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They continue to ram this through, but with a little investigation and common sense one should be able to see there are holes in this project. It all sounds nice, but as I posted before if this was such a great idea the private sector developers would bring all the financing and take all the risk. Millin Young is right-on being skeptical.
The glaring thing I see here is that the USVI Gov.t is on the hook for the initial $5M in order to complete the "pre-construction" phase.
"The government would be responsible for the $5 million pre-construction phase, which would include environmental and engineering studies, design documents and demolition of Paul E. Joseph Stadium."
Once the pre-construction phase is done, it's too late to turn back. We are committed at that point since the old stadium will be gone. And we will need to show something for the money spent .... with zero spent from the private developers at that point. PLUS, this is where everyone gets a chance to add "options", just like when you have a contractor build your house .... don't you want to upgrade to granite counter tops. The $55M price tag might go much higher. Who pays for the difference?
Another point. There were questions about the National Swimming Center Corporation. With the word "Corporation" in their name, one would conclude that they are a "For Profit" entity. Wrong. And what experience do they have on other projects. Here are a couple on summaries that tell me the USVI should back off like the other state-side cities.
http://www.statesman.com/business/swim-center-drawing-skepticism-in-florida-621668.html
http://m.naplesnews.com/news/2011/dec/13/fort-myers-aquatic-center-hopes-flailing/
In the 2nd article there is a "key" bit of information.
"While the NSCC estimated revenues of $7.9 million and an operating surplus of $4.5 million in the facility's third year of operation, the county consultant estimated revenues of $4.3 million and an operating surplus of $1.1 million. ..... If the facility reverted to the county due to lack of revenue or another cause, the county would likely have to operate the aquatic swim center and lose approximately $550,000 per year by year five, according to the report."
As in the case of the STX complex, the Gov.t retains ownership of the property. When it does not make money, the private guys will vacate faster than "the cheatin wife's boyfriend when the husband comes home". And the USVI is stuck .... again.
This is similar to the Solyndra debacle. The US provides a loan to develop a facility. The principles take BIG salaries, etc. during construction and early production. When it fails they declare bankruptcy ..... and the US Gov.t is left holding the bag.
Posted : May 11, 2012 1:00 pm
Topic starter
Indirectly, the other thing that is appalling is that this moves ahead on 2 yes votes out of a total of 7 senators on the committee:
"Then, the committee voted to forward the bill with a favorable recommendation to the Rules Committee, with Hansen and Nelson voting yes, Barshinger abstaining and Williams voting no. Committee vice-chairwoman Sen. Janette Millin Young boycotted the meeting, and Senators Shawn-Michael Malone and Patrick Simeon Sprauve were absent."
These people were elected to participate and to render an opinion on issues .... and not abstain, boycott or not show up. This week they have 2 days for "Constituent Meetings and Office Work". NO ONE should be absent. Or am I missing something here or just stupid.
Posted : May 11, 2012 1:32 pm
"Millin Young also expressed concerns that the sports complex deal was being railroaded through the Legislature.
"I learned the investors said they will withdraw their proposal if the deal is not approved before next week," she said."
Also cause for alarm. If that's not a blazing red flag then I'm at a loss to know what would be.
Posted : May 11, 2012 1:43 pm
Given the VI's past history of dragging out such projects, I don't blame a group of investors for putting a deadline on a deal.
Whether it's a good deal or not, I really don't know. But what's kind of surprising is that one of the hotel projects hasn't tried to add a 'sports complex' to its deal. Would make sense if such events would fill rooms.
Posted : May 11, 2012 1:48 pm
From what I heard (from somebody directly involved after a meeting and much libations) they felt like they showed up at the last meeting and it was an ambush. Totally backwards movement for them.
Posted : May 11, 2012 2:46 pm
i would rather see the government use that money to repave the roads correctly, update wapa on all islands and figure out how to lower our electric cost, maybe put money into the schools, maybe actually pay all of the outstanding refunds that are due............. so many other more important things need to be done before we worry about that
without a proper infrastructure, the project will be a failure. look at stt whose power was not working properly during the carnival.
Posted : May 11, 2012 3:37 pm
I think it would be great for bringing sports in (we have a lot of talented athletes) and for musical events, like festivals.
It would help tourism and that's probably going to be the financial back bone we need to replace Hovensa.
Posted : May 11, 2012 7:01 pm
sure, if the other things are taken care of first, especially the infrastructure to support the stadium and the people it would bring
Posted : May 11, 2012 7:09 pm
Well, if you don't have money to fix those things, you're going to make some money first.
Posted : May 11, 2012 9:18 pm
i would rather see the government use that money to repave the roads correctly, update wapa on all islands and figure out how to lower our electric cost, maybe put money into the schools, maybe actually pay all of the outstanding refunds that are due............. so many other more important things need to be done before we worry about that.
Exactly, but we (as a community) and our government seem to be completely unable to multitask. Look at the multitude of problems facing us? Now, look at how this debate/discussion/deliberation over this sports complex has DOMINATED the airwaves/agenda/consciousness/etc for WEEKS now.
I am for it, okay, simply for the sake of some sort of progress. But, since we seem to be unable to tackle more than one thing at once, make a decision ANY decision and MOVE ON.
We're all facing a MASSIVE increase in utility costs come December (which we have already been "blessed" with one stay on thanks to HOVENSA's oh so "good will"), not to mention fuel costs (or lack of supply all together). Then there are the audits, the defecits, the law breakers, the crime, the business community on life support, and so on ... And our public marketplace of ideas is DOMINATED by a sports complex? Come on. Enough.
As for Millen-Young ... Do your job and show up for hearings. Boycott? Laughable.
Thanks for letting me rant.
Posted : May 11, 2012 10:27 pm
jamison, if you have no money to fix those things you can support the amount of people who they expect to show up for it. i like the idea of a complex but not the company they want to do it. and not without the infrastructure to support it
Posted : May 12, 2012 10:08 am
