October 23, 2015
The Joint Development Authority (Stanton Springs/Four County Development Authority) has worked with TPA Realty or TPA Group for many years to market Stanton Springs. http://www.tpa-grp.com/team/
In an agreement made years ago, TPA buys land from the JDA under a predetermined formula and price. The price for the land that TPA buys consists of all the expenses incurred, less any income received, divided by the number of acres left—we do not have a copy of the agreement, but this is a simplified version of how the price is arrived. In 2014 the selling price of the land was $13,450.58 an acre.
The proceeds from the land are used by the JDA to pay on the notes they owe on the land.
WHO OWNS THESE LLC’S AND WHY ARE THERE SO MANY OF THEM?
Even though TPA is who JDA deals with, there are at least eight (8) LLC’s that are on the deed to secure debt and security agreement. (Click picture to enlarge)
Who owns all these companies? An LLC set up makes it almost impossible to determine who the partners are, but the property that JDA has sold to TPA Realty ends up in one these LLC’s. It would be very interesting to know just who all has a stake in these companies.
Based on the property records we find:
JC Flex, LLC owns 187.81 acres in 4 separate parcels
JC Land Investments, LLC owns 52.7 acres in 4 separate parcels
Stanton Springs, LLC owns 22.67 total acres in 1 parcel
The remaining JDA property is divided into 5 parcels. 3 of these use Tommy Craig’s address; one uses Chairman Alan Verner’s address; and one uses the Bank of Monticello’s address.
DO THESE LLC’S PAY PROPERTY TAXES ON THE PROPERTY THEY BUY?
The JDA does not pay property taxes because it is a government entity. However, the other LLC’s do pay property taxes.
Here’s an example using JC Flex LLC:
In October 2015, JC Flex paid property taxes of $44,900 (rounded). They have also paid property taxes in 2011, 2012, and 2013. According to the Newton County tax commissioner website, all this money was paid to Newton County. JC Flex paid $44,900 (rounded) in 2014 to Newton County as well.
WHERE IS JASPER COUNTY’S SHARE OF THESE TAXES?
Jasper County’s share should be 10% or $4,490 for 2014 and 2015 and 10% of whatever has been paid by any of the other LLC’s over the years in property taxes. Jasper County has received nothing from Newton County or the JDA.
And Walton and Morgan should be getting their share of these taxes as well, 37.5% and 15% respectively.
WHAT IS THE ACTUAL LAND VALUE?
Using JC Flex as an example and based on the 2014 property records:
2010 Land purchase—17 acres—value $425,000 or $25,000 per acre
2011 Land Purchase—22 acres—value $550,000 or $25,000 per acre
Unknown year—21.49 acres—value $467,300 or $21,745 per acre
Unknown year—127.32 acres—value $1,833,400 or $14,400 per acre
When the JDA sells land for the proposed housing development, will the developer have to pay property taxes to all four counties? A JDA representative called and told me YES—all counties will benefit. See: DEVELOPERS MAY BE FIRST TO BENEFIT FROM BAXTER AT STANTON SPRINGS–4 COUNTY DEVELOPMENT PROJECT
If that is true, then why haven’t the other counties been receiving their percentage from the taxes being collected over the past years as land was sold by JDA?
When JC Flex, LLC or any of the other entities sell the land, they will make the profit between what they paid JDA and what they sell it for. In 2015 JDA is supposed to sell another 379 acres to TPA under the agreement.
If you like this newsletter, please forward to a friend and recommend they subscribe, too.
Citizens, be informed and stay informed! Only by being informed can the citizens understand what is being done and talked about, and then press our officials to make good decisions for everyone in Jasper County. That is our goal with the Taxdogs blog.