Quote:
Originally Posted by NJblue
What makes you think that the price that the developer will get for these amenities will be dictated by the tax status of the bonds used to pay for them? When you buy a car, does the car dealer ask you how much your financing will cost before he tells you how much he will sell the car to you for? While this may be part of the sale-price equation for Morse, it certainly doesn't have to be.
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Simple example. Let's say there is $100 collected in amenity fees. Current principal and interest for tax free bonds is $50. $50 is left to maintain amenities. If higher interest taxable bonds are issued and the principal and interest is now $55, that leaves only $45 to maintain amenities.
In the second scenario, a prudent buyer of the amenities (Central District) would reduce the amount paid for amenity facilities so that the principal and interest payment would remain at $50, leaving the remaining $50 to maintain the amenities at their current level.