The Skeptical Teacher

Musings of a science teacher & skeptic in an age of woo.

Posts Tagged ‘Williamstown’

Creation Museum’s Faith-Based Investment in “Ark Encounter” Appears to be Sinking

Posted by mattusmaximus on July 11, 2014

The saga of uber-creationist Ken Ham’s Creation Museum continues, and it isn’t looking good for him or his followers.  If you recall, Ham and his creationist organization Answers In Genesis (AiG) have, in recent years, gone all-in on an investment scheme to fund what they call a life sized replica of Noah’s Ark named Ark Encounter.  For years, I and others have reported on the continuing financial troubles and ethically questionable revenue sources for Ken Ham’s enterprise, and now things seem to only be getting worse for Ham, AiG, and the Creation Museum.

Ken Ham Ark Encounter

Ken Ham looking over his model of Ark Encounter… the irony is that, according to myth, Noah didn’t need lots of investment capital, the backing of the government, and huge construction teams to build his Ark. (image source)

Back in February, there was a big debate between Ham and Billy Nye the Science Guy at the Creation Museum; after the debate, Ham reported that this debate had brought in a huge amount of much-needed financial support for Ark Encounter and that construction would begin on the much publicized project in May of this year (after repeated delays due to insufficient funds).  At the time, I and others were skeptical, speculating that perhaps Ham wasn’t being completely truthful because while he said money was coming in, he didn’t provide any specifics.  This led me to believe that Ham was continuing his habit of not only bending (or breaking) the truth on issues of science but those of economics and finance as well.

Well, now it appears that the other shoe has dropped… as reported in June by Americans United for the Separation of Church and State, it seems that Ham is resorting to all sorts of shenanigans and obfuscation to give the impression that his enterprise isn’t sinking:

1) First, there’s the issue of the time-table on Ark Encounter continually being pushed back, at taxpayer expense

The main problem with Ham’s overtly religious pet project is it seems to be a magnet for taxpayer dollars. First, Kentucky officials committed more than $40 million in tax incentives to the Ark Park. Sadly that was just the beginning. Later, the Kentucky legislature planned to spend $2 million on a road project in a rural area, seemingly for the sole benefit of the proposed Ark Park.

But even those generous incentives weren’t enough for misguided lawmakers. The city of Williamstown, which had already granted a 75 percent property tax break for the park, decided last year that it would sell $62 million in municipal bonds on behalf of AiG affiliates.

All told, various government entities in Kentucky have planned to give the Ark Park, which was originally supposed to cost about $175 million, an astounding $100 million (or more) in various types of public support. Recent reports, however, cast serious doubt on just how much of that money, if any, will reach the project.

It seems Ham’s ever-changing timeline has finally caught up with him. He said in January 2011 that work would begin on the Ark Park that spring; then in May of that year, AiG said groundbreaking would be over the summer; in June, AiG said construction would begin in August; and by early August 2011, AiG still had not broken ground but promised that it would happen “in the next few months.”

Then in late August 2011, AiG bumped the timetable way back, saying groundbreaking would begin in the spring of 2012. That did not happen, either.

2) Then there’s the problem of the expiration date attached to the public funding (the one smart thing the KY lawmakers did in this whole fiasco)…

Louisville’s LEO Weekly reported last week that the large tax incentive package promised to the Ark Park back in May 2011 by Kentucky’s Tourism Cabinet came with one little catch: an expiration date. The agreement says that AiG can receive a 25 percent tax rebate on the cost of construction once the park opens, provided construction began by May 2014. The discount would be capped at $43 million.

Gil Lawson, a spokesman for the Tourism Cabinet, told LEO Weekly that Ark Encounter quietly withdrew its old application for a $172 million project on March 28 and instead submitted a $73 million proposal. If that application is approved, and if it is built within the allotted timeframe, that would mean AiG is eligible for $18.25 million in tax incentives, LEO Weekly said.

But the shrinking tax package doesn’t appear to be Ham’s only problem. In April, the Cincinnati Enquirerreported that the local road improvements needed to handle all the traffic that will supposedly rush to Ark Encounter (if it ever opens) will be pushed back to 2017. That’s a bit of a problem for Ham, who last claimed that the park would open in the summer of 2016. Perhaps he wants park visitors to have an authentic Bible experience by walking or riding camels to see the ark.

There is also some mystery surrounding the $62 million in municipal bonds that supposedly rescued Ham’s project. The Louisville Courier-Journal reported in January that while $26.5 million in bonds had been sold, the city needed to sell an additional $29 million by Feb. 6 or else those who already bought bonds would be able to collect on their investment immediately.

The city would not say exactly how much money was raised, the Courier-Journal reported in late February, but AiG’s website claims the bonds actually yielded $73 million. AiG also claims it has raised $15 million on its own.

Hmm… when “there is some mystery” about how public funds are allocated and being used, especially on a legally and ethically questionable project such as this, then that’s kind of a problem.  KY lawmakers and politicians would be wise to distance themselves from this slow-motion train wreck.  But there’s more!

3) Ham has claimed that ground breaking and construction did indeed begin this past May, except that it didn’t actually happen…

Despite these setbacks, Ham presses on. His latest ploy appears to be keeping up the hoax that the Ark Park is under construction. In February, he said groundbreaking would begin in May. On May 1, AiG hosted a “groundbreaking ceremony” at the site where the park is supposed to be built, but the “groundbreaking” consisted of a handful of men in suits using wooden mallets to hammer wooden pegs into wooden boards. This all took place inside an auditorium, which doesn’t look much like a theme park. (You can watch this exciting video here, but be warned – it’s over 40 minutes long.)

It is now June, and it remains unclear whether or not construction has actually started on Ark Encounter. AiG’s website says its “construction management team” is still soliciting bids from contractors, suggesting that no real progress will be made anytime soon.

