Feb 21, 2012

[vivaelvis]

I have been told that the Memphis City Council will vote on either February 20th or 21st on the $16 million dollars needed from the city to begin construction and redesigning Elvis Presley Boulevard. There's been a strong push lately to get it approved now and underway by end of the year. You can thank Harold Collins for that. (y)

[debtdbruno]

here's hoping then............

[KPM]

If it passes-good for the city of Memphis(y)
If it doesn't-you get what you pay for(n)

[vivaelvis]

It looks like my source was correct! Elvis Presley Boulevard improvements finally APPROVED by the City Council!!! (y)(y) I was also told that EPE didn't wanna make any announcements on expansion such as renderings until the city did its part. Now that they ar, it's EPE's turn to step up to the plate and deliver. And that could come soon, especially with the economy gaining back some strength.

The word is that the new HH will be a tower hotel at around 10-12 stories high. Although they do have height restrictions due to the airport being just 3 miles east of Graceland. It'll be a meeting style luxury hotel with restaurants and retail shops. possibly live entertainment. It'll be at the old Meadows apartment complex site that EPE has recently cleared off to make way for the new hotel just north of the mansion on the same side of street. I'll keep you updated on anything I hear regarding plans for the new HH.

Anyway, here's the story on the improvements to the boulevard. http://www.memphisdailynews.com/news/2012/feb/22/council-approves-pink-palace-renovation-and-elvis-presley-blvd-funding/

[debtdbruno]

fabulous news..........lets get cracking then now eh?..........lol

hopefully a bigger hotel, may mean we have more chance of getting a room at 'peak' times...

[Jungleroom76]

FANTASTIC NEWS VIVAELVIS!!! (y)

Thank you so much for posting the newspaper article link as well as keeping us updated on what you're hearing regarding the EP Blvd. and Graceland expansion projects!! :notworthy

Now let's hope EPE steps up quickly with their plans and, with the funding now in place for the boulevard, starts the renovation projects!! :clap:

TCB!
Mike

[KPM]

Having read the article I see that the funding is conditional-The Memphis Museum Inc. people must contribute $10 million in funding and half of that amount must be privately raised so we'll see where this announcement ends. Memphis should have listened to Harold Collins long ago since he is rightly saying that these improvements are not about what EPE is doing or plans to do-but these improvements are for the citizens of Memphis:
........Council member Harold Collins, whose district includes the mansion and the boulevard, has long complained the plans for the improvement have been continually pushed back as newer capital improvement projects elsewhere in the city have been pushed ahead...........Collins has always maintained that the streetscape improvements can go forward and are about improvements for the Memphians who live and work along the boulevard as opposed to tourists.
“The people in this district have been waiting over 35 years to get this redeveloped,” said Collins.

[KPM]

As far as EPE-they will do what Apollo allows them to do, and so far IMO Apollo has talked of tinkering around the edges.
EPE is not an entitiy unto itself-and they will have to listen to the big boys at Apollo.
We will see in time........my own prediction is that Apollo will tinker,and in a few years as the economy gets better-they will sell to someone else.
We will see.

[Jungleroom76]

As long as we actually see some improvements starting to rev up around the Graceland area. This area has been in decline for years in terms of run-down buildings, streets & sidewalks needing repair and just the overall aesthetics of the area. Graceland is one of, if not THE major attractions of not only Memphis, but the entire United States and it definitely deserves to look the part. (y)

I know there's always contingencies, back-room deals, hidden contract clauses, etc. in every project and deal, but let's hope that this project winds up being above board and the planned revitalization actually begins to materialize. I'm not saying everything has to be done in one fell swoop, but just seeing some action happening (aside from the purchasing of land around the mansion that has already taken place) in terms of reconstruction/renovation will do wonders for the fans that have been clamoring for this for years!!! ;)

TCB!
Mike

[vivaelvis]

I am told that the approval was the last hurdle the EPB improvements needed to get started. However, the funding was approved to start work in 2013 fiscal year. Which begins in July 2012.

As for EPE and their plans, Apollo is very secretive with their dealings but the word is that they are in support of the expansion that EPE and CKX have been planning. But it may be downsized a bit to fit the economy. Meaning it could take years to complete the expansion. My understanding is that the top priorities will be addressed first and that'll be the new hotel. Apollo also owns Caesars Entertainment who owns and operates Caesar's Palace in Las Vegas and Harrahs casino chain. Apollo wants their businesses to work partnerships within the family of Apollo. So don't be surprised if Caesars is the partner who teams up with EPE and CKX to build the new HH. And I'm also told that there's no guarantee that it'll be named the Heartbreak Hotel either due to marketing issues.

