WBJ Brad Kane In This Issue: Extra Scrutiny for Polar Park

ProForma

 Check this out go to proforma

 

  • Lists Series A at 68 million-- what is now that is what taxpayers are paying
  • Lists Series B at 28 million- team lease payments covers that.  

 

Ok now look at the payments on Series A

  •  2025  3,680,356
  • 2030   4,041,041
  • 2035   4,643,478
  • 2040   5,332,968
  • 2045   5,998,124
  • 2050    6.622.414

 Ascends quickly.   Keep in mind that is based on 68,000,000 on bonds

  • What was the final amount of Series A Bonds?????  Closer to 100,000,000 
  • What was the final interest rates????  Think that dropped 
  • This is why we need updated pro forma based on final construction numbers and current state of private development. .......   

 

 

 


 




Comments

Anonymous said…
Thank you for posting the pro forma the other day. I spent a lot of time adding and subtracting the numbers on the PDF of a spreadsheet until I understood it. Once you understand the math it is clear that the pro forma does not work mathematically since none of the buildings have been constructed. This is before the construction over runs. Now that I understand this I do not believe this will not cost us taxpayers and I will say again that putting the $175 million toward a new Burncoat High School would have been a better investment.
Common Sense said…
I think in the end everything will work out ok for the ballpark. In 5 years we'll find out that it was a very wise investment. It also doesn't bother me if some money is taken out of the City's budget to subsidize the interest payments on the bonds for a few years.

Our airport has been bleeding money for 30 years. I'm guessing that the City and Massport have kicked in $40-50 million over that period of time just to keep the lights on. Maybe you can use your connections at Massport to find out how much money they're eating every year to run the airport? Not to mention the $17 million they paid to buy it. I know you don't want to hear it, but back in 1990 7 out of the 8 airlines pulled out due to poor load numbers. It's going to be the same thing this time. It doesn't matter how many airlines they can bring in if they can't fill seats.
Anonymous said…
I did not pay attention to the City or the airport 30 years ago but from reading the posts and comments like the last one I must assume the City was losing money. Now that I own a property and pay taxes I pay more attention and ask why would you get into a business where you again loss money ? Doesn't anyone learn from their prior mistakes? If the City lost $40 million in 30 years that is about $1.3 million per year. This post has us losing four times that per year. This appears to be worse than the airport. If this is an investment by the City I believe it is a bad one and I for one am not nearly as optimistic as you that it will turn around in 5 years. There may be housing built but I think housing would have been built anyway. Read the paper, developers are building housing everywhere.The paper just reported housing being built in an old mill in Holden that has been vacant for 30 years.
Anonymous said…
As to me not being optimistic it is because all the buildings are on hold "waiting" for tenants or reduced in size. The proposed hotels got reduced to one hotel about half the size and the Cove apartments were cut in half. There is suppose to be a hotel near Union Station do you see that being built? There is the UNUM building and the glass tower empty, Do you see those buildings being filled? There are those that will say my observations and opinions are pessimistic. To them I would respond I believe I am realistic with what is occurring around us. I don't have the solution but I at least see the problem and expect a solution come from the City, since they built the ballpark and told us it would not cost us.
Anonymous said…
One question that I meant to ask from the pro forma. Why does the bond payment increase every year. Should it not be the same or decrease? Thinking of our mortgage our payments are the same over 30 years. This payment schedule does not make any sense to me.
Gary Samela said…
I agree with you about the hotel at Union Station. I've been hearing for at least 5 years that the hotel will be built. I haven't seen any shovels in the ground yet.
Also, I think that hotel got a TIF. I've also been saying for years that the developer of the Madison Properties has held off on projects in the past until he feels the "market conditions" are right.
His record of similar properties in Boston was well known by our city leaders.
Gary Samela said…
Would the team have moved here if the City only financed 75% of the stadium? I think that's a fair question to ask. You got to remember that the city manager had no experience in the business world until Joe Pretty he handed him his job. I don't think he ever signed the front of the check. His previous job was to supervise 3 people at some made up job at Holy Cross. I don't think the council even interviewed any other candidates. It could be one of the reasons the deal was so team-friendly.
Anonymous said…
I think the answer will be no but I am going to ask the question anyway, are there any penalties on Madison Properties if they do not construct the proposed buildings timely?