I was thnking today how I read the actuary for the City of Worcester calculates the funding based on a 8% return.
The S & P return the past ten years, I read recently was something like 3%. Bottom line 8% expected return used by the actuary seems overly aggressive especially when we read this week that we had a negative return this past year.
A tine stream that goes in a circle down the middle of a walkway. In the middle grass, tables and trees. Why spend millions to uncover the Blackstone when something like this would suffice? By the way the areas was packed all the time...
Title of story, click here . No way can this be true, let me explain. Everyone knew that there was contamination there and if you own a building that has 21 E problems you own them forever, you can not walk away from them. As result owners usually have to perfrom remediation before they are able to sell. Or it they do sell they come to agreement as to how much the seller will pay for future remediation.
Here is how the NY Times and WBDC sale probably went down:
They agree to very low sale price of 300,000 because of contamination
WBDC not too worried since they think that they will
WBDC agrees not to hold the NY Times repsonsible for any clean-up costs and maybe there agreed to a number. Think I read that somewhere. Lets say they agreed to reimburse back 200,000?
My guess is that if there was any vote by the New York Times, it was to pay the agree reimbursment at the time of sale. No way is the NewYork Times pay all the clean-up costs, since if they were they would have never sold the building for 300,000.
Good story today. The part I found most interesting was I was on task force about a Pilot Program about ten years which led to the creation of the UniverCity Partnership chaired by Armand Carriere. Great idea but a complete waste of time, for reasons that I would rather not get into. The driving point was to get the colleges to buy local. In this story please note Worcester State dropped their local ad firm for a Boston based firms and non of the signs were bought from a Worcester company.
How about some good news? I have been talking with an airline who is looking at ORH for direct flights to an island destination in the fall-winter. They are the real deal, stay tuned. Between JetBlue and this ORH may be a busy place this winter.
Three people have now asked. I got nothing. That said an announcement for direct service to a Florida destinations does make a lot of sense timing wise. Don't want to get my hopes up, but I like the chances. If I get more will post.
The more I read this, the more frustrated I get. Why are tax-payers even mentioned. The WBDC bought the building and it looks like they agreed to 300k back from the New York Times. They have gotten 200,000 already of tax-payer monies and now they want more? This has nothing to do with the New York Times or tax-payers, this is their problem. Again I have no doubt they will get all the free tax payer monies they need. The message we send is just buy the building, don't worry about any expenses the tax payers will bail you out.
GoLocalWorcester has a good story on this. Before I go into this let's take an example of my friend Tim McDonald and lets assume as owner of Worcester Fitness he decided to buy the Telegram building to open a fitness club.
After her buys it, he finds outs that there is 1,200,000 need to clean up hazardous materials. Would anyone be writting a story that the New York Times needs to give Tim money back for the clean up? Of course not! When you buy anything the buyer has to do their homework and once they own the building, they own the problem the problles that go with it. Actually 21E is a little different and it looks like the Telegram may have agreed to reimburse up to 300,000.
Now to the fact the WBDC did not realize the extent of the work? Is that the New York Times fault? Maybe you should not buy the building until you know the full extent? At the same time it sure and hell should not fall on the backs of the tax-payers, but we have been doing this for years in Worcester, why wasn't anyone mad before?
Look at Mason Street it was deeded for nominal monies from a for profit entity top Common Ground just so they could get 400,000 in grant monies from the EPA, that don't have to be paid back. then when the work is done deeded back to the for profit. Main South CDC and South Worcester Neighborhood Center have all done the same thing.
The WBDC bought this building on them cheap because of these environmental problems and now they own them. The problem is they have only gotten 200,000 of tax-payer monies that they don't have to pay back. Now they want the rest.
This is how development has gone on for years with the CDC's, getting hand outs, now the WBDC and people like the new owner of the Ionic Boys Club, who buys a building one day for 250,000 then gets 350,000 the next month from the City of Worcester. Oh yeah, he also deeded the property to RCAP for a nominal amount and applied for EPA clean up monies.
The sad part is in the end the WBDC will sit on this property until they get all the grant monies from us the tax-payers before they proceed. They will get them
That is title of today's story in the Telegram, click here for link. Do I have a problem with Massport trying to help Direct Air, of course not, but I do find many things troubling.
1) Massport: Interim chief David Mackey was aware of their shaky financial conditions to the extent he says in an -email "there is no question it is operating on shoe string". If you believe this should you not.
Ask for an accounting of the tickets sales monies that are suppose to be safe in their escrow account
Not allow them to sell vouchers or memberships, which did not go in the escrow account but directly into their general operating account.
Bottom line is Massport was aware that Direct Air was in trouble, but did nothing to look out for the public spending money on Direct Air.
2) Airport Direct Andy Davis knew about the company financial problems:
the company handling the ground operations had not been paid.
in fact he sent an e-mail to Ed Warneck on February 22nd mentioning overdue bills and an extremely large volume of complaints.
Does Andy Davis ask for accounting to make sure the monies from ticket sales are safe? Does he tell Direct Air that he will not allow them to sell vouchers or memberships, which went straight into the General fund and avoided the escrow account? No.
In facts he tells one person in an e-mail dated February 12th "Direct Air's service has been extremely successful out of Worcester and continue to grow". One month later, Direct Air closes their doors. Makes you ownder if that person in fact bought tickets after this e-mail response from Andy Davis.
