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.