Ken, I understand that you're skeptical, but the approval of the boulevard upgrade was the opening door to EPE's ambitious plans. It's a done deal. They were not going to invest $250 million or more into an unstable situation until a commitment and approval by the city was reached. Which is what happened last night. EPE/Apollo have already removed the old Meadows apartment complex just north of Graceland and placed a big black iron gate around that property to keep people away. They did that since the purchase by Apollo which tells me what I was already told, is that they are moving forward to getting the hotel deal done. It's possible that we could hear something before Elvis Week or during. And now with the funding approved for EPB, it would not surprise me to see construction or at least groundbreaking before the end of the year or by early 2013 on the new hotel. I do know it's expected to take about 2 years to build. EPE is feeling the pressure to upgrade due to lower tourist numbers and loss of dollars. They know the need for the new hotel as it alone will become an attraction itself. Think Hard Rock Hotel.

Another thing about the new hotel. It's expected to be big enough to hold corporate business meetings and feature a luxurious experience. A far cry from the HH now.

[KPM]

I am told that the approval was the last hurdle the EPB improvements needed to get started. However, the funding was approved to start work in 2013 fiscal year. Which begins in July 2012.

As for EPE and their plans, Apollo is very secretive with their dealings but the word is that they are in support of the expansion that EPE and CKX have been planning. But it may be downsized a bit to fit the economy. Meaning it could take years to complete the expansion. My understanding is that the top priorities will be addressed first and that'll be the new hotel. Apollo also owns Caesars Entertainment who owns and operates Caesar's Palace in Las Vegas and Harrahs casino chain. Apollo wants their businesses to work partnerships within the family of Apollo. So don't be surprised if Caesars is the partner who teams up with EPE and CKX to build the new HH. And I'm also told that there's no guarantee that it'll be named the Heartbreak Hotel either due to marketing issues.

Ken, I understand that you're skeptical, but the approval of the boulevard upgrade was the opening door to EPE's ambitious plans. It's a done deal. They were not going to invest $250 million or more into an unstable situation until a commitment and approval by the city was reached. Which is what happened last night. EPE/Apollo have already removed the old Meadows apartment complex just north of Graceland and placed a big black iron gate around that property to keep people away. They did that since the purchase by Apollo which tells me what I was already told, is that they are moving forward to getting the hotel deal done. It's possible that we could hear something before Elvis Week or during. And now with the funding approved for EPB, it would not surprise me to see construction or at least groundbreaking before the end of the year or by early 2013 on the new hotel. I do know it's expected to take about 2 years to build. EPE is feeling the pressure to upgrade due to lower tourist numbers and loss of dollars. They know the need for the new hotel as it alone will become an attraction itself. Think Hard Rock Hotel.

Another thing about the new hotel. It's expected to be big enough to hold corporate business meetings and feature a luxurious experience. A far cry from the HH now.
Na.......h not me;)
I was told by a very successful local businessman I worked for in the 70s to:
"Believe half of what you see and nothing of what you hear, expect the unexpected in any deal"
I have found that you need to take this type discussion with a grain of salt because things almost never end up like the hype.
That is shown here over many years of discussion at TCB World-this very topic, Apollo/CKX and expansion plans.... many many threads, many many announcements or rumors..... that just did not make it to implimentation.
Sillerman was the savoir in 2005-not that most of us really thought Elvis needed a savoir but many wanted a much larger scale "GRACELAND" including evidently Lisa, Priscilla and the EPE team-so they make the deal with "deep pockets Sillerman"-whos credentials were suppose to match the job at hand-and the job at hand was to basically take Graceland to a new level of growth since it had gone as far as it could with the old team...... Lisa trusted the hype, fans trusted the hype and lets face it Sillerman was just not the wizard that had been promoted.
Now the new Sillerman is Apollo with its history of accomplishments which may or not be relevant to this situation.
As I said so far all they have said they planned was IMO tinkering around the edges so we will see.
Skeptical-no reason to be I guess;)

[KPM]

Last years CKX report had this bit of information-The report addressed the redevelopment project directly, albeit vaguely:

“Although we continue to consider the exact scope, cost, financing plan and timing of such a project, we expect that the redevelopment of Graceland, if and when pursued, would take several years and could require a substantial financial investment by the company,” read the report.
“In addition, our ability to pursue such a project would be conditioned on a number of factors, including but not limited to general economic conditions, the availability of capital and obtaining necessary approvals and concessions from local and state authorities..........

