Re: Wow - LSC's Updated Plans for SciTech Scity
Posted by Dolomiti on 2017/3/20 9:59:05
Sorry, Dolomiti, I mistyped-it is 78 million. And in this link, the exec dir of the JCRA says that
'the Science center is currently raising 78 million of the 280 million cost and THAT WOULD HAVE TO BE PAID BACK FIRST FROM REVENUE GENERATED.'
I think you're failing to understand the structure.
The $78 million being raised now are donations. Not loans, no expectation of being paid back. If it's getting reimbursed, then it's not a donation. And yes, the term "donation" is used consistently in every article I've seen on this project.
After the project has turned $78m in profits, then the city starts getting 50% of the profits until the cost of the land is repaid. After that, the city gets 20% of profits.
I have no idea why they settled on the same number. My guess is that the initial $78m goes into an endowment.
Do we know if they're borrowing against their endowment (if they have one), or will the city float bonds for this-who gives anyone 78 million with the expectation of getting it back without a plan, and that's before JC gets the land value back.
While I understand your confusion, and think they should probably have picked another number to start paying for the land at a different number to avoid exactly that confusion:
There is no repayment.
There is no borrowing.
There is no loan.
There are no bonds.
There is a plan.
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