Medient Studios breaks ground (Savannah: homeless, charge, principal)

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Originally Posted by SavannahLife

So they get to keep the 1600 acres of land?

They have a 20 year lease. If they don't honor the agreement which is part of the lease the IDA gets the land back and taxpayers holding the bag for all the $250,000 spent catering to them plus loosing $3 million the State was to reimburse the IDA upon creating the 1000 jobs and a $700,000 well. Taxpayers will get it in the end.

[pink caddy]

Originally Posted by counterclockwise

They have a 20 year lease. If they don't honor the agreement which is part of the lease the IDA gets the land back and taxpayers holding the bag for all the $250,000 spent catering to them plus loosing $3 million the State was to reimburse the IDA upon creating the 1000 jobs and a $700,000 well. Taxpayers will get it in the end.

And IMHO "honoring" the terms of the lease might be years of interpretation/litigation. Then... Compromise while they play with little or no skin in the game. It's a fool's wager made by the IDA on behave of the taxpayer that, for the most part ,doesn't even know what the hell is the game. (I generally would insert lol here but it's not funny)

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The agreement between Effingham IDA and Medient from SEC 8-K filings.

NASDAQ | SEC Filing=

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Medient Studios AKA Moon River News
http://savannahnow.com/effingham-now...uction-manager
http://www.wtoc.com/story/26617526/m...uction-manager
Medient Studios, Inc. Announces Choate Construction Company Appointed as Construction Manager

[CoastalGAGuy]

I'll be impressed when they announce that they have any funding whatsoever.

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Originally Posted by CoastalGAGuy

I'll be impressed when they announce that they have any funding whatsoever.

The Effingham IDA $300,000,000 Industrial development bonds for the project on 1,500 acres at Interstate 16 and Old River Road issued and announced over a year ago.
http://savannahnow.com/effingham-now...edient-project

Article excerpt how the bonds work;

The bonds are a pass-through so the company can obtain tax concessions. “They acquire outside financing, deposit it in their bank, then buy their own bonds in whatever amount they need for the project,” said IDA Chairman John Henry. “This is a simple conduit that we do for most projects. We have no financial obligation. We do not provide any funds or incur any financial liability under these bonds.”
The value of the total project, which is expected to create 1,000 jobs, is $300 million. Phase one is $90 million. Of that, $10 million is for a land lease, $40 million is for equipment and $40 million is for buildings.
The state is contributing a $3 million grant for site preparation and building improvements, and the IDA is chipping in $1.25 million for site development.

[CoastalGAGuy]

So, why the need for private investors, then?

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Originally Posted by CoastalGAGuy

So, why the need for private investors, then?

To get investors money by pumping up the stock price and selling out before the bottom falls out and laugh all the way to the bank. When the stock becomes nearly worthless have a reverse split with a name change and start the process pump and sell all over. A reverse split is sometimes called increasing shareholders value.

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Originally Posted by CoastalGAGuy

I'll be impressed when they announce that they have any funding whatsoever.

They must have forgotten the $1.25 million the IDA is going to chip in for site development.

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Medient (AKA Moon River) Jobs to be created drops from 1000 to 527.
Medient plans 527 jobs, down from 1,000 | savannahnow.com