[LndLocked]

Originally Posted by Advogado

Since you asked, I will correct you. I am afraid you are mistaken, mislead by an article in the Daily Sun.

As confirmed by Janet Tutt, herself, when questioned at a POA meeting (and as later reported in the POA Bulletin): The valuation question has NOT been resolved. The under-payment calculation you cite was merely an argument made by the Center District's attorney in a letter to the IRS. The Daily Sun then reported his argument as fact, even though it has not been agreed to by the IRS. You can read the attorney's letter at districtgov.org.

Now, maybe the attorney's calculation will turn out to be right; I won't even try to get into the proper way to calculate an arm's-length price of a future income stream (which can be manipulated by using different discount rates). In any event, whatever I (or any of us) think about it really doesn't matter at this juncture) since the IRS is taking the position that the bonds would be taxable no matter what the valuation of the underlying assets sold to the Center Districts by the Developer.

The point is that, despite what the Daily Sun claimed, there is no publicly available information that the valuation question has been resolved in favor of the Developer/Center District. But to me the central thing that we should be watching is how this darn thing gets resolved, and trying to make sure that the resolution doesn't prejudice the residents. It is not easy to do this when our local paper either doesn't report, or distorts, the facts.

Morals regarding the above: (1) Be very skeptical l about what you read in the Daily Sun about the IRS investigation and about the Developer in general. (2) The POA Bulletin will be the most reliable source of information, but also look at the documents at districtgov.org. (3) Thank Lauren Ritchie of the Orlando Sentinel for keeping a spotlight on this (even though she gets some of her facts wrong).

Per a memo dated 6/12 Janet Tutt said the the IRS reviewed and changed it's earlier valuation and that TV landowners received a bargain.

http://www.districtgov.org/images/IR...%206.12.13.pdf