So if Apollo/CKX/EPE are planning huge things-see how much has changed since March of 2011 when the above information was released.

[KPM]

The bottom line in this story is one I like-the winners will be the citizens of Memphis if the city completely follows thru on this public redevelopement.
As Mr. Collins said-for 35 years the people have been waiting to see this begun, but other shortsighted politicians drug their feet hoping to see movement on other fronts.......before they made their total commitment....also hoping that some of the groundwork for the public improvements would be done by private interests. Memphis should move on its plans regardless of what someone else does-because their concern should be for the citizens who elected them-just like every other city should.
So the citizens win here if Memphis follows thru.(y)

[Jungleroom76]

Another thing about the new hotel. It's expected to be big enough to hold corporate business meetings and feature a luxurious experience. A far cry from the HH now.

DEFINITELY THE FIRST THING THAT NEEDS TO BE DONE!!! :clap:

I honestly can't believe that EPE built the HH that way in the first place!! While the idea was (and is) certainly necessary to accommodate the fans, the HH never really fit in, in my opinion. It just seemed like it was just put there to satisfy the need for a hotel with no real thought or planning, just plop...there it is. (n)

Just my opinion of course... ;)

TCB!
Mike

[Jungleroom76]

The bottom line in this story is one I like-the winners will be the citizens of Memphis if the city completely follows thru on this public redevelopement.
As Mr. Collins said-for 35 years the people have been waiting to see this begun, but other shortsighted politicians drug their feet hoping to see movement on other fronts.......before they made their total commitment....also hoping that some of the groundwork for the public improvements would be done by private interests. Memphis should move on its plans regardless of what someone else does-because their concern should be for the citizens who elected them-just like every other city should.
So the citizens win here if Memphis follows thru.(y)

And us fans, of course!!! ;) :clap:

TCB!
Mike

[Joe Car]

Get err done!!!

[vivaelvis]

Good news! I am told that it was mentioned on Memphis news the other night that official groundbreaking on the Elvis Presley boulevard improvements will be November of 2012 and will cost $43 million. (y)(y) The city of Memphis is funding $16 million out of it's budget. The state is covering the rest. This is big news for all the Elvis fans who will visit Graceland in the near future and for years to come, to see a new revitalized part of town. It's projected to take about 3 years to redevelop and be completed by 2015.

The plans call for removal of power lines to be replaced underground in some parts of the strip, new sidewalks and treeline islands in the middle of the boulevard, along with widening the street in some areas.

As for Graceland's planned $250 million expansion, there's still no official word on that, just hearsay right now. I've been told that now that it's confirmed that the strip will be remodeled that an announcement from EPE/Apollo for a new hotel at Graceland could be right around the corner. Possibly as early as this summer. (y) Let's keep our fingers crossed.

[Kajo]

I have been told that the Memphis City Council will vote on either February 20th or 21st on the $16 million dollars needed from the city to begin construction and redesigning Elvis Presley Boulevard. There's been a strong push lately to get it approved now and underway by end of the year. You can thank Harold Collins for that. (y)

Sounds great! Let's hope everything will work out well.

[Kajo]

Good news! I am told that it was mentioned on Memphis news the other night that official groundbreaking on the Elvis Presley boulevard improvements will be November of 2012 and will cost $43 million. (y)(y) The city of Memphis is funding $16 million out of it's budget. The state is covering the rest. This is big news for all the Elvis fans who will visit Graceland in the near future and for years to come, to see a new revitalized part of town. It's projected to take about 3 years to redevelop and be completed by 2015.

The plans call for removal of power lines to be replaced underground in some parts of the strip, new sidewalks and treeline islands in the middle of the boulevard, along with widening the street in some areas.

As for Graceland's planned $250 million expansion, there's still no official word on that, just hearsay right now. I've been told that now that it's confirmed that the strip will be remodeled that an announcement from EPE/Apollo for a new hotel at Graceland could be right around the corner. Possibly as early as this summer. (y) Let's keep our fingers crossed.

Sounds great. Fingers crossed ;):king:

[vivaelvis]

Apparently my source was right on the money again. I just found this video clip referring to what I was told and it details what is expected and the groundbreaking date, as I was told it would be.(y) http://www.myfoxmemphis.com/dpp/news/local/elvis-presley-blvd.-renovations-rpt-20120312

[KPM]

Well the citizens in Memphis win-finally. The Apollo hearsay we will see.

