Langtree at the Lake – the $800 million mixed-use development in Mt. Mourne – was announced a couple years ago with much political and public fanfare.
But earlier this month, Langtree developers approached the Town of Mooresville, asking commissioners to consider issuing millions of dollars in bonds to pay for Langtree’s first phase of infrastructure. The request, unlike the original announcement of the project, slipped quickly and quietly onto the town board’s agenda.
Just a few months ago, Langtree was asking Iredell County to issue the bonds. (See http://thegattonreport.blogspot.com/2008/11/bonds-for-billionaires.html and http://thegattonreport.blogspot.com/2008/11/county-to-langtree-too-many-questions.html and http://thegattonreport.blogspot.com/2008/11/tice-says-she-voted-with-group.html and http://thegattonreport.blogspot.com/2008/11/corporate-welfare-so-what.html .) Langtree's proposal was met with some resistance at the county level, but it is unclear exactly why negotiations ended; the county took no official vote that definitively rejected Langtree's proposal.
The first public mention that Langtree intended to seek the issuance of the Special Assessment Improvement District (SAID) bonds from Mooresville instead of Iredell County was made just three weeks ago at the February town board meeting. Still, a public hearing on the matter will be held in just over a week from today, on March 2.
Langtree was scheduled to appear before Mooresville commissioners at the February meeting, but only to request annexation of about 143 acres in its development. Just before that meeting, however, a resolution was put before commissioners to call for a March 2 public hearing to determine if the town wants to move forward with helping Langtree form a SAID, which would allow the town to issue $15 million to $20 million in bonds to pay infrastructure costs related to the first phase of the project. If bonds are needed for the infrastructure of future phases, that number could jump to $46 million.
The resolution request apparently took at least one commissioner by surprise. “I appreciate the sense of urgency here, but it feels like a freight train is bearing down on us,” Commissioner Miles Atkins said at the board meeting, according to the Mooresville Tribune. “I think it’s incumbent upon us to not just drop the document (bearing a brand new resolution) down on the desk.”
Still, commissioners voted 5-1 that night (with Atkins opposing) to adopt the resolution, which set the public hearing for March 2.
But this Monday, Feb. 23, commissioners and the public will have an opportunity to learn more about the SAID financing that allows developers and municipalities to work together on infrastructure costs for private developments.
The N.C. General Assembly passed the SAID financing tool into law in August to help stimulate the economy. In essence, the law allows municipal governments to issue bonds on behalf of private developers. The bonds are sold, and the developers’ property is designated a SAID and put up as collateral. The developers – and eventually the benefitted property owners and merchants – repay the debt through property assessments. While SAID financing has been used for years in other parts of the country, Langtree developers are the first to take it for a spin in North Carolina.
This Monday’s meeting, which is open to the public, will be held at 6 p.m. in the Charles Mack Citizens Center. Commissioners are expected to hear presentations about SAID financing from several third-party participants at the meeting. Langtree will be on hand to answer questions but does not plan to make a presentation, according to a press release issued by the town this week.
Members of the public will not be allowed to comment or ask questions at Monday’s meeting. Instead, "This meeting is for town commissioners to hear presentations concerning the proposed SAID being requested," states the town's press release. "Scheduled presenters will discuss the legal framework associated with SAID and the financial investments associated with the designation."
Town Manager Steve Husemann said Monday's meeting "is an effort to make as much information as possible available to both the town board and the citizens.
"This is entirely new legislation," he said, "and we will all be learning about it together."
The public will be able to comment on the proposal at the public hearing, which is scheduled during the town’s regular monthly board meeting on March 2 at 6 p.m. in Town Hall.
Subscribe to:
Post Comments (Atom)
Posts
6 comments:
Prior to any consideration, the Town should demand to see all financial operating documents of the Langtree project and make them available for public viewing. If a private citizen walked into a bank and asked for a loan, the bank would review the applicant's financial position.
This same scrutiny should hold true for the Howards and their millionaire backers.
