Friday, July 9, 2010

Analytical incompetence by the Greensboro News and Record Editorial Board on the Downtown Hotel?

"A new, improved hotel

…The new hotel would be privately financed through $26 million in federal economic recovery zone bonds, which enable borrowing at discount rates. The buyers of those bonds also are exempt from taxes on the interest they earn."
Economic development activities qualified under this program include:

Capital expenditures paid or incurred for property in Recovery Zones.
Expenditures for public infrastructure and construction of public facilities.
Expenditures for job training and educational programs.

Private activities, defined as those in which a substantial portion
of the bond or tax credit proceeds benefit a private business or individual,
may not be financed with this program.

Department of Commerce
"The rest of the backing would come from $8 million in new-market tax credits… "
The New Markets Tax Credit (NMTC) Program
permits taxpayers to receive a credit
against Federal income taxes…

The credit provided to the investor totals 39 percent of the cost of the investment

US Treasury

"…and $4 million in the owners’ equity…"
Has the Greensboro News and Record Editorial Board
seen the yet to be released breakdown of "owners equity"?

"Further, financiers have been assembled to market the bonds and tax credits."
But not Investors or Guarantors of the Recovery Zone Bonds?
"No taxpayer money would be involved."
Aren’t federal economic recovery zone bonds and tax credits
subsidized by taxpayers having to borrow more and adding to the federal debt
to be paid for by higher taxes on the future income of our nation’s children
including those living in Greensboro and Guilford County
taxpayer money?
"…Having seen the original plans, a consultant hired by the city to evaluate the original proposal had cast doubt on the project in January. Now, based on the revisions, HVS Consulting and Variation Services forecasts profits as early as the very first year. "
Is this the same Greensboro News and Record Editorial Board
most likely completely fooled by the Aquatic Center “hypothetical”
that is now saying the new hotel “hypothetical”
which was most likely paid for by the developers
is a believable projection?

Have the new “hypothetical” assumptions been compared to the old?

Has attendance at the Civil Rights Museum been taken into account?

Is the project still dependent on a $6 million taxpayer funded parking deck?

"Even so, reasonable people will continue to disagree about the wisdom of placing yet another hotel in a market that some experts say is already saturated with hotel rooms. "
The same “experts” who now say the hotel is viable?

Is it wise for the Greensboro News and Record’s Editorial Board
to back a publicly taxpayer subsidized socialistic project
that will take business away from privately funded capitalistic interests?

"Another major sticking point had been the casual oversight of the recovery bonds vetting process by the county commissioners and the Greensboro City Council, who chose to take rubber-stamp approaches to the process, since it didn’t involve local tax money…"
“No taxpayer money would be involved.”

So taxpayer money is involved?

Are Skip, Deena and her boyfriend still in?
George Hartzman


Fec said...

Jeepers dude, you're such a hater. Can't you see this is all about love? Just think how happy we'll be when the hotel and parking deck are finally built. It's just money. And when the hotel goes Tango Uniform, it'll be the bond vigilantes on the hook, and we all know what evil people they are.

Unless I'm mistaken, and I very often am, those facility bonds still need to pass muster with the Guilford Bond Authority, where I believe MR Beal & Co has been reluctant to appear in the past.

What a load of horse dookey. And every time we go through this, the proponents lose more credibility, if that's possible.

triadwatch said...

it is possible and we see george has plenty of questions to be answered.

Anonymous said...

Well put