The taxpayer is paying – so line up and get yours. Post 135

Planning Commission moving into new offices

The Republican   Springfield, MA   September 03, 2009

Developers …showed off a transformed former Hooters building…days before the Pioneer Valley Planning Commission will move into the building as the first tenant.

Mirkin, … and Gagliarducci bought 60 Congress St. at a tax foreclosure auction in June 2008 for $605,000. The 28,500-square-foot building had been home to a Hooters franchise… Before that, it had been home to Spaghetti Warehouse. It was also once a commercial laundry.

Mirkin and Gagliarducci said the entire project cost $4 million, including the $605,000 cost of the building. They gutted the structure, tore down one addition and built a new four-story addition to house an elevator, stairwell and rest rooms.

They have a Tax Increment Financing, or TIF, agreement with the city for 10 years. Under the agreement, there is a 50 percent tax exemption for five years and a 30 percent exemption in the sixth year, declining to a 10-percent exemption by the 10th year.

James M. Mazik, deputy director of operations for the Pioneer Valley Planning Commission, said the commission will pay $13.50 a square foot to rent 16,500 square feet on two floors, for a total of $222,750 for a year. The commission will also pay for utilities and a share of the building upkeep.

…the Pioneer Valley Planning Commission… needs more room to host meetings and for mapping equipment. The commission has 50 employees and provides help to 43 municipalities on land use, transportation and economic development. It has an annual budget of about $5 million, funded primarily through state and federal grants and contracts with cities and towns.

See entire article: Connected developers pay no taxes

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Coach Mitch’s REFLECTIONS™

Your tax dollars at work

Taxpayers fund the Planning Commission with $5MM per year. The developer buys a building at a tax sale for well under the retail market price, a sweetheart deal. Further, the local government gives a significant property tax discount to the builders, amounting to the builders not paying property taxes for 3.5 of the next 10 years. The property tax exemption discount is another way the public’s coffers are depleted because these monies are not collected, when they otherwise would / should have been.

I suspect that, if one were to investigate, they would find that the builders have made sizable political contributions. As is well known in political circles, nothing happens by chance. If it happens, it was meant to happen.

The lesson

This transaction is a very good example of how you can plan to become wealthy with tax delinquent property.

The 3 step process

1 – Seek out government, local is easiest.

2 – Find out what they want.

3 – Give it to them.

I am not being cynical nor satirical

You will find that in many communities each of the governing bodies want “their” own Taj Mahal.

The Police “need” a bigger, better, more secure jail and administrative building.

The town’s Highway Department or General Services unit “need” their own, bigger space for more toys, like a road sweeper or leaf picker upper.

The fire departments all need new firehouses, complete with sauna, pool room, and party hall.

Let’s not forget the library. In my town, the library is undergoing the third expansion / remodeling in five years. The library takes a bigger tax bite than the highway department. The new books are one of the smallest budget items. Existing employees and new hires are the great bulk of the costs.

Of course, the mayor/supervisor and the town board are campaigning for a new government center. I’m sure you agree that current town employees are squeezed in like mice. As more government workers are hired (empire building never ends), they will be even more squeezed.

The biggest boondoggles of all are the schools. Our town recently completed our Tax Mahal and the Board of Education is patting itself on their back that they kept the spending down to only half the accumulated wealth of the western world.

Donald Trump did it this way

“The Donald” took his father’s $110MM inheritance and his Wharton School education and did HUD transactions. He built apartment complexes with government subsidies and really made a fortune.

You need the right tools

Once you find out what the government unit wants, look for property that will satisfy their need. The first place to look is, of course, the tax delinquent property list. You will find out how to garner this list when using Coach Mitch’s “Ridiculously Simple System…”™ . Control that property with Coach Mitch’s “famous $1 Option.”™. When your government contact says, “Yes, that property will do.” then you are in business – and it only cost you $1.

Shovel Ready projects

This is the mantra these days. Many governmental units have projects, already planned, sitting on the shelf, and ready for shovels. Go get your piece of the pie.

Pay to Play

Donate to the political party or to those who have the ear of those making the decisions. The old saw is correct, “It takes money, to make money.”

However, with Coach Mitch’s “Ridiculously Simple System…”™ ,you only need $1 when using Coach Mitch’s “famous $1 Option.”™.

Go for it,