Projects that the private sector should pay for themselves.
1. Note Page 15 of RSG Report: Table A-4 provides a hazy numbers that do not add by column the cumulative proposed project cost, debt service (interest payments on borrowing) nor administrative costs. [This Table is Not a Fair Representation of RDA Plan for Debt. City Council should be able to read/understand without using calculator.]
2. Note the most expensive projects are for private sector type commercial projects:
Southwest Commercial Site Improvement--$7.4 Million
Additional Infrastructure Projects (What are these addt'l Projects?)--$5 Million
Town Center Land Assembly: $300,000
Additional Commercial and Economic Development Programs: $7.5 Million
1. Note Page 15 of RSG Report: Table A-4 provides a hazy numbers that do not add by column the cumulative proposed project cost, debt service (interest payments on borrowing) nor administrative costs. [This Table is Not a Fair Representation of RDA Plan for Debt. City Council should be able to read/understand without using calculator.]
2. Note the most expensive projects are for private sector type commercial projects:
Southwest Commercial Site Improvement--$7.4 Million
Additional Infrastructure Projects (What are these addt'l Projects?)--$5 Million
Town Center Land Assembly: $300,000
Additional Commercial and Economic Development Programs: $7.5 Million
Pa check my logic it seems that if you only fund projects that are in the original spirit of RDA law, you only need to borrow $10 Million. The housing funds need clarification if they are banked or would be 20 percent of of the $10 million.
Paw answers: It is not time to increase the size of CRA DEBT for any reason. It is time to bite the bullet and pay off the debt and then go to a Save then Pay Plan for all City Activities. There are ways other than a CRA to fund Existing Housing and Business Refurbishment. Get the City out of the Development Business. Spending 2.00 to get 1.00 of goods and services is not prudent in any economy. It inflates the cost of doing private investment and development thus killing sound private development and business.
The City Council and City Managements goal is to increase the debt and then use that to fund the City Hall Office Staff and City Manager by charging the CRA "Administrative Fees". This paying payroll with Debt Funds should not be allowed under any circumstance.
Read what other EXPERTS HAVE TO SAY:
The next crisis: Commercial real estate
By Jennifer Liberto, senior writer
February 11, 2010: 3:50 AM ET
WASHINGTON (CNNMoney.com) --
A congressional watchdog panel warned on Thursday that mounting commercial real estate losses could endanger the banking system and thwart economic recovery.
A total of $1.4 trillion in commercial real estate loans will require refinancing in the next four years, the Congressional Oversight Panel said in a report. More than half of those loans are underwater, written for properties whose value has dropped like a rock.
More at:
Commercial Real Estate Meltdown
http://shar.es/mHgr4Source: money.cnn.com The Congressional Oversight Panel warns of another looming crisis with commercial real estate loans that are underwater.
