Interesting email sent to me by a very good facts and figures guy.
I don't know if you listened Monday night or if the "Special Meeting" was even broadcast to be able to be listened to, but if you didn't or couldn't listen, put thee $4.5 million into this context of the entire $102,000,000 project budget.
$4,500,000 Owner equity finance 9% of this number is $405,000
$58,300,000 Bank financing (unknown if portion of this has owner equity "down payment" or if
it is 100% finance as it appears to be) 9% of this number is $5,247,000
$39,200,000 City of Peoria GRANT <<<<<<<<<<< not a loan, but an outright GRANT
of MONEY 9% of this number is $3,528,000
$102,000,000 TOTAL PROJECT BUDGET 9% of this number is $9,180,000 YES $9.18
Within the $102 Million project budget is a line item called "Developer Fees" which based on a handout the night of the "special meeting" was ;limited to a maximum of 9%. Prior to the handout, the "developer fees" could have been higher.
So now lets analyze the deal in the context that the OWNER puts up $4.5:million of their own dollars (PANTS A), but the Developer is entitiled to 9% of that or $405,000: (PANTS B)
the City's GRANT of $39.2 Million (NO PAANTS, JUST MANNA FROM HEAVON THAT DOES NOT REQUIRE REPAYMENT) yields a Developer fee of $3.528 million (PANTS B) for a total of those two pots available to the "Developer" $3.933 million dollars; (getting close to the owners total poney amount in PANTS A);
Loan proceeds of $58.3 Million yields the remaining $5.247 Million in "Developer Fees" to PANTS B
Now you have to understand this equation OWNER=DEVELOPER,
so the $4.5 Million Owner Equity in PANTS A is replaced with $9.180 MILLION dollars in PANTS B, so you have the owner wearing two pair of pants, one (PANTS A) empty pockets, but the other pair (PANTS B) now containing $9.180 MILLION in them.
Some say double your pleasure, others say double your money. I can;t fault and won't fault the "Owner/Developer", they negotiated a great deal by leveraging little or no money into a tremendous tax subsidy. I fault those "good Council representatives" (your description/definition, not mine) and the staff that mortgaged the next 23 years with phoney financing that is as dangerous as the highly leveraged derivative financing that brought Wall Street down