Public records at the Idaho Secretary of State site show the “quasi-governmental” corporation donated $500 to the Republicans for the Lincoln Day party in February. We are told $500 will get those who pay, a table closer to the front of the venue. Wonder if the members appointed by the Guv approved the donation…we can’t find any indication of similar donations to the Democrats.

Seems the folks entrusted with selling GARVEE highway bonds, facilitating loans for low cost housing, and proposing to make Tamarack’s $670 million bailout legit to union pension funds has a tilt to the right.

Here–unedited–is the explanation she got from a Caldwell Councilor:
“This is true with a couple of interesting facts: The college of Western Idaho is funded by tax dollars. TVCC is funded with tuition and private enterprise with no tax dollars being used for the Caldwell Campus.

If you want to know more, email again and I will give you a call with the rest of the story. The Guardian is a spin paper that spins stuff to create readership. Most of it is not accurate or does not explain the whole story.”

Our GUARDIAN reader finds it difficult to understand why the city is involved at all if, “it won’t cost you money” (why doesn’t TVCC just go to a builder with its tuition money and leave the city out of the loop?”

Now that we have the “truth” from the City Council, we hope readers will have a better picture of WHY the city is pulling for the out of state TVCC and not offering to help College of Western Idaho.
The lease-purchase deal set to be signed August 27 will indeed be funded by taxes on the appreciated value of property within the Urban Renewal District–without voter approval.

THE CALDWELL GUARDIAN attended the Chamber of Commerce Lunch at the College of Idaho yesterday and learned about plans for a Treasure Valley Community College (of Ontario, Oregon) campus to be built in Caldwell…before the voter-approved College of Western Idaho has even opened its doors.

The plan to get this Oregon based campus up and running in Caldwell is a financial maze of convoluted ownerships, leases and lease purchase agreements. To the best of our knowledge here is the scoop:

1. The East Caldwell Urban Renewal District owns the land for the proposed project.

2. Norfleet Development LC (Butch Gilliland) will build the building and improvements on the urban renewal property and lease the building back to the urban renewal district.

Typically, these contracts have a clause that any taxes will be passed through to the leasee should the issue arise. There WILL be taxes due on the PRIVATE COMMERCIAL RENTAL building under Idaho Law–A very good deal for the developer as he will potentially get a guaranteed rent for his building and a guaranteed buyer, TAX FREE during the life of the lease arrangement.

3. TVCC will lease the building at a highly reduced rate while the urban renewal district (funded by property taxess) does the heavy financial lifting on this deal with full “lease/purchase” payements to Norfleet for the building and improvements.

4. At the end of the East Urban Renewal District life there will be a baloon payment to Norfleet of several millions of dollars for the balance due on the cost of building/s and improvements. A long term debt by any other name is still a LONG TERM DEBT.

5. Concurent at the end of the urban renewal district life, a deed for the property, buildings and improvements will be handed over to the city of Caldwell. A PURCHASE WITHOUT PERMISSION OF CITIZENS. Caldwell will then become the landlord to TVCC.

6. Mayor Nancolas has assured THE CALDWELL GUARDIAN this is a simple annual lease and the urban renewal/city can walk away at the end of any years renewal time on the lease (known as a “non-appropriation clause). However, the lease payments apply to the purchase price, so this is in reality a “purchase”. Think Canyon County Decider’s and the Jerome property “lease deal” and the mess the Commishes found themselves in over this deal.

Questions arise about how Article 8 section 3 of the Idaho Constitution (no long term debt without voter approval) applies to this project and long term debt for taxpayers. It also appears public assets are being pledged as security for the lease.

Who owns the land once the building is built?

If the developer owns the building then he is liable for property taxes under Idaho Law without regard to who occupies the property. (Same situation happened in Boise with some Fire Stations under the Brent Coles Administration.) The entity holding title is on the hook for property taxes–unless both parties agree have the “leasee” (urban renewal, city, and TVCC) pay the taxes.

If there should be a default by either the urban renewal district or the developer, who will own the land/buildings/improvements?

This project has all the earmarks of the Ada County Courthouse on it. Property taxpayer’s are going to be on the hook if and when this deal tanks.

The real question here is ..why is this not getting put up for a bond election? The GUARDIAN can think of no school project that has been built without a bond election. Secondly, how does the yet to be opened voter-approved approved College of Western Idaho fit into the scheme of things?

Right now TVCC, the Oregon institution- is fully funded by student tuition fees. The murkiness of this comes into play with the financial arrangements and cross ownerships and lease underwriting by the city of Caldwell and the “alter ego” of the city, known to you as the Caldwell East Urban Renewal District.

THE GUARDIAN welcomes and will provide space to the “Decider’s” of this project if we have any of this incorrect. The GUARDIAN was offered the contract AFTER it was signed–which is far too late to shed the light of public scrutiny on a convoluted financial deal worthy of Fannie, Freddie, Idaho Housing and Finance Association, and the big city of Boise and Ada County politicos.

JUST TELL IT TO THE VOTERS AND LET THEM DECIDE!

