From Tony Passaro of the Bel Air Tea Party Patriots:
After reviewing the facts inherent in the Beechtree project, I have decided to throw my full support into this endeavor as I find its implementation is in the best interests of Harford County and its Taxpayers.
I am disappointed at the opposition as most of it is uninformed, illogical, irrelevant, inflammatory, specious and nothing more than derogatory braying. It is not even worth the effort to rebut.
This leads me to believe that the real opposing agenda is political and designed to disparage the County Government as a group and the County Executive as an individual…. What irks me is that some erstwhile Patriots would put political expediency and self aggrandizement above the benefit to the people of this county…..
The Tea Party, and Tony Passaro, are guided by principles, not personalities or parties. In this case the principle is “What is in the best interest of the Taxpayers/Voters of Harford County.???”
Instead of subjecting you to the tedium of rebutting baseless assertions, sophomoric arguments, and empty accusations, I will just present facts that pertain to the Beechtree TIFF project.
NOTE: The mechanism of stimulating the economy via Tax Increment Financing (TIF) is practiced in 47 states, and is available to ANYONE meeting the State of Maryland mandated criteria.
Contrary to the braying of the opposition, favorites were not picked. The choice was made based on the applicants overall experience, history of success and financial wherewithal. Clark Turner has distinguished itself in successfully managing many developments of this size. They, therefore, are an excellent candidate to successfully manage this project. It is hoped that in the near future many developers are encouraged to come forward to manage TIF projects as well.
The Beechtree Estates TIF will use the incremental increase in property tax values caused by the development/ improvements to make Bond Payments.
The County will not only receive their current base line property taxes, but also receive the incremental upside (remaining property taxes) after bond payments are made.
The developer will pay ALL hookup fees and impact fees, totaling $22,000,000 over the life of the project.
A 3rd party fiscal impact analysis demonstrates a positive impact to the County from year one AFTER public service expenses (Police, School, etc.).
The County will net over $106,000,000 over the life of the project without using their Full Faith and Credit to secure and issue this Bond. The County will in no way be required to make or guarantee payments relating to this Bond.
The Developer is solely responsible for making the payments on the Bond, using the land as Collateral.
NOTE:: If a homeowner fails to pay their property tax bill, consequently failing to pay its portion of the bond payment, the home will go to tax sale, just as it would without a TIF. The proceeds from the Tax sale will go to satisfy both the County and Bond holder’s obligation.
Completion of this project fulfills part of the expected housing needs for the projected 27,000 BRAC Jobs being forecasted. The project is ideally situated to reap potential BRAC benefits being in a smart growth area just 2 miles outside APG, inside the growth corridor, and inside the water and sewer district
Construction of this project will immediately support 866 construction jobs plus professional jobs gained on base (APG).
The 760 new families (est. income $89,000 to $120,000 or $91,000,000 per year) of this community will stimulate the economy by increased purchase of support services, local retail, food purchases, restaurant and entertainment spending.
At full build out, the Property will generate roughly $410,000 per year in reoccurring Transfer and Recordation Taxes.
· At full build out, the Property will generate roughly $3,094,277 per year in reoccurring Piggy Back Taxes.
· At full build out, the Property will generate roughly $3,191,461 per year in reoccurring Property Taxes.
· Construction can start as early as Wednesday March 17, 2010!
In spite of the recession, this can be a real jump start to Harford’s economy. The County is taking the initiative and not waiting for Washington D.C. to come through for us. We are “bootstrapping our economy on our own”. Therefore I support this measure and urge its unanimous passage as quickly as possible.
Tony Passaro
Bel Air Tea Party Patriots
The Harford County Council passed the TIF bill last night, 6 to 1
Chad Shrodes (Dist.D) voted no.
Just to educate me where is the Beechtree development located?
I believe it’s planned to be built off of Stepney Rd (it’s Aberdeen, but outside of town limits) at the old Beechtree Golf Course.
Great. 768 more unsold homes adding to the current glut in Harford County. Oh yes, of course, BRAC is going to fix all this when 2.938 million jobs come to the county in 9 months.
And I’m sure the politicians will respect the “special tax zone” or whatever it is called that these 768 homes represent once it is no longer convenient or tenable to do so.
We want less government, not more.
This was stupid at best, pandering to special interests at the expense of the taxpayers they were elected to represent at worst.
Perfectly stated….now, just follow the money trail.
The Bel Air TEA PARTY supports it, so it must be whats best for this county.
No, Tony Passaro supported it.
Tony Passaro starts and ends his letter with his name AND the Tea Party Patriots — as well as including them in the body of the article…It seems that Tony feels that he IS THE voice of the Bel Air Tea Party…
Tony doesn’t speak for the TEA Party movement; he speaks for David Craig who grew the county budget 50% in four years. His support for expanding government has gotten him the amish shunning from real conservatives.
Well, someone should tell HIM that…He continues to publish letters and articles that make him appear to be THE definitive voice of the TEA party….
