FYI, it was Ken Ivory who amended Mike Morley’s HB 220 to insert “compound” and he got the phrase from James Madison. See the new home page of the site for an explanation.

Of course, I’m simply opposed to RDA’s on principle, so telling me this RDA isn’t “as bad” as most, doesn’t make me feel that good about it. This is something the market can, and should, sort out. If there is clean up on the site that HAS to be done (which there undoubtedly is), then the developer should have assessed that, and figured it into the cost of purchasing and developing the property. If he underestimated, or the economy dipped (or both), then taxpayers should not have to bear the brunt of that. He should sell the property (at a loss, if necessary, or let it foreclose), and someone else will buy it for much less, and be able to develop it more easily, since they haven’t taken a huge loss on it. An obligation to clean it up, can and should be built into the price (just as it should have been taken into account when Anderson purchased it before the recession began).

At one point in the meeting, Mr. Anderson, stood to straighten out the record, and then proceeded to tell us that the site could be worth $3 Billion, and yet he’s apparently reluctant (or unable) to spend 5% of that amount ($150 Million) to get things going, unless he has a donation from government. Pardon me if I’m incredulous! If what he said is true, he should have no trouble securing bank loans, or attracting private investors. I’m guessing that since the money isn’t flocking to him, that $3 Billion estimate may just be a tad optimistic.

The worst thing about these deals is that we later find out that much MORE money is needed than originally expected. See the city of Orem’s commitment to Utopia, which was supposed to be self sustaining, then just needed an infusion of a few million in “guarantees”, and now has us on the hook for $50 Million, and possibly (probably) more.

I predict that once this RDA begins, there will be an inclination to spend the money on the easiest-to-develop portions of the site. Then we will later find out that they can’t do clean up and development on the rest until hundreds of millions more are “invested” in clean up. Meanwhile, the developer can just go ahead and develop the clean portions of the site with it’s own money, right now, if it really makes any financial sense to do so.

Sad thing is that Vineyard is being led down a primrose path here, and being extorted, almost, in that Anderson acts like it won’t even develop the clean parts of the site, unless they get the RDA money, first.