Hesperia Land Corporation Notes from 2007 Financial Statements

• As at Dec. 31 ,2007 the Hesperia Corporation had Accounts payable of $22,120. (Development costs of $21,534 were part of this total.)
• As of Dec. 31, 2007 the Hesperia Corporation had contracted the services of an architecture firm in the amount of $206,000.
• The Hesperia Corporation had committed to the purchase of 69 acres of land for $3,000,000 to be completed by the issuance of a promissory note. This purchase transaction was completed subsequent to year end (and prior to Apr 3,2008)
• As of Dec. 31, 2007 the Hesperia Corporation had entered into a project management agreement to provide services as required to prepare a rezoning application and manage the project to completion. The remuneration is on an hourly basis. The contract completion date is December 31,2012.
• The total draws on the City of Vernon's $12,993,300 line of authorized revolving credit is now $1,200,200 which is money to be used in the July to December period of this year. (Authorized June 23/08 by Council)
  

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Don Quixote Note: Today with the Appraisal revealed we will be able to determine the taxpayers contribution to 'attainable housing' .

Council Members requested to receive

• a copy of the appraisal for the Hesperia Lands,
  
• as well as a report on the proposed DCC's for the development.

The Cheatsheet for this calculation is simple:

• Appraisal value of 69 acres of land if sold to developers: ** $
• Minus Present Value Return of Project (from 5 yr. cash flow plan) = $19,970,649 *
• Difference is deemed subsidy for 'Attainable housing' = $

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.