His writings clearly states “Tony Passaro of the Bel Air Tea Party Patriots”, and he has used that for quite some time. Is it that you don’t agree with him so obviously he can’t be a tea party member…or are you part of one of the tea party off shoots trying to find out which position on the field your going to play this week?
When you read this article you come to the conclusion that Passaro also believes in Santa Claus and the Easter Bunny.
Well, that didn’t take long. The Tea Party hasn’t even made it to one election and they’re already in favor handing out our money to well-connected private parties. Whether the money comes from D.C., Annapolis, or Bel Air, that’s just the way station, it’s really comming from our pockets. Thanks for the sell-out, Tony; for a moment there I almost believed that there was a chance for honest government again.
To my Predictable and Loyal Opposition,
Had you nay saying intellectual nabobs done any research you would have come to the inescapable conclusion that this project is essential to the economic recovery of the County….
In addition, The County Council, Billy Bonaface, Dion Guthrie, Maryann Lisanti, Joe Woods, Jim McMahn, and Dick Slotzskie spoke very eloquently on why they voted as they did on behalf of the Bill.
Suggest you watch the hearing on cable and learn something….
The Council clearly sees the great financial advantage of the project as well…the county gets millions of dollars in roads and infrastructure at no cost to the County and the project will throw off approximately 106 million dollars to the County coffers. And the County and the Tax Payers are not on the hook for any of the debt…
Apparently, you were not at the Public Hearing and you did not do any research so my final comment is “You don’t know jack” and when “You don’t know Jack” I might suggest you not show your ignorance by shooting from the hip. It opens you to ridicule….
Tony Passaro
Bel Air, Md.
Mr. Passarro,
Your comments are not conducive to anyone’s learning about the gov’t operating system. The meeting and the comments after the vote by the council about why they voted as they did were not quite as enlightening as one would expect. The public schools that Mr. Slutzky worked at for so long are going to be impacted by the new development. His comment reflected his knowledge of the 3 or more Science and Math, Rt. 40 corridor schools being under capacity now and Board of Ed’s choices to make and build new schools and administration bldgs. w/n the “Development” envelope were not as candid as they could have been. He did address the ‘if we build more houses, they will come’ by implying that all of the new BRAC folks will want to live close to APG and to purchase homes w/n the range of $3-600,000.00, and then go to Aberdeen area schools. If the folks from New Jersey and elsewhere are coming here and are making that large of an investment in a home, the schools, police and and other resources that they want to be around, I cannot fathom the audacity of your comment that anyone that disagrees w/ you are less than stellar character. FYI, Mr. Woods, Mr. McMahan and Mr. Shrodes did not address their reasons for the votes they made.
I give Mr. Shrodes much credit for standing up for his principles even if they differed from the other council members. He voted no.
The bill starts a precedent that allows the gov’t to fund private builders developments and the gov’t does not belong in people’s businesses. The TIFF funds that are being used to pay for the bond, $14,mil. will be paid back by the development home/townhome buyers for the next 30 years. The conflict in discussion states the bond holder will make sure each of the 763 homes will pay the 1100 or 1700 on each lot first and that money goes into a separate account. The rest of the $5000.or more prop. taxes that the 763 homes pay, goes into the operating budget, after the bond is repaid, (usually after 10-15 years,), the bond still impacts the lot owners for 30 years. The money in the bond account is to be used to maintain the impacted roads, infrastructure. By current law, the developer, all developers, must install infrastructure and roads and roads and when completed turn it over to the county.
The intersections affected by the development include, Stepney and Rt7, Rt 7 and RT. 40, 22 and Aldino-Stepney Rd. and rts. 543 and Rt. 7. In 30 years, do you think the taxpayers will want a new road?
Your nasty comments during your speech at the council meeting were implying you were some creative genius…you did not appear that way. You were rude and disrespected the folks present and listening to you speak, by implying that we expected a martian invasion.
$1100/townhouse, $1700./ ind. home. The bill states each lot or home will also be assessed and taxed by the current prop. tax procedures. Only the first amount goes to the bond repayment…
Mr. Passarro,
Please think about the words that you use…
Hello there Mr. America and his friends on the LEFT,
You are truly a comic book character……Phoney, Fake and full of nun-truths…
Read your piece and can honestly report that you do not know Jack. I do not attack you but the stupidity you try to pass off as fact. You are a know nothing, do nothing anti-Conservative minion of the Anointed one and full of his Cool Aid. All you can do is disparage and mock our attempts to make matters better.
What have you done for Harford County besides vote to keep it in chains?? I have helped reduce the budget and the local property taxes. I have sponsored, along with others a “Tax Payer’s Bill of Right” and pushed for the reform of our Property tax system. I have supported righteous causes and am an active member of the TEA PARTY MOVEMENT….I regularly oppose Governor O’Mally for his egregious errors in judgment…and what of you??
NOTHING….only complaints that the TEA PARTY is trying to make things better in the County….
