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02/06/06
Deep in the Details - Potashnik financing to be rescinded.
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From a review of the footnotes for the Council
Agenda on February 8th, it looks like city monies that were going
to be loaned to Brian Potashnik and Southwest Housing for Fairway Crossing
(I-30 and Ferguson Road) will be rescinded.
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| This is a great thing. We
certainly don't need to be giving any money to a guy who is under such a cloud
of scrutiny about his business deals. |
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02/12/06 JC:
Great!! Unless these dogs are called out, they win! |
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One thing troubles me. In the original deal, the developer had to put only
$570,000 into this $20 million project. In
return, he gets a developer?s fee of $1.8 million and
$10.5 million dollars of tax-credits. The credits can
be quickly cashed in on Wall Street for 90% of their value which translates into
another $9 million. Plus,
he owns the building.
Simple Math. $570,000 turns into $11-12 million immediately plus control a $20
million property.
No wonder he?s rich. Can I get one of those
deals? I want to invest zero dollars, so I can
make millions. That?s what some of these deals are like!
How about a new approach? When these buildings become dilapidated to the point
where they are uninhabitable, fine the hell out of the
owners and take the property. Then, demolish the
place, sell off the land and let someone build with
their own funds!
Some of these deals may need assistance from the City
for infrastructure, but there are enough smart people in Dallas to create
something that works without the City giving away the store like these apartment
developers are doing us a favor.
These deals suck for the City. It?s time we make
these guys jump through a lot more hoops to get these giveaways. We need to put
more money into getting people to be homeowners instead of building apartments
and rental townhouses.
Michael Davis
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