Who’s Paying?
Posted by John B. Kalb - 5/22/09 @ 9:45 am - Filed Under City Council, Local Politics
In this morning’s JG, Ben Lanka reports on the beginning of excavation for the planned new hotel in the Harrison Square area. Ben quoted Greg Leatherman, ” the developer’s financing for construction is not complete” in telling that the hotel project is not yet finalized.
So, where is the money to proceed coming from? It’s probably from the commitment of the sale of up to Six million dollars in CRED tax credits that the State of Indiana assigned to this project. So it continues - only public money has been spent on the whole Harrison Square project to date!!
Per the “Hotel Development Agreement”, Section 1.6 Contribution of the City, part E. reads, “Developer’s obligations hereunder are expressly subject to its ability to obtain an investor to monetize (purchase) such Six Million Dollar ($6,000,000) CRED tax credits on or before the commencement of construction of the hotel”
(Note) There is a limit on the amount of this tax credit for this project - it cannot exceed 25% of the hard costs of the hotel - which at latest info is to be $20 million.
So one-fourth of the cost of this part of the boondoggle is being paid using taxes paid by other entities in the state. And, remember ALL of the money paid to date on Parkview Field and the parking garage will be repaid only with tax dollars! WAY TO GO YOU BRIGHT PEOPLE -screwing all taxpayers in our state (but, especially us in Fort Wayne) Much more on this coming up (the screwing of our city’s contractors).
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