Chris Johnson wrote Link to the article: http://www.startribune.com/stories/462/4245464.html
Chris says: I guess I need to take "new math" or "creative accounting" or "greed ethics." <snip> Sounds like Brighton "lost money on paper" but made a fortune in hard cash through the use of creative accounting. It's just another case of the city giving away taxpayer money to favored developers. M. G. writes: I agree with Chris on the "creative accounting." I don't necessarily agree that the city *intended* to give the money away. I'm reminded of the case of "Coming to America," an Eddie Murphy movie that brought in revenue to the studio that far exceeded the production and distribution costs. It turned out that Murphy had stolen the idea from humor writer Art Buchwald--and a judge agreed. Buchwald then wanted an appropriate share of the profit. Not so easy. Studios have a really fascinating accounting system which charges lots and lots of other expenses, including other movies that lost money, against the profits of the moneymakers. The studio claimed that the movie actually "lost" money, and Buchwald was awarded less than he spent on legal fees. Smart Hollywood folks--who have the power to demand such--insist that their take is from the original box office gross, not the net. Thus, .5 percent of the gross can be worth much more than 30 percent of the net. It sounds like the developers have smarter lawyers and accountants than the city does. A more sensible arrangement would have been for the city to take a percentage of the gross sales above the original planned cost--with an arbitration plan for overruns due to unforseeable conditions. Then again, the city's lawyers may have proposed such an arrangement. Our mayors and CM's have a long history of overruling sound legal advice, leading to settlements that cost taxpayers dearly. --M. G. Stinnett Jordan REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
