LaSalle Insider

For those of you fortunate enough to attend the 2010 version of “Jazzin In the Streets” on Saturday October 9th, I’m sure you’ll agree with me when I say it was the best one yet.  The music was great, the weather fantastic, and the crowd was large and enjoying themselves.  The “t shirted” volunteers were friendly and helpful and the design of the shirts was excellent! (any left?)  I also liked the etched wine glass available for five dollars.  A big pat on the back for a job well done and let’s hope next year’s weather cooperates as well.

PS the Fireworks were a nice touch and very enjoyable.  I think it points out that all celebrations should be in the downtown section.  The local business people I spoke with told me they had a definite increase in traffic that night.

I am struck by the response of  those who assume that grant money is “free” money.  May I take a moment to point out that all money coming from government is “our money” .  We have either paid it in the form of taxes or agreed to pay off loans from government borrowing or lastly saw our dollar decrease in value due to more government printing of currency.

This brings me to the front page  story in the News Tribune from Wednesday October 20th titled”Canal group gets $535,000 grant via federal ag”

Does anyone think these funds will ever get paid back to the taxpayer?  Lets look at the numbers supplied to the paper concerning the revenue and expenses created thus far in the history of the boat. In its 28 month existence it has created  in the neighborhood of $640,000 in revenue and in payroll alone it has paid out $569,000 over the same period. That leaves about $71,000 to cover all vendor bills, utilities,animal rental,lease payments to the owner of the building (Anna Koval),upkeep,insurance, etc.

Can you see what picture this paints with regards to paying anything back on a half million dollar loan?  Don’t forget the only asset is a canal boat which cost 1 million to build and is an asset which is depreciating in value.

When the canal boat was first launched in 2008 the “experts” predicted that the area would see 5 million in economic activity in the following three years.

The latest number after almost 2 1/2 years is 1 million thus far.  Ridership was to reach 60,000 a year but sadly if we do the math it appears in the first two plus years the best number is about 29,000 annually….and the trend is that its decreasing.

A little more math for you given the numbers posted in the paper..annually its creating $272,000 in revenue and payroll alone is eating up $243,000.

This leaves $29,000 in revenue left to cover all other expenses.  I did an amortization schedule of 20 years at 4% on a loan of that amount and the annual loan payments would be 38, 904.  Oops , we have a cash flow problem!

I know the economy is in the dumps and hopefully the numbers get better but we have to go on what is and not what we hope for…remember the last person who promised us “Hope and Change!”  How ‘s that workin for ya?

So we tax payers are on the hook for the million in the boat and the half million dollar loan…..but Garry its grant money and government backed loans!…..(see beginning of article for explanation)

I am sooo glad we in City government did not accept the original idea of the city owning and funding the operation of this boat.  If we had our city finances would be in a much worse position than we currently face.

Reality check…unless and until the canal can connect the cities of LaSalle and Utica via the boat or some other form of transportation along the towpath we will not see the tourist dollars we hoped for from Starved Rock State Park visitors.  The last number I read was over a million visitors annually.

What if we had put  the million and a half in the canal restoration instead of the boat and loan and opened up the canal all the way to Utica?

I welcome your thoughts….