Letter: Westwind money doesn't add up
The May 17 article in the West Central Tribune about the Westwind project and Rick Goodemann's comments were interesting. Goodemann is quite the mathematician. The developer's fee for the Westwind project to be paid to Southwest Minnesota Housing...
The May 17 article in the West Central Tribune about the Westwind project and Rick Goodemann's comments were interesting.
Goodemann is quite the mathematician. The developer's fee for the Westwind project to be paid to Southwest Minnesota Housing Partnership is $576,550. If the partnership makes a loan back to the project, how does that reduce the fee? The partnership is making a loan, which I don't think Goodemann will forget to repay to his own business partnership.
Goodemann says he doesn't know where the other $63,710 profit (which appears to actually be a little higher -- see figures below) relating to the land for Westwind comes from. He apparently has forgotten the Southwest Minnesota Housing Partnership purchased the land on Sept. 3, 2003.
The deed conveying title to the land was recorded in the Kandiyohi County Recorder's Office on Sept. 4, 2003, at microfilm 505045, and bears deed stamps evidencing a purchase price of $103,664. This amount is the same as that shown on the certificate of real estate value filed with the deed.
The Minnesota Multifamily Rental Housing Common Application submitted by the partnership to Minnesota Housing Finance Agency to obtain tax credits of $488,197 relating to the Westwind project states that the purchase price of the real property for the project was $170,710.
That same application shows the owner as Westwind Townhomes Limited Partnership (not SMHP), and states the real property was purchased by Westwind Townhomes (not SMHP) on Aug. 29, 2003, for $170,710; so, the property has been marked up $67,046 ($170,710 minus $103,664 equals $67,046).
There is no deed of record in the county recorder's office showing any transfer of the real estate from Southwest Minnesota Housing Partnership to Westwind Townhomes. Incidentally, the above dates are correct. The deed to the partnership is dated Sept. 3, 2003, but the Minnesota Multifamily Rental Housing Common Application submitted June 19, 2007, states the land is owned by Westwind Town-homes, and that the latter entity acquired title on Aug. 29, 2003. However, the only deed of record is the one to SMHP. Don't fret though, these are our tax dollars at work, and the government is looking out for us.