So, get on-board, do something positive and then you can criticize me, until then…keep your b/s and polemics to yourself.
Tony Passaro
Member of:
Bel Air Tea Party Patriots
Americans For Prosperity
Campaign For Liberty
Alliance of American Patriots
Cecil County Patriots
Annapolis Tea Party
Nabobs? Somehow I don’t think that affecting the speech patterns of Spiro Agnew bolsters your credibility here in Maryland; it just reminds people of bribery and corruption, of politicians playing fast and loose with the public’s money.
I’ve seen a lot of plans and projections for this sort of thing over the years. They all paint a wonderful picture of the benefits of the proposal but I have yet to see one that comes in on time and on budget. And when things go sour three years out, the developer comes back to the public trough for a refill. Which we can’t refuse because we already have so much invested.
A second major wave of mortgage defaults is expected in the next year or so when the ARM mortgages reset. All those dollars printed for stimulus packages will kick up inflation. Inflation raises interest rates. Taxes go up to cover the debt. The over-stocked housing market goes further south but if you’re building houses using Harford County’s money, why worry?
I support what I thought were the Tea Party principles of getting the government out of our lives and our wallets. But then I was naive enough to have believed for many years that a Republican President and Republican Congress would bring financial stability to D.C. and they gave us The Bridge to Nowhere.
For Pavel1314,
Your supercilious retort is just that, supercilious.
If your response is an argument, it is specious.
If your response is an Opinion, then I repeat “You don’t know Jack”.
What about the plans that do work out?
What about the programs that do come to fruition?
What kind of world do you live in where nothing works?
Before spouting off with disingenuous assertions I suggest you do some research.
Then you might know what you are talking about….
Tony Passaro
Bel Air
Ah yes, I remember how excited I was when I got my first thesaurus. Does yours have an entry for “sesquipedalian”?
The world I live in includes a forty-year career in corporate finance developing business plans, long-range budgets, and mergers and acquisitions studies. So while my financial expertise is obviously not at your level, I do know the debits from the credits.
Your bombastic writing, subtle ad hominem attacks on those who disagree with you, and reliance on pie-in-the-sky financial projections to cover the picking of the public pocket make you eminently qualified for public office. I look forward to seeing your name on the ballot some day.
Mr. Passaro speaks for himself.
He does not represent any group….if he did, where, when, what and why do they meet? The Taxed Enough Already, or TEA party is not a club, or an organization. If you went to the council meeting, you would have heard a debate…not a rant as Mr. Passaro is apt to do, the debate was presented by the developer, the county exec and council as well as many of the contracted employees of the future Beechtree Estates and its developer.
The rebuttals, the questions and the alternate opinions were presented in a calm, organized and logical order, by many individual home owner/taxpayers. The problem is not the building of the estates. The problem is that the county is providing the banking- read funding for $14mil. – for the infrastructure for an individual builder/developer.
The argument is that the developer should have to go to a bank or investors, not the county to pay for his/their building infrastructure. The dissenters were not anti-development, but anti-gov’t loans to personal builders/developers. The 30 year mortgage, tax pay back will be attached to new home buyers,in the development, in addition, a separate account was made for the money to be directed for the county use for infrastructure repairs and infrastructure withing the Beechtree Estates area, not county wide. The money that is going to be collected from the prop. taxes from those homes/townhomes, will only go into the Beechtree Estates fund for the next 30 years. That doesn’t seem fair to the folks in other areas of the county that have the division of their prop. taxes into schools, police, libraries and roads…etc. The bill, the question in my opinion, should have been a special vote by the county residents to establish if the voters wanted to be the bank for this development. Several speakers addressed valid concerns and I hope that they get answers both from the county exec. and the council and the developer of the project. The audience, except for both Mr. Passaro and Mr. Whitely was polite, thoughtful and BRIEF in their presentation.
I wish the developer well.
Please be aware that Mr. Passaro and Mr. Whitely have no set followers that live or work within the county. If they did, where were they on Tues. at the meeting?
Thank you for clarifying Mr. Passaro’s relationship to the TEA Party. Your group needs to keep an eye on this sort of thing to avoid having your reputation tarnished by those claiming to represent you. And keep up the good work.
Thank you for clear discription of the issues without the histrionics.
Mr. Passaro speaks for himself.
He does not represent any group….if he did, where, when, what and why do they meet? The Taxed Enough Already, or TEA party is not a club, or an organization. If you went to the council meeting, you would have heard a debate…not a rant as Mr. Passaro is apt to do, the debate was presented by the developer, the county exec and council as well as many of the contracted employees of the future Beechtree Estates and its developer.
The rebuttals, the questions and the alternate opinions were presented in a calm, organized and logical order, by many individual home owner/taxpayers. The problem is not the building of the estates. The problem is that the county is providing the banking- read funding for $14mil. – for the infrastructure for an individual builder/developer.
