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Editor's note: We were concerned when costs were estimated to be at $100,000,000. Now costs have increased to $160,000,000
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LINK TO DEADSPIN The Stadium Scam Goes Minor-League, And It Has An Unlikely Ally
Our favorite quote from the column..
“I think the point has come across really well,” says Zimbalist. But, he adds, “you ask, do people understand this? I think in Worcester, they don’t even want to understand it. There’s a tremendous amount of excitement about bringing the team there.”
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Here is a link to the Pro-Forma . You need to convert this to an Excel file to actually make sense of the numbers..
First lets all agree that we all want to see the project be built on time and succeed, but we as the taxpayers, who will have to cover any shortage in your pro forma, Mr Zimbalist “we need to understand it”.. Here are the basics:
All of this will start July 2019 and finish March, 2021.
The question we need to ask is “How are we going to pay back the bonds on a 100,000,000 million dollars starting 2022 extending for 30 years?”
Now lets juts focus on the Series A Debt of 68,325,000 starting in 2022:
Expenses
Income
Profit= 882,669 (total income of 3,712,589 less expenses of 2,829,920)
This looks great but if any one of these things does not happen by March 2021, for example;
The main thing we realized, however, after looking at the pro-forma is that this debt increases every year. Remember before the housing bubble burst when you could buy a house with interest only then the amortization would start later. Here are the annual payments on the Series A debt every 5 years of the term of the loan:
The pro-forma looks great, but make no mistake about it–THERE IS ALOT OF RISK TO THE TAXPAYERS OF WORCESTER!! If even one portion of this plan does not get finished by March, 2021, we are paying the shortage. We have knows all of this for the past couple of weeks.
On the other hand , we had no idea the 30 year schedule on these notes were so back-end loaded.
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