Sunday, June 15, 2008

The Warren Scam

Republican Bill Warren wants a government handout. Warren, the multi-millionaire theater chain owner (which bears his name) ran for mayor and was granted a sizeable defeat against the victor Carlos Mayans and also received only have the votes of write-in candidates. Warren, who didn't even have the decency to reside in Wichita ran on the platform that he was going to stimulate the economy and provide more jobs. How has he done in his private life?

He's done pretty well. Recently he opened up a new theater in Oklahoma. The guy is pretty wealthy having dominated their theater market in Wichita with his gaudy theaters and underpaid employees. However his theater in downtown Wichita, located in the Old Town area isn't doing to well so he's asking for a handout.

Taxpayers paid $4 million to upgrade the Old Town district to create an attractive venue for locals. I believe the old Coleman factory was located in the place that was torn down and redeveloped into a small park surrounded by restaurants and small shops. A new parking garage was built and Bill Warren was granted this premo spot.

But Bill is whining that he's not making enough to pay off his debts so he wants a $6 million dollar loan, interest free for the first five years then granted the ultra low interest rate of 1.25% after. He also wants parking fees to be reduced which will cost the city $7,500 in lost revenue.

So why is this a bad deal? Simple. With that sort of interest rate Bill never needs to pay back the loan. He can simply put the money into an offshore account with a higher interest rate and pocket the earnings from the interest. After the first five years he can keep on making money even when he is paying off the interest to the city. He won't have to drop a single dime into his theaters for upgrades as the interest will more than make up for the loss of revenue at the theater.

Bill gets richer at taxpayer expense. That's how the rich get richer and you get poorer. If Bill can't run the theater then let the city foreclose on it and turn it into a casino. That'll bring in the cash and casino jobs pay a lot better than crappy minimum wage theater jobs.

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