Billionaires Using Our Taxes to Buy Benbow Inn?
The Humboldt County Board of Supervisors is not only discussing marijuana tomorrow but today they are meeting privately with some prospective buyers of the Benbow Inn and tomorrow, to quote the Times Standard,
“the board is receiving a presentation from the Benbow Inn Resort and Spa in regards to the sale of the establishment.
According to meeting documents, the Redwood Legacy Group, L.L.C., is in the process of purchasing the inn and is requesting the county assist in obtaining bonds from the state to purchase the inn.
”Due to the economic conditions that have plagued the tourism and real estate-lending industries nationwide, this sale is unlikely to be completed using private financing,” the document said. “Because of the historic importance of the inn to the Southern Humboldt community, the purchasers have asked the county to assist in obtaining financing to acquire and renovate the property.”
UPDATE: I had put an email here from a reader. After seeing it online, my source rethought and asked me to take down the piece.
Nonetheless, I am curious what financing deals the Supervisors could “assist” in. According to the below ad placed in the San Franciso Examiner (It is only available in cached form so I “mirrored” it here), The Redwood Legacy Group wants to use Recovery Zone Facility Bonds (RZFB). Those bonds are to be offered to “businesses and governments across California [in a] limited-time access to tax-exempt financing for a wide variety of projects. Interest rates on RZFBs run 20% to 40% lower than other sources of capital such as conventional bank loans …”
The RZFB’s are part of the 2009 stimulus program but I’m not sure that moneyed interests buying the Benbow Inn is the best use for stimulus money. Maybe there is a good explanation. I’d just like to hear it.
By the way, the only place the name Redwood Legacy Group appears online is in the last two weeks with reference to the Benbow Inn purchase. The link I provided above is to a business tagged “medical alarms” in the Garberville area with a very similar name but may not be the same. (Do we have a business in Garberville with that name?)
NOTICE OF PUBLIC HEARING WITH RESPECT TO THE EXECUTION AND DELIVERY OF TAX EXEMPT BONDS OR OBLIGATIONS BY THE COUNTY OF HUMBOLDT, CALIFORNIA PURSUANT TO SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, NOTICE IS HEREBY GIVEN, that at 9:00 a.m., on Tuesday, December 14, 2010, at 825 Fifth Street, Room 111, Eureka, California, the Board of Supervisors of the County of Humboldt (the “Board”) will conduct a Public Hearing (the “Public Hearing”) at which time the Board will consider information concerning a proposed plan of financing providing for the issuance by the California Statewide Communities Development Authority of Recovery Zone Facility Bonds (the “Recovery Bonds”) in one or more series issued from time to time, including bonds issued to refund such Recovery Bonds, and at no time exceeding thirteen million five hundred thousand dollars ($13,500,000) in outstanding aggregate principal amount, to finance the acquisition and renovation of historic Benbow Inn located at 445 Lake Benbow Drive in the south portion of the County, near Garberville, California (the “Project”). The Project will be owned and operated by Redwood Legacy Group LLC, including any related or successor entity (the “Legacy Group”). The proceeds of the Recovery Bonds are to be loaned to Legacy Group pursuant to a loan agreement (the “Loan Agreement”), which will be used to finance a portion of the costs with respect to the acquisition and renovation of the Project. The Recovery Bonds may be issued in one or more series. As security for the Recovery Bonds, a debt service reserve fund will be funded with Recovery Bond proceeds. The Recovery Bonds will not constitute a debt or obligation of the County, the State of California, or any other public body, or to be in any way payable from taxes or other public funds. The Public Hearing is intended to comply with the public approval requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended. The Recovery Bonds will be issued as Recovery Zone Facility Bonds under the American Recovery and Reinvestment Act of 2009. Those wishing to comment on the proposed nature and location of the Project with the proceeds of the Recovery Bonds may either appear in person at the time and place indicated above or submit written comments, which must be received prior to the Public Hearing, to the Board of Supervisors c/o the Clerk of the Board, 825 Fifth Street, Room 111, Eureka, California 95501. Dated: November 29, 2010 12/1,7
|Created:||Dec 1, 2010|
|Expires:||Dec 7, 2010|
Photo from the Benbow Inn website postcard site. You can send a postcard from the Inn using this lovely page.