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Letter: What is the risk/reward for Wonder Block proposal?

Nov 17, 2022

As a patron of Ogden city I am disconcerted by the lack of transparency and factual information regarding the Wonder Block proposal.

Prudent investing, especially when using tax dollars, should be based upon reward versus the risk ratio. The greater the risk, the greater the reward. A 1:1 ratio means for every dollar put at risk, one could expect a dollar in return (reward). Assumptions: risk management, risk mitigation must be detailed. Finally, opportunity costs are all factors that must be included prior to putting tax dollars at risk.

In layman’s terms, who has the most “skin in the game?” Who benefits the most in terms of reward versus risk taken? Are the assumptions accurate? What scenarios have been formulated for changes in those assumptions over time?

With regards to the Wonder Block proposal, the RDA, developer, and Ogden City Council must be fully transparent regarding the facts they provide to support the risk taken. Is the reward worth the risk for Ogden city taxpayers?

1. What is the risk/reward ratio for Ogden city? What is the risk reward for the developer?

2. What assumptions have been made as to the viability of the investment?

3. Explain in detail the backstops Ogden city and the developer will use to manage risk over time.

4. Explain in detail the opportunity costs from other projects compared to Wonder Block. As an example:

A. Affordable housing for teachers, first responders, and veterans.

B. Infrastructure projects such as water and sewer repair and replacement.

C. Marshall White Center renovations.

Key questions that must be fully addressed and all the data that supports be provided to the taxpayers.

1. Is the risk Ogden city is assuming commensurate with the reward?

2. Is the risk the developer is assuming commensurate with the reward?

3. Explain in detail the justification for the amount of risk versus the reward each party to the agreement has accepted.

4. How do those figures directly affect the taxpayers of Ogden city?

Vince Proctor

Ogden

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