Thursday, December 28, 2017

STPAC VIP Parking Control Fraud Math

$10 million + $2.1 + $1.079 = $13.179 million in expected revenues for about 331 VIP parking spots over X amount of years during Y amount of shows at the STPAC

$13.179 million / 331 VIP parking spots = $39,816 in expected revenue for each space to pay for both interest and principal over an unknown number of years

At $20 per space, $39,816 / $20 = 1,991 sold spaces over an unknown number of events and years

At $15 per space, $39,816 / $15 = 2,654 sold spaces over an unknown number of events and years

If the City of Greensboro borrows the money over 30 years at 4.5%, the monthly payment would be $66,776;
The actual interest rate should probably be higher, as the property and the revenues are the only collateral backing up the debt, as opposed to a general obligation bond backed by tax revenues

$66,776 x 12 months = $801,312 per year needed to pay the bond off

$801,312 per year / $15 = 53,421 sold VIP parking spots per year to pay off the bond

$801,312 per year / $20 = 40,066 sold VIP parking spots per year to pay off the bond

The paid consultant said the center could host about 149 events per year after 3 years, some of which obviously couldn't get VIP parking money;

53,421 sold VIP parking spots per year at $15 = 161 performances at which all 331 VIP parking spaces are sold each and every performance, which would produce $801,312 per year to pay off the debt

CTG's Wizard of Oz etc... can't/won't sell VIP parking

The tax increases on downtown parking are to pay for Roy and Randall's $60 million worth of parking decks and the $10 million on the second line of the first graphic, all of which will reduce the demand for the VIP parking at the STPAC

The STPAC is not going to sell 331 VIP parking spots at every event

If the math doesn't work, we have been lied to

If the math doesn't work, Randall and Roy are taking millions from the public
Control fraud occurs when trusted officials in positions of responsibility subverts an organization and engages in extensive fraud for personal gain.

The Mayor, City Manager and top department heads of of the City of Greensboro, are uniquely placed to remove the checks and balances on fraud upon the public.

Accounting tactics can position these executives in a way that allows co-conspiritors to engage in accountancy fraud and embezzle money, hide shortfalls or otherwise defraud investors, or the public at large. A control fraud will often obtain "investments that have no readily ascertainable market value", and then shop for appraisers that will assign unrealistically high values and auditing firms that will bless the fraudulent accounting statements.

Some control frauds are reactive in the sense that they turn to fraud only after concluding that the business will fail.