Jay Peak bombshell

BenedictGomez · Apr 7, 2015

When asked why AnC Bio Vt will succeed in rural Newport City, Stenger said that it will open debt free, because it depends on EB-5 investors who will receive a green card in exchange for creating 10 jobs.

Apparently the reporter didn't ask a follow-up noting that Stenger's response neither remotely answered the question, nor made any sense.

Give me $120 Million in "free money" and I could build the world's largest Rita's Italian Ice in Siberia. Debt free!

VTKilarney · Apr 7, 2015

The rationale they gave for putting the facility in Newport, Vermont is that it is near colleges and universities. As compared to... oh... Boston? Is there a lot of biomedical research going on at Lyndon State College?

BenedictGomez · Apr 7, 2015

VTKilarney said:
The rationale they gave for putting the facility in Newport, Vermont is that it is near colleges and universities. As compared to... oh... Boston? Is there a lot of biomedical research going on at Lyndon State College?

It makes absolutely no sense.

They're going to have to lure people away from Boston/Cambridge, which is a leading biotech hub in America.

This is obvious, but I guess they cant publicly state that as it isn't "rah, rah, pro-Vermont", and it also points out a weakness in their plan, so they have to go with a nonsense response instead.

thetrailboss · Apr 7, 2015

BenedictGomez said:
It makes absolutely no sense.

They're going to have to lure people away from Boston/Cambridge, which is a leading biotech hub in America.

This is obvious, but I guess they cant publicly state that as it isn't "rah, rah, pro-Vermont", and it also points out a weakness in their plan, so they have to go with a nonsense response instead.

There is some truth to this. I think that they would say that they are trying to bring opportunity to a different part of the country and one that is cheaper in terms of land.

VTKilarney · Apr 7, 2015

BenedictGomez said:
Apparently the reporter didn't ask a follow-up noting that Stenger's response neither remotely answered the question, nor made any sense.

Give me $120 Million in "free money" and I could build the world's largest Rita's Italian Ice in Siberia. Debt free!

Another interesting point. On the one hand they are saying that the business is debt free. On the other hand, they are saying that the investors will hopefully be paid back in 5-7 years with interest. Which is it? And why doesn't a reporter point out these inconsistencies?

VTKilarney · Apr 7, 2015

By the way, the State is looking into the purchase of the real estate from Quiros at a near 100% markup. The state is requiring an independent appraisal.

BenedictGomez · Apr 7, 2015

VTKilarney said:
Another interesting point. On the one hand they are saying that the business is debt free. On the other hand, they are saying that the investors will hopefully be paid back in 5-7 years with interest. Which is it? And why doesn't a reporter point out these inconsistencies?

Why doesn't a reporter ask to see their revenue projections? Because that I would LOVE to see.

Once this thing gets built and is operational, their cash burn rate is going to be greater than their revenue.

Better keep "building" things to keep those $500,000 checks rolling in. Maybe they can build a zipline in on the roof of the plant.

fbrissette · Apr 7, 2015

thetrailboss said:
There is some truth to this. I think that they would say that they are trying to bring opportunity to a different part of the country and one that is cheaper in terms of land.

So it is easier for Mr. Q to make quick money on a land swap ?

thetrailboss · Apr 7, 2015

fbrissette said:
So it is easier for Mr. Q to make quick money on a land swap ?

Yeah that does not smell good....

BenedictGomez · Apr 7, 2015

VTKilarney said:
the State is looking into the purchase of the real estate from Quiros at a near 100% markup.

Someone woke up the Keystone Cops?

VTKilarney said:
The state is requiring an independent appraisal.

And it might even be competent work?

deadheadskier · Apr 15, 2015

This is interesting

I thought the point of EB-5 was to bring investment into areas of the country in need of job creation. Obviously new jobs are great anywhere, but I would put Boston near the bottom of the list regarding "need" compared to other locations.

I guess I just assumed EB-5 was only happening in rural areas, but apparently not:

http://www.bostonglobe.com/business...ssachusetts/IqXv0YbV5i1cJJKhTh9dGP/story.html

MEtoVTSkier · Apr 15, 2015

deadheadskier said:
This is interesting

I thought the point of EB-5 was to bring investment into areas of the country in need of job creation. Obviously new jobs are great anywhere, but I would put Boston near the bottom of the list regarding "need" compared to other locations.

I guess I just assumed EB-5 was only happening in rural areas, but apparently not:

http://www.bostonglobe.com/business...ssachusetts/IqXv0YbV5i1cJJKhTh9dGP/story.html

The investors must demonstrate their money has led to at least 10 new jobs, but the requirement is broadly construed. It can include workers at a new building, construction workers who built it, or service workers at nearby restaurants benefiting from the increased activity.

I thought it had to create 10 new jobs that didn't exist before? If only construction workers need to be employed... for the construction... where are all the new jobs for the area??

VTKilarney · Apr 15, 2015

EB-5 is not limited to rural areas. The amount of investment required is lower for rural and high unemployment areas - $500,000 versus $1 million.

mbedle · Apr 15, 2015

MEtoVTSkier said:
I thought it had to create 10 new jobs that didn't exist before? If only construction workers need to be employed... for the construction... where are all the new jobs for the area??

I am pretty sure that they can not count the construction workers towards the required 10 created jobs per investment.

VTKilarney · Apr 15, 2015

Can't rural areas count indirect job creation?

.

mbedle · Apr 15, 2015

Yes - they can count indirect jobs. Those would be jobs created outside of the commercial enterprise, that support the enterprise. For example, it the commercial enterprise requires "Widget A" to manufacture their product and a company next door has to hire 10 additional people to meet the increased demand for "Widget A's", that would count in the job creation totals.

MEtoVTSkier · Apr 15, 2015

VTKilarney said:
EB-5 is not limited to rural areas. The amount of investment required is lower for rural and high unemployment areas - $500,000 versus $1 million.

By the looks of that article the investment amount was only 500k for the Boston project... That's not my definition of a "rural" area Lol!

Samuels hopes to use the program to entice about 100 foreign investors to put up nearly $50 million for his $290 million development, the Point, at Boylston Street and Brookline Avenue.

deadheadskier · Apr 15, 2015

That neighborhood is the hottest real estate in New England right now BY FAR. Absolutely no need to funnel EB-5 money there.

Domeskier · Apr 15, 2015

MEtoVTSkier said:
By the looks of that article the investment amount was only 500k for the Boston project... That's not my definition of a "rural" area Lol!

Speak for yourself!

-some insular new yorker

deadheadskier · Apr 15, 2015

Not Fenway, but the Seaport where the restaurant in the article is located. Fenway is booming too though

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