Whoops!  I thought that “construction” meant that earth-moving machines were actually, I don’t know, moving earth and digging holes and that carpenters were actually nailing pieces of wood together and so on.  Apparently, in Ken Ham’s universe, “construction” means… something else.

Well, one thing is for sure: this story won’t end here.  I think Ken Ham is going to try to string both investors and politicians alike along for as long as possible on his sinking Ark Encounter, despite the fact that it should be obvious by now to any reasonable observer that his grasp of finances is about as trustworthy as his grasp of science.

Too bad for the folks who invested in this debacle that they didn’t use a little evidence-based thinking. That’s what you get for faith-based investing, I suppose.

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Continued Financial Trouble for KY Creation Museum?

Posted by mattusmaximus on November 25, 2013

Ken Ham’s Creation Museum is back in the news, and – surprise – it has to do with a questionable funding proposal to finance his floundering theme park, where people can pay to be told that the Flintstones is the real thing.

Flintstones

Yup, they actually teach that humans and dinosaurs coexisted… just like in the Flintstones cartoon.  Looks like a good investment to me – Yabba-dabba-doo! (Image source)

I’ve posted before (here and here) about the troubles the Creation Museum has had in securing funding for its Ark Encounter attraction (not to mention its dwindling profits – or should that be “prophets”?), and the following article indicates that Ken Ham is pursuing a constitutionally questionable strategy which could land him and the municipality in question into some dicey legal waters…

Kentucky City May Offer $62 Million in Securities to Help Noah’s Ark Replica Park

A city in Kentucky is working with Crosswater Canyon, an owned subsidiary of Answers in Genesis, Inc., to offer $62 million in securities for prospective investors to help aid the completion of a Creationist theme park and replica of Noah’s Ark.  While the city of Williamstown is issuing the bond, Crosswalk Canyon is solely responsible for the bonds, not the city.

Beginning next month, Williamstown may oversee the amount of taxable securities for investors to the project overseen by Answers in Genesis, reported Brian Chappatta and Priya Anand of Business Week.

“Proceeds will help build a 510-foot (155.4-meter) wooden ship, the centerpiece of a planned biblical theme park called ‘Ark Encounter.’ Bond documents project the venue will attract at least 1.2 million people in its first year,” wrote Chappatta and Anand. …

But if things are going so well for Ken Ham and his cartoon attraction, then why the need for these so-called “securities” to fund the project?  Let’s read on…

… Unlike the Creation Museum, the Ark Encounter project has had its share of financial issues regarding funding and donations.

The official ground-breaking for the project has been delayed multiple times since 2011, with private donations not matching the necessary monetary benchmarks.

Mike Zovath, head of the Ark Encounter project, told The Christian Post about the current status of the park’s construction, namely that it is “under design.” …

Wow, that’s got to make potential investors nervous.  So what’s the big deal about going through these “securities” issued by the town of Williamstown, KY?…

… Answers in Genesis’ efforts in Kentucky have garnered their share of criticism, including from the Washington, D.C.-based group Americans United for Separation of Church and State.

In the past Americans United has criticized the alleged First Amendment issues with regards to the state support for projects that benefit the Creation Museum and the Ark Encounter.

Alex Luchenitser, associate legal director at Americans United, told The Christian Post that the bond offering is one of many examples of government aid proposed for the Ark Encounter project.

“The imminent bond offering is only one of several different kinds of aid being given to the Ark Park by the State of Kentucky, Grant County, and the City of Williamstown,” said Luchenitser.

“The array of government aid to the Ark Park raises very serious issues under the religion clauses of the U.S. Constitution and the even stricter church-state prohibitions of the Kentucky Constitution.” …

Well, there’s that!  And then there are other questions regarding the legality/wisdom of these securities from the standpoint of the Securities and Exchange Commission (SEC).  But don’t take it from me; take it from from people who actually know business and investment, like the folks at Bloomberg Businessweek.  Here’s an excerpt from an excellent blog post on this particular point:

Bloomberg Reports on Ken Ham’s Ark Bonds

This is about an article at the website of Bloomberg BusinessweekBusiness Week was formerly an independent magazine, now it’s part of the Bloomberg international news agency, headquartered in New York. Their article is Noah’s Ark Depends on Faith in Default-Plagued Debt: Muni Credit.

From our recent post, Ken Ham’s “Ark Encounter” Bonds, you already know about the bonds being issued to finance the proposed Ark Encounter project, which is owned by a company controlled by Answers in Genesis (AIG). AIG is the on-line ministry of Ken Ham (ol’ Hambo), the ayatollah of Appalachia. It also owns and operates the infamous, mind-boggling Creation Museum.

It appears that Bloomberg has seen all the documents, and they routinely report on the bond market. Their analysis is far more sophisticated than ours. They say, with bold font added by us:

“Given the default history of unrated municipal debt, investors may have to pray for the success of bonds being sold to build a full-scale replica of Noah’s Ark.

The northern Kentucky city of Williamstown plans to offer $62 million of securities next month for affiliates of Answers in Genesis, a Christian nonprofit that operates the Creation Museum upstate. Proceeds will help build a 510-foot (155.4-meter) wooden ship, the centerpiece of a planned biblical theme park called “Ark Encounter.” Bond documents project the venue will attract at least 1.2 million people in its first year.”

Ouch… but what the heck does Bloomberg Businessweek know?  Sure they may have oodles of financial and investment expertise, but if creationists have shown us anything it’s that they don’t need no stinkin’ experts who spout off about pesky things like evidence and facts!

So head on over and buy some of Ken Ham’s bonds.  You just have to have faith that you won’t be flushing your money down the toilet 🙂

Posted in creationism, economics | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 3 Comments »

 
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