Lauren Ritchie Rehashing Bond Issue

[Bogie Shooter]

See the Orlando Sentinel Sunday April 26.
http://www.orlandosentinel.com/news/local/lake/orl-lklritchie26042609apr26,0,3608097.column

[SteveZ]

Perhaps The VIllages is a softer target than commenting about the problems closer to her home:

http://www.forbes.com/2009/04/23/most-dangerous-cities-lifestyle-real-estate-dangerous-american-cities_slide_11.html?thisSpeed=15000

Whatever the final ruling that ends up (IRS or Tax Court), TV is still the best place I've ever lived, with the best services and recreational opportunities available anywhere at any price.

Methinks Ms. Ritchie, like most folks living in the Orlando metro area, is a tad jealous.

[Frangyomory]

Again, I have to say if not for the Orlando Sentinel, some of us would never have known about the IRS issue. I for one, want to know where my money might be spent in the future.....and I don't like secrets. I can decide for myself if someone has an agenda and so far I do realize that many people who live outside the Villages wish we were not here, but personally, I love the place and am a FROG - here until I croak!!!!

That being said, I hope the paper in Orlando continues to advise us of all that we need to know.

[Cassie325]

First of all...after reading this article she shows how the District attournies make very valid points. She doesn't share those points very nicely and has something negative to say about each one....but they are valid points none the less.

2nd she just sounds very jealous in regards to TV's and of the developer.

3rd she is WRONG about the amenity fees. Perhaps she needs to check her facts about what everyone is paying. Yes, new owners as of this year are starting out paying $135....but some people that have been here for years pay less...some pay more.

It sounds to me that the District is following Florida State laws....and that Richie and the IRS just don't like the law in Florida. If they make us change...I believe there are about 900+ other District Governments in Florida set up similar to ours....that would be a HUGE financial burden for the state and counties to start taking over.

[nitehawk]

"3rd she is WRONG about the amenity fees. Perhaps she needs to check her facts about what everyone is paying. Yes, new owners as of this year are starting out paying $135....but some people that have been here for years pay less...some pay more."
I am confused she wrote "
"Instead, homeowners pay an "amenity fee" that varies, depending when they bought their house. Anyone who buys now pays $135 a month. Those who bought in past years pay less."
I for one like to be informed about whats going on in my backyard, if i only read the Sun i would never know about the bond issue. If the Sun was around in 1941 I would never have known about Pearl Harbor.

[BobKat1]

"3rd she is WRONG about the amenity fees. Perhaps she needs to check her facts about what everyone is paying. Yes, new owners as of this year are starting out paying $135....but some people that have been here for years pay less...some pay more."
I am confused she wrote "
"Instead, homeowners pay an "amenity fee" that varies, depending when they bought their house. Anyone who buys now pays $135 a month. Those who bought in past years pay less."
I for one like to be informed about whats going on in my backyard, if i only read the Sun i would never know about the bond issue. If the Sun was around in 1941 I would never have known about Pearl Harbor.

Funny...

I think it's always good to have a variety of opinions/perspectives reported on. One can then make up their mind after consdiering both.

[Advogado]

A few observations:

Thanks to Lauren Ritchie for reporting on the IRS investigation, a story which has been buried by the Developer's alleged newspaper, the Daily Sun. It pains me to see some residents shoot the messenger for delivering a dose of reality into the world of the Villagers. However, it is too bad that Ms. Ritchie has consistently screwed up some basic facts and over sensationalized the story AT THIS POINT.

As the Property Owners' Association has consistently pointed out, it is simply too early to predict the ultimate outcome of the investigation. Some scenarios, which Ms. Ritchie has focused on but never accurately explained, could be extremely serious for the residents. Others not.

If one of the bad scenarios does develop, it will be crucial for Villagers to be organized in order to protect their interests. The only organization that Villagers have that may be able to do this is the Property Owners' Association. My suggestion to Villagers concerned about the IRS investigation is to join and support the POA.

The POA has done much to protect our interests in the past, e.g., supporting the class-action suit against the Developer and the VCCDD. The POA is monitoring the IRS investigation. If the IRS sustains its position against the VCCDD, the POA may prove absolutely crucial to protecting our interests in the future. The $10/year dues and the expenditure of some of your time are cheap insurance premiums for protecting your investment and lifestyle here.

[Muncle]

"To-morrow, and to-morrow, and to-morrow,
Creeps in this petty pace from day to day
To the last syllable of recorded time,
And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
Life's but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more: it is a tale
Told by an idiot, full of sound and fury,
Signifying nothing."




`

[KatoGirl]

I looked in the OrlandoSentinel for the articles re Bonds. What section is it under?

[Bogie Shooter]

I looked in the OrlandoSentinel for the articles re Bonds. What section is it under?
Go to the beginning of this thread.

[Bogie Shooter]

A few observations:

Thanks to Lauren Ritchie for reporting on the IRS investigation, a story which has been buried by the Developer's alleged newspaper, the Daily Sun. It pains me to see some residents shoot the messenger for delivering a dose of reality into the world of the Villagers. However, it is too bad that Ms. Ritchie has consistently screwed up some basic facts and over sensationalized the story AT THIS POINT.

As the Property Owners' Association has consistently pointed out, it is simply too early to predict the ultimate outcome of the investigation. Some scenarios, which Ms. Ritchie has focused on but never accurately explained, could be extremely serious for the residents. Others not.

If one of the bad scenarios does develop, it will be crucial for Villagers to be organized in order to protect their interests. The only organization that Villagers have that may be able to do this is the Property Owners' Association. My suggestion to Villagers concerned about the IRS investigation is to join and support the POA.

