Places generally along the South Freeway (I-45), and south of the Ship Channel, including Clear Lake, Deer Park, Freindswood, the Hobby Area, League City, Pasadena, Santa Fe, South Houston, and Texas City.
Couldn’t agree more! Although, Dallas and Austin are fighting and seemingly beating TxDoT in similar battles. Houston has a weird way of being soooo backwards on this stuff. It’s like we are still living in 1972 sometimes..
It's a future subsidy that substitutes for equity. In order to give the debt capital the required internal rate of return, if the future cash flow was burdened by a normal tax rate it would limitthe amount of debt that the project could bear.
The sponsor could have put more equity in order to deliver the required financial ratios ( cash flow to leverage). But instead, you and me are providing a subsidy in lieu of sponsor equity. What do we get out of it? A suburban Disney-land office park that will look and feel dated before the grout on the brick veneer sets.
This is what drives me mad about "free enterprise" and "entrepreneurship:" in America. We have socialized risk and privatized gain....See financial crisis 2008 for reference.