Developer IRS issues.

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  #1  
Old 04-08-2013, 01:30 AM
Chinook Chinook is offline
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Default Developer IRS issues.

Can anyone update me on the latest on the IRS investigation of the developer and the use of the development bonds? I am a soon to be villager and want to keep current on this situation.
Thanks, Sue
  #2  
Old 04-08-2013, 04:06 AM
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Quote:
Originally Posted by Chinook View Post
Can anyone update me on the latest on the IRS investigation of the developer and the use of the development bonds? I am a soon to be villager and want to keep current on this situation.
Thanks, Sue
It isn't an IRS investigation of the developer. It isn't that he isn't paying his income tax. The investigation has been going on for more than five years as to whether a CDD can issue municipal bonds and not pay federal taxes on them. There are other CDD's in Florida but of course, The Villages is the largest.

Recently it was determined that the Morse organization did not make a profit on the entities that they turned over to the CDD's, which included real property such as the Savannah Center and other rec centers.

To all wannabees, do your due diligince on every issue and if you are still concerned, please don't buy here.

Also for people considering buying here, you cannot buy a new home and write a contingincy and you cannot get a loan on a new home using FHA or VA. There is a separate bond that you must pay that is the cost of the infrastructure and it is about 23K for a designer and is NOT figured into the cost of a new home and that is unlike any other place I have lived. When you pay a deposit on a home they won't refund it and the developer is enormously rich and invites representatives of a certain political party to speak at the squares. The paper is slanted politically and the majority of the people living here vote for a certain party.

I don't want any ugly surprises for anyone considering buying here because you are not being forced to.

OH...and you will find a good share of oldish people living here and some of them are fat.

Suits us just fine, but it isn't for everybody.

Nobody knows if the STD rate is high, but some think it is a big fib.

But...we are all alive and still kicking and who knows what goes on behind closed doors?

AND if a certain poster sends me another PM asking how much the developer pays me ...I am going to either cry or cuss.
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Last edited by graciegirl; 04-08-2013 at 06:58 AM.
  #3  
Old 04-08-2013, 05:36 AM
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Even though this is a repeated question to many of us, I can see why a new resident to be would ask. It's not a repeated question to them. They should feel free to ask questions and be welcomed.
  #4  
Old 04-08-2013, 05:59 AM
mickey100 mickey100 is offline
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I agree, not nice to be snarky to newbies. And the Developer essentially is the Villages in that he controls and gets paid for everything from the media to real estate sales, to trash pick ups. He is most certainly the force behind the tax exempt bond offerings that are being investigated by the IRS, since he created the development districts in the Villages in order to issue the bonds . There is an informative article in Business Week that offers more information: Billionaire Morse Behind Curtain at Villages - Businessweek

Last edited by mickey100; 04-08-2013 at 10:11 AM.
  #5  
Old 04-08-2013, 06:16 AM
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Originally Posted by mickey100 View Post
I agree, not nice to be snarky to newbies. And the Developer essentially is the Villages in that he controls and gets paid for everything from the media to real estate sales, to trash pick ups. He is most certainly the force behind the tax exempt bond offerings that are being investigated by the IRS, since he created the development districts in order to issue the bonds . There is an informative article in Business Week that offers more information: Billionaire Morse Behind Curtain at Villages - Businessweek
You are telling me not to be snarky?

Oh and Chinook is not a new poster, I checked. I read every one of her posts. She has been posting since 2010 and she is a nice person and doing what she should be doing..asking questions and gaining information. The post I posted was for the benefit for anyone new or anyone who thinks that they can slither in here and start trouble. Sorry Chinook, if I hurt your feelers. I really am. You were asking honestly and kindly.

The article you linked. Mickey109 is fair and accurate and points out the politics of the developer and also points out which party his business contributes to.
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  #6  
Old 04-08-2013, 07:39 AM
Bogie Shooter Bogie Shooter is offline
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Originally Posted by Chinook View Post
Can anyone update me on the latest on the IRS investigation of the developer and the use of the development bonds? I am a soon to be villager and want to keep current on this situation.
Thanks, Sue
These sites will help you learn about the issue and if you check back at them you will get the current take.
Village Community Development Districts
http://www.districtgov.org/images/wh...ews2009031.pdf
A BRIEF CHRONOLOGY OF IRS VS. VCCDD AND SLCDD
The Villages Homeowners Association
  #7  
Old 04-08-2013, 09:41 AM
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Originally Posted by graciegirl View Post
It isn't an IRS investigation of the developer.