BY “JAMES BOND”

Thought you might be interested to know that today’s announcement by Sorrento
Lactalis about an expansion of their cheese factory includes one rather interesting
item not mentioned in the daily paper:  They will be asking to build a 17 story
drying tower.  They have said this through their attorney in city council hearings
in Nampa. 

Their attorney said the 17-story would be noisy, emit odors, and be
visible from a distance.  They are in the county, but  are apparently
“negotiating” with Nampa for annexation into the city.  The residential areas to the
north and east of them, where the prevailing winds blow, should just love that!

EDITOR NOTE:  First it was the aroma of FRENCH fries (pommes frite) in Caldwell, then the foul mash from the sugar beets.  FRENCH cheese odors mixing with auto exhaust fumes and forest fire smoke should smell like Smoked Cheese.

Ghost town of unfinished luxury development at Tamarack.

Bankrupt developers, property liens, misrepresented sales, a $250,000,000 loan default, and multiple lawsuits are all elements in a proposed bailout of Tamarack Resort in Valley County.

A bankrupt Mexican and Frenchman are seeking a bailout with assistance from the U.S. Department of Commerce and the Idaho Housing and Finance Association (IHFA) in the form of a $670,000,000 bond sale to “institutional investors” like pension funds–such as those operated on behalf of unions and the Public Employee Retirement System of Idaho (PERSI).

The IHFA stands to make about $3.5 million in fees if the deal is consummated with their help. A spokesman for the IHFA told the GUARDIAN the fees would go toward “affordable housing” in the area of the luxury resort and subdivision. Other sources tell us Tamarack is the big owner of those properties as well.

The Tamarack publicity machine runs overtime, attracting financial giants like President G.W. Bush and the former Idaho Guv–who once stiffed his barber with a bad check– Dirk Kempthorne. Dirk went on to be Interior Secretary. G.W. currently ranks as the most “ disapproved president in history and Tamarack is after the hard earned retirement money of worker bees and pension funds so the rich will have a playground and multi million dollar vacation homes.

The potential for financial disaster with this scheme ranks right up there with Enron, and all the recent sub prime lending and resulting scandals that has brought the national economy to its knees.

The Idaho Housing and Finance Association claims to be a “quasi government private corporation.”

That means they were created by the legislature, the board is appointed by the governor, but there is no state control of their lending. They have a monopoly on selling the bonds sought by Tamarack, but adamantly state NO STATE FUNDS are used or obligated.

The GUARDIAN submitted a series of questions to IHFA. Their written responses follow:

1) Tamarack approached the Association in partnership with the US Department of Commerce to pursue a privately placed conduit financing. There are certain large institutional investors, primarily pension funds, that will not make direct real estate loans but will invest through a conduit financing structure. These financing structures offer an investor a Trustee Bank, such as Bank of N.Y., to oversee financial matters relating to the investment. The Association is the only authorized entity in the state that can issue bonds under this type of economic development financing structure. Traditional banking entities could offer direct loans for Tamarack, but cannot facilitate access to certain of these large institutional investors.

2) The Association will not invest any funds toward this transaction, nor will it provide any credit enhancement or place any assets at risk. If Tamarack is successful in finding an investor(s), all funding will be provided by the applicable investor. Any bonds issued will be done on a private basis and not offered in the open market to any unsuspecting investors. Only highly sophisticated institutional investors are qualified and will conduct their own due diligence in determining the propriety of such an investment. Tamarack is responsible for identifying and negotiating a successful outcome with any prospective investor. There would be no guarantees on the bonds – the investor’s recourse in the event of a default is to foreclose on the underlying loan or pursue other security or personal guarantees offered by Tamarack in their negotiated terms and conditions with the investor.

3) The Association’s Board of Commissioners considered Tamarack’s application for this financing at their July 25, 2008 Board meeting. It was determined that the application met all Statutory and Association policy provisions. A significant report on Tamarack’s economic impact to Valley County and the State overall was presented to the Board. It was also confirmed to the Board that the proposed financing would pay off all outstanding debts owed to contractors and others connected with Tamarack. The Board passed an initial or inducement resolution for the financing. This allows the Association to move forward with public hearings for the purpose of determining whether a “public purpose”

will be served by this financing. Additionally, Tamarack must find an investor, and then acceptable terms and conditions must be negotiated with both Tamarack and an investor. The bond financing is not yet approved. There will need to be additional action by the Board, assuming the transaction comes together acceptably. We are aware that Tamarack is pursuing other debt restructuring alternatives.

4) After making inquiry to staff members involved with this transaction, we are unaware of any inquiries, phone calls, e-mails, or other communications by political figures to either support or object to the Tamarack financing application. Our expectation is that we will hear from various community and elected officials during the comment/public hearing phase of the financing approval process.

We cannot understand why an outfit that claims it is not a public agency would hold public hearings, but not much makes sense with this story.

Some 20 years ago when Ada County created the laws for emission testing and the surcharge for street and bridge replacement, the rental car folks suddenly created “offices” in places like Mountain Home, Caldwell, Pocatello–ANYWHERE other than Ada County to register their vehicles and avoid the local taxes which can be $40 per vehicle.

