[twoplanekid]

Originally Posted by Advogado

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.

A basic question: Why should the County buy the utility from the Developer at all??? I have no answer for that, but the whole thing has a distinct odor.

I am on the Board of NSCUDD and I am the one who brought this to the attention of everyone. Please read my on the record statement presented to the board found in a link given by Bogie Shooter post #7 in this thread.

NSCUDD is not owned by the county.

[Two Bills]

I wonder who woke up one morning and thought, " today would be a good day to buy a sewage plant!"

[mulligan]

IMHO, the sale should probably be completed when the negotiations are complete. It's not in the best interest to allow the developer to sell the utility out from under us to, perhaps, a less than public-minded operator.

[tophcfa]

Originally Posted by JoMar

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?

That would make perfect sense if the purchaser was a private, for profit entity. I could be wrong, but my understanding is that the prospective purchaser is not a for profit entity, but rather in some way it is an entity set up to serve the community. Someone please correct me if I am wrong, that would explain a lot.

[tophcfa]

Originally Posted by tophcfa

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.

Originally Posted by twoplanekid

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

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks

[Advogado]

Originally Posted by twoplanekid

I am on the Board of NSCUDD and I am the one who brought this to the attention of everyone. Please read my on the record statement presented to the board found in a link given by Bogie Shooter post #7 in this thread.

NSCUDD is not owned by the county.

I was using the term “county” loosely in my post. I guess technically we are talking about a Dependent District of the County. But I am always glad to be educated.

[Two Bills]

Has anyone considered that 'The Family' may have a cash flow (not assets) problem?
A lot of money involved with such a large fast expansion, maybe unloading a few assets to top up the pot.
Or maybe they need a larger, new family aircraft, they have a growing tribe on the payroll nowadays!!

[twoplanekid]

Originally Posted by tophcfa

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks

" I can and will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members."

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.

NSCUDD next regular board meeting is on Thursday, November 21, 2019 in the District Office Board Room at 9:00 a.m.

[tophcfa]

Originally Posted by twoplanekid

" I can and will suggest that you are always welcome to attend NSCUDD board meetings to ask questions from staff or board members."

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.

NSCUDD next regular board meeting is on Thursday, November 21, 2019 in the District Office Board Room at 9:00 a.m.

Since I am a part time resident (as is the case with many thousands of Villagers), it is often not a possibility to attend Board meetings. That should not prevent taxpaying Villages homeowners from being on the receiving end of upfront and transparent relevant information regarding important matters.

Since no source of information was cited regarding my list of questions, I am assuming these questions have not been addressed or answered? Hopefully I am wrong, as I would very much like to know how this proposed acquisition will benefit Villages residents.

[LuvtheVillages]

Originally Posted by tophcfa

I read the cover memo, but it doesn't answer any of the above questions. Is there a source of information I can access that would answer the questions? Thanks

In addition to the cover memo, you also need to read the Public Interest Determination attachment (as suggested by TwoPlaneKid.)

It only lists positives. I did not see any negatives. It looks like there are some tax savings to be had. It was written by District Manager Baier.

[tophcfa]

Originally Posted by LuvtheVillages

In addition to the cover memo, you also need to read the Public Interest Determination attachment (as suggested by TwoPlaneKid.)

It only lists positives. I did not see any negatives. It looks like there are some tax savings to be had. It was written by District Manager Baier.

Thank you for pointing me toward that memo. It does answer some, but not all of my questions. Since the operations and administration of the utility are currently being sub-contracted out, and would continue to be contracted out to the same service provides after the sale, presumably the service quality and operating costs would not change. The memo states three categories of cost benefits resulting from the new owner being a private, versus public entity. I buy into two of the three arguments. First, a private entity does not have a profit motivation, which should help keep customer rates down. Second, a private entity can sell tax-exempt bonds which carry a lower interest rate. Third is that a private entity is exempt from paying many forms of taxes. Not having to pay taxes at the state and federal level certainly is a plus, but not having to pay local property and other local taxes is not a benefit. This exemption is simply a shell game. The county needs its revenue, if the utility becomes tax exempt, the county will simply have to raise taxes from other sources (such as Villages homeowners) to make up the revenue shortfall.

I can say that without a doubt, that after reading the memo, it is much clearer that there are potential benefits to the sub-set of Villagers that use the services of the Utility being considered for sale. On the other hand, I see this as a negative for all other residents of Sumter County who are not customers of the utility, including many Villagers. At least the level of transparency involving this potential transaction blows away what took place during the 25% tax increase fiasco.

[Bowtorc]

Feels like just another chance for the developer to make some money!

[tophcfa]

Originally Posted by Bowtorc

Feels like just another chance for the developer to make some money!

And dump some property where the tax just went up by 25%.

[kpd3062]

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


What is the differentiated "The developer" and TV?

[dewilson58]

Originally Posted by Bowtorc

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>

Historically, selling this unit is consistent with the Developer's master plan (all generations, not jus the current family members).



They start companies/services to support The Villages, get it up and going (and yes, make money) and then sell it off. This allows them to focus on their core business.......Development.


Good Business Model.