|Proposed Broad Ripple Parking Garage|
Indianapolis leaders are negotiating an option with the developers of a proposed Broad Ripple parking garage that would allow the city to purchase the structure for a nominal fee, 6News has learned.To read the rest of the story or watch the video, click here.
City-County Councilor Ryan Vaughn told 6News' Kara Kenney on Wednesday that the city will have some options under the agreement, which has yet to be finalized.
“If at any point the garage becomes a profitable venture, the city reserves the right to buy the garage back," Vaughn said. "Economic development is the biggest thing. If we have an opportunity to grow the business base there and we need parking, we might want to wrap that up in a deal."
Vaughn said that while the city reserves the right to purchase the garage, the developer will have the right to sell the garage to the city for a nominal fee, likely $1.
"They would sell it back if they continue to lose money or if we're holding the rates artificially low," Vaughn said. "In order to drive revenue, they may not find it's a profitable venture at all and send it back to the city."
It appears from what Vaughn is saying that: 1) if the garage makes money, the City has an option to purchase it for a $1; 2) if the garage loses money, Keystone has the option to sell it to the City for a $1.
|Council President Ryan Vaughn|
CITY'S OPTION TO PURCHASE: If the City could truly buy it for a $1 if the garage made money, why would Keystone Construction invest a dime in the structure? No company is going to invest in a project that, if it proves profitable, can be taken away for a $1. If you look at the details on this supposed option, I'm sure you'll find that it is impossible for the City to ever exercise it.
This reminds me of the 50 year ACS parking meter deal. They added an every 10 year opt out provision so they could talk up the option to the media. Once the details surrounding the 10 year opt out provision were examined closely, you realize it was impossible to ever exercise that option. I bet it will be the same thing with this supposed option of the City to purchase a profitable garage for a $1. It is just about having talking points for Vaughn and the Ballard administration.
As a side note, Vaughn claim regarding this option further validates my guess that the only money being spent to construct the garage is the taxpayers' and that the private partners aren't putting up anything. If Keystone were investing millions in building the facility, would there even be a claim by Vaughn that the City could wipe out that investment with a $1?
KEYSTONE'S OPTION TO SELL: This option would give Keystone the right to dump the garage back on the City if it is not making money. Now that option I totally believe is part of the deal. It is exactly the kind of sweetheart deal this City's leaders are renown for handing out.
I get the sense sometimes that Ryan Vaughn thinks everyone around him is so stupid, they'll believe anything he says no matter how big the lie. Vaughn's claim of the two-way, buy-sell option on the parking garage is yet another example of Vaughn's arrogance as well as his complete disregard of the best interests of Indianapolis taxpayers.