The argument is that the developer should have to go to a bank or investors, not the county to pay for his/their building infrastructure. The dissenters were not anti-development, but anti-gov’t loans to personal builders/developers. The 30 year mortgage, tax pay back will be attached to new home buyers,in the development, in addition, a separate account was made for the money to be directed for the county use for infrastructure repairs and infrastructure withing the Beechtree Estates area, not county wide. The money that is going to be collected from the prop. taxes from those homes/townhomes, will only go into the Beechtree Estates fund for the next 30 years. That doesn’t seem fair to the folks in other areas of the county that have the division of their prop. taxes into schools, police, libraries and roads…etc. The bill, the question in my opinion, should have been a special vote by the county residents to establish if the voters wanted to be the bank for this development. Several speakers addressed valid concerns and I hope that they get answers both from the county exec. and the council and the developer of the project. The audience, except for both Mr. Passaro and Mr. Whitely was polite, thoughtful and BRIEF in their presentation.
I wish the developer well.
Please be aware that Mr. Passaro and Mr. Whitely have no set followers that live or work within the county. If they did, where were they on Tues. at the meeting?
The council members did not “speak eloquently” on the reasoning for their votes, rather, they sounded like a bunch of incompetent fools in both the questioning of the attorneys that explained the bond issue and their rationale for supporting it.
This bond issue would have never been approved if examined within private industry, because those evaluating it would be knowledgeable, competent,and genuinly interested in return on investment rather than other objectives. Many things didn’t add up and many questions that weren’t asked needed to be answered.
This process is proof positive that politics is where many people go when they don’t really have the talent to succeed in the private sector.
I think this Tony Passaro character ought to quit pretending to represent people he does not represent at all.
He said: “I am disappointed at the opposition as most of it is uninformed, illogical, irrelevant, inflammatory, specious and nothing more than derogatory braying. It is not even worth the effort to rebut.”
Oh, my. It would have been far better to come to a full stop and not gone on to rebut the arguments!
I am for reducing the scope of government and the high taxes we pay. I’m with any TEA partyers who agree with that — and I think the real ones do.
The fakes are trying to piggyback on a national and local movement to get elected to something, to sell real estate, to promote their own agendas, to corral us back into the Republican Party. All of those types should be ignored, IMO, and it should be made clear they do NOT represent people they are trying to pretend they represent.
“corral us back into the Republican Party”
This is off topic but you should be in the Republican party. The teaparty movement is a philosophical movement, not a political one, and its philosophical home is within the Republican party. The Democrat party is completely worthless and hopeless, and the only way to affect real change is to work within the Republican party to force it to adhere to it’s stated pricipals of limited Government and local self Government. No one is getting elected as an Independant or Tea Party Candidate, so limited Government will come through elected Republicans (not the Rinos on the council now), that reflect your views as a teaparty activist; No other way. Keep your eye on the ball, don’t get distracted.
There lies the Rub. The TEA party movement, the actual movements home Philosophically or politically lies within the LIBERTARIAN party. The ideals in which it was started do have similarities to the Republican conservative Ideals, but also show a more liberal side with the removal of drug laws etc. This neo-conservative, pseudo-republican tea party that we have in the county and the one who host Palin as its keynote speaker is Astro-turf and a bastardization of the original parties Ideals.
There really is no Libertarian party of significance, that too is a philosophical movement rather than a political party. I don’t want to discuss it further, I want to get the attention back to the council members that voted the wrong way the other night, and to a lesser extent the fool that wrote the piece that we are posting to.
Quite right, Chai Tea —– of course the TEA party movement is a fundamentally Libertarian movement.
I was Republican for all my voting life, but re-registered Independent in 2006 because of the total debacle the GOP and Bush had made of pretty much everything.
We need a switch-out to a new party to replace one of these two dysfunctional parties we have now, and I’m staying free in hopes that will happen, as it did in Lincoln’s time — as most of you know, our neighboring county to the north still publishes the Cecil County Whig.
So it CAN happen, and wow, is it ever time. The Republican party is now identical to the Democrats in uselessness and robbery of the people and ever-expanding government. And the frequent sexual corruption of the politicians — it seems to be WORSE on the GOP side. I’ve given up on the GOP at this point. I want something better than all that failure.
When you listen to Farmwife in Joppa it’s easy to see how the likes of Obama and O’Malley get elected.
Such emotional, illogical and disjointed thinking along with general ignorance of current political developments is very much appreciated by the political left who use people like her to retain power.
No Teaparty, Libertarian, or any other third party candidate will be elected to any office of significance in our lifetimes.
Not too long ago we had two terms of Bill Clinton to thank for a third party movement, and we still pay a hefty price for it.
To say “Republican party is now identical to the Democrats” is so ignorant that it is not even worthy of comment.
The Republicans are identical to the Democrats in net effect although in different directions.
Republicans drive the country deeper into debt and expand the size and scope of government to benefit the rich and powerful.
Democrats drive the country deeper into debt and expand the size and scope of government to benefit the non-productive segment of our society.
