Once again the press has been confused by the unusual nature of the structure of TV and printed an article with misinformation and unfounded innuendos. Then again, Fear, Uncertainty, and Doubt sells newspapers.
- No state government has the authority to grant federal tax free status to anything, including bonds issued by municipalities within its boundaries. The Florida statute 190 which authorized the establishment of Community Development Districts allows them to simply issue bonds. It’s up to the CDD that issues the bond to establish them as federally tax free if they feel they are qualified.
- The 10 numbered CDD’s that comprise all of the residential homes and common areas within TV either are, or will eventually be controlled by a Board of Supervisors elected by the homeowners. Morse controls the two special CDD’s that contain all of his commercial properties and all the recreation centers and golf courses. But to imply that he controls all of the CDD’s is blatantly misleading.
- When the article states that “Each time he created a district to issue bonds, Morse created a five-member board to run the community in lieu of a municipal government. The boards that approved 38 of the bond offerings were staffed almost entirely with his employees at the time the bonds were sold” it erroneously implies some sort of impropriety. Yet that is exactly how Chapter 190 dictates it should be done. Who should he have appointed, employees of Del Webb?
- Finally, this article as well as many others issued by The Sentinel, seem to go out of their way to give the impression that because the IRS is challenging the special circumstances surrounding the tax free bonds issued by Morse’s two commercial CDDs, that the rest of the 10 residential CDDs and the 1600 CDDs in the state are somehow in jeopardy. Nothing could be farther from the truth.
The whole thing really boils down to the fact that the IRS wants the tax free bonds issued by the two commercial CDDs to be recalled and re-issued as taxable muni bonds and then a fine and payment of the lost tax revenue to be paid. Many millions of dollars involved no doubt, but multi-billionaire Morse with over 4 million square feet of commercial space in those two CDDs (not including Brownwood), he can handle it.