Talk of The Villages Florida - View Single Post - Developer owned utility to be sold to TV for $98.5M
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Old 10-22-2019, 09:43 AM
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Quote:
Originally Posted by tophcfa View Post
Hmmmm, if I multiply the $315 per month by 12 it equals $3,780 per year for property taxes. That figure is not much higher than the property taxes on my modest Sumter County home that is worth less than $300,000. The average of the two appraisals on the Utility is about $98.5 Million dollars. What's up with that?
From the Valuations found here -> NSCUDD

"The Buyer retained PFM Financial Advisors LLC (“PFM”) as its valuation consultant. Using the income approach PFM has come to a Preliminary Valuation for CSU of $93,880,000 as of October 15, 2019.

and from Stantec

"Section 5 “Purchase Price; Payment” of the signed Agreement for Purchase and Sale (“agreement”) states: “Both Seller and Purchaser shall each select a separate valuation firm… Each valuation shall be based upon, and prepared in accordance with, the income approach of valuation.” The income approach calculates the net present value of income available for debt service net of debt service coverage and contributions to a Renewal & Replacement Fund (R&R fund). As such, the valuation discussed herein reflects a projection of annual revenues net of projected annual expenses such that projected annual income is calculated for 33 years (FY 2019 thru FY 2052)1.