[vivaelvis]

Well the citizens in Memphis win-finally. The Apollo hearsay we will see.

I'm not getting why you are so skeptical about the redevelopment around Graceland and Apollo's involvement? Apollo didn't invest $510 million into a company just to see it sit idle or that they have no intentions on upgrading and expanding for future value growth. That's not a smart business investment. And looking at Apollo's track record I wouldn't assume that to be the case. They are well known for building up their struggling properties that are in financial debt to get them back on their feet. Kind of like a financial caretaker.

The question isn't will Apollo go through with the Sillerman-proposed expansion and overhaul or a revised version. It's more about how big will it be? Just for the record, Sillerman's proposal wasn't originally his idea. It was that of Lisa and Priscilla's that had been on the drawing board with EPE since Graceland opened. A new visitors center, museum, and hotel all on the same side as Graceland have all been on their agenda and wishlist for years. The setback was that the money just wasn't there at the time, and when it finally looked to be the economy fell which set it back even further.

As I have said on here already, EPE/CKX/Apollo was NOT about to invest millions upon millions into a run down neighborhood which has a medium crime rate that is growing until the city did its part. That was not going to happen and the city council knew it which forced their hand to make the approval. Now that the improvements have been officially approved with no more holdups or setbacks in the way, and a groundbreaking date has even been set to begin physical revitalizing, then we can now look for EPE to finally make the renovations public and not just to get free publicity like they have for the past 5 years by making false announcements to gain attention.

[KPM]

I'm not getting why you are so skeptical about the redevelopment around Graceland and Apollo's involvement? Apollo didn't invest $510 million into a company just to see it sit idle or that they have no intentions on upgrading and expanding for future value growth. That's not a smart business investment. And looking at Apollo's track record I wouldn't assume that to be the case. They are well known for building up their struggling properties that are in financial debt to get them back on their feet. Kind of like a financial caretaker.

The question isn't will Apollo go through with the Sillerman-proposed expansion and overhaul or a revised version. It's more about how big will it be? Just for the record, Sillerman's proposal wasn't originally his idea. It was that of Lisa and Priscilla's that had been on the drawing board with EPE since Graceland opened. A new visitors center, museum, and hotel all on the same side as Graceland have all been on their agenda and wishlist for years. The setback was that the money just wasn't there at the time, and when it finally looked to be the economy fell which set it back even further.As I have said on here already, EPE/CKX/Apollo was NOT about to invest millions upon millions into a run down neighborhood which has a medium crime rate that is growing until the city did its part. That was not going to happen and the city council knew it which forced their hand to make the approval. Now that the improvements have been officially approved with no more holdups or setbacks in the way, and a groundbreaking date has even been set to begin physical revitalizing, then we can now look for EPE to finally make the renovations public and not just to get free publicity like they have for the past 5 years by making false announcements to gain attention.
I am skeptical of rumor-not of concrete fact. Perhaps the endless rumors since Sillerman came into the picture (that did not pan out) is a reason for sketicism among many. Its just that simple. If you change the names Sillerman CKX to Apollo-the story remains the same....some 7 years later. Apollo is the answer-we will see.
Sillerman ran the show-and if he wasted time on old plans that date back to 1982 that had been at EPE for 30 years-what does that tell you? I'm not sure where you got that info that plans were on the drawing boards since Graceland opened-but no one in their right minds would bother to really consider 30+year old ideas.....too many things of total importance change in that much time-technology, finance, politics, laws on zoning and structural codes etc.........no way to impliment plans drawn up in 1982 in 2005 better to start from scratch-if he wasted 10 minutes looking at 30 year old plans that seems ill advised.
When he bought he was suppose to have ideas in mind and cash-that was the rumor, that was the innuendo that was given here over and over.
Nothing has changed-except names.
It is a fact that Apollo bought CKX (at rock bottom price)-their intentions in buying CKX is debateable. They could sell their stock today and make a huge profit since the stock market is some 6000 points higher than the crash in 08 and probably 3000 points higher since they bought CKX.