Better to back the Republicans as rich people invest their excess cash constructively while poor people just waste it on drink, drugs and cigarettes.
Earth to Farmwife and Pavel 314:
Yesterday with the passage of the Healthcare bill the country was assured of going bankrupt. It’s not a matter of if, but when. Social Security is a 47 trillion dollar unfunded liability and Medicare is a 53 trillion dollar one. This will be bigger than either of them and assure our bankrupcy.
That may be an obscure concept to you, but as we go bankrupt the dollar will become worthless. You’ll be lucky to have a job and money to live on. Anything you saved will be worthless. For some context study the Weidmar Republic, 1921 – 1923. The Democrats don’t care if we go bankrupt as long as the social programs they put in place survive.
Every Republican in the House and Senate voted against it. With more elected Republicans it would not have passed, and the Country would have been spared eventual bankrupcy.
Enough with your childishness. No Libertarians or Teaparty candidates are going to get elected to either overturn this or stop additional efforts to turn this country into a social utopia. There is a growing voter backlash, and it resulted in the election of REPUBLICANS in Virginia, New Jersey and Massachusetts. There will be more, but no Libertarians or Teaparty candidates will be elected to stop the Democrats. In fact, a third party “Teaparty” candidate may assure the relection of Harry Reid in Nevada.
Time to think and act like adults. Work within the Republican party to bring forward the most Conservative candidates possible to stop this economic suicide. Stop with your nonsense about there being no difference in the parties. Quite frankly, you both sound like a couple of blooming idiots.
The Weimar Republic? Are we paying war reparations? Did we just lose a major war, have the victors put unreasonable monetary demands on us and are printing money to intentionally deflate the value of our currency to spite the victors?
Look, I’m as disappointed as you about the bill, but let’s pick a better example of inflation!
Porter G,
Sorry to have to get into a history lesson with you, but it is a common misconception that Germany inflated it’s currency in order to pay war reperations. The reperations couldn’t be paid in German currency, they had to be paid in foreign currency or gold. The hyperinflation of the Weidmar Republic resulted from their inability to find a market for their Government bonds, thus forcing them to finance their considerable national debts internally. They suffered the result of the same economic recklessness that is being pursued by this administration.
We are already on the verge of losing our triple A bond rating. The financial instability brought on by this massive entitlement will move us more quickly toward a worthless dollar and the fate of Germany 1921-1923. My analogy is a good one.
Like Porter G says when we print money to send checks to every american using deem and pass in the US House of Representatives and call it a tax rebate!
Cdev,
??????????
I was providing a more recent and personal example of inflation for us to relate to. Our US currency has been devalued so much because of the flooding of the domestic market with money and no increase in our GDP. The three biggest examples of this are the stimulus/tax rebate checks that where passed under Bush (Ironically one used Deem and Pass and the other Reconciliation) and the recent Omnibus Stimulus bill. Hence we have gone from 1:3 US to Candian currency exchange to a 1:1 in 10 years!
Cdev,
Nothing but a statement of the obvious. Deficits lead to inflation and a devaluation of the dollar, but it will be entitlements that bankrupt the country and this one is the granddaddy of them all.
Look for the Triple A bondrating to go pretty soon. The impact of that will be enormous.
Daniel
Of course you likely must know that the French occupation of the Ruhr skyrocketed inflation exponentially. Lose your industrial strength, and your economy crumbles.
Regardless, the example isn’t relevent unless you are suggesting the nationalistic movement of the Tea Party is akin to that National Socialist German Worker’s Party.
Oh…and the inflation was intentional during that period in the Weimar Republic. Conceptually, it was intended to keep German goods exporting and people working. Severely flawed concept, of course.
Daniel, there’s no need for you to be rude and insulting. Just because somebody doesn’t cherish your beloved Republican Party doesn’t make them childish or blooming idiots. If you’re a Republican recruiter, believe me, you’re going about it all wrong.
Porter G,
“you likely must know that the French occupation of the Ruhr skyrocketed inflation exponentially”
I know no such thing. The inflation was the result of an explosion of the money supply, precisely what is happening now. The Government welcomed the inflation to liquidate the considerable debt it took on both before and after the war, precisely what is happending now.
“the example isn’t relevent unless you are suggesting the nationalistic movement of the Tea Party is akin to that National Socialist German Worker’s Party”
What? I’m saying an out of control Government will be responsible for putting us into bankrupcy, not the teaparty movement for less spending and less government.
“the inflation was intentional during that period in the Weimar Republic. Conceptually, it was intended to keep German goods exporting and people working”
That is correct, and the devaluation of the dollar has been intentional in part for those same reasons, as will the coming inflation.
Will the TEA Party have non-Rino candidates running in the next Republican primaries?
If they do I will vote for them. If not, I’ll simply vote against the RINOs in office, or withhold my vote if the alternative is unappealing. That is much more constructive an effective than supporting a third party candidate that will only assure continuation of the status quo.
