CITY OF NEW ALBANY
CAPITAL DEVELOPMENT TOURISM FUND REVENUE BOND,
SERIES 2006
(IU SOUTHEAST RECREATION PROJECT)
Dated December___,2006
Registered Owner:
Amount: Two Hundred Seventy Thousand Dollars ($270,000)
THE CITY OF NEW ALBANY (the "City"), a municipal corporation and political subdivision of the State of Indiana (the "State"), hereby promises to pay (but only from the sources hereinafter mentioned) to ____________, or registered assigns, the principal sum of Two Hundred Seventy Thousand Dollars ($270,000) and interest at the rate of ___percent (%) per annum on the unpaid balance of such principal sum from time to time outstanding hereunder, payable in __________Dollars($_____) each, on the 1st day of _____in each year, commencing January 1, 2000___and continuing to and including January 1, 20___ or until the entire principal sum hereof together with accrued interest thereon has been paid, except as the provisions hereinafter set forth with respect to prepayment prior to maturity may be and become applicable hereto. (We suggest you pick up a copy of this Contract and Ordinance Bill No.G-06-20 for your own viewing)
Freedom of Speech would like to again thank Councilman Steve Price for standing up for the taxpayers on the IUS Bond. After attending last Monday night's council meeting and hearing CM Price's points we decided to do our own investigative research to better understand the scope of this issue.
We were amazed at the amount of information that was withheld from our City Council members.
How can a city council vote on an issue dealing with another debt, which has again by passed the 2% debt limit, without knowing financial information? Is this another one of Jimmy's deals: Vote now and fill in the blanks later?
Here is just a few of the major flaws we have uncovered thus far in our search for the facts and truth.
* The amount of revenue, collected by the Clark-Floyd County Tourism Hotel Tax has been purposely withheld from the ordinance.
* How much money is Floyd County receiving from the Floyd County Tourism Hotel Tax?
* Who is going to absorb the issuance cost of the bonds? The total bond amount proposed is $270,000. With $220,000 for the IUS tennis court and $50,000 for signage throughout New Albany. (after all people will come from miles to actually see what a pot hole-bankrupt city looks like).
* Is our mayor that self-absorbed to think that he can get this one pass the citizens of New Albany? We have spoken with several local business owners who is dumbfounded by this ordinance. They too are in amazement by the ordinance that was presented to the council for a vote. How can you make a good business decision without supporting financial information?
* Another issue brought up by several citizens is that of the competence of our City Clerk Marcey Wisman. As a City Clerk whose duties is to be that of a liaison between local government and its citizens how can she give the ordinance to the council members with out filling in the vital information?
* If this is a legal contract why are the blanks not filled in? No logical person would ever sign a contract with all these blanks. Would you?
* A "big red flag should go up" when Mr. Mayor says this is free, it will not affect our credit borrowing rate for future bonds. And it will not cost the taxpayers nothing!
What Freedom of Speech has also found out that on December 6th 2006 the Tribune published a legal notice for "NOTICE OF BOND SALE" City of New Albany, Indiana, Capital Development Tourist Fund Revenue Bond, Series 2006 IU Southeast Recreation Project. How can a notice of bond sale be published if the council has only passed 1 of the 3 mandatory readings? What are they trying to pull on taxpayers again?
Who is going to receive the issuance fee we ask? You got it...none other than City Attorney Shane Gibson! Read it yourself:
14. Appointment of Bond Council. The law firm of Barnes & Thornburg LLP, Indianapolis, Indiana, is hereby appointed as Bond Council to the City in connection with the authorization, issuance, and sale of the Bond. Shane Gibson, Esq., City Attorney, is hereby appointed as counsel to the City in connection with the authorization, issuance, and sale of the Bond and is hereby authorized and directed to assist Bond Counsel in all matters relating to the authorization, issuance, and sale of the Bond.
Freedom of Speech feels we should be able to use the Tourist monies for other projects for New Albany. IUS is a State Funded College. Why should part of this $270,000 be used for IUS?
Freedom of Speech also suggest you contact your City Council Member and ask some serious question about this Clark-Floyd County Convention and Tourism Bureau Bond and Ordinance:
Donnie Blevins (812) 944-4856
Jack Messer (812) 949-9638
Mark Seabrook (812) 944-9644
Dan Coffey (812) 949-1262
Bill Schmidt (812) 945-7386
Stephen Price (812) 941-9032
Larry Kochert (812) 945-7652
Beverly Crump (812) 948-2603
Jeff Gahan (812) 949-9314
Freedom of Speech would like to know is this another political favor? Or just a feather in Jimmy's cap for Re-Election?
footnote: City Council "report cards" will be released next week.
