Quote of the Day

Tuesday, June 9, 2009

More on Monticello Land

The school's acquisition of land in Monticello was more complicated than I thought!


According to an individual in Monticello (I found this on the person's blog), two families donated 200 acres to the foundation; I'm not sure where the foundation came up with the remaining 320, but at least some of it was purchased:

"Shannon[sic] Brooks from George Wythe College and his wife stopped in to check out the store. They think they might know a few families coming with the college who would be interested in buying it. We will just wait to see what all happens.

"It looks like [redacted] and [redacted] are going to donate 100 acres to the school and [redacted] and I are donating 100 acres, and the college will negotiate with [redacted] and [redacted] for the other 200 they need. We are buying 100 acres back, and then donate that to use as a tax deduction. ...We will be fencing this summer and maybe start on the pavilion."


All of this land was later annexed by the City of Monticello. You can read the annexation document here.

2 comments:

James F. said...

So how does this affect your calculations of the price of the property? Doesn't it take the price from "overpriced" to "exorbitant"?

My thoughts all along have been that the $2.18 million is for more than just the raw land. Could it have included the anticipated costs of initial infrastructure, or a building, or something else related to the building projects on the property?

I don't know, I'm no expert, but I can think of a lot of different possibilities with the information on the balance sheets.

But what is the point of all of this? Are you trying to prove that they overpaid for the land? That they are in dire financial straights? That they'll soon go bankrupt and the "truth" will come out? These all seem to be conclusions that you've already made and now you're gradually finding facts that you use to support these conclusions.

The Real George Wythe said...

James,

They have placed the full $2.18 million on their balance sheet as land, and submitted it to the IRS. That's their tax basis. Including anticipated costs of initial infrastructure or a building would be illegal--I seriously doubt they did this.

There's not really a point to all this other than to document what I've found. If from this you conclude they're in dire financial straits, that's your conclusion.

I've come to some preliminary conclusions too, and the facts seem to be bearing those out, but you never know. They may have donors with deep enough pockets to see them through. Or their online courses may take off. Who knows?