Either the Rhino's John Hammer doesn't understand the GPAC financing, or he's not telling the truth about a deal that would enrich Roy Carroll

"Another sticking point is that for a maximum of 10 years the Community Foundation will own part of the performing arts center.

The reason is that the Community Foundation is going to borrow $30 million that it will receive in pledges and donate that money to the performing arts center.

My understanding of the deal 
is that the Community Foundation isn't going to borrow anything,
but is going to set up a loan collateralized with the facility and attributed to the non profit, 
backed by the City of Greensboro for any shortfalls.

So the city will have all of its money up front and then collecting the pledges to pay back the loan is the concern of the Community Foundation, not the city.

My understanding of the deal 
is if the City's property is connected to the loan,
the City is responsible for any pledges or interest the donors don't actually come up with.

Wilkins had expressed a lot of concern about the city being left holding the bag if some of the pledges didn’t come through, so that problem goes away.

I believe John Hammer's assertion about whether or not the city is left holding the bag
is incorrect.

...The key seems to be that the city will own the performing arts center and a nonprofit made up of donors and councilmembers and others will be formed to help run it.

I think the key is not informing the public of the actual deal
which looks like it forces the City to make up for any donor and construction shortfalls
to the financial benefit of John Hammer's boss.

Vaughan said that after negotiating for months, she, Sanders, Manning and City Manager Jim Westmoreland could not do much more. She said they were all negotiated out, but it appears that they have brought an agreement to the City Council that it can approve.

I respectfully disagree.

The council seemed to accept the overall concept of the performing arts center with a nonprofit board giving advice and making sure that it is well run and maintained."


1 comment:

Billy Jones said...

No mention in the Rhino of Roy holding Nancy hostage? Strange.

How does John sleep at night?