The POA has done much to protect our interests in the past, e.g., supporting the class-action suit against the Developer and the VCCDD. The POA is monitoring the IRS investigation. If the IRS sustains its position against the VCCDD, the POA may prove absolutely crucial to protecting our interests in the future. The $10/year dues and the expenditure of some of your time are cheap insurance premiums for protecting your investment and lifestyle here.

This doesn't look like the topic is being buried.
http://www.districtgov.org/images/whatsnew/recnews2009031.pdf

[ricthemic]

As a prospective TV home buyer I am concerned about this IRS issue and possible cost to home owners. Anyone have any ideas when this will be resolved?

[KatoGirl]

Thanks, I saw the link at the beginning of the thread. I was trying to find Lauren Rithie's articles on the OrlandoSentinel home page. Someone mailed me her 3/3/09 - "IRS, Villages tangling over maze of bonds". I've been looking at the OrlandoSentinel every day to look for new articles, but can't find where to look.

[katezbox]

... but it appears I have no self control. Kind of like me with chocolate.:girlneener:

A few points:

1. Ever notice the number of posts about "when are new championship/executive course being built" and "what about Brownwood town square" or the possibilities of another facility like KBs or the Savannah Center? The common thread here is that these are all financed with BONDS. Without the bonds, land would lie vacant until the VCDD had collected enough in amenities fees to construct them. Smart developers like Gary Morse didn't get to be billionaires by tying up their own money.

2. Because these bonds are for the benefit of many (like utility bonds), the IRS granted them a preliminary tax exempt status in a determination ruling. My issuing tax exempt bonds, purchasers of those bonds (like you and me) would be willing to earn a little less on the interest rate the bonds pay, because that interest is not taxable to us as individual taxpayers.

3. These bonds are used extensively all over the state of Florida - including by the land ruled by a Mouse (and not just this one ruled by a Morse). The real issue is did the developer benefit too much from the sale of the assets these bonds financed to the VCDD? If so, there may be some legitimacy. to this

4. The Daily Sun has reported on this - but let's all agree that as a developer-owned entity it is not exactly unbiased.

5. The Sentinel did do us a service by reporting on an issue we all need to understand, however Lauren Ritchie would have failed my high-school journalism class because she can't write a sentence without sensationalizing it and she conveniently leaves salient facts out of the story.

6. It is not exactly a non-issue - but it may be years before it is resolved. And these types of cases are not unusual. Read a few public companies 10Ks to see the lawsuits, claims etc against them. Note that most large corporations have armies of attorneys on staff. The mere existence of an investigation does not indicate guilt - or at least I thought that is what our constitution said.

7. So what is the downside - if these bonds are found to be not tax free? They will most likely be called and reissued at a higher interest rate and the bondholders would be paid some compensation to make them whole. How much would this be? No clue. But as another poster said, anytime you buy a home there is risk. I would rather live in paradise with this risk now, than wait more years to get here.

Kate (on her CPA soapbox again)

PS - and no I have not drunk the developer's Kool Aid. I think the greed that has permeated our banks and other organizations may have bitten him too. I find it sad to see so many empty places in LSL and SS and have to believe some of this is due to high rents.

[dgammon6]

Thanks Bogie Shooter, I was thinking of looking that article up and posting too. This clearly explains the situation, and how the local government is set up.

[Boomer]

Hey Kate,

Thanks. Even though we are not there yet, I do follow this continuing saga. As a CPA, you get it. I know. I appreciate your insight and your explanation.

And do not feel bad about not being able to stay away from this thread. Recently, I have been hanging out in Political. (Sometimes I think I need to watch more television.) Anyway, I understand completely about how you can end up back in a thread. And I understand completely about the chocolate. And I just wanted to say thanks for helping out here with this bond thing.

Boomer

[cabo35]

...

5. The Sentinel did do us a service by reporting on an issue we all need to understand, however Lauren Ritchie would have failed my high-school journalism class because she can't write a sentence without sensationalizing it and she conveniently leaves salient facts out of the story.

Price of the Sentinel...2 bits....Lauren Ritchie's Villages bashing about as credible as her two cents worth of opinion driven editorialization... katezbox's professional insights......PRICELESS

katezbox...thank you for putting the time and effort into an honest, objective assessment of the "bond issue". I admit to sensationalizing the line I like best in the above quote but, I appreciate all your efforts in explaining the bond issue without subterfuge, drama, and an agenda. Incidentally, I would never buy a Sentinel. The only evidence of its integrity I have are Lauren Ritchie's posts and quotes as expressed on this board.

I have noticed a litany of new posters who appeared about the time Ritchie's rant on the bonds surfaced. While she admits her bias, to be fair to so many who have happily invested in The Villages lifestyle, she needs to level the playing field with at least a modicum of objective journalism. She has stated she doesn't have to because she is paid to write opinions (in whose interest is suspect). Speaking for myself as a happy Villager enjoying the fruits of his life's work...her work to date, isn't in my interest or for that matter, many of my friends and neighbors who I have discussed the issue with.

Most posters on both sides of the controversy are sincere and have articulated legitimate points. Some, not all, of the "Ritchie era" posters are extremely suspicious in the timing of their disingenuous "dissing" of the Villages and the "fishing" for unhappy souls. Some posts were contrived insidious insinuations, some were as subtle as a Boeing 747 landing on a par three at Glenview C.C., some were just in as bad taste as opening a Victoria's Secret next to the Church on the Square. You figure it out.

In any case, I hope some posters are not surrogates for the columnist or the newspaper. Maybe....maybe not.

Muncle...

If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,........
Yours is the Earth and everything that's in it,
And - which is more - you'll be a Man my son!

With apologies to Kipling for license taken.

I do not work for the developer or the Villages. I wouldn't know him if he was sitting next to me at Crisper's.