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Name:
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Kizma Anuice
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Subject:
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"Russell Lands tax???"
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Date:
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6/23/2009 7:56:01 AM
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I am not familiar with the specifics of this project, however, in similar projects in other areas of the country, in which I was involved, if the governing authority, in this case the county, did not have the cash to make the necessary infrastructure improvements, a developer, could upon agreement pay for the improvements, and the authority would add the "Russell Lands" tax to collect monies to repay the developer.
This is often confused with an IDB where, usually an Industrial development Authority, purchases lands, builds buildings, and purchases manufacturing equipment, all of which is leased to an industrial concern, such as Honda or Mercedes, for a period of usually 20-30 years at the end of which lease the industrial concern owns the facility. By doing this the Honda et al can get money at a cheaper rate, because it is obtained from the sale of bonds by the authority, which are tax exempt. Because of the tax exemption, such bonds will be discounted less than taxable bonds thus providing the entity with "cheap money"
It is not economical for a "mom and pop" operation to do this because of the costs involving bond lawyer, underwriter, etc.
The above is a simple explanation of what most likely is happening and in no way explains all of the intricacies
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