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In trying to follow the money..."Bryan Milk, community affairs director, said plans are progressing to fund a $4 million building and to negotiate a leaseback partnership with a selected builder. He said offers have been received from Mills Gilbane Building Company, Phoenix Associates, and more recently, Kraft Construction.
Marco Island City Council included $600,000 for Mackle Park’s building project in its 2013 budget and subsequent budgets that would amount to $3 million, Milk said. He is looking at proposals that would set a leaseback payment at about $400,000 per year but did not specify the number of years." http://www.marconews.com/news/2012/ja...
The number of years is a critical factor in the equation. Looks like Milk is saying $3,600,000 total construction cost. If the City pays a leaseback of $400,000 per year the City will have paid $3,600,000 in 9 years and NOT own a thing. After 9 years the cost of the facility goes up $400,000 per year if the City is required to continue paying a leaseback.
A leaseback does not appear to be a good thing for the City.
It is only a good deal for the builder who will still own the facility and has a guaranteed income of $400,000 per year.
It is better for the City to come up with construction funding.
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