Tuesday, July 8, 2008

I Told You So

When this magical deal was signed about a year ago several portions certainly got my attention. I'm generally in favor of casinos but am a NIMBY who is against a bad deal. On aspect that hit me right away was the CPI not starting from the moment the deal was signed. I'd posted on it at several sites included the shuttered CFO site.

The developers are in no hurry to build. Why should they be? Bond market and credit market is a joke. Revenues are down at casinos as discretionary spending diminishes and gas prices rise. Casino biz is in a real flux until the eventual economic upturn happens. Say it is 2013 and a washed up entertainer or sports celebrity is ready to glad hand the customers. The gin mill doors are officially opened and the money starts to roll in. Seven mil depreciated over a five year period at who knows what for inflation. Five percent and we'd be lucky. I ran the figures last year at 3% and it amounted to 6.3 mil in 2013 when adjusted. If it goes to 2015 then even less.

On a recent visit several Lakota Sioux all said the same thing at the same time: "Watch out for the developers." Middleboro will lose and the Wamps will certainly lose the longer a delay takes place.

Now...what about those room revenues?

5 comments:

Skeptic said...

Regardless of a resident's stance on the casino, it just makes good sense to put plans in place for its eventuality. Unfortunately the agreement, as signed, leaves us very little wiggle room financially.

bogofree said...

Skeptic:

I have always found that deal to be a bit short considering the money involved. Yes, I know, it shines when compared to other Indian gaming agreements but IMO that means nothing. The infrastucture and capital improvements are great but just "Show me the money!" (I love that movie). Each year really means less and less and the added burden will make it a financial wash in the long run. IMO the big hope is that there is an economic bounty with the gin mill but I'm not really counting on that.

But the point you make on planning is certainly of great importance. That should be done with care and planning but, unfortunately, I sense many anti's will be more busy beating the drums of negativity and false hope and the pro's may just give away the rest of the store. That 250K can always be used for some outside help. Maybe Brian knows about that?

Skeptic said...

Topix temporarily shut down. It's a trash site inhabited mostly by hard core die hards on both side basically eating each other alive.

Nothing on any of the forums can be taken as gospel. Would be funny if innocent families and bystanders didn't get caught in cross fire. When will it end?

VirtualThoughts said...

That Jessie Powell is one MEAN two faced witch. What is her problem anyway? We got along OK at first, Then she started to show her true colors when I disagreed with her. Then, sometimes passive aggressive snarkiness. Other times like an angry bull seeing a red flag waving. Thank God the voters knew better than to elect her. What a disaster that would have been.

If you think you're going to get her to back down an inch, you're dreaming. Way too prideful. Plus, she's a card carrying member of the Bloggers from Hell Trio. They all yes each other to death.

bogofree said...

Virtual...I could not express it any better. Attitude becomes quite clear on the whole Clark thing. Moonbats unite person.

Thankfully, the voters covered my back on my foolish mistake. I was warned and ignored sage advice.