AND if a certain poster sends me another PM asking how much the developer pays me ...I am going to either cry or cuss.
G-Person..You may be missing out on something here. Since you're always being ACCUSED of being paid by Morse Industries, maybe you should turn lemons to lemonade and see if they'll hire you in the Morse Industries PR Department and actually have them send you a check every couple of weeks!!

Then you can decide whether you want to spend your money at Publix or Sweetbay!

Happy Daze,
XO
Mack
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  #8  
Old 04-08-2013, 10:03 AM
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Chapter 8 of the book Leisureville, Government, Inc., is fairly informative about how The Villages is operated. It took me a few reads of the chapter to understand the CDD structure and from that what the IRS's position could be, but I think I finally absorbed it.
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  #9  
Old 04-08-2013, 10:03 AM
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Originally Posted by graciegirl View Post
It isn't an IRS investigation of the developer. It isn't that he isn't paying his income tax. The investigation has been going on for more than five years as to whether a CDD can issue municipal bonds and not pay federal taxes on them. There are other CDD's in Florida but of course, The Villages is the largest.

Recently it was determined that the Morse organization did not make a profit on the entities that they turned over to the CDD's, which included real property such as the Savannah Center and other rec centers.

To all wannabees, do your due diligince on every issue and if you are still concerned, please don't buy here.

Also for people considering buying here, you cannot buy a new home and write a contingincy and you cannot get a loan on a new home using FHA or VA. There is a separate bond that you must pay that is the cost of the infrastructure and it is about 23K for a designer and is NOT figured into the cost of a new home and that is unlike any other place I have lived. When you pay a deposit on a home they won't refund it and the developer is enormously rich and invites representatives of a certain political party to speak at the squares. The paper is slanted politically and the majority of the people living here vote for a certain party.

I don't want any ugly surprises for anyone considering buying here because you are not being forced to.

OH...and you will find a good share of oldish people living here and some of them are fat.

Suits us just fine, but it isn't for everybody.

Nobody knows if the STD rate is high, but some think it is a big fib.

But...we are all alive and still kicking and who knows what goes on behind closed doors?

AND if a certain poster sends me another PM asking how much the developer pays me ...I am going to either cry or cuss.

GREAT POST !!!

You are correct and not doing anything but telling the truth. I have been here for about 14 years and tired of hearing all the "snarky" comments about the developer.

He does not "shake down" business here in The Villages. About 15 years ago, he was spending his own money to entice and was actually begging busness to come to The Villages.

He does not have "secrets" to spring on you and believe it or not, has no knowledge of where a sinkhole might spring up (does anyone).

He is not under investigation, as folks on here keep alluding to. You are correct that the CDD use is what is being looked which by the way was first used by Walt Disney just down the road.

Reading the misinformation on here and the constant complaining is very unsettling.

When you move ANYWHERE, not just here, do you not do your own due diligence ?

And someone recently said that things are not done for the benefit of the residents. Gee.......we sure see things differently. Sometimes folks get spoiled and should just find that perfect place...oh wait..thats the point....some will complain about anything with NO facts in order to be happy I suppose.

Again....GREAT POST
  #10  
Old 04-08-2013, 10:03 AM
justjim justjim is offline
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Default Bonds setup by State of Florida

Quote:
Originally Posted by mickey100 View Post
I agree, not nice to be snarky to newbies. And the Developer essentially is the Villages in that he controls and gets paid for everything from the media to real estate sales, to trash pick ups. He is most certainly the force behind the tax exempt bond offerings that are being investigated by the IRS, since he created the development districts in order to issue the bonds . There is an informative article in Business Week that offers more information: Billionaire Morse Behind Curtain at Villages - Businessweek
With all due respect, the Morse family did not setup the CDD'S, the State of Florida did to attract development. They go all the way back to The startup of Disney World. This is often overlooked.
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  #11  
Old 04-08-2013, 10:13 AM
JackieandCharlie JackieandCharlie is offline
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We attended a CDD meeting recently (we are new home owners in The Villages, but not new to Florida). It was very informative and very helpful in understanding how our government structure works here. So far it seems like a very effective form of governing. Apparently CDD's have been used here in Florida since the 1800's.

