Five Rivers: Frightening Bait and Switch in the Works

Today a front page, above the fold story in the Oshkosh Northwestern starts off with this ominous sentence: "Oshkosh officials may be steering toward a 180-degree course change in the taxpayer-protection guidelines for the deal launching $60 million Five Rivers Resort." City officials have insisted on a "financing first, agreement next" strategy designed to offer at least some protection to city taxpayers.

But now C.D. Smith Construction, the main financier of the project, calls that strategy a "dealbreaker." They claim it's not possible to sell condo units without a developer's agreement in hand. Miles Maguire explains the problem with the "new" strategy here.

To me this looks like a classic bait and switch: the developer gets a "letter of commitment" from a lucrative construction firm, the city officials claim that it looks as if the term sheet financing requirements have been met, but then we find out that the lucrative construction firm will only go forward if we have a 180 degree turn in strategy. What a charade.

At least the consultants are making out okay: over $50,000 in fees reported so far. Not bad for a project that has little to no public support or confidence behind it.