It’s always great to make economic bets with other peoples’ money because then HOPE does become a strategy which is the BEST reason why Government shouldn’t play in the private sector (or try to redefine “private” to be “public”; reformatted, emphasis mine):
Colonial Theatre, cable TV before City Council Monday
LACONIA — Mayor Ed Engler will give a presentation at the City Council meeting Monday night on the much-delayed project to restore the 104-year-old Colonial Theatre.
I dryly note that if the private sector, at this level, was much-delayed it would actually be “much-bankrupt”. And that would only be the first step. And that HOPE bit?
The Colonial Theatre project, intended to breathe new life into downtown Laconia, was originally slated to begin Jan. 1, 2017, but could finally get underway this year if the financing package comes together. It is possible [HOPE alert, HOPE alert!] that, in late February or early March, federal New Markets tax credits, which are to provide $5.4 million for the $17 million project and represent the final unresolved piece of financing, will be received, allowing work to go forward.
And IF that Federal money SHOULD become available (again, HOPE-ing does seem to be their main strategy with this half-done project, then things should be hunky-dory, right?
Er, no – remember, when the Public Sector and Public Sector Politicians have control of your money, well, of COURSE taxpayers will be that double-secret ace-in-the-hole banker they need. If at first their boondoogle doesn’t succeed, well, just throw MORE money at it.
Engler will discuss the entire funding package for the project in his Monday presentation. He has hinted previously that more city resources may be needed and has said the City Council will be presented with a recommendation for changes in the scope of the project.
More. More. EVER “more”. It is never enough – the hallmark of scope creep. Or if you have ever been a project manager, you’ve already recognized that “for changes in the scope of the project” is an euphemism for “we’re screwed”. Either Ed Engler (former head honcho of the paper from which this article was taken before becoming mayor) is about to cut the size of the project – or, perhaps, double down and go bigger? Yikes!
As reported before:
The New Markets program attracts private capital into low-income areas. Investors receive a credit against their federal income tax in exchange for making investments through community development entities — in this case, Mascoma Bank. When the U.S. Treasury on Feb. 13 allocated $3.5 billion in New Markets tax credits, Mascoma was not one of the 73 recipient organizations. A total of 230 groups applied.
One in a 230 shot at getting that brass ring of free money – a 0.43% chance. Tell me, what private entrepreneur would take those odds UNLESS the reward was huge? The problem isn’t just getting this money upfront – it’s actually seeing that this “well, everyone else one” theater can actually make a go of it AFTER it gets completed (that AFTER bit is very much up in the air). If the response is tepid at best, it will still be a sideways failure.
So, back to the HOPE strategy. Hey, Ed Engler, would you be doing this if it was your OWN money at risk? C’mon, be truthful here – and no hiding behind the “I’m just a newspaper guy” line either (although that would be rather telling, wouldn’t it?).
Engler has said Mascoma views it as unlikely that it will be denied the tax credits two years in a row. Also, it has analyzed how its application for the credits was scored in the last allocation and feels its new proposal will be viewed more favorably.
Ayup, let her rip, as they say. This is like the anti “lightning doesn’t strike twice” bit – except they’re hoping for that on land that didn’t get hit in the first place. “Feels”? Really? Tell that to the taxpayers. After all, what’s the harm to Mascoma if that lightning STILL doesn’t even strike the first time? Nothing. Nothing at all. It’s just a deal that doesn’t get done.
And the taxpayers will still be on the hook because politicians believed they could pull off something the private sector kept extending the proverbial 10′ pole for years.
A committee of city officials and members of the board of directors of the Belknap Economic Development Council has been meeting frequently. The Economic Development Council has been organizing the project. The city has loaned $1.4 million to the theater revitalization and plans an ultimate investment of $4.2 million.
Yeah, that worked so well for the Lakes Region Business Park that straddles the Laconia / Gilford line – it has been around for decades and STILL hasn’t sold out all the sites. THE perfect example of why development should be left to the private sector. But Laconia didn’t learn from that lesson and decided to repeat the example again.
Chuckleheads – and the taxpayers should have already given them reward of a boot in the backside at the ballot box.
ANDDDDD, we’re right back to that HOPE bit (along with that vaunted “public-private” stupidity):
The hope is that the project will attract more people, business and investment in a downtown area where there is more than 100,000 square feet of commercial space for sale or lease. The economic development council is using a mix of state, federal, city and donor money in the financing package.
Once home to vaudeville shows, the theater became a cinema after World War I. In the 1980s, it was divided into a five-screen multiplex, which closed in 2001.
So the way forward is to recreate what went out of favor 100 years ago. Just like the choo-choo nitwits here in NH. It’s always just that “one new (old) thing” that will finally pave the streets gold again.
Here’s hoping that you’ll all finally wise up.
(H/T: Laconia Daily Sun)