It is also very suspicious that although Iredell County never formally turned Langtree down, Langtree ended negotiations with Iredell. One would only have to surmise Langtree is going after an 'easier mark' with the Town.
If the developers really 'need' this money, why aren't they financing it themselves? It is because they see a lower cost avenue of funds being provided by more familiar faces on the Town Board.
Again, there is no sound reason why the Town should entertain this request. The Langtree project has more than enough financial backing to provide this infrastructure on its own.
ToM should only use this avenue of bonding to entice new commerce into Mooresville. Downtown Mooresville is an economic disaster zone and is in dire need of Town subsidies.
So why float bonds for wealthy developers? The SAID legislation was implemented to attract and incubate new industries in our State and not to subsidize a well funded project like Langtree, backed by millionaires.
The Langtree project isn't going anywhere regardless of the threats of the Developers.
Wake up Citizens of Mooresville! Your Town is being sold to special interests while your Downtown is being left to rot!
Time is money. Langtree doesn't like for people to know what they're doing so that people don't ask questions and delay the project. Just ask the county.
I keep hearing that this program is OK; that it's been approved by the General Assembly. Frankly, I have seen enough mistakes the Legislature has made to make me leery of anything they do and this is certainly no exception. Basically they have given people in the state permission to put their necks in a noose. I would like to think our Town Board is smart enough not to do it. Approved by Legislature or not.
Additionally, this project seems to lack a plan or direction. It was initally announced and deposits were taken on 'luxury condos'. The Howards kept telling us the units were selling beyond expectations. However, months went by and constuction never started. Then, unexpectedly, the Howards announced they were cancelling that phase of the development; the phase that was selling so well. Now I'm no developer but that just doesn't make sense to me. Why would you cancel something that is performing better than expected? Doesn't add up to me.
Personally, I just don't think it's time to be building a 'luxury' development. The country and most of the industrialized world is in the midst of a near catastrophic economic meltdown. Everybody is worried about their jobs and money to live on. It just does not seem to be the time to be building million dollar luxury condos. And evidently the banks don't think so either. If the Howards with all their wealth and all their connections can't borrow money from the banks or their other sources, I see no reason the Town should jump in and provide funding for them.
And others have talked about the inequity of this program. Why would the Town provide a funding source for the Howards when so many other people are hurting and could use assistance from the Town as well? What makes them so special. Oh sure, the project is all sexy and glitzy but now is not the time for sexy. Now is the time common sense and rational thinking.
Mr. Buffett, the billionaire, after putting millions, of his own money, into the windmill project (which evidently was quite successful) went to a bank and asked for a loan and this billionaire was denied. Think, think, think - if this man (a billionaire) could not get a loan what is the chance of this Langtree group. Without sucking Mooresville into it, how are they going to obtain the money they are asking for -- bonds or no bonds.
It should not be passed but you can rest assured that it will be. Carney in his re election mode trying to look like he is wearing the white hat protecting all of us from bad and evil things. Wonder which way he will vote? Guess who's office is next to his, well how about that the Howards. Wonder why that is?
Poster 12:43
Beg to differ. The finances for this project were already in place over a year ago. Banks lined up to 'hop on the bandwagon' and Letter of Credit are already in the files.
Do you honestly believe a project of this magnitude would wait until ground breaking to look for funds? What kind of Business men do you think the Langtree group is?
The whole point of Langtree going to the Town is that they (Langtree)will save money. Interest rates for Town Bonds are lower than interest rates for Commercial development, especially now. This translates to increased profits for the 'gold tooth' gang!
Sure the ToM Board will approve this. After all, it'll look like they actually stimulated the local economy by floating the Bonds when in actuality there is no NEED!
They will go to press with something like "Mooresville - Committed to Encouraging Local Endeavors" or "Mooresville Town Board OKs Bonds for Struggling Developer"! All of which is total BS. It will be a political ploy by our local politicians to show they are truly interested in the local economy, while in actuality, they are feathering their nest for when they don't get reelected. Hey, even ex- Commissioners need a job!
So please, stay with the subject and don't go jousting at windmills, Buffett's or any other one.
Post a Comment