Port Orange: The Duality of Bond Upgrades and Private Sector Bailout
‘The totally inappropriate consideration of a TIF District for bailing out a developer.’
With issues remaining to resolve, the City of Port Orange has worked hard to recover from many issues over the past years.
According to Moody’s, the City of Port Orange was just able to refinance CRIB 2004 Bond issue for an NPV savings of $2.2 million. And more important, the CoPO’s bond rating was upgraded.
cit: Moody’s Investor Service 11JUNE2014
The refinancing and upgrade were made possible by positive, critical success factors both present and long-term. Among other options, the City may allocate some of these funds to jump-start the Riverwalk project. In the rating, Moody’s clearly states what could negatively affect the future rating in the short-term and long-term. In that light … the precedent of declaring a TIF District at Riverwalk flies in the face of fiscal reason.
The LaCour proposal amounts to a private sector bailout by the City of Port Orange.
The City of Port Orange needs to move forward. And this TIF [Tax Increment Financing] proposal takes the City in opposite fiscal direction. And set a very negative precedent.
Here is a link to Moody’s Ratings and Symbols. You’re going to determine in which direction we go. To Prime or to Junk?
Tom [Tommy] Menocal
Port Orange, FL
g: 414.367.4140 – GoogleVoice#