The Outdoor Adventure Center scam

Dear Editor:
Yes, it’s a scam. I have been an investor all my life. I have been conned a few times but I haven’t gone broke. The simple rule after all the research and thought about a business deal or a stock deal comes down to what is the risk? Can I afford the loss? So my rule is never invest more than 2 percent of my net worth in cash/stocks/bonds in any deal. I keep the value of my homes out of my deals for obvious reasons. I don’t play poker with the places my family sleeps.
If this idea is going to cost $10 million then the only money that the county should have to put in is 2 percent of that, or $200,000. Because the 2 percent rule keeps you from going broke if you are wrong. It has kept me from losing my shirt. Sure I may not have made as much if I had thrown in 5 percent or 10 percent, but on the other hand I have never lost 5 percent or 10 percent of my investment either. Rio Blanco is talking about taking 100 percent of a deal and discounting the risk at zero percent, but what if it doesn’t work?
So I am simply asking if the people of Rio Blanco County want their elected officials to invest $10 million in a scheme that may fail. If it fails the county will own an empty building that they can’t sell or fill because there is no demand today. So you end up with bankrupt business and an empty building and $10 million debt. How are you going to pay that $10 million debt?
I will bet that the two banks in town won’t loan you the money for this either.
Good luck putting together a bond. Interest rates are going up. Went up a hair today in fact.
Meeker did not get screwed in the 2008 debacle when so many small towns bought into lousy deals that paid them 7 percent more than they were getting and the downside was slim and almost impossible……until it wasn’t.
This is the same thing. If you can find people to invest $10 million in this scheme than good for them. The town should not go on the hook for this. It is not wise and it will be ugly when it goes wrong if you are holding the debt.
By the way no one has done one of these things in the USA yet so why does anyone think it is going to work in Meeker? Don’t bet the town on this. It’s just poker by another name.
Sincerely,
Bill Levy
Meeker-area property owner