Jim Stafford hasn't really said much on this or any issue as not once has he spoken in front of the commission during this campaign. In a one liner, he has said that our casino financing is "risky." Well, let's find out why this is risky especially since the Finance Advisory Board, when John Pickett, former Senior Managing Director of the Wall Street investment firm of Labranche and Company (NYSE-LAB), recommended this financing plan that will save the city $3.5 million big buckeroos.
9 comments:
How about for ? # 4 Do you still think Lake Worth is worthless? If so, maybe just GOOT (get out of town).
How about answering the question.
Do you think a plan to finance a building that leaves the city's taxpayers at risk in case of building vacancies is risky?
Answer- Let all the taxpayers that don't think it's risky foot the bill. Put it in writing.
I'm guessing Jim Stafford isn't the only one who thinks LW's Casino financing plan is risky and we couldn't get a loan!
Everything is a risk in this lousy Obama economy. However, the tenants have a proven track record. Let's give them every incentive to make money there and the city can start by finishing up the damn parking.
11:45, why not get Jim Stafford to answer the question. Isn't he the candidate?
There's always risk. You just have to decide if the benefit is worth it. The people (finance staff, etc) recommending this type of finance model probably feel confident that the risk is not high enough to blow $3.5M on interest. I would agree. The parking alone will probably cover the principle and interest each year.
So this taxpayer says YES. Do what lots of other cities are doing to keep making capital improvements. Make our cash reserves work for us.
Did John Pickett make his recommendation 3 or 4 years ago?
Would JP make the same recommendation today, for going forward, with the current City level of Cash, Reserves, Self insurance and pending determination of the Greater Bay lawsuit? While JP's recommendation had a sound mathematical foundation, today's reality may alter the recommendation as to which alternative is best going forward.
BTW--without the never to be considered Mortgage on the city's beachfront land, it is my considered opinion that, no loan collateralized solely by Tenant Rents would be granted on the construction costs of this project---certainly the Budget and CAM charges would not have passed any underwriting review.
It was just last year.
Getting out of bed in the morning can be risky.
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