STANTON SPRINGS-JDA SELLS LAND ANNUALLY. WHERE IS JASPER’S 10% SHARE?

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)

JDA.LLCsIn 2014 the selling price of the land was $13,450.58 an acre, and 18 acres were sold to Stanton Springs, LLC.

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:

JC Flex Prop Tax 2014There are 4 parcels, all bought from JDA.

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.

 

TWG

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2 Responses to STANTON SPRINGS-JDA SELLS LAND ANNUALLY. WHERE IS JASPER’S 10% SHARE?

  1. We're getting screwed says:

    When are the Jasper County representatives of the Joint Development Authority going to look out for the Jasper County taxpayers?

    The developers get the goldmine, we get the shaft.

  2. Stanton Springs Starting To Smell says:

    If JDA doesn’t track, collect, divide then distribute the four separate county’s’ property tax share, then who will? After Four County Joint Development land is sold off to private developments and then parceled out into hundreds of separate lots, will Morgan, Walton , and Newton continue to track the sale and resell of these residential units and then be responsible for dividing the sales tax? How will Jasper county taxpayers even know what our fair share of the tax revenue is if we have no knowledge of what JDA is selling and who is buying? This one is beginning to really stink .

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