IRS and VCDD Bonds

[poromo]

How, if at all, will the IRS review of the VCDD tax free bonds affect individual villagers? It appears there was an offer of a settlement by the IRS of $435 million which would equate to about $6,000 per household.

Could villagers be required to pay this amount or as an alternative could villagers make the amenities (executive courses, recreation centers, pools etc) open to the public?

This issue appears to be very complex and must be dealt with in the near future.

[katezbox]

Poromo,

Please do a search on this. There are several threads that drill into this issue in great detail.

As there have been no real changes in the sttatus of this case since the last thread, the information is current

[Advogado]

How, if at all, will the IRS review of the VCDD tax free bonds affect individual villagers? It appears there was an offer of a settlement by the IRS of $435 million which would equate to about $6,000 per household.

Could villagers be required to pay this amount or as an alternative could villagers make the amenities (executive courses, recreation centers, pools etc) open to the public?

This issue appears to be very complex and must be dealt with in the near future.

Poromo:

You are right when you say that the issue is complex. However, it is not clear that it "must be dealt with in the near future."

The POA has been closely following developments and has summarized the publicly available information in its latest Bulletin. Reading that article is probably the best way for you to understand what is involved. Go to http://www.poa4us.org/ and click on "Current POA Bulletin".

[Grill Meister]

You may read the POA article; however, in my opinion as well as many others, POA is totally negative towards TV developers. POA will always put a negative spin on everything.

From my best investigation of the facts from a lay-standpoint, TV is considered by the State of Florida to be a CDD, such as Disneyland, and as such is treated as a municipality with the power to finance itself through the issuance of tax-free bonds. The bond holders will not have to pay taxes on their profits.

TV is under audit by the IRS, along with all CDD's, as require by law.

[katezbox]

"Disneyland" is not a CDD - it is a for-profit entity (and also is in California). Near the Walt Disney World complex in Orlando is the community of Celebration. Like TV, residents of Celebration live in different "villages" and get around on NEVs/LSVs.

From what I have read (and sorry, can't remember precise source) CDDs were used as a financing vehicle here as well.

[dillywho]

I just wasn't sure where to bring it up.

Because the ammenity fees are tied to the GPI (I was told this by TV administration), ours went down just around $3 when our recalculation for the coming year was done this month.

[spk7951]

"Disneyland" is not a CDD - it is a for-profit entity (and also is in California). Near the Walt Disney World complex in Orlando is the community of Celebration. Like TV, residents of Celebration live in different "villages" and get around on NEVs/LSVs.

From what I have read (and sorry, can't remember precise source) CDDs were used as a financing vehicle here as well.

Disneyland is a for profit business but I remember hearing at the CDD newcomer meeting last year that Disneyland was in fact the model for this law some years ago and is covered under a CDD. I can not find them in the below link which shows active Florida CDD's but I believe the name is Boggy Creek CDD. The list does not have a date on it. Celebration is listed under Osceola County as a CDD.
http://www.ccfj.net/CDDdistrictsfl.htm

[katezbox]

Disneyland is a for profit business but I remember hearing at the CDD newcomer meeting last year that Disneyland was in fact the model for this law some years ago and is covered under a CDD. I can not find them in the below link which shows active Florida CDD's but I believe the name is Boggy Creek CDD. The list does not have a date on it. Celebration is listed under Osceola County as a CDD.
http://www.ccfj.net/CDDdistrictsfl.htm

I know this is picky - but Disneyland is not in Florida. Since we are discussing a precise topic (i.e. bonds and finance) I think accuracy is important. I know at one time, in addition to Celebration, Disney had another CDD called Reedy Creek. From the link posted, I no longer see them.

Walt Disney World is a for profit business. A CDD is designed to provide a developer or landowner with a way to create financing for a project. Disney itself cannot be a CDD - but may be able to use one.

This link is to a pdf on CDDs that is very helpful. The course given by the VCDD (and the info on their website) are also great.

web.naplesnews.com/media/pdf/2009/hopping.pdf

[spk7951]

I know this is picky - but Disneyland is not in Florida. Since we are discussing a precise topic (i.e. bonds and finance) I think accuracy is important. I know at one time, in addition to Celebration, Disney had another CDD called Reedy Creek. From the link posted, I no longer see them.

Walt Disney World is a for profit business. A CDD is designed to provide a developer or landowner with a way to create financing for a project. Disney itself cannot be a CDD - but may be able to use one.

This link is to a pdf on CDDs that is very helpful. The course given by the VCDD (and the info on their website) are also great.

web.naplesnews.com/media/pdf/2009/hopping.pdf

The Reedy Creek Improvement District may not be listed on that link but it is still active according to their web site and located in Disney World. I had the name wrong.

[katezbox]

The Reedy Creek Improvement District may not be listed on that link but it is still active according to their web site and located in Disney World. I had the name wrong.

SPK -

And I am not quibbling to be a PITA. But if you go back and read all of the posts here about bonds, there is a lot of disinformation and misunderstanding. Not everyone understands what a bond is and why a bond is issued. There is additional confusion about why a bond is tax free (i.e. a muni) or not. Reedy Creek was created to allow Disney to buy and develop land near lake Buena Vista. It is a separate entity from the Walt Disney World theme park - although it is housed there.

Your post illustrates how complex the VCDD and tax-free bond issue is. The IRS will do their due diligence (as well they should) and the VCDD (and the Morse family) will defend their position and wait.

As Muncle has said more than once (and this is a huge paraphrase), until the evidence is prepared and released, speculation may be interesting but is futile.

[dgammon6]

I would read this article.


http://www.districtgov.org/images/whatsnew/recnews200906.pdf

[PennBF]

The Article by Janet Tutt was actually published in June. She spoke last night at the POA membership meeting and was very informative as to where things stand on the IRS issue and a number of other issues. She accepted a number of questions from the audience and allowed those in attendance to become more informed regarding some Village concerns, etc.
It is truly unfortunate that critics of the POA don't attend the meetings and get a balanced view of The Villages. It is tiresome to hear the critics who don't even take the time to attend the open meetings and understand the purpose and objectivre of the POA yet feel they are knowledgable enough to make judgements.