David Brauer: Fundamentally, though, the Historic Theater Group deal seems more certain to get the theater debt & capital costs off our backs, which is why (for purposes of Devil's advocacy), I favor that bid in this debate.
Me: I agree that this is the meatier but less sexy issue, and the more complicated. I'm still working out the math and still have questions, primarily with the HTG deal: 1. How does the conversion of the nontaxable bond debt to taxable bond debt help the City's borrowing capacity, as the City ultimately remains on the hook, though with a guarantee from Clear Channel? Is the CCE guarantee that powerful? 2. Does anyone have accurate debt service figures for the City once the bonds are converted? 3. Are the $1.6 million estimated lease payments to the City for 30 years considered the ultimate 'purchase' price of the three theaters, as the HTG deal seems to imply that its nonprofit partner, Hennepin Theater Trust, will 'assume' ownership of the theaters at the end of the day. Is this $48 million (not adjusted for inflation over 30 years) a fair price for these three historic buildings? Remarkably, I understand that the City has no appraisals for the buildings but is going forward with this as an ultimate sale. 4. HTG/HTT/Clear Channel don't provide a presumed average ticket price, while the Ordway/Alliance assumes an average of $30.75 for its four venues. Any clue what HTG must charge for tickets to make this deal work? I'm not betting I'll get clear answers, but I will bet these issues have been discussed, perhaps ad nauseum. Would love to know, if anyone does have a guess. Gregory Luce St. Paul David Brauer Kingfield REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
