"MINUTES OF THE CITY COUNCIL OF THE CITY OF GREENSBORO, N. C. 19 FEBRUARY 2013
Mayor Perkins clarified that the operating loss did not show the contribution to servicing the bonds that would be paid for by ticket taxes, parking revenues and other revenue sources; and stated that the operating loss was separate from the debt service.
...Councilmember Matheny made a motion that Council commit to $20 million based on funding mechanisms put forth utilizing the City’s portion of the hotel/motel revenues received, as well as, other funds such as user fees and ticket tax, contingent on private donations being brought forth from the taskforce.
Mayor Pro-Tem Johnson seconded the motion.
...City Manager Roth confirmed that funds could possibly be pulled from the General Fund.
...Councilmember Matheny favored using hotel/motel tax funds, user fees and private sector funds; and that the City needed to commit to the project in order to promote and solidify private sector fundraising.
56-13 RESOLUTION CONCERNING THE PROPOSED GREENSBORO PERFORMING ARTS CENTER
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GREENSBORO THAT:
...the City Council will not permit any financing efforts to be completed for the $20,000,000.00 in municipal financing outlined above until the GPAC Task Force is able to confirm that they have obtained binding commitments for a minimum of $20,000,000.00 in private contributions for the GPAC.
(Signed) Zachery Matheny
...Councilmember Matheny’s motion was adopted on the following roll call vote:
Ayes: Hoffmann, Johnson, Kee, Matheny, Vaughan and Perkins.
Noes: Abuzuaiter, Bellamy-Small and Wilkins.
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Please provide the "binding commitments for a minimum of $20,000,000.00 in private contributions for the GPAC."
As Greensboro city council candidates information requests are censored via prior restraint by city staff, please copy and send the above information request to inforequests@greensboro-nc.gov
1 comment:
If political taxing authority G, the politicos thereof, set a limiting rule R, which is dependent upon action C, then limiting rule R is the rule until C occurs.
An interesting passage is: “….private sector funds; and that the City needed to commit to the project in order to promote and solidify private sector fundraising.” The phrase “private sector funds“, in the main, means private capital formation. “Private sector fundraising”, in the main, means soliciting private donations. So what?
Private capital formation is the mobilization of capital resources for private capital investment purposes such as a pipeline, railway, and/or industrial facility. Private capital formation is considered by many as the single largest contributor to long term private sector jobs.
It is also important to point out that many theories exist that point to private capital formation, the action phase thereof regarding the mobilization of capital resources, is “crowded out” or displaced by public sector borrowing and or taxing activity to produce social welfare programs and/or public sector capital projects such as new state, local or federal facilities.
Private sector fund raising, on the other hand, are voluntary donations to be used by a third party, generally a non-profit, who then directs the donations.
The point being, the use of phrases such as “private sector funds” and “private sector fundraising” leaves James and Jane Goodfellow with the impression that the “private sector” and its inherent efficiency is involved. Nay, nay. Non-profits would be directing the “funds“, with the legal and regulatory treatment of non-profits producing an environment which protects non-profits inefficiency from competition.
“The whole point of a non-profit is to pursue goals other than economic efficiency.” - John Cochrane, Booth School of Business, University of Chicago.
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