Quote:
Originally Posted by batman911
I do not believe loss of tax free bond designation is the main issue. The large (near $50M) profit the CDD paid the developer is of more concern to me. Who does the CDD represent? Is there a copy of the charter on line? The CDD should take bids for building amenities and issue the bonds through a broker (or contract it out). That would be $50M that could be spent (or saved) for maintenance and development of additional amenities.
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Hi Batman,
I hear you - but the $50M is not pure profit to the developer. It is an amount to represent the net present value of the earnings stream that the facilities would generate. If you were to sell a business, you would not sell it based on assets less liabilities. The increased amount that you would want would include the hard work you have put into the business that will generate future earnings.
k
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