If you think there wasn’t something fishy going on when the Wayside Christian Mission bid $10 million for the Hotel Louisville property on Broadway, then you need to watch the WHAS-TV interview with Wayside’s Nina Moseley last night.
Or you just need to know this — at least two of the mortgages on the property were held by Gus Goldsmith, owner of Action Loan and a man who’s made a fortune off the less fortunate. We’ve heard from more than one source that Goldsmith orchestrated the entire auction.
In Chase Cain’s piece, Moseley has no answer for the question of why the charity bid $10 million after an opening bid of $1 million. Her quote on whether she could have gotten the property for less: “Not Necessarily.” Just to make it look good, Wayside could have tried bidding, say, $5 million before jacking the price up to $10 million and eliminating the possibility of another buyer making a bid.
Moseley tried to explain how a “right of redemption” law required Wayside to bid the high number, but she agreed with Cain that would only require a $6 million bid.
This story is not over. Metro Government officials want to talk with Wayside to see what they have planned for the site, and permits may be required before they occupy it. And don’t assume that the Jefferson Community College, with its main campus just across Broadway, has given up on acquiring the building for its own purposes.
15 responses so far ↓
1 Dan B. // May 28, 2009 at 9:29 am
I really don’t think people in metro government wants one of the largest landmark buildings on Broadway being filled by the homeless. Isn’t the city going to loose quite a bit in tax revenue from the hotel rooms being taken off the market? Is it smart to house the homeless in a multi-story building where battling a fire would prove difficult? Has there been any precedent in housing the homeless in a structure like this? Mosley seems to think JCC will be anxious to work with the homeless, but has she even talked to them about any planned programs? I’ve been at the old shelter, and I don’t believe having this property used by the homeless will do anything to improve the value of the area. I think this large structure will only make Louisville more of a sanctuary city. Are these the type of people we want in our city?
2 cbcard // May 28, 2009 at 9:29 am
This comes back to our wonderful legislature. A couple of years ago all they had to do was vote an ok (no state budget money being spent) for UofL to expand its stadium. But they didn’t seem to have time so the stadium expansion was delayed a year and is costing the school millions in extra costs.
This year all the legislature had to do to enable Jeff C. C. to purchase the hotel property (no state budget money being spent) was pass a vote. They didn’t have the time. It would seem our legislators all need the same Christmas present, a Round TuIt. Either that or a sense of responsibility coupled with a work ethic.
3 Carter Burger // May 28, 2009 at 9:35 am
right of redemption? So is Wayside paying off the mortgage for Goldsmith? And if they are, what will his involvment be with the property afterwards?
I have said before that the smugness Moseley is exhibiting in the interview last night and other interviews I have seen is bothering me. Something is up here. Wayside is scratching someone’s back. Until we find out who, I’m withholding my contributions to them.
And our legislatures need a Christmas present alright, a one way ticket back home.
4 Mark H // May 28, 2009 at 9:54 am
This is yet another example of the lack of transparency and regulation of the non-profit industry as a whole. The public generally believes that these organizations always have the needy’s best interest in mind.
The reality is that there is a tremendous amount of fraud and tax-free money changing hands in a large number of these organizations with little or no oversight or accountability.
There are great organizations out there that do a lot of great work, but there are just as many con artists and hucksters masquerading as pastors, directors and board members of non-profit groups and churches.
Before you give to any organization, you should see how that money is spent; what kind of office space the organization houses; and the type of vehicles the directors drive.
Having personally inspected many non-profit office buildings in Washington DC and elsewhere, I can attest that many of these offices were A-Class buildings and there were a lot of really nice cars in the parking lot.
Once again, I don’t mean to paint all non-profits with a broad brush, but just do you due diligence before you give an organization your hard-earned (after tax!) money.
5 The Lou // May 28, 2009 at 10:37 am
Could this be a good old-fashioned land grab by Wayside???
I would not be surprised if within the next week/month Wayside just “flips” this property and sells it for $12 million or more to Jefferson Community Techincal College…afterall, JCTC was the suitor who really had the hots for this property to begin with.
Only bad timing with the commonwealth prevented them from buying it last week…then Wayside swooped in and made the ridiculous bid to secure the property.
Pretty damn shrewed business move…and kinda shadey if ya ask me. But it’s legal.
I just hope Nina Mosely isn’t getting too cute in finding yet another way to make some dough off other people’s plans…
6 Willy // May 28, 2009 at 12:55 pm
Why in the world did Wayside pay so much for this property? Mosely is in charge of Wayside and she just blew 10 million for a property that would be lucky to sell for 1/2 that in good ecomomic times. Surely there is a property appraisal floating around somewhere.
If Gus Goldsmith is involved run in the other direction.
