The financial structure of the Wal-Mart development will be as follows: The
land will be gifted to Ramsire International, LLC because the project will more
create jobs and put a piece of vacant land to use for the city. The total
overall cost for the project will be $7 million. The minority owned 8 (a)
certified firm developing the Wal-Mart, Ramsire International, LLC will receive
$3.5 million in a public subsidy through tax-increment financing. Frogey
Unlimited will invest $3.5 million for a 50% ownership stake. 1% of the profits
will be donated to a local non-profit organization. Wal-Mart Stores, Inc will
sign a 20 year lease on the building. Ramsire International, LLC will also earn a $300,000 developers fee.
Under a TIF, a developer is allowed to use tax revenue to pay for
infrastructure and development costs. The taxing jurisdictions are guaranteed
the same level of revenue they were receiving before. The Irving ordinance
allows half of the additional revenue generated to go into the TIF be used for
project costs. Irving also will allow the use of eminent domain, if needed.
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REAR
5314 Equities, LTD.
(TEXAS LIMITED PARTNERSHIP)
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50%
Forgey Unlimited, Inc
LIMITED PARTNER
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49%
Ramsire International,
LLC
GENERAL PARNTER
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The Convention Plaza building will also be purchased by Forgey Unlimited for $650,000 and structured as a joint venture with Units of America, LLC. Units of America, LLC will also get a 40% ownership stake for property acquisition, organizing the joint venture, and managing the property. 40% ownership outright is taxable as ordinary income to U of A. To avoid this U of A could structure the proposal to be a percent of future profits; however if the property doubles in value this will calculate to 80% in profits. To the equity investor 40% organization ownership will definitely sound better than 80% of profits.
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Wingren Group
(JOINT VENTURE)
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60%
Forgey Unlimited, Inc
PARTNER
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40%
Ramsire International,
LLC
PARTNER
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