The key is the primary. We need good, independent people on the primary ballot in each race to unseat the incumbents before the general election.
Still, it will be an uphill battle. People are horribly ignorant of and apathetic about local politics; many just vote for a familiar name or someone who had a clever TV commercial or by party affiliation. Hopefully, with all the attention on D.C., turnout will be higher and more focused on changing the status quo.
Agreed.
March 16, 2010
Harford Beechtree deal is nuts
Not much time to get into details, but the proposed tax increment financing (TIF) in Harford County that Jonathan Pitts writes about in today’s paper is the dumbest legislative proposal to come down the pike in — well, at least a couple weeks. As of February there were 1,682 homes for sale in Harford County, according to my colleague Jamie Smith Hopkins.
That’s a huge inventory — much higher, as a multiple of local demand, than the national average. And developer Clark Turner and County Exectutive David Craig want county taxpayers to take out a special loan so Turner can build more houses? A mile from Aberdeen Proving Ground? In a county where base realignment will soon bring demand for houses and allow development to proceed naturally? No way.
TIFs are intended to bring development to challenged areas that might not otherwise get it. Harford, and Beechtree, will eventually be swamped with development without any special deals for Turner.
Posted by Jay Hancock at 11:14 AM |
I’ve lived here 30 years and the County Council has always been in the pocket of the developers and everybody knows it.
This is just yet another instance of lending out our pockets to the developers for their profits.
“Our” pockets? Did you not hear or read what the TIF is all about? From what I have read on this subject, there is no lending of anyone’s tax dollars! Tell me how YOUR tax dollars are being either spent, lent, or given away? This is simple business, not sure what all the fuss is about. If it was not Turner, it could have been Bob Ward, or some other developer. Frankly, I am happy about this and looking forward to having people who live in those houses visit my business.
As the owner, you are aware that your business only has so much borrowing potenital based on its ability to generate cash flow. If you have an opportunity to grow your business by taking a loan, you have to decide if this is the best place to use a part of the total credit available to you. Same with Harford County; is it a good idea to reduce our borrowing capacity by backing these bonds?
Given the current surplus of housing, high unemployment and the strong possibility of a double-dip recession, I think not. Others disagree. But we live in a world where many of our States and entire countries are teetering on the brink of bankruptcy. Is this the time to go deeper into debt?
Whenever I develop a business plan, one of the final questions I ask myself is “Would I invest my money in this venture”? If I hit the lottery next week, I would not invest those millions in developing this residential community. This whole plan rests on the assumption that if the worst happens, somebody will be around to pay full price for the distressed property. If the worst happens, they’ll be in our pockets to make up the difference.
Apparently, you have not been paying attention, or don’t know what non-recourse to the county means. I called the county and asked directly whether or not the bonds floated for this project are backed by the full faith and credit of the county. The answer was emphatically NO. I watched the county council meeting on TV and similar questions were asked, and again, the answer was NO. So, these bonds don’t count against the county’s borrowing capacity. Again, why is this simple fact so hard for people to understand? Also, I was reading that the special tax would not be assessed to the residents of the project if the increase in the accessible tax base can cover the payment of the bonds. In reviewing the proforma for the project, a case is clearly made that this is very unlikely to happen. So, again, I don’t see what the big deal is. I welcome an opportunity to have quality homes located near Rt. 40, and close to the base. It will also be nice to see some construction companies get back to work.
I am changing my name to Beechtree.
I am heading up to main street
so when they hand a million grand out
I’ll be standing with my handout
yes sir I’ll get mine.
(adaptation of Changing My Name to Chrysler)
I wonder if we could hear from even one more TEA Party Patriot that, like Tony, is in support of expanding government and/or further creating additional financial burdens on we the tax payers with socialist bonding programs like TIF designed to create an artificial playing field where only the friends of the Exec can play?
Looks like he didn’t fool you, Al J Thong. [:-)
I am not against smart development in the least, but I fear that the approval of this many new houses will hurt the existing homes for sale. Larger builders have long since pushed the smaller builder out of this county years ago.As for it helping to fill the void for housing for BRAC, not everyone is going to want to live in the same exact area, some will want to move to other parts in the county, other counties or other states. This is not a case of “build it and they will come” there is a very good chance that some of these houses could sit vacant as are many other new construction homes across the county. This is only going to be a jump start to those who are connected to Clark Turner, others in the local construction industry will not see any help from this.
Sounds like Harford County government as usual. At least how it’s been for the 20+ years I’ve lived here. It’s all in who you know or who you are related to.