7 Fish // May 28, 2009 at 1:32 pm
I would not donate any money to an organisation that doesn’t give damn about overspending millions on a piece of property.
8 Jim // May 28, 2009 at 3:04 pm
Personally I don’t know about giving money to any of these so called national organizations or any of these local organizations. It seems to me that they are increasingly tainted by either ideology, money grubbing, or some other problem. I suspect that they should clean up their own acts before wanting money from anyone. Maybe you can give canned goods to Kentucky Harvest or at least something where food or clothing is involved and forget the money thing. Its time to hold these people accountable as we would want to do with our government.
9 Steve Magruder (I, not D or R) // May 28, 2009 at 5:14 pm
Moseley certainly needs to answer to Wayside’s donors about this matter.
But I don’t see Mr. Cain’s ambush “journalism” as necessary, except to bolster WHAS ratings during sweeps. His style in this report was offensive. He wasn’t talking to a criminal, or somebody engaged in outright mischief, but he sure acted like she was either of those. Tsk, tsk.
Moseley seems to think her position is sound. I don’t see why she has to explain it to WHAS or the general public.
On top of all that, the homeless have to live somewhere. Might as well be at 2nd and Broadway (if that’s Wayside’s ultimate intention). Let’s not assume they’re not good people like you and me. We can’t just keep shuffling our fellow human beings around like this.
10 Fancy Dancer // May 28, 2009 at 9:23 pm
What about the Brown Hotel? It is a landmark and now it will be ruined? Who will want to go there when the hotel across the street is a huge homeless shelter? This makes no sense –our town’s precious Brown Hotel will be destroyed! Someone in power needs to make this madness stop!
11 charles // May 28, 2009 at 9:37 pm
something should smell fishy rumor has it Gus Goldsmith is carrying part of the loan , heard Mary was spotted several times going into Action Loan prior to the auction, Im sure she wasn’t there to sell her gold…my sources also tell me Gus had several heated arguments with Mayor Jerry over the JCTC deal and threatened to turn it into a flop house for degenerates, he definitely orchestrated the whole thing. Hope the reporters do their leg work and get the real story behind the $10 million purchase who’s really benefitting the homeless or GUS GOLDSMITH my sources say Gus Goldsmith
12 Crutnacker // May 28, 2009 at 9:54 pm
I’m curious how paying $10 million for a facility that certainly will cost millions more to renovate and run makes any sense. Hell, $10 million dollars could have bought 60+ $150,000 houses around town to put people up in.
This stinks to high heaven.
13 voter // May 29, 2009 at 2:47 am
Who knows?…..That’s right!…..Hell , if it wasn’t Wayside?….would anyone give a hoot? So what if they made a Smart deal? So what if they took a risk and may “flip” it to JCC. Anyone ever think that the City had plenty of time to make a deal with Goldsmith, but probably wanted to screw him…..Hell had it been Cordish holding the paper Jerry would have unCorked and given him three times face value!…..No reason to beat up Goldsmith….Jerry didn’t offer him squat probably!…..But I guarantee Jerry was telling Goldsmith what he wanted & expected him to do with the property. Instead of giving the Cordish guys 16Million for property , IN A BUDGET CRUNCH, maybe that money could have been used to acquire & secure the Hotel property, ……Now that Jerry couldn’t Bully Gus, & Wayside may have a great profit in a flip deal….Jerry & the City A-Holes have just proved that they got out negociated again …..Just like the Cordish guys have done to them!…..Wake UP!……The Mayor is giving away millions……and he won’t secure a property that is in the scheme of an overall plan for downtown……who cares how muck money the Wayside has to buy the place…..I’ll bet that that place had at least 5Million spent on it recently when it was renovated…….and if JCC buys it and pays a premium?…..Congrats to Mosley for making a good deal for Wayside, I’m sure the profit they make will be used for a great cause, like maybe a State of the Art Downtown Soup Kitchen where all those people they help can get three squares a day.
“There are great organizations out there that do a lot of great work, but there are just as many con artists and hucksters masquerading as pastors, directors …… M A Y O R S …..and board members of non-profit groups and churches”
14 Mark H // May 29, 2009 at 11:04 am
Voter, I disagree with your positive take on Wayside getting into the real estate speculation business, but must agree with your MAYORS inclusion in my list….
What if the flip doesn’t happen the way you think it will? If Wayside eats the $7-8M+ difference in value for the property, how will that loss impact their ability to feed and house the homeless?
I’m sorry, but Moseley has no business taking that kind of risk given Wayside’s non-profit status and mission responsibility.
15 Willie Loomis // May 29, 2009 at 11:40 am
That was the most unprofessional interview I have ever seen on a louisville station.
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