"Mayor Nancy Vaughan, the city manager and representatives from the Community Foundation of Greater Greensboro have been meeting since November to work out a plan for how the city and private donors will work together on the project.
On Tuesday, Vaughan said she won’t agree to a private nonprofit controlling the center, as proposed in an early version of the agreement.
“Ultimately, the city is going to be responsible for maintenance and any shortfalls,” Vaughan said. “We have said from the very beginning the city was going to own and operate it.”
...In an early draft of the agreement written by the foundation, the center would be run by a newly created nonprofit. The initial nonprofit board would be made up of City Council members, donors, the foundation president and others appointed by the group.
The nonprofit board would hire the city to operate the center, and the board would be able to terminate that contract, according to the draft agreement.
“What we think is important to put in place is the governance structure that keeps the private sector actively engaged in the facility,” Sanders said.
The draft agreement also suggests the city and new nonprofit would jointly own the performing arts center building, dividing ownership based on how much each group contributed toward the construction.
That would give the nonprofit 63.5 percent ownership of the building, according to the draft agreement.
The foundation also suggested that 5 percent of the gross profits go to the nonprofit after the center has been in operation five years, according to the draft agreement.
63.5% of $65 million is $41,2750,000
The private sector put up $35,448,920, although no one seems to know where all the money actually is, what it's invested in, and how far into the future it is supposed to arrive.
They gave David Hagan $586,000 of the cost of the land, and now they are saying the land shouldn't be included in the % of ownership of the project?
"how much each group contributed toward the construction."
I bet Robbie would have gone for it.
City puts up $30 million, Walker Sanders and friends wanted to only count 19 million of it?
How is that not an attempted theft?
No binding commitments that I've seen, and no letter of credit to guarantee the monies.
What if financial markets fall 20% and 75% of the money is in equities?
What if interests rise if 25% of the money is currently in long term bonds?
Where is the schedule of payments for the monies that are supposed to come in over the next 5 to 7 to 10 years?
How much of that money is actually in hand?
Are the funds reliant on hypothetical expectations of return over time?
Were the fees the Community Foundation or whomever is managing the monies charging included in the projections?
In my view, Walker Sanders, the Community Foundation, and some others just tried to hustle the mayor of Greensboro, City Council and Greensboro's taxpayers.
In doing so, these nice folks didn't mind trying to cajole Nancy into a political state of vulnerability in front of whoever she may run against in the 2015 election.
Vaughan publicly called their bluff.
Robbie would have rolled over, if it were not his idea in the first place.
I believe Walker Sanders is essentially a stock broker, who is trying to play the City of Greensboro like the "Site Selection Consultants" Zack Matheny is so enamored with.
The Community Foundation looks like they makes thier's on the management fees of the assets under management, waiting to be paid out to the project, which funds Walker's salary.