Kate, boy do you have that right. It makes me sick.
so let me guess this straight. Our teachers, who are still some of the lowest paying teachers in the state, who made Harford County Schools number one in the state for education still aren’t sure if they are going to get a pay reduction. Although the sheriffs dept. did have their budget cut yet, foreclosures are still occurring so no new taxes are coming in and WE are still being told BRAC is coming for the past three years? But we have enough money to loan a millionaire developer money. I guess he couldnt ask any banks around here because he probably faulted on past loans. HMMMMMM? If people still think this BRAC is going to occur anytime soon they have no idea how the military works…slow. I believe FT. Monmouth is still open so all these contractors aren’t here yet and if you go on APG there are buildings being constructed but it takes time. As far as the TEA party, they do not speak for most of the people. People are still losing their jobs and our great county gov’t is lending money out. How do I get a loan? UNBELIEVABLE!!!!!!
chris-the county is not lending anything, just obtaining the low cost bonds that the developer will pay back as stated in the TIF legislature. I don’t know what that has to do with teachers not getting a raise or a pay cut. the county budget gives harford county schools 50% of the revenue that the county receives. If you want a raise you need to ask the school board to reexamine their priorities.
Who is on the hook if they fail to repay the money? We are. The county is using it’s good credit and acting as a co-signer to get him sweet heart interest rate. Same thing as loaning him the money. This stinks to high heaven.
Right, the county is co-signing the loan.
Why couldn’t the developer get a bank loan if it’s such a sure thing to build hundreds of houses there?
It’s very suspicious the developer couldn’t get a normal loan the normal way. Instead the taxpayers of Harford County are on the hook for his loan ——— we’ve all co-signed his loan.
cdev-I see nothing more that good govt working with private industry to create jobs, increase the tax base and pay for infrastructure that would need to be built eventually. the law provides that special taxes will be assessed on the eventual owners of these homes to pay back the loan that was backed by the county.
the assessed tax will provide over $100.00 in new property, income and sales receipts at full completion of the project, you school buddies will benefit by having an extra $50.00 million (half of the tax receipts as currently divided by the county ) to the school board at completion of the project.
I think its a good thing when in targeted projects, areas and special circumstances, the county can foster economic development, increase infrastructure and reduce the burden on existing taxpayers by partnering with the private sector to acheive worthwhile community projects.
cdev-I see nothing more that good govt working with private industry to create jobs, increase the tax base and pay for infrastructure that would need to be built eventually. the law provides that special taxes will be assessed on the eventual owners of these homes to pay back the loan that was backed by the county.
the assessed tax will provide over $100.00 in new property, income and sales receipts at full completion of the project, you school buddies will benefit by having an extra $50.00 million (half of the tax receipts as currently divided by the county ) to the school board at completion of the project.
I think its a good thing when in targeted projects, areas and special circumstances, the county can foster economic development, increase infrastructure and reduce the burden on existing taxpayers by partnering with the private sector to acheive worthwhile community projects.
cdev-I see nothing more that good govt working with private industry to create jobs, increase the tax base and pay for infrastructure that would need to be built eventually. the law provides that special taxes will be assessed on the eventual owners of these homes to pay back the loan that was backed by the county.
the assessed tax will provide over $100.00 in new property, income and sales receipts at full completion of the project, you school buddies will benefit by having an extra $50.00 million (half of the tax receipts as currently divided by the county ) to the school board at completion of the project.
I think its a good thing when in targeted projects, areas and special circumstances, the county can foster economic development, increase infrastructure and reduce the burden on existing taxpayers by partnering with the private sector to acheive worthwhile community projects.
sorry about the multiple posting.
cisco- that is what banks are for. Again what if the development goes bust, the houses do not sell. Who is on the hook for this…..the county. BTW if the county is loaning out money for houses what if I want to open an exotic dance establishment? is the COunty going to lend me the money to start it up? After all it will bring jobs and provide a service to the county!
cdev-in case you haven’t heard…a lot of people from NJ are coming here flush with $$$ as their homes are being bought by the govt there and they need places to live. This project is at the gates to APG and will not require extensive infrastructure as it is being built in the development envelope. Nothing but plusses so far.
As for the likelyhood that the project would go belly up? Not very likely. Also banks are not really lending money for anything that has to do with real estate as we know.
What about all the houses that are for sale. The price of them goes down?
plus the exotic dance esstablishment would be the only one in Harford County it could be exclusive and would be all pluses I think I am going to ask for some bond money!
Do you have a reference that says that the “Government” is buying the NJ houses? Please post that link! All the BRAC sites (I work at one being “BRAC’d) are not having their houses bought by the government. I would really be surprised to hear that US Gov’t or NJ State Gov’t is actually buying houses and letting people come here flush with cash! I think the people coming from Arlington to Ft Meade for DISA (among many others) would be rather unhappy to hear of this kind of sweetheart deal!
cisco, 100% of the people coming here for BRAC are not going to all purchase a home right outside the base just because it is convient for us. If anything this development should be sold in stages so that the market is not flooded by houses. The people are going to spread out through the county, the state and neighboring states. I can guarantee that a good amount will end up in Delaware, PA and Cecil county where they are not responsible for special fees including impact fees and the fees that they would be responsible for if they move in this special neighborhood. There is a very good chance that 100% of these homes might now sell and there is the possibility that Harco govt could be put in a sticky position. There are many new homes just sitting right now. Clark Turner has been in business for many years and I believe this is the first time he has come to the govt for “official help” so that should be a sign to us all. Maybe the situation should have been looked into a bit closer instead of “counting our chickens before they hatch”.
