Philly says Boy Scouts have to accept gays

[Solomwi]

Where did Ben get the idea that the building is worth eight figures?

No idea. A post or two after he first mentioned that, he went on to say the city should just pay up, since that would be cheaper than litigating.

[BlackCat]

Well, I know that Ben has a good imagination, but I didn't think that is was so far out that he would consider 1$ a year lease wasn't a subsidariy

[SlowwHand]

His ass, where everything else he says comes from.

Mouthy little DL, aren't you?

[BlackCat]

Even DL's speaks teh thuth from time to time

[SlowwHand]

Speaks what? Are you turning into an AAHZ devotee?

[Princess Peach]

Mouthy little DL, aren't you?

Not a DL, but have seen enough of what BK posts to know hes stupid.

[Ben Kenobi]

Where did Ben get the idea that the building is worth eight figures?

I misread it as monthly rent of 200k, which would make it at a 200:1 ratio a building worth around 40 million, or eight figures.

If the rent is 200k yearly, the building will be around 4 million or so. So correct that to 7 figures.

If the case goes to the Supreme court, they'll pay more out in litigation than the building is worth.

[Ben Kenobi]

Well, I know that Ben has a good imagination, but I didn't think that is was so far out that he would consider 1$ a year lease wasn't a subsidariy

The word is subsidy.

They donated a building now worth about 4 million dollars to the city. At 4 million dollars, they could generate a return of 400 thousand every year with a 10 percent interest return year over year.

Minus the rent, they are still accruing 200k a year plus the principal of 4 million dollars. I'd be very surprised if the rent write off ever exceeded yearly interest earnings off the principal.

The Scouts should get repaid for the building value. The Philly council has benefitted considerably, to the tune of 16 million dollars in today's dollars over 80 years

[loinburger]

Anybody that uses ignore is a chicken****

Depends on why you're using it. If you're ignoring somebody because you're afraid they'll refute your points or whatever, then you're a chicken****. If you're ignoring Fez or somebody along those lines then you're just trying to keep the forum readable.

[giblets]

I think fair market rent would be based on the value of the land and the building. The value of the land definitely matters. So your statement that

At least the scouts put money into the city coffers by building them an 8 figure valued building. That they get some of that back, ain't a subsidy, anymore than tax exemptions for charitable donations.

is very wrong because the construction of the building did not even add $4 million in wealth to city property. The scouts have not been ripped off at all.

[giblets]

The word is subsidy.

They donated a building now worth about 4 million dollars to the city. At 4 million dollars, they could generate a return of 400 thousand every year with a 10 percent interest return year over year.

Minus the rent, they are still accruing 200k a year plus the principal of 4 million dollars. I'd be very surprised if the rent write off ever exceeded yearly interest earnings off the principal.

The Scouts should get repaid for the building value. The Philly council has benefitted considerably, to the tune of 16 million dollars in today's dollars over 80 years

Ben, for the city to earn money off the building someone must pay rent. The scouts are occupying the building and paying $1 a year in rent so the city only currently gets $1 a year from the property.

Since the agreement, to my knowledge anyway, the city has only collected $83 off of the building.

[Ben Kenobi]

is very wrong because the construction of the building did not even add $4 million in wealth to city property. The scouts have not been ripped off at all.

Building value alone would be around 4 million dollars. That's not including land valuation at all.

If the City had taken out a 4 million dollar mortgage out on the building, repaid it and invested the money, they'd be looking at around 12 million dollars profit, even minus the rent from the scouts.

The Philly council has had a sweetheart deal here, and are just getting greedy.

[Ben Kenobi]

Ben, for the city to earn money off the building someone must pay rent.

The city can take out a loan against the value of the building, invest the money, and repay the loan through other funds. Then their investment is earning money year after year, minus the mortgage.

Had they done so with a 10 year term, they'd have made about 12 million dollars over the last 80 years from the interest accumulated off the principle minus the mortgage and yearly write off of rent from the scouts.

[loinburger]

The only possible consideration is how much it cost the Scouts to build the building. The building's current worth is irrelevant.

[giblets]

Building value alone would be around 4 million dollars. That's not including land valuation at all.

Why would fair market rent for use of the building (which I'm assuming is what the 200k figure is) not include fair market rent for the land?

If the City had taken out a 4 million dollar mortgage out on the building, repaid it and invested the money, they'd be looking at around 12 million dollars profit, even minus the rent from the scouts.

The Philly council has had a sweetheart deal here, and are just getting greedy.

The city can take out a loan against the value of the building, invest the money, and repay the loan through other funds. Then their investment is earning money year after year, minus the mortgage.

Had they done so with a 10 year term, they'd have made about 12 million dollars over the last 80 years from the interest accumulated off the principle minus the mortgage and yearly write off of rent from the scouts.

I didn't know it was possible to ensure a rate of return on investments that is higher than the interest rate for mortgages. Makes me wonder why the bank doesn't invest the money somewhere else instead of giving someone a mortgage.