The State Board of Accounts Audit may have a major impact on the Harrison Square Project.
The most important effect is that this SHOULD change the vote tomorrow night at the City Council meeting. Tomorrow night the City Council is voting on whether or not to take out an 18 million dollar loan to cover project costs until the City can secure the loan with the DLGF (Which may well NOT get approved). Read more at:
I would expect 1-3 City Councilmen to change their votes on the short term loan to cover the Harrison Square Project costs based on the findings by the State Board of Accounts.
Councilman Crawford has been reported (By several sources) to have repeatedly said he would change his vote on the Project if the law was broken... In fact, I heard from two independent sources that he told this to several people this last weekend at a Republican event.
Based on previous conversations I have had with both Councilman Didier and Councilman Hayhurst I think the Audit may influence their votes as well.
I think that the response from the Indiana State Board of Accounts will pretty much ensure the Indiana DLGF (Cheryl Musgrave) will shoot the main Harrison Square bond down; meaning the City will have to spend ANOTHER 4 million dollars to finance the bond if it is not backed by property taxes.
Add this to the cost over-run that will occur due to the walkway the hotel is insisting on and the project is going to be funded almost 60% by The City and only 40% by private developers...
The financial breakdown keeps getting worse and worse...