Quote:
Originally Posted by villages07
Advo.... that $955M might be the total of bonds issued ... utility, infrastructure, and amenity ... but, certainly, folks realize that not every dollar of bond issue went into the Developers bank account. The bonds were issued to construct the infrastructure, construct the wastewater treatment facilities, construct golf courses and rec centers, etc. Those costs are a substantial part of the $955M, the developers net profit the remainder.
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According to a schedule prepared by the Center Districts and presented to the the IRS, here are some numbers for the amenity purchases:
Principal Amount: $426,600,000
Net Proceeds: 332,057,406
Book Value: 80,016,561
Principal Amount equals 5.33 times Book Value
Net Proceeds equals 4.15 times Book Value
As you can see, the costs (Book Value) is NOT a substantial amount of the funds received for the amenity purchases. The difference between the $955M mentioned in the article and the $427M amenity purchases probably represents the infrastructure bonds issued by the number CCD's and which were never questioned by IRS.