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Lopez-Hyannis Water

Lopez-Hyannis Water

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Published by: barnbeat on Aug 30, 2008
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05/09/2014

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Lord John works in mysterious ways…
COG looked at the Barnstable Water Company acquisition deeper and had a resounding epiphanyof the miraculous truth.
 
The Hyannis Water Rate payers will receive their water company at no cost thanks to the fiscalacuity of retired banker, Councilor Hank Farnham, real estate developer extraordinaire, Councilor James Crocker, flower deliveryman, Council President Gary Brown, and Town Manager JohnKlimm.As reported in the previous post, the 109-acre BARLACO property will be transferred fromConnecticut Water Service to the town;The agreed purchase price for the Premises (the "Purchase Price") shall be One Million Dollars($1,000,000),
which shall be paid by the Buyer to the Seller between January 2 and 31, 2006 incash by certified or bank check or by wire transfer of immediately available funds.The Seller shall obtain an appraisal from an experienced, independent appraiser who shall determine the fair market value of the Premises as of the Closing Date, and the differencebetween that appraised fair market value and the Purchase Price shall be a charitablecontribution made by the Seller to the Buyer on the Closing Date.
COG will contract its own independent appraisal by an experienced appraiser and submit it to thecourt. Now we know what town attorney Bob Smith meant in his Cape Cod Times statement, "the dealis worth $ 20 million to the town."Hyannis water ratepayers are entitled to the $10 million charitable contribution from ConnecticutWater Services in January, 2006.We will ask the court to order the proceeds of the charitable contribution from Connecticut Water Services to be credited to its rightful owner the Hyannis Water Company Enterprise Account.An appraisal by experienced and independent appraiser, Marcel Poyant two years ago indicatedthe land was worth $9.2 million. During that period residential real estate has increased 20%which means the land should be worth a minimum of $11 million, the exact acquisition price of the land and the water company.
The land is the integral inflationary component that drove up the acquisition price; and the proceeds from the charitable contribution should be credited to the Hyannis ratepayers who will  pay off the $10 million debt over the next twenty years.
As Hank Farnham, and James Crocker, co-founders of the town’s newest bank, are aware,Connecticut Water Service, the $10 million IRS charitable contribution tax credit must bereported as revenue to the town’s general fund, and the judge will mandate the money be creditedto its rightful owners, the Hyannis water ratepayers.
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From the IRS manifesto; “one entity’s expense, another’s income,” or every debit must have acorresponding credit.COG expects that with the court order, the ten-taxpayer lawsuit should be resolved within acouple of weeks. The town can then borrow another $10 million which will be charged to theHyannis Water Enterprise Account, and the needed capital improvements can begin in earnest.COG’ contends that hat for Connecticut Water’s contribution to the town to be used as Free Cashwould be patently unfair and illegal under Emerson because that would mean the town wouldcollect from the sale revenues from Connecticut Water, as well as water fees from ratepayerswhich would amount to a triple dip when you factor the town’s ownership of the 109 acres of open space.COG will accept expressions of gratitude from Hyannis water ratepayers in the comment sectionof this post.COG would like to thank John Klimm, Bob Smith, and especially the town's two new bankers,James Crocker and Hank Farnham for arranging the equitable acquisition deal. A fair deas, asyou know, is one in which all parties benefit equally, the water company gets a sack full of money, the town gets 109-acres of open space at no cost, and the Hyannis ratepayers a free water company.COG believes all 7,200 Hyannis water ratepayers, especially Cape Cod Hospital that needs thewater rate break during these hard times, should call Klimm, Crocker and Farnham as well.COG will apologize to town officials once the court’s order has been implemented.Another example of how the elite amongst us work in mysterious ways.I will guarantee there isn’t a councilor, or anyone else, who would acknowledge the receipt of a1099 form from Connecticut Water Services for $10,000 without actually having received themoney. If the councilor or town manager did acknowledge receipt of money it didn’t get to theIRS, he or she is a fool, and fools shouldn’t be running this town.
COG advises Barnstable residents to deposit nothing more than Monopoly Money in Farnhamand Crocker’s newest folly should the court so order. Any similarity between this post and realityis purely coincidental.
December 19, 2005
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Read it and Weep. "Why John Klimm should resign today."
Why Janet Joakim and Harold Tobey should not be reelected…And why Gary Brown and Jim Munafo should be recalled….The five, along with the other nine town councilors, cheated every Hyannis water user out of $10 million, while giving Connecticut Water Services a potential $17 million profitin the Barnstable Water Company asset acquisition.The town and the ten taxpayers will be in court again next week to determine whether thetown of Barnstable should award the Hyannis water rate payers the appraised value of the109-acre BARLACO property.In May, 2005 the town entered into an a two-part agreement to acquire all the assets of the Barnstable Water Company (BWS) from its parent company Connecticut Water Services, Inc. (CTWS),The acquisition price was $11 million, of which $10 million was transferred on May 21,and the remaining $1 million to be exchanged between January 2, and January 31, 2006.The $10 million for the water company became a debt of the Hyannis water rate payersthrough a special enterprise account.Massachusetts Department of Telecommunications and Energy (DTE) provided COGwith CTWS’s 2003 financials that indicate assets, including the BARLACO, INC. property, at $11 million, and non-applied Depreciation Expenses of $5.5 million, or a net“cost” value of $5.5 million.CTWS reported an “after tax profit” of nearly $4 million in August from the $10 million.CTWS will receive an additional $1 million in cash, as well as giving the town a“charitable contribution” of the difference between $1 million, and the currentindependently appraised value of the BARLACO property.Marcel Poyant, an independent real estate appraiser, put a value of $9.2 million on the109-acre BARLACO property. One-acre parcels in Cummaquid have recently sold for $275,000 an acre.The appraisal for the 40 acres in Cummaquid could be worth $8 million alone, and theentire 109 acres be worth $14 million on the open market. CTWS could receive acharitable tax credit of $13 million, on top of the $4 million after tax profit this year, for a potential net profit of $17 million.COG is asking the Hyannis Civic Association
 
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