OOT and BDC

[MRS. NORTHSIDER]

I can clear this up real easy. 

I checked our past budgets and $92,000 is roughly what Mrs. Scoon and I spent at OoT each year before we moved.

Love and Bubbles,

-scoon

[watcher]

  If it was the BDC that screwed up (which, I agree, is a distinct possiblity) why would the resolution of the problem be to create an additional loan to OOT?

The BDC would have collected at least $78,000 over 4 years to pay property taxes.  Why wouldn't the BDC just pay the taxes with the money that was collected over those 4 years and go to the city council to get the other $13,000 due to penalties and interest?

  Why would there be a need to make an additional loan of $93,062.52 to the OOT owners?  Couldn't the BDC just go in and pay the taxes without having to loan money?

Also, if this was a BDC screwup, that is all the more reason for making this public and having it investigated by the City Council.

  This should not have been swept under the rug and hidden from the public and from the city council.

If the BDC was supposed to collect the escrow funds and did not, then they wouldn't have the funds to pay. OOT should have known they weren't paying enough, but could have been relying on the "professionals" to know what they were doing. In your data collection process did you come across a RESPA for the deal? That should have spelled out the monthly payments required for P&I, taxes and other costs.

The business acumen of all parties is suspect, but for its part, OOT is least expected to understand the fine print of a deal like this... hopefully had an attorney, but it's in the realm of possible that they didn't since the "pros" were carrying the ball for them.

At best it exposes the dangers of municipalities dabbling in real estate. Hangover of the meltdown, while at the same time, a contributing factor in the "irrational exuberance" that created the meltdown. Economic development can be akin to financial rocket science. Tax incentives, pocket mortgages etc, all with political ties? What could go wrong?

How is this even remotely possible? They collected what was calculated at closing. If the closing docs were inaccurate, then those responsible for drafting and reviewing them (including the property owners) are liable. If the docs were correct and the appropriate sums were collected from the property owners, then the escrow agent is liable.

In EITHER scenario though, NOTICE of the tax delinquency was DEFINITELY sent to the property owners. To come back four years later and claim "we didn't know about it" (if in fact this is what is being claimed) stretches the imagination beyond belief.

How is this possible? Consider the principals.
How long would it take for a legal ruling on who did what and who owes what? What would happen to the unpaid taxes while this legal wrangling took place?

Why would oOT agree to the modification if they'd made their required payments? To get the tax issue out of the way. To solve the immediate problem until the discrepancy can be resolved.
It's their business that's ultimately at risk. If their payment schedule didn't account for taxes, they would owe that money, if it did, their share of the $93K is already paid and should be credited against the additional loan.

Determining who knew what, when or should have? Time will tell.

[Ted]

How is this possible? Consider the principals.
How long would it take for a legal ruling on who did what and who owes what? What would happen to the unpaid taxes while this legal wrangling took place?

Why would oOT agree to the modification if they'd made their required payments? To get the tax issue out of the way. To solve the immediate problem until the discrepancy can be resolved.
It's their business that's ultimately at risk. If their payment schedule didn't account for taxes, they would owe that money, if it did, their share of the $93K is already paid and should be credited against the additional loan.

  If that's the case, why didn't OOT pay taxes after the scavenger bought the property in July, 2011?  Why wait another two years? 

  Again, the loan to OOT doesn't make sense if it was the BDC that should be paying the taxes.  The BDC could just as easily borrowed the money itself to pay the taxes if the BDC was the party at fault.

Determining who knew what, when or should have? Time will tell.

  I highly doubt that.  The powers that be in this town want to keep this hushed up as much as possible.

[watcher]

Determining who knew what, when or should have? Time will tell.

  I highly doubt that.  The powers that be in this town want to keep this hushed up as much as possible.

22/2/3 replies makes it more likely that there will be an official response. If not, BTF will provide an archive of the non-response for future reference.

[Ted]

22/2/3 replies makes it more likely that there will be an official response. If not, BTF will provide an archive of the non-response for future reference.

Don't hold your breath... LOL