Developer owned utility may be sold to TV for $98.5M
 

Any thoughts on this? Is it an arms length transaction? What did it cost to build this depreciable asset? What is its true current value?

For more info see the unmentionable online news.

If I'm reading the same article (which has a different title), then it looks to me that the deal isn't complete. That 98M is the purchase price IF the deal goes through. It's not a done deal yet. They probably need a lot more approvals, including from the Florida Public Service Commission, which regulates the water company. The most recent docket opened by them was in 2014.

So it doesn't look like they're anywhere near an actual purchase yet.

Thanks. I amended my post.

I don't know how I feel about the sale. I'm from a state where most of the utilities are owned by actual utility companies, not individuals or planned community developers. Other than Wallingford - in which the town itself owns the electric company and powerplant. The concept of a developer owning a utility is just way too foreign to me to wrap my mind about it. A planned community owning it - such as Wallingford CT, would make sense if there were younger folks who could grow up and replace the older folks who retire from the job of caring for it. But if most of the owners are already old, who will replace them? Who will train their replacements? I'm not asking for anyone to answer me. I'm just explaining why I can't grasp the concept.

Two independent appraised values.






Unless you believe the conspiracy the appraisal companies are in the Developer's pocket. :1rotfl:

I am confused by this and am wondering if someone can clarify exactly who, or what entity, would be buying the utility from the developer. Also, what would the potential purchasers motivation be for the acquisition and would they be qualified to operate a utility. I had these same questions when the developer wanted to sell Hacienda Hills and could not figure out why the buyer would be interested? Inquiring minds want to know.

Obviously, my questions make the assumption that it would be an arms length transaction.

Stantec and PFM valuations were presented to the NSCUDD board by staff at the meeting this past Thursday. Follow this link to the district web site to view them ->NSCUDD
The process to purchase CSU by NSCUDD is ongoing.

I will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members. And, I can and will respond to your questions if emailed directly to me at rick.rademacher@districtgov.org using the District email system. I love The Villages and appreciate the opportunity to serve you to the best of my ability.

PS
NSCUDD will hold a Solid Waste Workshop on Wednesday, October 23, 2019 at Savannah Recreation Center from 9:00 a.m. - 12:00 p.m.

NSCUDD will also hold a Solid Waste Plan meeting on Monday, November 4, 2019 in the District Office Board Room at 9:00 a.m.

More cost?
 

Will there be more cost for the residents? Tax hike, garbage changes, utility purchase. Looks like the developer is making changes and other are jumping on the wagon for more money!! Only an observation and opinion>

Bogie: Thanks for the link. I had absolutely no idea what the subject of this thread was.

With the few details available I would favor options that allow other than resident liable ownership.

Like an existing utility company.

OK, I just spent a lot of time reading through the links provided to try to understand what is being proposed. As far as I can tell, the information being provided focused almost exclusively on the valuation of the transaction, which doesen't answer my questions. Let's assume that both parties fully agree on the assets valuation. My questions are related to the purchasing party, which are not addressed in any of the attached material.

What are the buyers motivation for making the purchase?
Do the buyers feel the acquisition will provide better service to Villagers at the same cost?
Do the buyers feel the acquisition will provide the same service to Villagers at a lower cost?
Are the buyers qualified to run a utility?
Why should a Villages homeowner support the acquisition?

Perhaps I am missing something, but for the sake of transparency these seem like very logical questions that should be answered before the sale takes place.

Could it simply be an investment where the buyers (investors) see a positive ROI? When the public utilities in NY divested the generating plants and sold to private investors those investors ultimately made a significant return. I know it's hard to believe, and many hate to hear it, those that make investments here are not that benevolent.....they aren't looking to lower costs, provide better service or expect homeowners to support the acquisition. They are looking to make a return while providing a palatable service. And, if they don't, what are our alternatives?

Yeah, it is a big "Unless." You know the old joke: Ask your appraiser what 3+2 equals, and he will reply, "Any number you want."

Apparently the purchaser's supposedly independent appraiser has a history of working for the Developer. Once again, we have the Developer's using the county to set up a governmental unit, staffing it with the Developer's people, and then selling stuff to it at a big markup.

please read CSU Purchase Public Interest Determination cover memo
found here ->Coversheet