Surprise of surprises. A mere two days after our Ogden City Council/RDA Board voted "to approve [a] letter supporting the allocation of two tax-exempt bonds totaling $12 million" for the Junction Hotel Project, the Standard-Examiner reports this morning that "State officials agreed Wednesday to allocate to the city about $11.3 million in tax-exempt bonds for construction of a hotel and underground parking garage at The Junction":
• Bonds OK'd for hotel, parking garage in OgdenThat's what we call a rapid response, folks. It's evident that the Obama stimulus funds which are feuling this bonding effort has been burning a hole in the Utah Department of Community and Culture's pocket, and that the ball is back in Ogden City's court once again.
In yesterday's SE story on this topic Council Chair Gochnour provided a quote suggesting that the RDA Board was merely locking in its bare request, and that the decision on whether to formally sign aboard this project would come at some point down the road, after careful and deliberate evaluation of the facts:
"It's a great opportunity for the city to get this funding," said Council Chairwoman Caitlin Gochnour. "We're just showing our support at this step of the process.Well, folks, at the frenzied rate with which this matter is proceeding, it's evident that "the future" to which Ms. Gochnour refers is NOW.
The RDA board will have an opportunity to review or tailor its support with further information in the future, she said. [Emphasis added].
Adding aggravation for Ogden taxpayers who are watching this rapidly developing situation is the fact that neither the Standard-Examiner nor the Council/RDA itself has clearly explained the true mechanics of this proposed multi million dollar bond funding. This morning's SE story again refers to "allocat[ion] to the city," which would logically imply that the primary new obligor under this arrangement (The Ogden RDA) would be assuming obligations founded on presently-existing bonds. Nowhere in any of the previously published stories or reports has it been suggested that the Ogden RDA will be issuing any new bonds, yet the true source of these bond funds remains entirely foggy. Did some other Utah municipality previously qualify for these bond funds and then back out? If so, why? Did the Utah Department of Community and Culture issue an underlying bond itself; and is it now scrambling to find another sucker to take on these already-bonded obligations?
Our fear is great that the Ogden Council/RDA is allowing this project to be shoved down the taxpayers' throats without adequate time for cool deliberation. As we opined on 7/12/10, there are many facts and feasibility issues which yet need to be resolved before the council should jump into this project with both feet.
So what about it, gentle readers?
Now that the Council/RDA has gone out on a limb and requested to participate in this bond funding, and now that the that the pressure is on, will our seriously outgunned City Council be shamed into signing on to this risky deal?
The world-wide-webosphere awaits your ever-savvy comments, O Gentle Ones.
Don't let the cat get your tongues.