The little info you can find on their intentions does not seem to imply huge renovations-more like cleaning, tightening and sprucing up etc...when they make a real announcement (not rumor, not innuendo) I will listen-then wait to see what happens. But there is IMO a 50/50 chance that they are going to find a new buyer in the future and make a profit-high finance is not always about running operations well-its about buying low and selling high. We will see...........many will remain skeptical.
But as I said I am happy that Memphis government quit dragging its feet on its responsibility to take action to make its city cleaner, safer and more modern (albeit 30 years late) that is good for the citizens.

[KPM]

March of 2011 New York Post story excerpt:

CKX Inc., which owns the rights to the name, image and likeness of Elvis Presley as well as the operations of Graceland, is holding off on an ambitious $250 million plan to redevelop the late singer's estate after reporting a wider fourth-quarter loss.
"Although we continue to consider the exact scope, cost, financing plan and timing of such a project, we expect that the redevelopment of Graceland, if and when pursued, would take several years and could require a substantial financial investment by the company," CKX said in a filing.


......... it appears plans to redevelop the legend’s former home are on hold. An expanded visitors center, merchandising shops and, potentially, a new hotel, will not be coming to Graceland any time soon.........................
Last year, CKX hinted that the massive project would be scaled back because of the tough economy, saying there is a "strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign."
Read more: http://www.nypost.com/p/news/business/ckx_woe_is_trouble_for_elvis_and_AHpEUwfhshJPnGXH2 yHbDL#ixzz1pDXkCqBa

This is just one year ago-CKX said it will take several years "if and when pursued" and that the original design may require significant modifications or abandonment for a redesign"
Does that not inspire skepticism???

[vivaelvis]

March of 2011 New York Post story excerpt:

CKX Inc., which owns the rights to the name, image and likeness of Elvis Presley as well as the operations of Graceland, is holding off on an ambitious $250 million plan to redevelop the late singer's estate after reporting a wider fourth-quarter loss.
"Although we continue to consider the exact scope, cost, financing plan and timing of such a project, we expect that the redevelopment of Graceland, if and when pursued, would take several years and could require a substantial financial investment by the company," CKX said in a filing.


......... it appears plans to redevelop the legend’s former home are on hold. An expanded visitors center, merchandising shops and, potentially, a new hotel, will not be coming to Graceland any time soon.........................
Last year, CKX hinted that the massive project would be scaled back because of the tough economy, saying there is a "strong likelihood that the original preliminary design plans may require significant modifications or abandonment for a redesign."
Read more: http://www.nypost.com/p/news/business/ckx_woe_is_trouble_for_elvis_and_AHpEUwfhshJPnGXH2 yHbDL#ixzz1pDXkCqBa

This is just one year ago-CKX said it will take several years "if and when pursued" and that the original design may require significant modifications or abandonment for a redesign"
Does that not inspire skepticism???

That was in March, 2 months prior to the Apollo offer and sale of the company. Of course they had to hold off as they were facing bankruptcy at the time. When CKX was bought by AGM in May 2011 they were already over $200 million in financial debt. That was the whole reason for them to table the expansion plans.

Notice that VivaElvis was decided to be shut down FOLLOWING the sale of the company. That was no coincidence either. As I have said, CKX was already in serious financial debt and VE was only adding to it, despite making a small profit. But not enough profit, so AGM decided to shut it down to save form CKX spending more money on the then-planned overhaul of the show that was to begin in January.

Back to CKX. Once they were able to find a buyer willing to take the company private, they were then able to clear their credit debt.
Now, since that March report, AGM and CKX both published a report mentioning expansion to Graceland to begin in 2012. Below is a copy and paste from Elvisinfonet.com. This was made 2 months after CKX released their annual report.


Graceland expansion slated for 2012 / 2013: With the Apollo CKX takeover in progress the slated Graceland expansion has been mentioned. .. "In connection with the definitive merger agreement reached with CKX, Apollo has also obtained support agreements from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company's partner in EPE, and Robert F.X. Sillerman, the Company's largest stockholder. CKX will become a private company, controlled by an affiliate of Apollo, after completion of the offering.
Analyst Michael Altberg commented, "We believe potential volatility in the domestic television performance of American Idol, and the characteristic long-term decline of such shows, would have negative repercussions on revenue generated" noting that these factors are only partly offset by American Idol's current dominance of primetime audience ratings, and some degree of annual revenue visibility due to TV license fees and royalties/licensing revenue from its 85% ownership interest in Elvis Presley Enterprises. The Graceland tourist attraction, while popular, is slated for expansion capital expenditures in 2012 and 2013, and involves a risk of return on investment."
(News, Source;BrianQuinn/ElvisInfoNetwork) June 2011


Now, unless that has all changed, which gives me no reason to believe it has, then it went without public notice. But I have been told that AGM IS indeed behind CKX and EPE's plan to redevelop.