We have done checking over the years and find it is a scam, but there is no enforcement. State law allows you to register a vehicle in any county, but the home address must be the county of RESIDENCE. Hunters and “old Idahoans” register in Boise County so they are not obvious Boise dudes when they visit the rural areas seeking permission to hunt.

Check out the rental cars at the airport and you will see mostly 2C and 8B plates. We did some informal records checking a year ago and learned that since Ada County is the only county in all of Idaho that charges fees other than the state motor vehicle rate, there was little interest in tracking down the cheaters.

I am the president of United Street Rods of Idaho, a lobbying organization for Idaho auto hobbyists. We were concerned about being forced to use a fuel in our prized and expensive classic and collector cars. It is well known that ethanol causes major problems in older cars.

As we continued to watchdog the corn cheerleaders and research the topic, more glaring truths about ethanol emerged.

E10 and E85 (85% ethanol) provide diminished gas mileage. Ethanol contains 66% of the BTU’s (energy) of gasoline. Therefore, a 10% solution of ethanol has 3.4% less energy than gas. An 85% blend (E85) has 25% less energy. A vehicle getting 20 mpg on gas will get 19.3 on E10 and 15 mpg on E85. So much for proper tire inflation, regular tune-ups, etc. The

AAA reports actual costs for E85 adjusted for reduced mileage: http://www.fuelgaugereport.com/
The second issue is the rapid movement to E10 by Valley retailers. In the last three weeks, Jackson Foods, Albertson’s, and Fred Meyer have joined Stinker Stations in serving only E10. Soon to join are Flying J stations.
Behind the environmental and “the government made me do it” claims lies the economic truth.

These retailers are saving 11 cents per gallon by diluting their gas with cheaper ethanol. Are they passing these savings on to customers? Not one of these retailers has reduced their prices since beginning sales of “watered down” gas.

Other incentives are driving them to E10. As taxpayers you will be happy to know that The Biofuel Fueling Infrastructure Tax Credit passed by the 2006 Idaho Legislature gives them a tax break for preparing their stores to sell us watered down fuel.

If that wasn’t enough incentive, the Idaho Department of Water Resources Energy Division has $2.3 million in grant money to assist them in preparations to gouge us at the pump.

No one seems to be looking out for the Consumer. The Attorney General isn’t interested. Where is Jim Jones when we need him?

EDITOR addendum—
The price of everything from tortillas to eggs, dairy products, and meat is tied to the price of CORN. Just because it is POSSIBLE to make fuel from corn doesn’t make it a WISE decision. Mr. Goodnight has hit on one of the most important issues facing America and perhaps the world today.

A piece in the Thursday Daily Paper quotes a spokesman at parent company DBSI saying the workforce has been reduced, but they aren’t folding.

If memory serves us, they are the folks with the friendly radio sports about the “old neighborhood.” Sound like the neighborhood is the wrong part of town and in decay if the LINK INFO is correct.

The GUARDIAN checked with some real estate developer friends–we actually have one or two–and they say word on the street is it is curtains for the developer. Subs are calling for cash and some are getting stiffed, but that’s never news working with speculation developers.

Growthophobes can take some solace in the news that another land speculator has met its maker. On the downside is the pain and suffering for the “believers” who worked at Kastera.

Yesterday’s news of arrests and pending investigations of some 400 people in the lending industry tends to confirm the rumors of predatory loan practices and people walking away from million dollar homes in the middle of the night.

We were told yesterday of a subdivision near Kuna was a single home (sales office) in it that has foreclosure notices posted on site.

Boise Mayor Dave Bieter is now floating another attempt at a downtown trolley to run from the Depot–which is closed to the public most of the time–to downtown among other routes.

He tells the business “leaders” at the charity speech for the Chamber of Commerce that it will cost a mere $50,000,000 for starters. He supports Councilor Clegg’s goal of getting it up and running in four years.

The trolley at Ybor City in Tampa, Florida is colorful, fun and goes to and from nowhere. It is an expensive colorful novelty. Amsterdam by contrast has an extensive–and expensive–trolley system. That one runs on the Euro, not the U.S. tax dollar.

We have done this drill in the past. For his $50 mill the GUARDIAN will offer citizens 100 buses…enough to cover 25 routes about every 15 minutes–and it is flexible because you don’t have to run on tracks with overhead wires.

Instead of running to and from downtown, how about doing shuttle buses up and down Fairview and Milwaukee? How about running from neighborhoods to the Cole-Overland CostCo-Edwards-WalMart area and Vista Village? You wanna get folks out of their cars, give them transport to places they shop.

We hate to be first to punch holes in this ill conceived idea, but someone has to get the word to Team Dave that trains are NOT a good idea.

We haven’t gotten the official word from the Highway District which is in command of the streets of Boise, but staffers only laughed when we asked if Team Dave had sought permission or studies for the latest trolley scheme.

Anymore ideas like downtown trolleys and the legislature will NEVER allow local option taxes for transportation.

From the GUARDIAN 2005

Dear Mr. Guardian: