OH, WELL LAUREATE EDUCATION WAS NOT INVOLVED IN FRAUD BECAUSE IT NEVER TOOK FEDERAL FUNDS TO EXPAND OVERSEAS AND BECAUSE ALL CORPORATE GROWTH WAS OUTSIDE US JURISDICTION.
WELL, KKR WAS NOT INVOLVED IN THESE SUBPRIME MORTGAGE LOAN FRAUDS BECAUSE THEY SIMPLY BOUGHT LEGAL INVESTMENT INSURANCE TO COVER COLLAPSING MORTGAGE MARKET LOSES.
KKR is just ONE Wall Street investment firm going from millions of dollars in portfolio to hundreds of billions because they were the one's BAILED OUT while the 99% bared the burden of the bailout. The AIG global insurance corporation covering CDS---credit default swap insurance was CRIMINAL----those tens of billions in AIG bailout was criminal--the trillions of dollars moved by US FED to sustain TOXIC SUBPRIME MORTGAGE LOAN FRAUD was criminal.
So, a global corporate campus hedge fund JOHNS HOPKINS as with global investment corporation KKR DOES NOT HAVE BILLIONS IN THEIR PORTFOLIOS and these real estate transfers of all properties in Baltimore City Center tied to these subprime mortgage loan frauds/student loan frauds of our Federal Department of Education ARE NULL AND VOID.
Here is the problem coming in this next economic crash and US Treasury bond fraud.........DO THE CHINESE REALLY OWN THAT FEW TRILLION IN SUBPRIME MORTGAGE AND SOVEREIGN BOND DEBT?
We are going to again focus on one institution knowing there are many and knowing EACH POPULATION GROUP 5% black, white, brown, Jewish freemasons, Catholic freemasons, Protestant freemasons, Muslim freemasons are the movers and shakers---these global 1% could NOT be the winners without those dastardly 5%. Here is one global Wall Street investment firm turning bank with ties to GOLDMAN SACHS----the partners of Goldman Sachs of course are the big winners in all these subprime mortgage frauds and hold much TOXIC SUBPRIME MORTGAGE DEBT which happens to be in the most valuable US CITIES DEEMED FOREIGN ECONOMIC ZONES---CITY WATERFRONT AND CENTERS. FORMER GOLDMAN SACHS PARTNERS GO GLOBAL BANKING--------below we see the son of that Goldman Sachs investment billionaire with global investment firms now buying BANKS.
STEIN AND FLOWERS----
Flowers, Not His Firm, Buys a Bank
Updated Sept. 24, 2008 12:01 a.m. ET Bank investor Christopher Flowers has received approval from federal banking regulators to acquire the First National Bank of Cainesville in Missouri.
The U.S. Office of the Comptroller of the Currency approved Mr. Flowers's purchase late last month.
Flowers Wins Approval to Buy Saddle River Valley Bank - The ...
dealbook.nytimes.com/2010/10/27/flowers-wins... Oct 26, 2010 · J. Christopher Flowers won U.S. approval to buy a two-branch bank in New Jersey, in a rare bank takeover by a private-equity fund manager that may revive a ...
Here we see FLOWERS being allowed to buy INDYMAC----ground zero for much of the subprime mortgage loan ORIGINATION from which FLOWERS' FATHER made fraudulent cool billions.
Goldman Sachs and its partners won big in WALL STREET/AIG BAILOUT as they were the ones tied to credit default swap insurance while pedaling bundled tranches of subprime mortgage loan fraud. So, these Goldman Sachs investors as with CitiBank, Bank of America et al were allowed to comb those US city foreclosed real estate bundles for just that real estate THEY WANTED IN US CITIES.
'The Saddle River buyout, however, is not a first for Mr. Flowers, whose firm, J.C. Flowers & Company, teamed up last year with a group of other investors to buy IndyMac, the failed California bank'.
Flowers Wins Approval to Buy N.J. Bank
October 27, 2010 7:17 am October 27, 2010 7:17 am
J. Christopher Flowers has won approval to buy a two-branch bank in New Jersey in a rare bank takeover by a private equity fund manager that may revive a debate about such investors’ role in the banking system, Bloomberg News reported.
The United States Office of Thrift Supervision cleared the purchase of the Saddle River Valley Bank by seven funds set up for that purpose by Mr. Flowers, according to an Oct. 14 approval letter on the agency’s Web site. The bank has $82.8 million of assets. Terms of the deal were not disclosed.
Last summer, the government instituted new rules that would require investment groups looking to buy failed banks to put more capital into them than commercial banks would have to provide. They also required nonbanks to own the failed banks they acquired for at least three years before cashing out.
The rules have considerably slowed buyouts of failed banks.
The Saddle River buyout is the first of this particular kind deal, which walls off the stake from other investments, to win approval from the Office of Thrift Supervision since 2009, Bloomberg reported.
The Saddle River buyout, however, is not a first for Mr. Flowers, whose firm, J.C. Flowers & Company, teamed up last year with a group of other investors to buy IndyMac, the failed California bank.
In that deal, the investors are barred from acting in concert to, in effect, take control of the bank — an unwieldy arrangement but one that regulators insist they can enforce.
When we read in national media that a CHINA or a JAPAN owns lots of US debt---subprime mortgage loan debt backed by US Treasury FDIC are in there------this is what MOVED FORWARD during the frenzy of MANUFACTURED 2008 ECONOMIC CRASH-----our Goldman Sachs et al investment partners went from millionaires to billionaires and they are the OWNERS OF WHAT IS BEING CALLED CHINESE AND JAPANESE US DEBT.
When WE THE PEOPLE THE 99% are told our US, state, and local government coffers are empty because of these sovereign bond and US Treasury frauds----THESE ARE THE SAME OLD WORLD MERCHANTS OF VENICE GLOBAL 1% actually owning that 'FOREIGN US, MARYLAND AND BALTIMORE MUNICIPAL BOND DEBT'.
This is why citizens cannot see these local real estate deals----who are the bond holders of Baltimore's ENTERPRISE ZONES----that HARBOR POINT DEVELOPMENT---that UNDERARMOUR DEVELOPMENT---that global JOHNS HOPKINS CAMPUS DEVELOPMENT---even our LAUREATE EDUCATION TURNED KKR ownership?
It appears the STEIN FAMILY AND FLOWERS FAMILY as ex-Goldman Sachs partners made out big in real estate in US CITIES DEEMED FOREIGN ECONOMIC ZONES----wealth all tied to fraud.
China's CIC to launch $4 billion fund with JC Flowers - Reuterswww.reuters.com/article/us-flowers-china-fund-idUSN0332446920080403 Apr 3, 2008 ... China Investment Corp (CIC), the country's $200 billion sovereign wealth fund, has signed a ... In Asia financial markets, the fear indicators still send a buy signal . #Trump · #China ... China's CIC to launch $4 billion fund with JC Flowers ... So far, CIC's investments in Wall Street bank Morgan Stanley (MS.)
Wonder if these families are related to the GLOBAL GREEN CORPORATION PARTY JILL STEIN AND MARGARET FLOWERS? They are populist revolutionaries you know! Of course and no doubt they promote ONE WORLD ONE GOVERNANCE ONE WORLD CENTRAL BANK AS A PUBLIC BANK. If you are wondering how a ONE WORLD ONE GOVERNANCE far-right authoritarian LIBERTARIAN MARXISM group seemed able to access Congressional meetings-----Federal buildings to do their actions and groups like Citizens' Oversight Maryland are not even being allowed to stand in line to TRY to access these meetings----THIS IS WHY.
November 20, 2007 / 12:33 AM / 10 years ago
JC Flowers group bids $1.8 bln for Shinsei Bank stake
Nathan Layne and David Dolan
>A Shinsei Bank location is seen in Tokyo February 18, 2004. A group of investors led by U.S. buyout firm J.C. Flowers & Co LLC will bid about $1.8 billion for up to 32.6 percent of Shinsei Bank Ltd, putting more money into the Japanese bank it helped resurrect in one of the most lucrative private equity deals ever.Eriko Sugita</p>
TOKYO (Reuters) - A group of investors led by U.S. buyout firm J.C. Flowers & Co LLC will bid about $1.8 billion for up to 32.6 percent of Shinsei Bank Ltd (8303.T), putting more money into the Japanese bank it helped resurrect in one of the most lucrative private equity deals ever.
The deal came as Aozora Bank Ltd (8304.T), another mid-sized bank revived and floated by overseas investors, said separately on Tuesday it would form a business alliance with the larger Sumitomo Trust & Banking Co 8403.T.
The two deals underscore the scramble by Japanese banks to tie up with each other to boost efficiency and find new areas for growth as core lending remains sluggish and they sustain losses from U.S. subprime investments.
The Tokyo bourse's index of bank stocks .IBNKS.T has lost 30 percent of its value so far this year, underlining the bleak outlook for lenders in the world's second-largest economy.
"The banking sector has been totally unattractive because of the earnings outlook, the fact that interest rates aren't rising and with worries about subprime," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
"But these deals force investors to look at the sector in a different light. This could be the start of realignment."
The J.C. Flowers-led group, which includes Grupo Santander and Swiss Re RUKN.VX, will bid for a 22.7 percent stake in Shinsei at 425 yen per share from November 22 to January 10, offering a 17 percent premium to Monday's closing share price.
Shinsei also plans to issue 50 billion yen in new shares, which would result in the group and affiliates of J.C. Flowers holding up to 32.6 percent in Shinsei. J.C. Flowers held 5.5 percent as of the end of March, according to Reuters data.
At $1.8 billion, the deal is the largest ever private equity acquisition of a Japanese bank, according to Thomson Financial.
CONSUMER FINANCE IN FOCUS
Shinsei President Thierry Porte said the capital injection would allow the bank to increase the reach and effectiveness of its current operations, especially its consumer finance business.
"We believe there is merit -- which perhaps some parts of the market don't agree with -- that there is merit in focusing on the consumer finance business and building a new model," Porte said in an interview with Reuters following the announcement.
Profits of Japan's consumer loan firms have suffered since the government imposed new caps on the interest rates they can charge.
Shinsei has been hit by valuation losses due to declines in the share prices of two of its consumer loan affiliates, Aplus Co Ltd 8589.OS and Shinki Co Ltd 8568.T. Shares of Aplus have lost more than half their value this year, while Shinki has lost more than 67 percent.
But Porte said he had no intention of cutting Shinsei's ties to the ailing industry.
"We are not pulling out," Porte said. "We think we can make a better business out of this ... It needs some fresh thinking, which we have."
Shinsei's stock jumped 9.3 percent to close at 398 yen on the news, while Aozora's shares rocketed up 6.9 percent to 340 yen and the banking sector index gained 0.9 percent.
But J.C. Flowers will still be buying at a much cheaper level than it might have been a few months ago. Shinsei's shares are down 43 percent this year, hurt by its exposure to Japan's sickly consumer finance industry and subprime-related losses.
The Flowers-led consortium will become Shinsei's largest shareholder, ahead of the government, which currently holds a 12.7 percent share in the bank.
Christopher Flowers, the ex-Goldman banker who heads the buyout firm, partnered with private equity firm Ripplewood to buy the failed Long-Term Credit Bank of Japan in 2000 for $1.2 billion at the height of Japan's economic downturn and banking crisis.
They renamed the bank Shinsei, meaning "new life", and took it public in 2004.
The deal, which was later recounted in the book "Saving the Sun", earned its initial backers more than several times their initial investments and became known as one of the most profitable buyouts in history.
MOVING FORWARD these several years of Obama had all those GLOBAL BANKING INVESTMENT FIRMS----remember Clinton deregulated and ended the GLASS STEAGALL WALL between Wall Street investment firms and our banks-----Clinton and his 5% to the 1% CLINTON/BUSH/OBAMA Robber Baron pols and players did that for just this reason. The wall comes down----these investment firms go wild using our once stable banks----spin off those ill-gotten gains into new corporations which are being allowed to segue back to BANKING. Know what? Once these global Wall Street investment firms buy all our banks ----Congress will pretend to be protecting WE THE PEOPLE THE 99% by reinstating GLASS STEAGALL BANKING WALL. Think about who is pushing to reinstate Glass Steagall NOW and how those 5% players are not talking at all about these global investment firms partnered with China/Japan investments and banks and now our global Wall Street investment firms BUYING BANKS.....Goldman Sachs as a whole is now being allowed to be called A BANK.
When we look locally----all the wheeling and dealing in US cities DEEMED FOREIGN ECONOMIC ZONES like Baltimore is KABUKI THEATER----these global 1% are tied to real estate in all low-income communities slated to become GLOBAL CORPORATE CAMPUSES.
GOLDMAN SACHS WAS TOP DOG IN CRIMINAL WALL STREET DEALINGS -----NOW IT IS US TREASURY FDIC INSURED BANKING.
Goldman Sachs owns much of the most valuable TOXIC SUBPRIME MORTGAGE LOANS tied to our US city centers----so they will be deciding who buys these properties---they will be the LENDER to financing these real estate deals----and of course their billions of dollars in PORTFOLIO is that massive subprime mortgage loan fraud of tens of trillions of dollars.
Almost all of what national media is calling FOREIGN DEBT----debt owned by BRAZIL----JAPAN--CHINA et al are actually owned by global banking 1%.
This is why WE THE PEOPLE THE 99% can never keep our family wealth and lose our rights as citizens and rights to PROPERTY over and over---HISTORY ALWAYS REPEATS ITSELF.
Investing and Lending Banking
GS Bank USA offers a wide range of solutions to help our clients meet their financial goals. We seek to provide the highest level of customer service and support in everything we do.
Our services include:
- Deposits: We take deposits from individual and institutional clients through a variety of channels including our online deposit platform at GSBank.com. GS Bank USA is a member of the Federal Deposit Insurance Corporation (”FDIC”), which insures deposits up to certain limits (see FDIC).
- Consumer Lending: We help consumers better manage their debt by providing fixed-rate, no-fee personal loans through Marcus by Goldman SachsTM.
- Private Bank Lending: We provide loans and residential mortgages to clients of our Private Bank and work with these clients to manage their cash flow needs, finance private asset purchases, and facilitate strategic investments. We also offer Capital Call Financing or Subscription Financing, which serves as an important working capital management tool for private equity funds.
- Corporate Lending and Risk Management: We make loans to our corporate and institutional clients, providing working capital, enhancing liquidity, and in connection with acquisitions. We also provide interest rate risk management services to these clients.
- Community Lending: Our Urban Investment Group supports underserved communities with a wide range of projects in affordable housing and economic and small business development. We are proud to have received Outstanding ratings from the Federal Reserve Bank of New York ("FRBNY") and the New York State Department of Financial Services ("NYSDFS") in their evaluations of our Community Reinvestment Act ("CRA") record.
National media shows over and over and over an ELIZABETH WARREN or a BERNIE SANDERS wanting that GLASS STEAGALL WALL for banking back----they paint her as POPULIST FOR WE THE PEOPLE THE 99% because of a CONSUMER FINANCIAL PROTECTION BUREAU that has never, never, never said one word on all these global investment firm/foreign banking COMPLEX FINANCIAL DEALINGS ----setting the stage for what was a national banking system in US to be that ONE WORLD ONE GOVERNANCE ONE CENTRAL BANK ----separating banks and investment firms NOW without reversing all these GLOBAL FINANCIAL MONOPOLIES helps only the global 1% and their 2%-----
None of our WALL STREET POPULIST LEADERS will ever mention these crony global 1% real estate holdings in our US CITIES DEEMED FOREIGN ECONOMIC ZONES like BALTIMORE.
MNUCHIN AND WARREN ARE THE SAME GLOBAL 5% TO THE 1% PLAYERS.
YES, we must reinstate Glass Steagall and banking regulations -----but we cannot do so until we break up these global banking monopolies.
Sanders and Mnuchin Spar Over Glass-Steagall at Senate Hearing
Bernie Sanders wants to know why a 21st Century Glass-Steagall didn't make it into the Treasury Departments 150-page financial regulations report.
Follow Jun 13, 2017 2:21 PM EDT
Elizabeth Warren GRILLS Steve Mnuchin On Glass-Steagall Reversal https://youtu.be/Q10v4sDeQTs
Published on May 18, 2017
Senator Elizabeth Warren can't believe how Trump's Treasury Secretary Steve Mnuchin believes in establishing a "21st century" Glass-Steagall Act that does not break up the big banks--the key aspect of the original Glass-Steagall Act.
Buy Elizabeth Warren's book "This Fight Is Our Fight" on Amazon!
A 21 ST CENTURY GLASS STEAGALL-----says our FAKE LEFT SOCIAL PROGRESSIVE POPULIST LEADER-------this is Bernie working hard for those global investment firms now becoming global banks -----and that global 1% and their 2% protections.
NOT SO MUCH WORKING FOR WE THE PEOPLE THE 99%----NEITHER POPULIST LEADER INTERESTED IN ENDING THE ONE WORLD ONE WORLD CENTRAL BANK.
WHAT?????? TRUMP, WARREN, AND SANDERS ALL PUSHING FOR 21ST CENTURY BANKING POLICY? HOW GLOBAL 1% OLD WORLD MERCHANTS OF VENICE FREEMASON OF ALL OF THESE 5% POLS AND PLAYERS.
This is why we knew 10 years ago what these several years of Obama would look like especially regarding subprime mortgage loan fraud and US city real estate ownership in city centers.
Our local and state 5% to the 1% CLINTON/BUSH/OBAMA global Wall Street pols and players fighting for those few million patronage real estate deals---all that will be lost in MOVING FORWARD.
Sanders and Mnuchin Spar Over Glass-Steagall at Senate Hearing
Bernie Sanders wants to know why a 21st Century Glass-Steagall didn't make it into the Treasury Departments 150-page financial regulations report.
Jun 13, 2017 2:21 PM EDT
Vermont Senator Bernie SandersBernie Sanders wants to know why a 21st Century Glass-Steagall act didn't make it into the Treasury Departments 150-page financial regulations report.
"Can you tell me where I could find the establishment of a 21st Century Glass-Steagall Act, which would separate commercial banking from risky investment banking, something the president campaigned on?" the Vermont Senator facetiously asked Treasury Secretary Steven Mnuchin at a Senate Budget Committee hearing on Tuesday. "What page might I find it on?"
Sanders, of course, knew the answer to the question he asked: a modern version of the Depression-era banking legislation is nowhere to be found in the Treasury report, because President Donald Trump, despite his campaign rhetoric, doesn't back it.
Trump on the campaign trail called for a 21st Century Glass-Steagall, and both Mnuchin and top economic adviser Gary Cohn have in recent months said they are open to reviving the legislation as well. Bringing back Glass-Steagall was part of the 2016 Republican Party platform.
Enacted in 1933, Glass-Steagall in its original form separates commercial and investment banking. It was repealed under President Bill Clinton in 1999.
The Trump administration has never specified what exactly it means by "21st Century Glass-Steagall," though the GOP platform explicitly mentions reinstating the law that "prohibits commercial banks from engaging in high-risk investment." Despite what might seem a logical assumption that it would seek to break up the banks, Mnuchin says that's not the case.
"Let me get this straight," Sanders said at one point, interrupting. "What you're saying is that the language Trump put into the Republican platform is not really the language that he believed in."
"Let me be clear, the president did not put everything into the Republican platform. There was the Republican platform and there was the Trump position, which I was very involved in," Mnuchin said. "The president did not support breaking up the big banks."
That Trump's position on Glass-Steagall is not what it seems is not new information. Mnuchin made the same assertion in a May hearing in front of the Senate Banking Committee, confounding Senator Elizabeth Warren, who has put forth 21st Century Glass-Steagall legislation of her own.
"You're saying that you are in favor of Glass-Steagall, which breaks apart the two arms of banking, regular banking and commercial banking. Except you don't want to break apart the two parts of banking. This is like something straight out of George Orwell," she said at the time, slamming the administration's position as bizarre.
Mnuchin told her the White House's policies "couldn't be clearer."
The former Goldman Sachs (GS) executive on Tuesday brought up his back-and-forth with Warren and said he met with her to explain "the difference between what we had thought of as a 21st Century Version of Glass-Steagall and Glass-Steagall."
He said he made it "very clear" in previous testimony that the president does not want to break up the banks, because they think it would hurt the economy and ruin liquidity in the market. "What we are focused on is safe and prudent regulation for the large banks so we don't have taxpayer risk," he said.
As for Warren's bill and the Trump administration both invoking the phrase 21st Century Glass-Steagall, he said it's "an unfortunate coincidence."
Mnuchin testified before the Senate Budget Committee, of which Senator Sanders is ranking member, on Tuesday morning to discuss the White House budget proposal and tax reform.
"We made very difficult decisions to fund the military to protect Americans," Mnuchin told Sanders at the outset of the hearing.
"You made difficult decisions to give tax breaks to multi-billionaires and to cut programs for working families," Sanders said. "I don't think those are difficult decisions, I think those are immoral decisions."
Folks thinking all these fights over national bank vs global bank----US FED vs ONE WORLD CENTRAL BANK ---and these real estate deals in our US cities deemed FOREIGN ECONOMIC ZONE are just another flipping of NEW WORLD ORDER as happened in the race to colonize AMERICA----remember, this MOVING FORWARD has that goal of ONE WORLD FOREIGN ECONOMIC ZONE UTOPIA for the global 1% ----MINUS 99%OF WE THE PEOPLE.
IT REALLY DOES MATTER WHO GET TO OWN REAL ESTATE AND HAVE PROPERTY RIGHTS IN 21 ST CENTURY.
Citizens of Baltimore already disgusted by these HARBOR POINT development deals no doubt paid no attention to BUYING BACK BOND DEBT. BEATTY is just a 5% player for global Wall Street being handed prime downtown property. Government never allowed these kinds of property deals or financial transactions----because it is all AGAINST PUBLIC INTEREST. Beatty is simply doing the same as subprime mortgage loan fraud debt selling-----he knows the US Treasury/state and city municipal bond market is collapsing from these several years of US sovereign debt fraud and he will use those very bond debts as collateral in buying real estate no doubt overseas. Baltimore City Council and mayor handed him as others not only development tax breaks, subsidized with city and state bond debt---they allowed him to buy back that debt so his global Wall Street 1% would have money to play with as the bond market in US collapses. We can be sure his investments will not be in Baltimore.
This is how we educate BROADLY on each single public policy issue.
Harbor Point developer to buy project's city-issued bonds
City says plan saves money, but opponents critical
Michael S. Beatty, president of Harbor East Development Group,… (Barbara Haddock Taylor…)
August 16, 2013|
By Luke Broadwater, The Baltimore Sun
The developer of Harbor Point plans to buy the initial offering of city-issued bonds for the $1.8 billion project, accruing millions in interest from the controversial public financing deal, city officials confirmed Thursday.
Developer Michael S. Beatty's Harbor Point Development Group LLC plans to purchase about $35 million of the $107 million in bonds and would earn an estimated 6.5 percent interest rate, enabling him to pay for a construction loan.
Stephen M. Kraus, the city's chief of treasury management, said the arrangement would save the city money because a private sale is cheaper to orchestrate than a public bond offering. But the plan was criticized sharply by opponents of the financing deal, in which the city floats bonds to pay for infrastructure and other improvements at the development site.
"This revelation makes the deal stink even more," said Bishop Douglas Miles of Baltimoreans United in Leadership Development, who has spoken at City Council hearings against the so-called tax increment financing, or TIF, for Harbor Point. "If [Beatty] can afford to buy $35 million worth of bonds, he could have afforded to invest in the project and reduce the TIF. This is greed in its ugliest form."
The City Council gave preliminary approval this week to the public financing, which has drawn hundreds of protesters to City Hall. A final vote is expected next month.
With tax increment financing, the bond sale proceeds are used for improvements — in this case parks, roads and other infrastructure — and future property taxes generated by the development are used to pay off the bonds.
But critics argue that tax increment financing deprives the city's general fund, which pays for police, firefighters, teachers and other city services, of the increased property tax revenue. They say it's risky and amounts to little more than corporate welfare.
Supporters, including Mayor Stephanie Rawlings-Blake, argue the project would swell the city's tax rolls and create thousands of jobs.
The tax increment financing is part of about $400 million in public subsidies for the project, including more than $110 million in tax breaks.
Kraus said the sale of bonds to Beatty would save the city about $6.5 million in financing, legal and other costs. Beatty would hold the 30-year bonds for three to four years during the first phase of construction, Kraus said. Depending upon how long the bonds are held, they could accrue up to $9.5 million in interest, which the developer plans to use to pay for a construction loan. The city's consultant projects the bonds will earn about $5.5 million in interest.
Harbor Point is the planned home of energy giant Exelon's new regional headquarters, as well as a Morgan Stanley facility, other office buildings, residential towers, stores and a hotel.
The city has sold tax increment financing bonds directly to a developer once before — as part of the $15 million tax increment financing deal for Mondawmin Mall in 2008. Kraus said that deal has "worked well."
Thomas B. Lewis, a partner at Harbor Point's law firm, Gallagher Evelius & Jones, emphasized the developer plans to funnel the interest earned on the bonds back into the development by paying for a construction loan and to re-sell the bonds eventually.
"The interest rate on the bonds held by the developer will match what the developer will pay to the bank on the construction loan, leaving him with no mark-up, no profit and no benefit from holding bonds," Lewis said.
And, he noted in an email: "This overall approach accomplishes the funding of the infrastructure at a greatly reduced financing cost to the city."
Such arguments hold little sway for opponents of the financing.
City Councilman Carl Stokes criticized the sale of bonds to Beatty. Had the development team used its own money to build infrastructure, he said, the city could have seen increased property tax revenue right away instead of waiting for more than a decade, when projections show the tax revenue will exceed bond payments.
"The more you peel this onion, the more you cry," Stokes said. "The developer is the investor here. Most of the city is clear on what this is: It's not about jobs or growing the city. It's about growing this development."
The city ultimately would sell $107 million in tax increment financing bonds for the project, which would accumulate interest and fees for a total debt of $283 million.
City Council member Bill Henry, who voted against the public financing plan and argued for a smaller deal, said the developer would benefit from interest on the project's bonds. But he said the deal underscores how bullish Beatty is on Harbor Point.
"On the face of it, it's more evidence that he believes strongly in the project," he said. "It's an example of his willingness to put his own money into it."
Here we have yet another development analysis that does the right thing in outing the bad use of TIFS-----bad subsidies---but whether the reference to our BALTIMORE SUN ARTICLES or to this analysis ---they repeat the same financial problems we have had over THESE FEW DECADES----we knew all this was bad during SCHMOKE/O'MALLEY ERA.
Notice these analyses whether by corporate university--media----government watchdog NEVER mention the dangers MOVING FORWARD-----REAL LEFT journalism was public interest tied to holding power accountable-----what CLINTON/BUSH/OBAMA did with corporate universities-----captured global Wall Street Baltimore Development 5% 'labor and justice' organizations is place all analysis of development in REPEATING CYCLE. It states over and over the same problems and never allows the 99% of WE THE PEOPLE to see what problems are COMING IN MOVING FORWARD this decade or two.
This is not the fault of our young adults sent in to be these development analyzers----they were trained that way by FAKE UNIVERSITY/COMMUNITY YOUTH LEADERSHIP to NOT see the real financial and development problems.
It is clear that the global 1% for whom BEATTY was working does not intend to keep this building for what it is today----they simply were handed that top high rent location and put a building on it.
Here we see how all of what are now being called 'public parks' are corporate campus landscaping in what will become RESTRICTED USE PROPERTY.
IT WAS THEN MAYOR O'MALLEY SOLD BY NATIONAL MEDIA AS INNOVATIVE THAT INSTALLED CITY STAT------DATA COLLECTION ON CITY REAL ESTATE TO BE USED BY GLOBAL 1% INVESTMENT FIRMS AND DEVELOPERS TO KNOW WHAT COMMUNITIES TO HIT WHEN AND HOW TO MOVE BALTIMORE CITIZENS OUT -----
'It is intended to create green space that the whole city can use, although it isolates four parks in one neighborhood of the city'.
Interrogating Harbor Point: Examining the Effects of Baltimore’s Economic Development Policies
Mariah Braxton, Cities
Haverford College, 2014
Harbor Point is a soon to be developed 27 acre mixed-‐use waterfront development, which will include office buildings, retail, apartment towers, parks, and the regional headquarters of Exelon Corporation. This $1B project will put the City of Baltimore into a debt totaling around $400M, due to the use of Brownfield Tax Credits, Enterprise Zones, and TIF. City Council and Mayor Stephanie Rawlings Blake have justified this public expenditure as a means of economic development. This thesis
analyzes the benefit of these programs as tools for job creation and unemployment amelioration. This is not the first time Baltimore and the State of Maryland have heavily contributed to the financing of a private project, yet the city still struggles with deteriorating neighborhoods and high unemployment. If the current models of economic development do not yield results then Baltimore must try a new strategy.
This thesis recommends Baltimore think more creatively regarding economic development policy and suggests the theory and policies of other scholars as a way
to invoke change.
Is Harbor Point Worth the Investment?
Harbor Point is meant to be a project from which the “whole city is able to reap the benefits”.
It is intended to bring jobs, though there is confusion between
the Mayor, developer and The Baltimore Sun as to how many. It is intended to create green space that the whole city can use, although it isolates four parks in one neighborhood of the city. It is intended to remove blight, which it will accomplish,
but not without raising the questions concerning the more pressing and underserviced blighted neighborhoods in the city. The renewal of a brownfield site is exciting and seemingly better than developing on a greenfield site. However,piercing the seal that contains toxic chromium waste raises environmental and health concerns.
With Harbor Point, it seems as if every potential positive comes with a potential negative of equal magnitude. Harbor Point should add nearly $20M in city tax revenue, but this is not until 2025 and after the city has already invested nearly
$400M into the $1B project. So is this investment worth it? Provided what we know about Camden Yards’ impact on employment, the weak findings of enterprise zones, and the questionable use of the ‘but for’ clause to allocate TIF funds Harbor Point is not worth the investment.
The Mayor and many members of City Council have gone through extreme lengths to ensure that developer, Michael S. Beatty, constructs on the concreted over lot. But this desire to please the developer is unnecessary. The only tenant that
Beatty has secured for this new development is Exelon Corporation, a company that Broadwater, Luke. “Harbor Point bonds get OK.”
will be forced to locate its headquarters in Baltimore regardless of Harbor Point’s realization. It, therefore, seems senseless to pour money into a development where the only tenant gained so far is one that has to be in Baltimore anyways.
Also, to for
go the full amount of property taxes for 10 years due to the
previously mentioned combination of tax credits and debt services is to forgo 10 years of contribution “...
to Baltimore’s general fund for police, schools and other
Ronald Kreitner, head of the non-‐profit West Side Renaissance, expressed concerns that the subsidies would cost “...$200 million in lost state revenue for schools...”
Since allocation of state educational funds is based on property values and Harbor Point will not be contributing property taxes for 10 years; children are amongst those to lose out due to public financing. This however, appears to be of trivial importance to the Mayor as her spokesperson Ryan O’Doherty said, “
‘It strains credulity to suggest that Baltimore shouldn't try to create jobs and grow revenue because of school funding formulas.’”
When it comes to jobs, enterprise zones are an ineffective method of increasing employment. As we saw with Camden Yards, throwing money at a private project with the intent to
catalyze economic development is also ineffective.
In addition to weak policies, the confusion in job projections adds little faith to the idea that Harbor Point will actually draw
new jobs to the City. If Baltimore truly wants to create jobs then it needs to try a different strategy; the ones being used in
Harbor Point are tried and failed methods that yield little change. Baltimore would Broadwater, Luke. “
What's the total price tag on Harbor Point's public subsidies?”
Broadwater, Luke. “Critics, supporters clash over Harbor Point deal.” Broadwater, Luke. “Critics, supporters clash over Harbor Point deal.” be better-‐serviced in thinking of new ways to cure the blight in areas where people live rather than appeasing a developer who can rectify blight of a nearly abandoned waterfront parcel. The Downtown Management Authority is right in being skeptical of the public assistance that Harbor Point has received, especially since they were denied the TIF bonds for which Harbor Point was approved. This is an example of the city showing preference for a new high-‐end waterfront development over deteriorating public infrastructure and buildings in the central business district.
Baltimore needs to reprioritize how it spends money.
Like Porter suggested, funds should go to the places in greatest need first. Harbor Point is not in greatest need. As it is on a brownfield site, it should benefit from the Brownfield Tax Credits ($25M). It should also benefit from the street infrast
ructure that the TIF will pay for ($35M), but it is not necessary for the development to reap the benefits of TIF for
parks, promenades and piers ($107M) or from Enterprise Zone Tax Credits ($88M). Unfortunately, as beautiful as this project will be when completed it is likely not to benefit the City as promised and is thus not a good investment for Baltimore.
While at this point little can be done to stop the construction of Harbor Point, Baltimore and other cities in a rut of failed economic development policies should look to new ideas in the future. The public financing of private projects is a policy that
must be replaced. There is no guarantee that new policies will work, but we already know that the policies currently in use do not. It is better to start with a future that is uncertain than one that is destined to fail. With this in mind, hopefully
Baltimore can move forward and design programs and policies with the potency to create sustainable economic development.
As the above restates the same development and finance issues from these few decades the real problems of course are surfacing-----here we have PLANK/UNDERARMOUR expanding his real estate empire in Baltimore from West Baltimore waterfront to East Baltimore waterfront-----each with GLOBAL CORPORATE RESORT HOTELS AND GROUNDS. Now, we already know what HARBOR POINT development with its 'PUBLIC PARKS' will connect to------Fells Point is a favorite old community for white 99% now losing their property rights just as our black citizens in surrounding communities have these few decades. All this hits every population group----99% of WE THE PEOPLE.