I don’t know how these New Jersey people are selling their houses at all — in a terrible recession, with Fort Monmouth closing and nobody wanting houses there at all?
Sounds to me as though they’ll be in a fix. Can’t sell their houses.
“Also banks are not really lending money for anything that has to do with real estate as we know.”
That pretty much says it all. The banks, whose income depends on interest paid back on the loans they make, are not loaning for real estate. Probably because they don’t expect to be repaid? But I guess the financial wizards on the county council are much more asture about where they should invest than are those bankers.
Cisco,
There is no truth to the notion that the “Government is buying houses”. I work with the BRAC move and deal with co-workers in Eatontown every day. The people there cannot sell their houses and most are not moving.
I saw a man posting a sign on route 22 yesterday that said “I buy houses for cash, quick cash”. There are 4 unsold homes in my neighborhood (1 mile outside the APG gate), that have been unsold for about a year.
Additional supply means reduced prices. Scarcity of supply means increased prices.
Well,obama care passes,kiss Medicare Advantage goodby! 500 billion gone. oh, stock in Purina is up today!
Go Dagger!
hey CISCO. your right in a sense that they are covered by bonds. But in the end it is still a loan in which OUR money will have to cover if the development goes bust because they cant’t sell.
By the way read a new jersey paper. Houses arent selling up there either. In fact their economy is worse than ours. And with ref. to your assessments about what this project will do that is it, an assessment and we know they never are accurate. ONce again gov’t getting involved.
Chris, Define “Our” money. “Our” money is not at risk here. There are no taxpayer dollars at risk. The only possible way, would be for you to buy a Beechtree home, or if our 401k or something invests in the bond market where these bonds are commonly sold. So, I say again. How are you defining “our” money?
If anybody believes this “special taxing zone” represented by the 786 new homes is going to be retained by POLITICIANS once is becomes unworkable, inconvenient, or untenable, you are naive in the extreme. This certainly does represent risk for Harford County Taxpayers.
The bondholders will be bailed out by us once this becomes unworkable to avoid the stigma of a failed bond issue in Harford County.
This issue carries a 9% interest rate when typical municipal bonds go at 1.5 to 2.0% these days. Think that may say something about the risk involved in this?
You can bet your bottom dollar the risk is yours, not the bondholders or developer despite what the politicians tell you.
These might be a good investment at 9%, seeing that Harford County will bail them out if they go bad.
You may be right. Kind of interesting that they had to price them at 9% to sell them though.
Wouldn’t it be ironic if the developer were buying all the bonds? If he took his money out of, say, T-bills paying about 1% and bought 9% bonds to finance his own project, he wins on all fronts. I would consider that a perfectly legal and very prudent transaction.
If a little circular! Like a snake eating his tail.
9%??????? This must be viewed as a VERY high-risk situation indeed.
And why is it high risk? Because the New Jersey people can’t sell their houses, and we can’t sell our houses here in Harford County either; there’s a housing glut on the market, and real estate is not moving.
So a bond issue to build 700 MORE houses? Yeah, no wonder the banks won’t fund it.
This is crazy. Well, it’s worse than crazy; it’s a corrupt sweetheart deal, looks like to me. 9%!!
I’ve said this before, there are certain things I know for a fact.
I deal with Monmouth on a regular basis in my job. I’m in Eatontown every week, and deal with tons of people up there. They cannot sell their houses, their spouses work in the area, and a lot of them have kids in school. There are many that will not move.
I have four unsold houses in my neighborhood alone. Some have been up for sale for over a year.
It is a disservice to the homeowners of Harford County that would like to see their property values go up once some demand for houses materializes. Instead they are pushing home values down with an increased supply of houses. And they have to sign up to some crazy bond issue scheme to do it. Absolutely insane.
Harford County by passing Bill 10-10 has started a precedent that is to provide a Housing Subsidy to the Wealthy. The very people from BRAC who make over $80,000 a year are the targeted people to live in Beechtree Estates. We will be paying the tax bill and the wealthy will receive subsidized houses. This has never been done at any time in the past and only the Harford Hussle would allow something this bogus to occur. It is not being done because of BRAC for only a very small number of houses will be built in the time period that BRAC is supposed to materialize. Favortism and profit to the wealthy is the driving force. The Harford County Executive and the Harford County Council are misguided and need to be reminded that financial assistance should not be given to the wealthy especially for something as bogus as this.
Financial assistance for any buisness venture is a bad precedent. No one has responded but what if I wanted money to start a strip club?
You should seek the counsel of ACORN for advice on obtaining Government fiancial assistance for the strip club.
If Harford County is giving away start-up capital for buisnesses then I want my share.
But only if you hire underage, illegal alien strippers.