And the "several years" comment was about completion of the overhaul, not the beginning of it.

[KPM]

That was in March, 2 months prior to the Apollo offer and sale of the company. Of course they had to hold off as they were facing bankruptcy at the time. When CKX was bought by AGM in May 2011 they were already over $200 million in financial debt. That was the whole reason for them to table the expansion plans.

Notice that VivaElvis[/I] was decided to be shut down FOLLOWING the sale of the company. That was no coincidence either. As I have said, CKX was already in serious financial debt and VE was only adding to it, despite making a small profit. But not enough profit, so AGM decided to shut it down to save form CKX spending more money on the then-planned overhaul of the show that was to begin in January.

Back to CKX. Once they were able to find a buyer willing to take the company private, they were then able to clear their credit debt.
Now, since that March report, AGM and CKX both published a report mentioning expansion to Graceland to begin in 2012. Below is a copy and paste from Elvisinfonet.com. This was made 2 months after CKX released their annual report.


Graceland expansion slated for 2012 / 2013: With the Apollo CKX takeover in progress the slated Graceland expansion has been mentioned. .. "In connection with the definitive merger agreement reached with CKX, Apollo has also obtained support agreements from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company's partner in EPE, and Robert F.X. Sillerman, the Company's largest stockholder. CKX will become a private company, controlled by an affiliate of Apollo, after completion of the offering.
Analyst Michael Altberg commented, "We believe potential volatility in the domestic television performance of American Idol, and the characteristic long-term decline of such shows, would have negative repercussions on revenue generated" noting that these factors are only partly offset by American Idol's current dominance of primetime audience ratings, and some degree of annual revenue visibility due to TV license fees and royalties/licensing revenue from its 85% ownership interest in Elvis Presley Enterprises. [I]The Graceland tourist attraction, while popular, is slated for expansion capital expenditures in 2012 and 2013, and involves a risk of return on investment."
(News, Source;BrianQuinn/ElvisInfoNetwork) June 2011


Now, unless that has all changed, which gives me no reason to believe it has, then it went without public notice. But I have been told that AGM IS indeed behind CKX and EPE's plan to redevelop.

And the "several years" comment was about completion of the overhaul, not the beginning of it.
"Expansion Capital Expenditures" could mean anything from -$250 million in renovations and expansions to just basic upkeep, clean up, modernizing some functions etc......
Like I said-when AGM actually makes some announcement of their intentions for the scope and type of capital expenditures we will know definitively what they have in mind....till then I will remain skeptical.
It is now 3 months into 2012 and know definitive answer to what they are actually going to do.

Still that idea that VE was making a small profit-but closed anyway-makes absolutely no business sense to anyone who has run a business day in and day out. Profit does not come in "huge windfall amounts" except in rare instances-it is a steady drip drip drip of profit from many sources that make the windfall. To stop a profit making venture which cost so much to develope-is just not smart business.
People still sell gum even thought the profit is a few pennies a stick-the reason is profit is profit.
In a grocery store the profit margin on most items is slim especially those used as leaders to draw in customers-but add them all up all at the end of the month and you have a tidy sum.
Like I said Sillerman and CKX are now Apollo-names have changed we will see what that means "good or bad" in the next couple years.
But until then .........you have the right to promote their case-and I have the right to be skeptical.....if and when huge things are done that are done well and promote Elvis....I will cheer them on....if they do not I will not be so cheery;)

[rocknroll]

I couldn't care less what they do as long as they don't lay a finger on Graceland or the 13 acres it sits on.

[vivaelvis]

"Expansion Capital Expenditures" could mean anything from -$250 million in renovations and expansions to just basic upkeep, clean up, modernizing some functions etc......
Like I said-when AGM actually makes some announcement of their intentions for the scope and type of capital expenditures we will know definitively what they have in mind....till then I will remain skeptical.
It is now 3 months into 2012 and know definitive answer to what they are actually going to do.

