Quote:
Originally Posted by villagerjack
Unless we see the actual appraisal it would just be a guess. Usually there is not that much difference between the income approach and the other two appraisal methods so to say he "vastly increased the value" is speculation. The value from the income approach is not determined from the assessed fees but the net operating income before interest and depreciation but after all the expenses of the VCCDD. An appropriate Cap Rate is then applied based on current interest rates. In fact. the latest reading on this valuation a few weeks ago was that he received less not more but it is not clear what method was used in that calculation either.
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From the Orlando Sentinel, April 29, 2009:
The district grossly overpaid Morse by $53 million, according to the IRS. The tangible assets, such as pools, golf courses, mail facilities, golf-ball washers and guardhouses, were worth about $6.9 million. Appraisers the Village district chose weren't qualified under IRS rules, partly because they weren't independent, and they failed to calculate correctly the value of the items purchased, Servadio contended.
The district acknowledged that one of the appraisers "acted as a consultant to both parties in the transaction," but Israel argued that a regulation requiring independent appraisers doesn't apply to a tax-free bond transaction. Even if it did, he wrote, the appraiser was acting as an independent contractor and was "not subject to the District's controls in the same fashion that an employee might be."
"In other words, it's all good to hire your buddies help you spend $64 million in public funds. This is Florida, where the rules are different. Go back to your office in the beltway, Revenooer Man.
Documents 'recreated'
And then there's the allegation of overpayment. The district went on a $53 million shopping spree in The Villages for recreational goodies but apparently misplaced its sales slip.
Neither of its supposedly very qualified appraisers could provide a schedule of what each of the tangible properties was worth as opposed to the value of the other portion of the purchase, buying the rights to collect amenity fees.
So, the district stated in a footnote in teeny-tiny type that it asked the two appraisers to "recreate their calculations."
How very entertaining! Where would Richard Nixon be if Rose Mary Woods had "recreated" the 18-minute gap in the tapes of the Watergate scandal?
Of course, the resurrected calculations show that the district paid just the right amount and that it used all the proper methods of figuring it out the value of the amenity-fee rights. "
Adding $53,000,000 onto $6,900,000 of property seems a vast increase to me, and probably to most folks.