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Old 06-03-15, 10:07 AM
Crusaders Crusaders is offline
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Quote:
Originally Posted by Mikefln View Post
Crusader, I think we all agree that this is a fantastic opportunity for Canton. With that said we are asking an small economically depressed city to front 250 million. Well then questions must be asked. I would want to know how those projections came to be. What data did they use, what surveys did they take, etc.
I am not speaking for oil, but the question is " how much of the 15 billion (I.e. The % in taxes of the gross of the 15 billion) over 25 years is Canton going to get? You also better believe that the annual revenue to the city matters. Canton is going to barrow that money. Canton as an A1 rating according to Moody's which is considered "investment grade" so that is good, but they still are going to pay interest. The first few years when construction is happening the money will not be coming in yet. will Canton have the money to pay that interest? This is not as simple as you make it out to be. This is a great opportunity, but due delligence still needs to be taken.
My point about annual revenue "not mattering" was that it will be there regardless with the expected economic impact coming to fruition; it's an assumed result of a successful project. And we really do not know which methods would be used or if the city would even be asked for that much money. All of it is conjecture.

My point was, if the projection of $15billion over 25 years is only successful in bringing in half that much, the city paying $250million would be well worth it. Obviously, being able to see where the projections came from and how much will be asked for from Canton, or even the state, would make this all less conjecture.

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