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Friday, 02 December 2011 17:25

Wow me, wizards of Wall Street


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Lance Martin is editor and publisher of rrspin.com Lance Martin is editor and publisher of rrspin.com

OK, I'm calling for all the wizards of Wall Street to come out and wow me with your financial prowess.

Hit me with your best shot and tell me how you would solve the theater crisis.

I've made it no secret I and my website support council's decision to sell the theater. Most people I know have been screaming, “sell, sell, sell,” since it became apparent it was not going to get us where we needed to be financially.

Now that the deal is done, it seems for many the tune has been changed so I want to know how you would solve the dilemma the current city council found themselves in, inheriting a lemon that not even the best mechanic in the world could fix.

Therein lies a huge problem. Personally, I don't think it's fair the current council is taking all the criticism when they were handed over the beast in the elections. They have done what no one else had the courage to do so now I'm waiting, in between all the complaining and Friday morning quarterbacking, to tell me how you would fix the problem.

Would you sit and wait for some naïve person to come along and offer the full price of the $2O some million bond issue? I don't think that person is out there. I don't think the person to offer the construction value of the building is out there.

Would you raise the city's tax rate up to a point where people would be forced to sell their homes? You'd be voted out of office in a heartbeat.

Maybe you'd cut the already slim number of police officers on the street and then complain when there was no officer available to answer a break-in call at your home.

Maybe you'd close one of the fire stations. I pity what would happen if you were in the area of the fire station that was closed.

Maybe you want your trash to go uncollected. You'd be storming city hall with pitchforks and torches like in a Frankenstein movie.

Tell me your plan. Present it to city council. Can you come up with a plan that saves the city $600,000? Let's hear it. Myself and the city are all ears.

The only other alternative was one in which the city would be paid $23 million and then it would have to turn around and pay $154,000 a month in a leaseback deal, still leaving Roanoke Rapids in the theater business without money to book shows. Cities shouldn't be in the theater business. Cities should provide police and fire protection, trash pickup and that sort of thing, not booking Elvis impersonators and dance recitals.

So I'm waiting to hear your proposals. Maybe you want the city to pay you a salary so you can book shows. It's not going to happen.

How about a casino? Is there that much political muscle in Roanoke Rapids to sway state legislators to legalize gambling in Roanoke Rapids on property that isn't Native American owned? They couldn't even sway legislators to give them a chance to let citizens vote on a 1 cent sales tax, let alone legalizing gambling in the Entertainment District.

Sure, it's sad the city is only going to pull $7.1 million out of this deal, but if you were expecting any more than that, you'd be waiting in a line at the tax office to get extensions on your exorbitant payment.

Yes, all of this is conditional on Lafayette Gatling coming through with the cash, cash that he offered to pay and my sources indicate he has no intention of backing out. Why would he? He's buying the building for half its construction value and what he does with it from then on is his business. My guess is he will do something with it that will make him a good little sum of money, something that none of the others could do.

So, now that I'm through stepping on toes, I say if you have some better ideas, please share them. Otherwise be thankful that it's not looking like your taxes are going to go sky high next fiscal year — Lance Martin

 

 

 

Last modified on Friday, 02 December 2011 20:39
Lance Martin

Lance Martin

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comments  

 
+7 #6 Michael 2011-12-04 17:27
The proper solution, unfortunately, is for the city to declare bankruptcy. Many cities have taken this painful, yet ultimately effective step. It would protect the taxpayers from bearing the burden of the financial mess the previous and current administrations have gotten the city into. The solution you support, Lance, doesn't improve the situation for anyone but the idiots running the city.
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+8 #5 Tom Waring 2011-12-03 10:52
Is Mr. Gatling's funeral home still in foreclosure?

I'm surprised in this economic environment any institution would lend him 6 to 7 million dollars while one of his major assets was in foreclosure.
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+8 #4 Kimberly 2011-12-02 20:51
Sorry for the second post, space prohibited adding this to the first. 1 concrete suggestion on saving money is to consolidate services anywhere possible. For instance, the Chaloner recreation facility and pool should be shut down. The main rec facility and the main pool should be the only 1's in operation. This was posted before as a viable option to save operating expenses. Before anyone says it's a "race thing", I'll say it right up front - the only color this is about is green.
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+7 #3 Kimberly 2011-12-02 18:53
Quoting KROW:
I AGREE WITH YOU LANCE, LETS GET OUT FROM UNDER THIS HUGE ROCK WHILE WE CAN!!!


except you are not getting out from under it, people keep saying this, are you forgetting the remaining debt that will have to be paid? we will now be paying for something we no longer own. Austerity measures will still be necessary to not end up with a tax hike, be it huge, be it small incremental yearly blows, to handle the remaining debt, no small amount of money will still be due. It is not "free and easy ville" to sell the theater either. The city and its taxpayers will bear the consequences of the prior council's decisions for many, many years to come. And, here's the kicker, because of the state law that was changed to allow the theater deal to happen without a vote by the citizens in the first place, there's nothing saying it cannot happen all over again, anywhere in this state.
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+2 #2 Kimberly 2011-12-02 18:50
I agree, no choice but to sell; perhaps we could have gotten more w/ an open market sale, it will never be known. I am skeptical of Mr. Gatling; freely admit it. He could not run the theater and make payments, is being sued in Chicago for around 2M; suddenly has 7.1M and confidence that he can make this a viable business. Call me a skeptic. I'll gladly answer to that.

I would like to see the city council STOP spending money we do not have in every way possible. A lot of money has been thrown at the waste transfer station, money we did not have to throw, and apparently they are now determined to get into the garbage business.. Unless there is a surplus of money sitting around somewhere, the city should be hunkering down and planning for a long bleak "winter" of doing nothing but plowing every single dime that is not needed to run existing functions into paying off this debt as quickly as possible, not getting into any other business for that matter.
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-5 #1 KROW 2011-12-02 18:40
I AGREE WITH YOU LANCE, LETS GET OUT FROM UNDER THIS HUGE ROCK WHILE WE CAN!!!
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