On the agenda for today’s Board of Supervisors meeting, a resolution approving “the issuance and sale of tax-exempt bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $11,000,000 to finance various capital facilities owned or leased by Children’s Day School.”
In specific, to finance the purchase and renovation of 601 Dolores (a.k.a. the Castle on the Park), the purchase of which we first reported back in May.
∙ Castle On The Park (601 Dolores) In Contract For $6,600,000 [SocketSite]
∙ Sweet Jesus (So To Speak): 601 Dolores On The Market And Inside [SocketSite]
I’m not sure why we use conduit lending for this sort of thing, although I believe all states do this. Regardless, it always sounds like yet another tax break to insiders, and yet another way for the manager of the conduit to get profit.
The bondholders lose too because these things aren’t transparent enough, which is why Mike Feuer in the state assembly wants these entities audited. Why should we provide these massive tax subsidies for private organizations (even if they are nominally “non-profit”)?
Here are examples of other projects that CMFA has helped out:
http://www.cmfa-ca.com/news
Was only a matter of time before this mess got put on the taxpayer’s back.
Not sure why this would be sponsored by taxpayers? Couldn’t a wealthy parent step up and have the building named after them? If parents are paying $20,000 plus for fingerpainting they should be able to raise their own private capital. Two thumbs down. Hopefully the board will recognize that. Also, why bail out the developer and banks on this product?