Theoretically, the new GPAC proposal could work if...

The Community Foundation, as a show of commitment to the project, purchases the land for $7.6 million with what they say they have already raised, and provides binding pledges as voted for by city council for the remainder of the $30 million in private money offered.

Greensboro City Council would have to rescind their voted for promise to put the GPAC spending on a referendum for a taxpayer vote.

The Community Foundation guarantees the $30 million, and shows where the monies will be safely invested before being allocated to the project.

The City of Greensboro pays for its $30 million in cash from its hidden savings account instead of borrowing the money.



Source: Greensboro CAFR

As opposed to how much most think the city has in savings;



If we borrow the money as advertised over 25 years @ 4.5%;

$30,000,000 @ 4.5% x 25 years = $166,749.74 per month x 12
= about a $2,000,996.88 payment per year, plus operating losses seems unsustainable, plus it's not really $30 million, but $50,024,922 including interest.

If we spend the cash and use the taxes from two new hotels and the increased taxation from higher real estate values etc... from the BID fund to cover operating losses, the math may work.

At least $60 million in increased downtown property values could cover some ongoing operating losses;

$60 million x 63.25 cent city tax + 9 cent BID tax? = $433,500 more per year that could go toward operating losses.

The premium parking revenues would help cover the operating losses as well.

The traffic and parking analysis still needs done, but the project won't be dependent on the funny numbers to achieve success, and the extra ticket cost disappears and the parking revenues are gravy.

Plus a $10 million LeBauer Park?