We shouted against the ACTUAL awarding of this real estate to PLANK for just what we see now------this hotel we are told is charging $11,000 A NIGHT for global corporate executives who fly in to do business with global corporate campuses. Fells Point and its THAMES STREET small businesses don't have a chance in these extreme wealth conditions. We know the real estate wheeling and dealing in Fells Point as Charles Village has been one long line of giving 5% global Wall Street players temporary real estate rights-----they keep being pushed out as MOVING FORWARD gentrification for the global 1% and their 2% does not include them.
THESE 5% PLAYERS ARE LIVING FOR TODAY---THEY DO NOT CARE THEY ARE BEING USED A FODDER-----OUR COMMUNITIES, REAL ESTATE, AND ACCESS FOR 99% OF WE THE PEOPLE ARE BEING DETERMINED
An economic analysis of development would have had people fighting against these issues in 1990s with MASTER PLAN DEVELOPMENT FOR US CITIES AS FOREIGN ECONOMIC ZONES.
For those not knowing Baltimore from LAUREATE EDUCATION BUILDING---to HARBOR POINT ----to this FELLS POINT ---all along the valuable waterfront property is all within a mile----this is very condensed ENTERPRISE ZONE development with Greater Baltimore and Baltimore Development going to extreme measures to make sure the RIGHT PEOPLE own these properties AT THE RIGHT TIME.
Will Kevin Plank keep ownership of this FELLS POINT PIER HOTEL ----this is his segueway out of CEO UNDERARMOUR----handing that Board of Director global 1% power of UnderArmour COVE POINT. We will see this slow creep of insider real estate trading throughout MOVING FORWARD ONE WORLD ONE GOVERNANCE Baltimore . $11,000 a night rooms in Foreign Economic Zone paying no taxes----Kevin was given the nice nest egg.
Kevin Plank sees Fells Point Rec Pier hotel as an extension of Under Armour
Mar 3, 2015, 1:46pm EST Updated Mar 3, 2015, 2:15pm EST
Kevin Litten Reporter Baltimore Business JournalThe Recreation Pier hotel project in Fells Point will become an extension of the Under Armour Inc. brand and a tool for attracting people to the city.
That's how Under Armour CEO Kevin Plank sees his $60 million investment in the conversion of the 100-year-old pier and head house into an "incredibly nice" 128-room hotel. Plank plans to celebrate the groundbreaking of the hotel during a ceremony Wednesday. Plank's privately held real estate company, Sagamore Development Co. LLC, is developing the project, which is expected to be completed in fall 2016.
This is a rendering of how the hotel will appear from the exterior when complete. The… more
Sagamore acquired the property from the city in June for $3.4 million.
Plank said in an interview Monday the hotel is part of a strategy to provide Under Armour guests with a unique Baltimore experience. That will include allowing people to depart the Under Armour headquarters in Tide Point on an authentic Chesapeake Bay crab boat, voyage across the Inner Harbor and arrive in style at the hotel.
"We tell stories for a living — we tell great stories and we build products to support those stories," Plank said. "When [visitors] come here, I want them to have a proper hotel to stay at. When they come and visit, I want them to see a proper campus. I want them to see unique things we have like the distillery."
Although Plank considers the Four Seasons Hotel Baltimore to be a good option for visitors, the Recreation Pier project will "be different than a Four Seasons — it'll be unique to the other properties and unique to Fells Point," he said.
Plank said he is close to announcing who will run the hotel, adding it will be "a world-class operator that will elevate the city."
Plank became interested in taking on the hotel project, he said, because he could see from his office that the pier was on the verge of collapsing into the harbor.
"I stared out my window [at the Recreation Pier] and it depressed me every day," Plank said. "I said we should breathe some life into it."
The plans for the hotel include building a first-floor pool on the edge of the pier; adding a restaurant and whiskey bar; and adding a boat launch where "people can come and tie their boats at and stay for the weekend." Plank also plans to restore the building's ballroom to its original grandeur.
Plank is not the first person to envision a revival for the pier. It was once owned by H&S Properties Development Inc., and developer J. Joseph Clarke was attached to the property since redevelopment ideas were first floated.
"Before we got involved, this thing was supposed to be like a Holiday Inn Express or a Garden Inn or something and I'm looking and going, 'Why not make it great?'" Plank said. "The one thing I'll tell you is I just want to do great things. I just want to be involved in projects that are great and build things that have people go 'wow.' One of my passions in life is I love blowing people's minds."
Previous developers struggled to find financing for the project because the pier needed so much work. A major piece of the pier's restoration involved replacing the pilings that are driven underwater and into the harbor's bed, an expensive undertaking that Plank said he had the resources to invest in.
"No one would've touched this investment, but because of my position at Under Armour, as CEO of Under Armour, I can build on things with a longer investment timeline than most people have," Plank said. "It's the same way we look at this — it's a 10 to 12 year investment timeline but at the end of the day it's going to be great."