Re: Columbus Center
And how sure of this are you? You sound more of a conspiracy theorist to make such an accustation. . .
The fact that accountants exist to reclassify profit to avoid taxes is not just an ?accustation? [
sic] as you wrote.
_ Ask professional business accountants what they do all year long, and why they do it, and they?ll tell you that a primary goal is to ?adjust? the financial records so that the firms show no profit, pay as little tax as possible, and preferably no tax at all.
_ It is not uncommon for American businesses with millions or billions of revenue to pay no taxes.
_ It is unfair, and it is unethical, but it is common.
. . . But what would more likely provide a profit? A development with two years of construction, or a development that has yet to start? . . .
So long as you keep confusing profit earned by the Columbus Center developer with revenue collected by the state, you will never understand the very problem you?re trying to argue about.
_ You are incorrect in treating Columbus Center owner profit and Commonwealth rent revenue as one and the same, because these two factors are largely independent.
_ Columbus Center can earn huge profits for its owners, but so long as their accountants portray the venture as unprofitable, then no rent is owed.
_ No, that is not good for the state, or the toll-payers, or the taxpayers, but it is what was agreed to by the Turnpike Authority (the same people who ?forgot? to get a performance bond before work started).
As always, if you still do not understand this, if or you still do not believe it, then just re-read the parts of the lease that define the conditions under which rent is owed.
. . . Regardless of the "construction" cost and "development" cost, the total cost to develop an air right including construction of all parts is greater than that of a project over solid ground . . .
Listen to yourself!
_ You wrote ?regardless of construction cost and regardless of development cost? yet those are the very two factors that settle the argument.
_ You can not intelligently continue this argument while at the same time disregarding the two factors that settle it.
_ These two costs ? construction cost and total development cost ? are different, and that very difference is what makes Columbus Center?s total development cost less in air than it would be on land.
I proved this over a year ago using public records, so I won?t repeat that proof here today.
_ If you still have doubt about how Columbus Center?s total development cost ended up less over air rights than it would have been on land, then you need to do only 2 simple things.
1. Learn the distinction between ?construction cost? vs. ?total development cost.?
2. Re-read my messages which explained how CC's TDC is less in air than on land:
#1278 on 21 August 2008
#1411 on 28 September 2008
#1435 on 29 September 2008
#1450 on 05 October 2008
. . . Read the news article which states the One Kenmore project as being cheaper than CC because more of it is built on land . . .
Firstly, no one knows what Fenway Center?s total development cost is, as both the developer and the government admitted in the article.
_ Secondly, the article does say that Fenway Center is estimated to cost less than Columbus Center, but that?s irrelevant to our discussion here, because you?ve again focused on the wrong data.
_ In any discussion about how Columbus Center?s total development cost got to be less in air than it would have been on land, comparing costs between different projects is irrelevant.
. . . the government has recognized that decking over the pike is more expensive than just building on land. You said they admitted it. Let me see the article.
No, the government hasn?t recognized anything of the sort.
_ Re-read the article, especially paragraph #11, which says:
?O?Connor said the Turnpike Authority does not yet know how much it will earn in lease payments, nor does it have a cost estimate for the deck.?