[iaudit]

Originally Posted by Muncle

When my copy of the Orlando Slantenal arrived early this AM, I hurried to read Ritchie's follow-up story on the dreaded bond issue. I had gotten the impression that Sunday's article had promised some detail, some actual facts. Ah well, I've been disappointed before.

Basically all today's screed seems to be is a rehash of Sunday's with a bit more infatuation with our hero, the evil fighting IRS agent, Dominick Servadio. The gist of the matter is that rugged, macho Dom does not like the CDD concept, nor does his boss in the the IRS bond division (that last part actually was new info). Dom evidently believes:

*The district doesn't qualify under IRS rules as a valid issuer of tax-free bonds.

*The transactions didn't benefit the general public -- a requirement of tax-free bonds -- but instead, only the developer.

*The Village Center Community Development District issued $53 million more than the properties it bought were worth and handed the cash to Morse, who declared it as a gain on the sale on the corporation's 2003 tax return. Issuing bonds for more than 5 percent more than what's needed throws the bonds into the taxable realm under IRS arbitrage rules, the agent contended.

*The appraisal firms that set the value of the properties were tools of the district who did what they were told. They were not independent appraisers, as the IRS requires.

Ritchie never seems to get around to explaining why Dom has these views. That might have been a good time to explain Florida Statute 190 and the CDD concept, but I guess Ritchie couldn't be bothered with the research. I think there's going to be a big argument over whether CDDs are government entities entitled to issue such bonds. Next, Dom & Ritchie state flatly that the transactions do not benefit the general public -- I guess that's us. Don't know about you, but I benefit greatly from the golf courses, rec centers, sewer plants, etc. The last two items also appear to be matters on semantics, something the lawyers will love.

Again, Ritchie throws around that $18,000 per household herring without really putting any meat into it. It is apparently one of the possible 3,472 outcomes of doom Ritchie sees for TV and the hated Morse family.

Ritchie dismisses with total disdain any response from TV and it's legal representatives. She makes a point of further glorifying Dom because he chose to ignore a letter requesting a meeting and ascribes panic to TV because they want to get the matter settled quickly because the open case would be detrimental. And of course gets another cheap shot at the Morse demon.

As I and others have said, expect this battle to continue for quite a while. CDDs are very big in Florida and other states and the outcome of this case may well affect many. Meanwhile, I look forward to the continuing saga of Ritchie and Dom. She seems to have no problem getting access to him and the correspondence he receives from the subjects of his investigation. In the interim, maybe she can investigate the dog park on 466A or the lack of indoor pools. And don't be surprised if she picks up a freelance gig, say something like a monthly column in the POA bulletin.




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Why don't you try reading the IRS reports:

http://www.orlandosentinel.com/media...3/45365631.pdf

You will find that Dominick didn't pick this info out of thin air, but has all the references related to his analysis and conclusions. It is over 100 pages long and Ritchie has done a good job of SUMMARIZING the key points. If you really want to understand it, read it and then respond.