Bond issue today $355m due
 

The Orlando Sentinel front page says $355M due per IRS. It also says towards the end, half of the amenity fee is paying off bonds. The amenity fee amounts to $33,000,000 a year. What does this mean for individual villagers???

Here is a link for those that do not get a hard copy.

http://www.orlandosentinel.com/news/...,5054493.story

Buyers notified?
 

Do buyers have a right to know about this bond issue before they make an offer? Seems like they should. Have any recent buyers been told by the realtor?

More details on $355 million bond fiasco
 

folks,
my name is lauren ritchie, and i am the orlando sentinel columnist who has been watching the progress of the IRS examination of the village center district (and now the sumter landing district) bonds.

the news story on the latest developments is posted at the sentinel site at www.orlandosentinel.com/lake

there, you can find links to the news story, my column which tries to look a little ahead in the process (this may answer your question, conn8757) and the actual documents sent to the district by the IRS. they are a fascinating read, and i recommend looking at them.

also, i've posted a blog item that deals with the response of charles smith, a villages resident who is the chairman of the village center district board of supervisors.

that link is http://www.orlandosentinel.com/laurenonlake

i notice that someone asked whether bond buyers are being notified of the problems with the bonds before purchasing them. i do not know the answer, but i can tell you that the village district has done the right thing by notifying the standard reporting agencies of problems with the IRS. whether investment advisors know of/pass along those notices is not something i can answer. perhaps you have some retired investment advisor who can get on the forum and tell you.

if you read the article and column carefully, you will realize that this is but a step in the process. however, it's a step that tells you a lot about where the IRS is headed with this investigation.

i invite your comments on the column and on the blog. i'll also check back here later today and try to respond to anything posted here. at the moment, i have five wide-open acres just screaming to be mowed.

lauren ritchie

one other tidbit
 

jimjoe,
i misunderstood your point. you were asking whether home buyers rather than bond buyers have the right to be notified about the IRS examination before purchase.

i am guessing, but i am pretty sure the answer is no. i would hope that folks who are going to invest such a substantial amount of money would do a little work on their own and make a judgment as to whether they think this is a material problem.

perhaps a real estate agent will correct me if i am wrong.

lauren

Typical, overblown, anti-Villages story from the Orlando Sentinel. I'm not "outraged" by this single investigators report.

Ms. Ritchie is correct in that "this is but a step in the process."

In situations like this, it doesn't matter if you are right or not. It becomes a matter of "is the fight to prove you are right worth the cost of litigation?" Quite often, settlements occur simply to close the matter because being right is less important than being solvent. Insurance companies do this all the time. So don't businesses which get sued all the time (e.g., drug companies) just to keep a lid on overall costs. Dealing with the government is no different, whether it is a tax matter or other matter where there is any possible fiscal penalty.

We've all been there, such as the parking ticket where the meter was broken, but it was cheaper to pay the ticket than fight it, knowing the costs would escalate in court. It's not fair, but it is what happens.

Whatever happens....It's a beautiful day in The VIllage today!

I do not know Stephen Hudak, but the tone of his article is more "editorial": than "news". The colorful language in the first paragraph makes me belive he is jealous of anyone living in The Villages. Maybe it is just me. Maybe I should be grateful that someone is looking out for me. Oh well, I am going golfing.

Potentially extremely serious issue
 

Lauren-- Thanks for reporting on this issue. The Villages Daily Sun has completely abdicated its responsibility as a news organization by not covering what is clearly the most important issue facing Villagers today.

To the contributors who are attacking you as the bearer of bad news, I suggest that they actually read the latest IRS correspondence, think about the magnitude of the potential Central District and Developer liability, and start considering the consequences to Villagers if the IRS prevails.

What consequences are those? I have yet to see anything from anybody that identifies a "consequence." Getting folks worried over speculation does no good except for Valium salesmen.

Until someone can honestly state a specific consequence to a homeowner - and make that statement with authority and knowledge to back it up - then it's just backyard gossip and handwringing for no reason other than being "Chicken Little."

the burden lies with the developer and not residents period

SteveZ...thanks again for your usual common sense response.

:agree: :agree:

As usual, SteveZ's cool comments should prevail!

SWR
(also a Steve!)

:bowdown:

Hopefully, SteveZ's cool comments will prevail.

.

This issue certainly seems like something the Daily Sun should at least cover, just to give updates to homeowners. Not reporting on it can potentially generate a lot of misinformation.