Giebelhausen: REVENUE sharing

By:  Diane Benjamin

This document was handed to the Council last Tuesday night.  It has since been posted for the public:  Giebelhausen-additional information

A few things struck me as strange.  The words Revenue Sharing are used when what is really meant is Cost Sharing.

down3down2Yes, the City will see increased revenues if the project is built and is successful.  Since the project needs the City to issue bonds to fill the funding gap, Cost Sharing comes first – then hopefully enough revenue to pay the cost.

What happens if the revenue doesn’t materialize?  What protections do taxpayers have?  What if the project is started and never completed?

What if very little increased revenue materializes because the location paying taxes has only been shifted from existing businesses to a new one?

Should government gamble the future?

If past claims by consultants and elected officials had been accurate, citizens might show some support for this project.  They weren’t even close to what became reality.

David Sage called for a referendum.  Renner doesn’t want one.

Two referendums are needed – both binding:

  • Get rid of the City Manager form of government
  • Provide a recall procedure for all elected officials

 

This summary is included at the end of the document.

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13 thoughts on “Giebelhausen: REVENUE sharing

  1. But the city WILL lose the cash “loaned” to Giebelhousen… bad deal. BTW, has the parking garage next to Pepsi Ice Center ever been fixed? It’s right up the road from proposed hotel.

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  2. Mr. G. is only thinking of revenue–into his pocket. If I’m understanding this correctly, this is one of the red flags found in the consultant’s report.

    FINANCING SOURCES
    BDRP anticipates that the Project will be financed by Historic Tax Credits, a 25-year permanent loan and developer equity, IN ADDITION to the requested City assistance, as seen below in Table 2. Per the assistance request, BDRP has assumed $13 million in City assistance stemming from TIF revenues, hotel taxes, food and beverage taxes, and sales tax revenues. SB Friedman reassessed the Project’s financing gap after adjusting the Project’s sources to adhere to financing parameters for similar projects as detailed below.
    –emphasis added.
    http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=9789 (Pg. 23 of meeting packet or Pg. 10 of consultant’s report)

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  3. Reminds me of a patch the neurologist prescribed for my dead husband that might help w slow down memory loss. MIGHT & insurance covered none of it & made him run off the head & goofy. I cd the dr’s office & explained & said I was taking him off of it(& he had a bad rash where the patch was). They said I couldn’t cause it MAY help him. I didn’t apply it again. Wish it was that easy to get rid of Twinkle Toes Tari

    Sent from my iPhone

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  4. My question is this. What happens if the hotel/conference center cannot attract the necessary volume of business? Will the city take it over to prevent another eyesore downtown?

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    1. Good question. Chances are that it wont attract the necessary volume of business. Most of these throughout the United States are Boondoggles. Renner, Hales, Black all know this but they try to convince everyone that Bloomington is special.

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      1. Watch the archived video. Mr. Black wants the downtown to have more restaurants so when his friends come to town there is somewhere he can entertain them. Appalling.

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    2. Aldermen Sage asked that same question. I don’t think a clear answer was given but a comment was made about the volatility of the hotel market. I saw on WMBD a few weeks ago that there is a downtown hotel in Peoria that sat empty for 9 years. Someone is currently updating it with plans to open sometime soon.

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      1. You mean Sage did not get clarity? Sage always requests clarity! Although he’ll give Renner a yes vote as Sage lost his spine years ago.

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  5. So, our (Citizens) equity in these projects is something called ‘hope’ then, right?

    That sounds like a hella investment. Sign me up! /sarc

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