As far as the IRS incident, the recent IRS findings were very good for us. Their auditors found our community assets are worth way more than the CDD's paid for them and have been a good deal for all involved (CDD, developer, and residents).

Just putting in my two cents.
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  #12  
Old 04-08-2013, 10:13 AM
mickey100 mickey100 is offline
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Quote:
Originally Posted by justjim View Post
With all due respect, the Morse family did not setup the CDD'S, the State of Florida did to attract development. They go all the way back to The startup of Disney World. This is often overlooked.
I meant to say he created them in The Villages. Thanks for clarifying for those who aren't familiar with the CDD process. And the CDD's are a legal entity and could benefit many people when they are operated correctly. The IRS issue is the the CDD's in The Villages are not acting like a public entity since they are controlled so closely by the developer, hence the question about their validity.
  #13  
Old 04-08-2013, 10:22 AM
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Quote:
Originally Posted by graciegirl View Post
It isn't an IRS investigation of the developer. It isn't that he isn't paying his income tax. The investigation has been going on for more than five years as to whether a CDD can issue municipal bonds and not pay federal taxes on them. There are other CDD's in Florida but of course, The Villages is the largest.

Recently it was determined that the Morse organization did not make a profit on the entities that they turned over to the CDD's, which included real property such as the Savannah Center and other rec centers.

To all wannabees, do your due diligince on every issue and if you are still concerned, please don't buy here.

Also for people considering buying here, you cannot buy a new home and write a contingincy and you cannot get a loan on a new home using FHA or VA. There is a separate bond that you must pay that is the cost of the infrastructure and it is about 23K for a designer and is NOT figured into the cost of a new home and that is unlike any other place I have lived. When you pay a deposit on a home they won't refund it and the developer is enormously rich and invites representatives of a certain political party to speak at the squares. The paper is slanted politically and the majority of the people living here vote for a certain party.

I don't want any ugly surprises for anyone considering buying here because you are not being forced to.

OH...and you will find a good share of oldish people living here and some of them are fat.

Suits us just fine, but it isn't for everybody.

Nobody knows if the STD rate is high, but some think it is a big fib.

But...we are all alive and still kicking and who knows what goes on behind closed doors?

AND if a certain poster sends me another PM asking how much the developer pays me ...I am going to either cry or cuss.
OMG, I love it !!!!
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  #14  
Old 04-08-2013, 10:31 AM
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Quote:
Originally Posted by Bucco View Post
GREAT POST !!!

You are correct and not doing anything but telling the truth. I have been here for about 14 years and tired of hearing all the "snarky" comments about the developer.

He does not "shake down" business here in The Villages. About 15 years ago, he was spending his own money to entice and was actually begging busness to come to The Villages.

He does not have "secrets" to spring on you and believe it or not, has no knowledge of where a sinkhole might spring up (does anyone).

He is not under investigation, as folks on here keep alluding to. You are correct that the CDD use is what is being looked which by the way was first used by Walt Disney just down the road.

Reading the misinformation on here and the constant complaining is very unsettling.

When you move ANYWHERE, not just here, do you not do your own due diligence ?

And someone recently said that things are not done for the benefit of the residents. Gee.......we sure see things differently. Sometimes folks get spoiled and should just find that perfect place...oh wait..thats the point....some will complain about anything with NO facts in order to be happy I suppose.

Again....GREAT POST
I have also been here 13 years & love the Villages & all associated with the Villages for giving me a great, fun place to live.
I must say, if I owned the Villages, I would run it the way I want to run it because it would be mine ! Those who don't like the way I run it can move to Stonecrest or Spruce Creek.
Hope everyone has a wonderful day !!!
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  #15  
Old 04-08-2013, 11:26 AM
ilovetv ilovetv is offline
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News Flash.....

This just in.......


Rumor has it the developer is an "R"......

Stay tuned......
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