Still that idea that VE was making a small profit-but closed anyway-makes absolutely no business sense to anyone who has run a business day in and day out. Profit does not come in "huge windfall amounts" except in rare instances-it is a steady drip drip drip of profit from many sources that make the windfall. To stop a profit making venture which cost so much to develope-is just not smart business.
People still sell gum even thought the profit is a few pennies a stick-the reason is profit is profit.
In a grocery store the profit margin on most items is slim especially those used as leaders to draw in customers-but add them all up all at the end of the month and you have a tidy sum.
Like I said Sillerman and CKX are now Apollo-names have changed we will see what that means "good or bad" in the next couple years.
But until then .........you have the right to promote their case-and I have the right to be skeptical.....if and when huge things are done that are done well and promote Elvis....I will cheer them on....if they do not I will not be so cheery;)

My understanding is that EPE and CKX were putting too much money into revamping VE therefore AGM decided to nix it as they saw it costing more than they would make over a certain amount of time. That's all that I know.

As for the capital expenditure subject. You don't raise capital funding for upkeeping and cleanup to an attraction. Those are minimum finances financed through the company's earnings. Capital funding is when mass projects require a significant amount of public and private funding such as stadiums, arenas, museums, etc. The capital that AGM and CKX is referring to would be raised through the company's assets or a bank loan, not through EPE or the citizens of Memphis.

Renovations would require capital funding, which would result in a new hotel and a new visitors center for starters, as EPE has been planning for years. Like I said, Sillerman did not create the master plan. That was put together almost 30 years ago but never materialized in time. He just went along with what Soden, Lisa and Priscilla's vision and wants were. If you do not believe me then ask one of the three I mentioned. Priscilla has even mentioned it on Sirius in the past.

And for God's sake, please stop comparing AGM to Sillerman. They are nothing at all alike. Sillerman was an individual who created a small entertainment company and jumped in head first without knowing how to swim. Apollo has been in business for over 20 years and has a remarkable track record to back them not to mention a very well off networth of over $80 billion dollars! CKX was worth less than a billion dollars at the time of the EPE purchase and is worth about $500 million today. That is like comparing an elephant to a ant. Sillerman and CKX being the ant.

As I have mentioned on here many times before (but seems to go ignored or unoticed for some reason) AGM is well known for buying up struggling financial properties for cheap value, investing millions back into them by strengthening them up, and watching them flourish under new guidance and leadership. There's no reason to think that the same won't be done for CKX and EPE. It's not like Leon Black the CEO of AGM bought the company just to buy it. There was a plan as has been stated in previous reports.

And the reason that nothing has happened since has more to do with transactions taking a full year from date of purchase. Which was May 10, 2011.

[KPM]

My understanding is that EPE and CKX were putting too much money into revamping VE therefore AGM decided to nix it as they saw it costing more than they would make over a certain amount of time. That's all that I know.

As for the capital expenditure subject. You don't raise capital funding for upkeeping and cleanup to an attraction. Those are minimum finances financed through the company's earnings. Capital funding is when mass projects require a significant amount of public and private funding such as stadiums, arenas, museums, etc. The capital that AGM and CKX is referring to would be raised through the company's assets or a bank loan, not through EPE or the citizens of Memphis.

Renovations would require capital funding, which would result in a new hotel and a new visitors center for starters, as EPE has been planning for years. Like I said, Sillerman did not create the master plan. That was put together almost 30 years ago but never materialized in time. He just went along with what Soden, Lisa and Priscilla's vision and wants were. If you do not believe me then ask one of the three I mentioned. Priscilla has even mentioned it on Sirius in the past.

And for God's sake, please stop comparing AGM to Sillerman. They are nothing at all alike. Sillerman was an individual who created a small entertainment company and jumped in head first without knowing how to swim. Apollo has been in business for over 20 years and has a remarkable track record to back them not to mention a very well off networth of over $80 billion dollars! CKX was worth less than a billion dollars at the time of the EPE purchase and is worth about $500 million today. That is like comparing an elephant to a ant. Sillerman and CKX being the ant.

As I have mentioned on here many times before (but seems to go ignored or unoticed for some reason) AGM is well known for buying up struggling financial properties for cheap value, investing millions back into them by strengthening them up, and watching them flourish under new guidance and leadership. There's no reason to think that the same won't be done for CKX and EPE. It's not like Leon Black the CEO of AGM bought the company just to buy it. There was a plan as has been stated in previous reports.

