Comments at Roch101 on GPAC financing, Wells Fargo and lack of due diligence by City of Greensboro staff

Hartzman said...

"The $65 million performing center, to be built downtown on land bordered by North Elm and East Lindsay Streets and Summit Avenue, will be financed with $35 million in private donations and $30 million from the city."
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It is going to be financed with a loan, possibly from Wells Fargo, using the building as collateral.

If the collateral pledged to back up the loan is more than 50% of the value, Greensboro's taxpayers will be on the hook for donor and interest payment shortfalls, or lose the building to the lender, which may very well be Wells Fargo, from what I've heard.
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Roch said...

So, Wells Fargo is helping to pay for the performing arts center so that it will get built then donors will default on their pledges, the building will go into default and Wells Fargo can foreclose?

Diabolical!
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Hartzman said...

I hear they are competing for the loan deal.

Hartzman said...

Kaplan, Cheney and Carroll among others are helping to pay for the GPAC to profit as well.

The city has never seen where the money is, or what it's invested in, or the binding commitments.

Confirmed it again last Monday.

If the city let's Walker Sanders put up more than 50% of the building as collateral without the city knowing what the risks are, our elected leaders and city staff will have put a whole lot of money on the line without doing enough due diligence.

http://roch101.blogspot.com/2014/03/news-records-copy-and-paste-journalism.html