If it matters to Oregonians, it's butchered in the Oregonian
Here's some spectacularly incomprehensible reporting from the O. Apparently one the many bad loans made by the Portland Development Commission recently rose from the dead and got repaid. But the money magically appeared as part of some sort of unspecified "tax credits." Can anybody out there explain what actually happened?
| Posted at 9:48 AM | Permalink |
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Comments (8)
I will explain.
PDC is staffed with lying, cheating, crooked, bribe taking, ....
Oh sorry, not supposed to spit on the true cross of Urban Renewal.
Posted by Portland Native | September 26, 2012 2:53 PM
Can we have the personal names and business names of the other developers who stiffed us from 2000 on? Are any of them still doing business in Portland? If so, why is that being allowed? Are we sure we don't have the same suspects reorganized under different names coming back to the trough? Nothing would surprise me from the PDC.
New PDC version of classic quote: "Opacity corrupts, and complete opacity corrupts completely. "
Posted by dyspeptic | September 26, 2012 3:05 PM
The guy was in bankruptcy but was receiving money back from the IRS. He used that money to pay the PDC, as was likely mandated by the bankruptcy court.
Sloppy and nonspecific writing, but that's what I gathered from it.
Posted by Jo | September 26, 2012 4:15 PM
Put more simply, the PDC was able to nab his tax return.
Posted by Jo | September 26, 2012 4:16 PM
Look at the linked articles. He's not getting money back from the IRS on his personal tax return. The building he renovated qualified for historic preservation tax credits. He had 2 million coming in tax credits once the building got it's final mortgage.
Posted by mike | September 26, 2012 5:13 PM
If the tax credits were coming all along, why was the loan written off? What kinds of tax credits, from which level of government? If an entity is bankrupt, how does it have a tax to be "credited" against?
Posted by Jack Bog | September 26, 2012 6:03 PM
No idea why the loan was written off. I think I was wrong about the fact it was not a personal tax return. Sometimes these tax credits can be sold. Not sure if you can do that with historic preservation tax credits or not. "The National Park Service administers the program with the Internal Revenue Service in partnership with State Historic Preservation Offices" It's a federal tax credit. You can carry forward the credit for 20 years so his company may have gone bankrupt and then he still took the personal tax credit and decided to pay back the PDC. It's a complex case because the bank who loaned him the money went under and another entity bought the loan.
Posted by mike | September 26, 2012 6:37 PM
Guy buys a project with bridge financing (or a PDC loan). Guy says i'm making the building into low-income housing. State issues 9% tax credits and usually sells them for par ($1 t/c in exchange for $1 real money). State gives guy $1
T/c buyer gets $0.10 credit on his taxes each year for 10 years. In 2 years, state says, we aren't getting enough revenues and have to close schools to make sure we have enough to pay employees' PERS contibution. State says you want schools? Then vote on the bond.
Happy? Vote NO on every bond and levy.
Posted by Steve | September 26, 2012 9:15 PM