EDITOR NOTE–We are told the IHFA is the only entity in the state authorized to sell or “facilitate” the sale of these bonds. They have a monopoly, but don’t like the word.

I think we can all argue details until we are blue in the face, and while entertaining, it is probably not worth our time. However I will respond to a few things.

Regarding a “free market” I was using that term in the general sense, rather than the textbook sense. In general, totally free markets often lead to chaos and corruption. As free market economies mature, certain control and planning mechanisms are usually put in place to ensure the ride isn’t quite so bumpy. Most laymen would call our economy a “free market” economy, but we all know that a tremendous amount of planning and manipulation takes place, and usually we benefit.

As for Tamarack, I’m sure that they did a lot of things wrong, but I really doubt that they could have foreseen the direct impact that the housing implosion and the large European banking corruption scandals would have on their financial instruments. If they had, they would have been way ahead of the Fed and most of Wall Street. If you will remember, Tamarack’s troubles are a lot more related to their loans being called (due to bank cash needs in response to the aforementioned banking corruption scandal) than to any failings in their business model. They were still selling out most of their offerings when this all went down.

In essence, by “butting it’s quasi-governmental nose” into this deal, IHFA can directly benefit the economy of valley county by ensuring construction, retail, and service jobs are created by the completion of the resort. Any way you look at it, that helps the people in Idaho’s economy that need it most.

Oh, and BTW, I can’t disagree with you on the fact that IHFA needs to do way more than they are on the affordable housing front. Some tie in for this deal to affordable housing for resort employees would be a great start.

I do still stand by my comment. If these bonds make sense, there will be a buyer. If not, well…then all of you that have been rooting for Tamarack to crash and burn may get your wish.

If Tamarack needs bailing out let the private investment market do the bailing.

I do know how IHFA works. In 1997, I wrote a three-part investigative series about the organization that was published in the Weiser Signal American. At the time, I also won the inaugural Max Dalton Open Government Award for my successful effort to bring the organization under the Idaho Public Records Act.

IHFA was created by state statute and was originally known as the Idaho Housing Agency (IHA). The organization’s Board members were, and still are, appointed by our Idaho Governor. Their initial purpose was focused on the provision of affordable housing in Idaho. In its infancy, IHA did rely on state financial backing. They also did, and still do, sell tax-free bonds, thanks to a provision of our federal government.

In the mid 1990’s, the organization went back to the Idaho Legislature and legislation was passed that removed the state sales tax backing, while changing the name to the Idaho Housing and Finance Association.

Since then, IHFA has continued to increase its role in our State’s economy. For example, the organization now handles the sale of GARVEE (grant anticipation revenue) bonds for the State of Idaho.

My point with regard to this story and your initial comment was not about IHFA’s risk. You suggested that, “Simply put, this bond sale will either live or die based upon free market principles.”

I took some econ classes in college. My understanding of the free market does not include government (or quasi-government, in this case) bailouts or assistance when bad financial decisions are made by people in the private sector.

Additionally, we have unaddressed affordable housing issues in our community. People who live in manufactured housing are periodically displaced when the land they are renting is sold out from under their homes, but the aged mobile homes are unable to be moved due to cost and other factors.

Rather than butting it’s quasi-governmental nose into this Tamarack deal to help bail out wealthy land speculators, wouldn’t it make more sense for the State’s affordable housing agency to be assisting the often elderly, and sometimes disabled, folks who are displaced from their manufactured homes through no fault of their own but bad luck?

Oh…and Rod. Calm down. No exclamation point is needed. Some of us take a few vacation days this time of year and try to get as far away as we can from our phone and PC. 🙂

EDITOR NOTE–Bush is the only president to visit Tamarack.

Editor: I agree with RiverCity about you know who, as should we all.

Free market capitalism has a nice ring to it, but historically in Idaho government was essential to getting major industries established, either through land giveaways or cheap leases, subsidized infrastructure, war contracts for dehydrated potatoes, etc. It shouldn’t be any different now.

The biggest problem for the Tamarack development is and always will be Highway 55. The amount of traffic on the road has caused us to give up our annual trip to McCall to share a condo with family for a few days in the summer.

So, unless, like G. Bush, you can bring your own helicopter, you have no choice but to take 55. So I predict that Tamarack will remain pretty much a ghost town unless something dramatic happens with the economy. I doubt that PERSI would get involved with such a dubious project.

And I suspect that property values have fallen below what some purchasers originally paid during the “bubble” of the last few years.

One can only hope and pray that our state government doesn’t get involved with a bailout program for Jean Pierre and his partner.