And the reason that nothing has happened since has more to do with transactions taking a full year from date of purchase. Which was May 10, 2011.
Capital expenditures and capital funding mean whatever the company involved wants it to mean-10-15 million dollars seems like chicken feed compared to a $250 million dollar revamp but in sprucing and cleaning up along with modest improvements you could spend that easily in todays world without breaking a sweat-and that would be capital expenditures.
Many times in order to give the appearance of "progress" a form of "hoopla" is used giving the impression of huge things to come that are then measured in the eye of the beholders.
I do not think in the realm of the universe God is worried about the comparison of AGM and Sillerman.:D
You say there is no comparison between AGM and Sillerman-sure there is and its obvious-the scenario is the same-the hoopla is the same, the drum beat on certain quarters is the same.......the lack of definitive announcements as to the scope and size of capital expenditures in relation to renovation. Nothing wrong with healthy sketicism when things are not really as cut and dry as appearances are made to look.
Time will tell my friend if the hoopla backed by the drum beat is real or just......the appearance of progress being made to buy time for resale. You do not resell without sprucing up your product to best light.
I honestly hope that a huge $250 million renovation is what this is all about-and that is if its done properly.

[KPM]

Also AGM is not worth 80 billion-their total "Assets Under Management" (money they invest for others)as of 2011 was 75.2 billion according to a recent Bloomberg report. AGMs total assets (its own funds) are 5.3 billion.
http://www.bloomberg.com/news/2012-02-10/apollo-global-fourth-quarter-profit-falls-66-on-market-swings.html
Apollo Global Management the private equity firm that went public last year, said fourth-quarter profit fell 66 percent as market swings hurt its private equity holdings.

Economic net income after taxes, a measure of earnings excluding some compensation costs tied to its initial public offering, declined to $302 million, 80 cents a share, from $881.8 million, or $2.52, a year earlier, New York-based Apollo said today in a statement. The shares fell the most in almost two months.........

[vivaelvis]

I am told that there's already positive feedback from around the world regarding Memphis' plan to redevelop EP Boulevard. So much so that a major restaurant and hotel chain has already expressed interest in developing between E. Brooks and Winchester, just north of Graceland. (y)

Ken, I have found out that whatever hotel goes on EPE's property (adjacent to Graceland) more than likely will NOT be owned nor operated by EPE but will be land leased to a developer in a partnership deal with the company. In other words, EPE/CKX would only invest money into Elvis-themed restaurants or eateries, gift shops and retail, and any other Elvis-themed attractions inside the hotel property. When you look at how poorly the Heartbreak Hotel has been managed and up-kept, it's a good thing that they won't be in charge of the new hotel.

[KPM]

I am told that there's already positive feedback from around the world regarding Memphis' plan to redevelop EP Boulevard. So much so that a major restaurant and hotel chain has already expressed interest in developing between E. Brooks and Winchester, just north of Graceland. (y)

Ken, I have found out that whatever hotel goes on EPE's property (adjacent to Graceland) more than likely will NOT be owned nor operated by EPE but will be land leased to a developer in a partnership deal with the company. In other words, EPE/CKX would only invest money into Elvis-themed restaurants or eateries, gift shops and retail, and any other Elvis-themed attractions inside the hotel property. When you look at how poorly the Heartbreak Hotel has been managed and up-kept, it's a good thing that they won't be in charge of the new hotel.
Yes its amazing that EPE has done as well as it has-turned a near bankrupt situation into a going concern that has grossed hundreds of millions of dollars over 30 plus years without benefit of owning the heart of Elvis 's legacy, the music or films;)
Lets hope whomever the developer is can do as well with the restaurant and hotel.

[max]

http://farm8.staticflickr.com/7079/7010119341_267297eeab_o.png

[vivaelvis]

Yes its amazing that EPE has done as well as it has-turned a near bankrupt situation into a going concern that has grossed hundreds of millions of dollars over 30 plus years without benefit of owning the heart of Elvis 's legacy, the music or films;)
Lets hope whomever the developer is can do as well with the restaurant and hotel.


The restaurant and hotel would not be Elvis-related. This would be a separate development. EPE doesn't own land that far up the boulevard.

[KPM]

The restaurant and hotel would not be Elvis-related. This would be a separate development. EPE doesn't own land that far up the boulevard.
The same hope is there-that they do as well as EPE has for the 30 plus years they have been at it. EPE does not own the music or films (and the hope that they will some day is very very slim if Sony and Warners have anything to say and they do) but they fullfilled the wishes of Elvis in his will-to secure total financial freedom to Lisa and her offspring)
I hope who ever builds the hotel/restaurant complex does just as well whether Elvis's image is related or not-because the complex would not even be considered to be built-if not for the attraction of Elvis and his Graceland home.