the City of Evansville?…of course all of the revenue including ticket sales, concessions, and rent are captured by the City of Evansville to offset the losses to the fullest extent that they can?…after reading the entire addendum agreement in many ways it looks like that the Evansville Thunderbolts are and always have been the property of the City of Evansville?…it looks like VW Sports LLC,/VenueWorks may have never had any real financial risk of being stuck with the fruits of their labors with respect to hockey?…this agreement looks like a classic attempt to enabled the City of Evansville to own a commercial enterprise in the form of a hockey team?…per this agreement there may have been an opportunity for VW Sports LLC/VenueWorks to profit from this enterprise but the risk of losses were always destined to be paid for by the City of Evansville?

IS IT TRUE that the CCO has exposed many costly acts of buffoonery over the past 18 years from the $200,000 Earthcare Energy LLC debacle, to the $600,000 purchase of the McCurdy parking lot that was given  to a political crony of a former Mayor, the Homestead Tax Credit grab mastermind by a couple of City and County officials, the $595,000 purchase of the vacant and dilapidated CVS building on North Main to name a few?  …it looks like this deal has all of the hallmarks of similar deception?…we could call this deal SNEGAL (sneaky but legal) but we are not really sure something like setting up a corporation with shareholders who seemly have no real financial risks really meets that definition?…we are certain it was sneaky, but we are not certain this was legal?…it will be interesting if any accountability comes to the “Teflon Republic” (City of Evansville) after this stunt?  … we do believe that no reasonable business or political leader holding a $127 million dollar bond note on a facility losing money (Ford Center) and facing an $8 Million dollar annual bond payment would have ever considered such an “investment” in a minor league ice Hockey team?…if this deal does not merit a forensic audit, nothing ever will?  …we can’t wait to see how the Evansville City Council members, main stream media and the taxpayers of Evansville are going to address this issue?

IS IT TRUE we urge you to read section #4 of Addendum Six posted as Disbursement and Use of Sustained Effort Incentive Fee and tell us what you think about terms offered to VenueWorks by the City of Evansville?  …we know that you will find this an extremely interesting read?

FOOTNOTE:  Todays “READERS POLL” question is Do you feel comfortable with the fact that the owners of VenueWorks now has 100% controlling interest of the Thunderbolt Hockey team?

RELATED ARTICLESMORE FROM AUTHOR

8 COMMENTS

  1. WOW !

    1) Did the City fund the $ 200,000 in the ‘Sustained Effort Incentive Fee Account’, which Item 4 states that the parties AGREE that that much was “earned” ?
    2) If Yes, which means the City really paid $ 200K of the $ 225K hockey license fee for VenuWorks, then WHY oh WHY in Section 7 would the City have to “reimburse” VenuWorks to get them to transfer the license to an entity “approved by the SPHL” ? In essence: the City paid almost all of it in the first place, and now the City has to reimburse VenuWorks for something Venuworks didn’t pay ???

    The Sustained Effort Incentive Fee Account = SLUSH FUND

    • Any time there is an “agreed” or “stipulated” amount in a contract, the smell of dead fish wafts up.

      Does anyone know, specifically:

      It appears the Sustained Effort Incentive Fee Account was in the ORIGINAL VenuWorks agreement (which would make sense, when the parties are later simply AGREEING that $ 200,000 was earned through 12/31/2015).

      The Question: what was the purpose of this Account ? And if it had a true purpose, how many $$$ were actually earned by VenuWorks vs. the $ 200,000 “agreed to” ?

  2. It appears that the real conflict was that the head of Venue Works was on the negotiating team for the ERC as they negotiated the renewal of the contract with the Icemen. This in turn leads to:

    IS IT TRUE: The renewal contract with the Icemen was not negotiated in good faith but instead it was negotiated primarily for the personal gain of Venue Works.

    IS IT TRUE: As soon as the negotiations with the Icemen reached an impasse and it was certain that the Icemen would not be returning to the Ford Center, Addendum 6 was added to the original agreement. This Addendum mysteriously extended the Venue Works’ Management Agreement for 5 years with a $390,000 per year possible bonus which is just a few dollars south of $2,000,000. In addition it also appears that this financial burden will be the responsibility of local tax payers.

    IS IT TRUE: That thru a Sustained Effort Incentive Fee Account, the city of Evansville then advanced, loaned or gave Venue Works $200,000 of the $225,000 that Venue Works needed to acquire the SPHL franchise. When Addendum 6 was executed the $200,000 was disbursed to Venue Works and the account was terminated.

    IT IS VERY TRUE!!!: sure glad I’m not on the Evansville tax roll.

  3. with all of this unbelievable Addendum 6 a very urgent question arises and if I were a bond holder of the $127 million Ford Center I would want to know the answer — Who is responsible for the Five year lease of the Ford Center signed on behalf of the New hockey team named the Evansville Thunderbolts with the city signed by a probable shell corporation, or is Venue Works liable or its wholly owned subsidy that just appeared or is the City liable ? The Evansville Icemen that were forced out by Mayor Wenneke and Venue Works was a solid tenant for 5 years and used the arena 36 nights and paid approx $650,000 in Base rent , facility fees and video and audio use fees each season which made the Icemen the biggest tenant and user for five years — the Thunderbolts fell massively short of that its first year —

  5. I’m not a hockey fan but I’m confused. Last spring wasn’t Mike Hall introduced as the Team Owner? Now he’s only a 10% Team Owner? What happened?

    • Because Mayor Winnecke said “No Tax Dollars Will Be Spent on Hockey” and he knew everyone would call him a liar.

      I’m wondering if the $250k came from the advance $25 Million payment from Tropicana. Tropicana would have a vested interest in seeing Geary out of town because Ellis Park competes with their property.

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