Admittedly this is much smaller then the DCU Center, but I read this story today. There renovation project cost 2.5 million, while the DCU is slated for 25 million which we all know will be 30 million. How will we pay for this? The extra "net new" revenues from the special downtown district, as well as a hotel on Plantation Street, is suppose to spin off enough "net new" revenue to pay the debt on 25 million?
This needs to go the way of the Skybridge and the City of Worcester needs to consider a long term leasing or outright sale of the CDU Center and let the new owner or leasee make their own improvements. This is exactly what Fitchburg, throught the college, is doing. Below is from the story:
College officials hired FMC Arenas, based in Pembroke, to manage the Wallace Civic Center on a temporary basis, then sought a request for proposals from firms looking for a long-term contract. Mr. Antonucci said college trustees will be discussing a proposal from FMC tomorrow for a 25-year pact. Trustees have been pleased with the work done by FMC, the president said, and the lease includes a substantial reinvestment in the building itself
Same Time Next Year
-
It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
5 months ago
12 comments:
You think the DCU center is white elepahant...........what about the Old Auditorium?
I wonder can a historic landmark be sold off to private interests.......i am guessing yes proabably
And when is city building dept going to cite the city for the dilapitated state of that grand old structure? What an absolute mess.............almsot as had the city salt storage sheds.........anyone see where the toewn of Boxboro (or was it boxford?) is trying to shut a state owned salt storage in that town that allegedly is polluting wells in the area.........some one should drop a dime on the citys salt storages sheds....they're all imploded.
Bill,
I believe this improvement district was created by the State Legislature sometime ago. I'm sure there is already a fair amount of money in the fund already. I think the district was another great idea from Mike O'Brien and he deserves kudos for thinking outside the box.
Also, I expect the UNUM announcement next week and I'm cautiously hoping (predicticting) it will be City Square.
Dave Z:
I hope you are right about UNUM and City Square.
The special district you refer to you is only for "net new" revenues. Dave, in this economy how much in "net new" state revenues do you think this district can produce?
Bill
Bill,
But if the district was formed sometime ago like I seem to recall, there would already be some "net new" state revenues in the fund. Although the economy is "depressed" right now, it will rebound sooner or later.
Mike O'Brien is a shrewd Administrator when it comes to funding sources so I'm sure he knows that the district will support the improvements.
mAYBE A CALL to the state sales people can tell us the amt of net new rev's gereated thus far?
Or maybe a call to city hall..........as I assume these net new rev's are paid to the city annually or monthly or whatever?
Dave Z & Jahn:
Lets assume the district has been in place for a while, do you realize how much net new monies have to be created to pay for a $25 million bond?
Guys-- NFW....
Bill
Bill,
Have you thought about taking a Direct Air flight to Florida for some R&R? LOL!
RE: Guys-- NFW....
Yeah, when EMC stock goes up again
What happens if Bill has a restaurant in the district and it closes up.
Harry T then comes along and opens a new resataurnt in a diff. locale but still w/in the district. Is Harrys Rest. generating "net New rev's" by virtue of it being new?
Of course there room tax too in that non contiguous district.........so............stay tuned
$25M bond assuming a lower mini rate of 3.5% = interest of $880,000 annually and that does not assume any repayment of the actual bond...so I'd say the debt service to pay off the bond and the interest combined is at least $1.2M annually
MASS. meals tax is 5%...so we'd need $24m in net new restauanT sales at 5% tax per year to service the debt....AT A MINIMUM......UNLESS OF COURSE dEVAL AND & CO. RAISE THE the Mass meals tax to 6% so they can level fund state allocations to cities & towns in fiscal 2010.
Frankly, do all the existing restaurants in the district even throw off $24M annually in sales
Dewey:
I wil always love you after that catch in Game 6 in 1975, but NFW can this special district produce enough "net new" revenues to pay off the debt service on 25 million.
Bill
...unless of course, we dust off the old turn the Palladium into the Foxy Lady proposal once again...
;-P
Harry T
Worcester, MA
...or even better, my postin on Paulie's blog...
http://pauliespointofview.blogspot.com/2008/12/somerville-massachusetts-ciy-that-takes.html
Harry T
Worcester, MA
Post a Comment