Hesperia Questions to be answered to determine Taxpayer Subsidy to attainable housing ! Answers today at 4:30 at City Hall ??

Fill in the missing number and it can be easily determined if the subsidy we will be giving is a wise use of our money or whether it can be better leveraged elsewhere to obtain more units of affordable housing.

Maximum Return = X (market value of 69 acres)
Return Now Projected = $19,970,649
Subsidy Implied = Difference.

When we are informed of the real value that these lands would realize on the open market if sold to developers and the number of units of attainable housing that are projected for the Hesperia Development, we can stop this speculation and be in a position to make an informed decision about whether this project should proceed.

Basically the taxpayer of the City will receive a total of $22,578,000 ($19,578,000 in 'dividends' and $3,000,000 for Land). (Present value of this deal in 2008 $'s is $19,970,649). (Dividend present value at 2% is $17,253,457 at 3% is $16,212,881 Land Present value at 2% is 2,717,192 at 3% is 2,587,826.) This is our return from the initial cash flow projections.

The sales value of 69 acres on the open market with the same highest use zoning as is envisioned on the Hesperia Land Project now is the Taxpayers maximum return on this taxpayer's asset.

The # of attainable housing units is the number of units that would not have been built in the medium 1/3 (Lowest scale of medium, moderate and high) if the Land was not controlled by the Vernon controlled subsidiary the Hesperia Land Corp.

When the average person can clearly say, we will give up "x" number of dollars if we develop that land rather than sell it to developers BUT we will get "y" number of attainable housing units and I think that is fair, then the deal should be made. When the average Councillor can actually say and understand that, than then and only then should they actually vote on this deal.

This is a political decision regarding the use of taxpayers assets and Council should assure themselves that can defend their decision by explaining the financial benefits that we will gain and this can only be done if all these facts are debated in an open Council Meeting with all financial projections made available to the public.
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PROVINCE FUNDS AFFORDABLE HOUSING IN VERNON

At the above posting it is indicated that the 2.348 acres of land that was contributed by the city was valued at $900,000. This would make each acre worth $383,304. The 40 units of affordable housing would make each unit's land cost to the city's taxpayers to be $22,500. (Sounds like a good deal because City is leasing this land to this project and will retain ownership and any further capital appreciation !) (The city will provide a 60-year lease to the society for a nominal amount)


WHAT WILL BE THE DIFFERENCE IN SUBSIDY BETWEEN "AFFORDABLE" HOUSING AND "ATTAINABLE " HOUSING ??