"If I have this right, the City will not own the center for the first ten years while it is used as collateral for the bank backing of the donor contributions. Then, after ten years, even if all has gone according to plan and ownership successfully transfers to the city, the city can only further transfer the center by giving it away to the non-profit; no other options.
I hope it is as obvious to you, as it is to me, the kind of financial jeopardy to which that scheme exposes the citizens of Greensboro. Should something go awry in the first ten years -- cost overruns, donor contributions fall short, loan default by the non-profit or some other fiscal speed bump -- the people of Greensboro will be over a barrel: Either come up with more money to ameliorate whatever problem may have arisen, even if it was the responsibility of other parties, or lose ownership of the center and our tens of millions put in it. Even if we successfully pass the ten year mark and the center transfers to the city, the center would be encumbered in a way unlike any other city property: ours, but not to do with what we will."
That's the way I read the contract as well. As a matter of fact: I said many months ago that was going to be the case.
And then there's a very interesting point being made by George Hartzman:
"During the next 50 years, if the City of Greensboro gets another Robbie Perkins like administration, a $65 million facility could be transferred to the non profit by City Council, the non profit, of which could be/have to be dominated by cronies of the City Council and the Community Foundation, could vote to cease to exist, leaving the Community Foundation a $65 million facility that it used $35 million of other people's money to acquire.
The Community Foundation could be acquired by a larger foundation, or a trust company.
If the facility is funneled to the Community Foundation, they could sell it, and charge ongoing fees as the money is invested.
If the Community Foundation owns it, any profits go to the Community Foundation tax free.
The Community Foundation could then begin paying board members salaries and increasing the compensation of Foundation employees."
As a matter of fact: I believe that was the plan all along. It was just supposed to happen before Robbie Perkins got voted out of office.
Tell Walker Sanders and the Community Foundation of Greater Greensboro that if Greensboro Elites want a performing arts center then they can build it with 100% private funding, perhaps limit the project to a smaller $35 Million they already have pledged so that the banks will allow the building to stand as collateral for the entire project. You know, scale back like us working class folk have to do when we can't afford to have everything we want.
Update: From George Hartzman's On Greensboro's GPAC (Tanger Center) Contract with the Community Foundation Problems II:
" It looks like the Community Foundation is transferring the risk of donor default to a non profit with no means to guarantee any shortfalls to the lender making the city the guarantor of the donor money, including the interest on the financing.
The CFGG doesn't even actually have $5 million yet."
The corruption continues as the Elites represented by Walker Sanders and the Community Foundation of Greater Greensboro attempt to steal $58 Million plus right out from under our noses. That's right, the real figure counting what the City of Greensboro has already spent is closer to $58 million and not the $35 million they want you to believe.
Tell Walker Sanders an CFGG we want our money back as he had no authority to buy real estate on behalf of the City of Greensboro.
Update 2: Tony Wilkins speaks out:
"Roch says: “the exposure for taxpayers can not be ignored”.
That’s an understatement.
I’ve tried to minimize that risk without success. I’m disappointed in myself for that. Just can’t get that fifth vote and the magic number is five.
And the Arts Stabilization Fund will be given approximately $274,000 a year regardless of taxpayer subsidy to the project.
And when the construction overruns or operating deficits occur (and they will, even if you believe the facility will average a sell out every four days as we’re told)- we’ll reach our hands into the pockets of our taxpayers, including the twenty per cent of our population living below the poverty level- and we’ll transfer it to the elite.
The only thing left to do is to obtain a cheerleading uniform that fits with matching pom poms and hope for the best.
And stop asking how to get to that Tanger Center in Mebane."
I'm with you Tony. Personally I've been advocating we boycott everything Steven Tanger has a hand in including Fresh Market.
