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Center: Another day in court
This time, county’s appeal of local judge’s decision on financing will be heard in Commonwealth Court. Project continues with a later opening date.
Sunday News
Jun 10, 2007 00:03 EST
By JUDY A. STRAUSBAUGH, Staff

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This article by Judy Strausbaugh is as accurate as any about this topic that has ever been published in any of the local media, especially compared to WGAL's abysmal coverage. Judy Strausbaugh has consistently done a better job of reporting about this project than any of the other professional reporters, and that includes Dave Pidgeon.

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Because of the controversy surrounding the financing, the authority and Wachovia settled on the deal about two months later than scheduled.
Controversy? The REAL controversy was between Wachovia and the LCCCA; without Wachovia's expensive guarantee, the LCCCA's (lack of) creditworthiness and unreasonably leveraged amount of borrowing would have relegated the bonds to junk status. With the LCCCA at an extreme disadvantage, Wachovia forcefully negotiated a deal which gives it virtual control over every aspect of the convention center spending and operation, PLUS a 40-year lien against all proceeds from the "hotel tax".

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If Madenspacher's ruling is overturned in Commonwealth Court, Kelin said he doesn't know the impact it would have on current financing.
According to the Wachovia commitment letter, the cost of the Wachovia guarantee would increase from 0.95% for most of the bonds to 1.25% for ALL of the bonds.

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The grand opening of the hotel and convention center, planned for fall 2008, may not happen until spring 2009.
Any bets they cannot make that date? My guess is the fall of 2009, possibly even later.

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Brian Sparacino, vice president of sales for Interstate Hotels & Resorts, which will manage both the hotel and the convention center, said he receives two to three inquiries a day from people wanting to book an event at the site.

Press releases, e-mail campaigns and word of mouth generated by the May 23 kickoff have created a stir in the meeting market, Sparacino said.
These are only INQUIRIES. Anyone in the business knows that only a small percentage of inquiries turn into requests for bids, and only a small percentage of requests for bids turn into bookings. My guess is NO major events will be held there in 2009 (partly because of the uncertainty over the opening date), unless Rick Gray or another politician or plutocrat pulls a LOT of strings.

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Consultant Dan Logan of Growth Business Development Inc., Medford, N.J., is no longer actively involved in the marketing.
The comments made by Brian Sparacino from Interstate made it sound like the LCCCA wasted nearly $1 million on Dan Logan. Basically, he's done NOTHING for the convention center. And (according to Brian Sparacino) since Dan Logan is an independent consultant, Interstate views him as a potential competitor and refuses to work with him.

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In related business, Morris asked three board members to take charge of writing a request for a proposal to all county law firms seeking bids for the authority's solicitor.
Stevens & Lee is being pushed out the door. Rumor has it that Dave Hixson will be next.
Artie See
Consultant Dan Logan of Growth Business Development Inc., Medford, N.J., is no longer actively involved in the marketing.

The comments made by Brian Sparacino from Interstate made it sound like the LCCCA wasted nearly $1 million on Dan Logan. Basically, he's done NOTHING for the convention center. And (according to Brian Sparacino) since Dan Logan is an independent consultant, Interstate views him as a potential competitor and refuses to work with him.
Another example of shoveling an 'expendible' large amount of money at someone who would make it look like things were happening so that the real profiteers could continue to guarantee their own dollars rolling in and out the back door.

The old rule: Ridicule RH for trying to find out just what the hell Logan was doing for this exorbitant amount of money. Ignore the fact that Logan was doing nothing except acting like one of many to make the project appear viable to the readers and general public - anyone else remember the LNP's article on Logan's 'worth' to the success of the CC project? And finally accept the fact that RH was correct, in a defacto way, by the newspaper casually bringing to light that Interstate was and would be the booster and booker for potential customers. The LCCCA 'banks' on the readers and casual observers' (who rarely go downtown and think that this will never affect them) short memories and utter convolution of this ruination of the last good square in Lancaster.

harv1
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