Indiana Pundit

 

Monday, April 02, 2007

Bad Deal

In a guest editorial by former county commissioner Ed Rouseau, it was revealed that the Hardball Capital investment is $250,000 per year spread over 20 years. This is the type of "gift" that worries me.

This payment plan system makes this a private/ public partnership in name only. It makes the public responsible for almost all of the construction costs.

Here are some other things to keep in mind about this deal:

  • The Wizards have not existed for 20 years but have had multiple ownerships. Ownerships change hands often in minor league baseball. Ownerships usually last 10 to 15 years. It is unlikely that Hardball Capital will buck this trend. If they don't own the Wizards in 20 years they won't fullfill their financial promise.

  • $5 million upfront is worth more than $5 million spread out due to inflation. A rough estimate would make this $5 million investment have the purchasing power of approximately $3.5 million.

  • By spreading out their $5million dollars, the taxpayer will have to fork out nearly all of the construction costs.

  • Hardball Capital has less motivation to see this project through to the end because they don't have a great financial stake in it.

There is only one word to describe this financial package.

Unacceptable

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7 Comments:

Anonymous Anonymous said...

How ironic.. Constructions.. Nelson is in favor of this stadium and he just got endorsed by the Home Builders Assocation.. Construction..workers?????

12:59 PM  
Anonymous Anonymous said...

How ironic...Kelty demagogues ignoring the fact that Nelson Peters isn't actually Mayor yet. And I'm sure you were thinking of the Building Contractors Association when you took issue with the Home Builders' endorsement. Unless they're building houses in center field...

10:18 AM  
Anonymous Anonymous said...

Probably better check with Mr. Peters before you talk about ironies. It's been well documented that his position is not to have something with the economic and structural viability of Memorial Stadium duplicated downtown.

3:21 PM  
Anonymous Anonymous said...

Nothing about Mr. Peters stances are well documented. He's been very vague about where he stands. He doesn't even have his issues on his website!

The only thing I know about his stance on Harrison Square was when he said he was for it on 21 last week.

12:16 AM  
Anonymous Anonymous said...

I'm not surprised you saw that on 21 because you evidently don't know how to read. Mr. Peters' comments appear very clear on the News-Sentinel's website.

1:08 PM  
Anonymous Anonymous said...

Is this starting to sound more and more like MicroStandard, Burlington Air Freight, MidTown Crossing, et al to anyone else? - take FortWayne for all you can - then disappear into the night? John K.

12:58 PM  
Anonymous Anonymous said...

Time and again Nelson Peters has stated he is NOT for another stadium.. However, he is for revitalizing downtown and has suggested a multi-use, year round complex that the vast majority of our citizens can use. Don't you read the papers?

8:18 PM  

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