3) No inkling of impending implosion. I seen this coming? Predicted their demise last fall by Ground Hog's Day and warned people not do business with them. Not being a Monday morning quarter back either, read my blog. These guys seen it coming too, who are they kidding, as evidenced by their own e-mails.
They need to say that they are shocked since they (MassPort and our Airport Director) did nothing to look out for our monies. They should have forced Direct Air not to sell and memberships or vouchers and demand an outside audit of their escrow account. If they did not, stop giving them money and cut ties with them.
Instead they did nothing and actually encouraged people to keep doing business with Direct Air.
Just got an e-mail that I , Bill Randell, just sent myself an e-mail to read a post from Wil from Wonderland??
Funny, the same guy , who accuses people of harassment and accuses other people of taking his identity does this all the time. Am I mad at Will from Wonderland? No, I truly feel bad for him and his wife... I truly only hope you are able to sell your home and are happy some day....
Imagine your whole life wasting time do things like this???
Drive by each and compare them. Keep in mind SWIP has been around longer then Gateway.... Maybe the City of Worcester should consider someone else other then the South Worcester Neighborhood Center leading the way on this?
PharmaSphere, LLC is a biotechnology company that utilizes the TerraSphere technology to produce high-value, plant-based biocompounds for pharmaceutical and nutraceutical markets. Using the TerraSphere System allows PharmaSphere to achieve full environmental containment and controlled growth conditions, which result in increased production and reduced per-unit costs compared to traditional production methods.
ABOUT CANNABANK INC.
CannaBANK Inc. is a private equity firm specializing in the capitalization and development of hemp-based businesses.
ABOUT MEDICAL MARIJUANA INC. (OTC: MJNA)
Our mission is to be the world's premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate, invest in and purchase value-added sustainable companies, while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, pay homage to the visionaries and activists of the past and present, and provide the platform from which the industry can emerge into a global sustainable economy for all. Medical Marijuana Inc. recognizes the vast and unequaled opportunities that exist in the rapidly expanding hemp and medical marijuana industries. The scientific recognition of cannabis has brought legalized marijuana use to the forefront of mainstream discussion, thus opening the door for safe and lucrative investment opportunities.
Lets set record straight. The main focus of Pharmasphere was to grow alot of pot quickly and efficiently indoors. That is who we got in bed with? story this past march
Negotiations for the proposed buyout of PharmaSphere LLC of Worcester have been finalized, and positive results of the transaction will be announced next week, according to a shareholder update by purchaser Medical Marijuana Inc. of San Diego on March 22.
The purchase plan was first announced last November. Terms of the deal have not been revealed.
According to Charette at the South Worcester Neighborhood Center, the initial interest with Pharma-Sphere was distracting. Future successes, he says, will be in smaller, better planned steps.
“We have to be realistic. In the past, we thought that if you throw up a net and say, ‘We’re making an industrial park,’ they’ll come,” he said. “Most of us were really excited when we had PharmaSphere coming. We were giddy. No body stopped to check. When that folded, everyone got disheartened.”
Nobody stopped to check??? I said from Day 1 sell the lot to the company across the street that bid $50,000 as opposed to the dream, that never materialized, that bid $1. When they could not get their funding and close over the first 6 months, I said award the property to the second bidder or rebid it. Instead Pharmasphere was given a two year extension only having to meet a "diligently working " standard.
What are we going to do next?
The South Worcester Neighborhood Center will now be taking these past lessons in mind, reworking the site’s future, and developing a marketing plan.
18 years later we are starting a marketing plan?? Very simple marketing plan:
Take the parcels and put out an RFP where the highest bidder get the property plain and simple
Waive property taxes for ten years and waive any water-sewerage hook up fees
Worcester Polytechnic Institute (WPI) President Dennis Berkey and members of the WPI Board of Trustees, along with the Moonraker 2.0 robot, broke ground today for a 145,000-square-foot sports and recreation center. Moonraker 2.0, the student-designed robot that won a $500,000 prize from NASA for its ability to excavate moon dust last year, used its remarkable digging capabilities to kick-off construction of the new center, which will be built into the hillside at the west end of the WPI Quadrangle and is designed to meet LEED certification standards. The facility is scheduled to open in August 2012.
$40 to $50 million for a school of 470 students. Let's just say 45 million divided by 470 students works out ot b $95,000 per student. I know Nelson Place need updates but 40 to 50 million for an elementary school that handles 470 students?
Allegiant Travel Co., which operates the airline Allegiant Air, said Wednesday that its passenger traffic soared more than 20 percent in May as it significantly expanded its service. Allegiant, which specializes in carrying people from smaller cities to resort destinations, said it flew paying passengers 494.9 million miles last month, up 20.4 percent from a year earlier.
The carrier's total capacity, or number of available seats, rose 21.4 percent from a year earlier. Because it added seats faster than it added passengers, its flights were slightly less full. Allegiant's occupancy rate fell 0.8 percentage points to 87.3 percent.
Allegiant estimates that passenger revenue per available seat mile fell between 10.4 and 10.8 percent last month. That metric, a key measure of an airline's financial health, is how much a carrier makes flying one paying passenger a single mile.
Allegiant Travel shares rose 50 cents to $62.96 in morning trading Wednesday. Its shares peaked for the past year at $65.14 per share late May. They traded as low as $40.31 in early August 2011.
Based on completely nothing but I am confident that we will have some type of service from JetBlue at ORH this winter. Jet Blue expanding into Sarasota-Brandenton only shows JetBlue's commitment to Florida and bodes well for ORH.