3/01/2006

Champlins dead?

Probably not. Even though the CRMC came to a stalemate last night, I don't believe it can be regarded as a permanent checkmate. I'm absolutely tickled to see a developer get his head handed to them for a change instead of getting everything they wanted. I am absolutely sure we will see a slightly different proposal coming back in a year or two.

I would be really interested in seeing just who it was that voted for, and against the proposal. Do ANY of us think that our "resident" representative on the board did the "right" thing and voted against it? Come on now, let's see a show of hands/comments on that.

What does this decision do to the application by Paynes dock to expand? Maybe they just put theirs in to counter the Champlin's grab attempt. Hopefully now it will be withdrawn. The first one to get okay-ed will spawn about fifty more, as every home owned abutting the water will want a dock then.

Looks like we are going to get another little dose of 'poor mans fertilizer' shortly. Better get those peas and spuds in the ground. Whadda ya mean the ground is frozen?

21 comments:

Anonymous said...

Correction, we don't have an island resident on the CRMC. Champlins does though. Hope the non-ruling withstands the test of time.

Anonymous said...

I'm not sure it will. The vote to approve was 5-5. If they can get a judge rule that the 2 counselors should have recused themselves, then the decesion will be upheld.

Maybe if everyone was a little nicer to Jerry when he first arrived on the Island, he wouldn't be Champlin's represenative.

good listener said...

I think Christopher Walken just weirded them out...

Sam said...

I appreciate the notes and thoughts here, Everett and y'all. Folks from far away are really looking at this one! Keep up the good work,
Sam
South Padre Island

Anonymous said...

Yeah...looks like Walken was pumped up on perks.

Constant Gardener said...

And - no peas and spuds in the ground before St. Paddy's Day...

Old Plumber said...

Former full-timer now just a visitor, watching with interest to see how this pans out, with the Governer's anti-expansion input, the appeal after the vote, and a heck of a lot at stake for the future of the island's dwindling open space.

Well done Everett for speaking your mind and best wishes BI, you need them!

Anonymous said...

I'm convinced that Zarilla and Grillo are secret partners with regard to Champlin's. The next big thing on that part of the island will be the development of many condos on the land between the old Sam Peckham's and Champlin's. Add that to the 20 affordable houses across the road and there goes BI. It's become another Disneyland for daytrippers and the additional high speed boats will only add to that. Soon you'll be able to walk across the GSP without getting wet as the boats will be so densely packed.

Anonymous said...

"Maybe if everyone was a little nicer to Jerry when he first arrived on the island".....I hope your tounge was in cheek on that one. Who has ever met a bigger pig in their lives; you would have to be a Grillo, a Leone or some sort of bizarre kiss-ass to like that guy.

pinkoislander said...

Unfortunatly, one of the biggest motivations for development is the new, re-assessed land values. Check the Vision Appraisals web site for Champlin's. I think it valued Champlin's at roughly 10 million dollars. Whether you like Joe Grillo or not, the reassessment gives him little choice but to expand. Let me explain.

If Mr. GRillo was to die tomorrow, his estate will have to pay roughly 5 million dollars to the government in estate taxes, and that is on Champlin's alone. HE probably has other properties which will likely be taxed at 50% also. AS rich as Grillo is, 5 million dollars in CASH is an ammout he likely does not have. If he does, it will also be taxed by the government upon his death.

Although there are ways to mitigate estate taxes, you cannot avoid them. What our new assessments are will do is force busness people to maximize their profit and just as bad, force islanders off the island when their kids cannot afford to pay 1 million dollars on their parents' 2 million dollar house (Which is
the value of many islander homes).

I'd venture to say that the vast majority of businesses and homes on the Island will have a very hard time passing passing to the next generation.

I have no idea how to fix it but we need to start by reassessing the reassessment.

good listener said...

Pinko - don't believe for a minute that Joe Grillo personally owns Champlin's - that man is dumb like a fox and you can bet the Marina is in a series of holding companies and LLC's.

Sam said...

Pinko hit the nail on the head about all the kinds of taxes, property, revenue, and all that.

But I also tend to believe that there is at least one trust, a property management company, an operating company, and several concessions. I could be totally wrong but large companies have to diversify like this in order to survive. Even I have an LLC.

The question about whether Champlains HAS to expand is maybe a gamble, since construction might cost a thousand bucks a lineal foot for new docks and there are only 3 months of the high season. It depends on the business plan as to the expected return on the investment, as well as the vagaries of the economy. Fuel prices might put the hurt on them, for example.

One thing for sure, I would not expect lower dock prices because extra capacity might be added. That's pretty much a joke ... that and that old restaurant, Baroni's.
/Sam

good listener said...

Hey - my very first job was at Baroni's (when the grill was still in the front - post Red's Lunch).

Everett said...

Mr. Good, You just kind of dated yourself with that last comment. You'd have to have been here in the middle fifties to know THAT little bit of trivia!!

Anonymous said...

Are you implying that because something is held in an LLC, the members/owners of that LLC do not have to pay inheritance taxes when their devisees succeed to their interests?

That is totally wrong. Ownership of an LLC is still an asset, usually the same amount of the Value of the LLC's holdings. When that asset passes at death, inheritance taxes are paid.

Trust me, Uncle Sam would not allow you to "just set up an LLC to avoid inheritance taxes."

What you've done is conveintly side-stepped the issue by saying it does not exist. Joe Grillo still has the same Estate issues...whether his assets are as a sole proprietorship, membership in an LLC, or through ownership of corporate stock.

And good listener...If Joe Grillo was "dumb like a fox" He would do just the opposite of what you propose. If he was an idiot he would own everything personally. Being smart, he probally has everything in an LLC. Stupid people do not act smarter than smarter people.

Does anyone else agree with Pinko that the re-assessment poses some serious problems?

Sam said...

Yes, I agree with the last anon person about inheritance taxes, but one of the reasons to set up an LLC is because if general liability - if someone sues, they have to sue the company, not the person. You can go after all company assets but not my house, home, and car. And, in an LLC you can divide the company among directors, partners, or shareholds if you want, thus reducing more liability. Thus if one member of the LLC died, the inheritance tax would be proportional only to the value of that participant - not the entire shebang.

There were some good things in the past, such as Pennsylvannia having the "Gift to Minors Act" in which one getting up in years would give most all his or her money to the kids in stocks, bonds, or trusts that matured when the kid reached 18.

I don't think that one works anymore, though - wish it was back!
Sam

Anonymous said...

Sam, read the earlier post...Good Listener said inherritence taxes did not affect Grillo because his Co is probably an LLC.

Sam said...

So the light comes on ... it is simply the "going through the roof" property appraisals.

Let me ask a question, are private commercial docks subject to property taxes?

Just asking.

Everett said...

And the fact that Mr. Grillo is an accountant by trade leads me to believe all that tax stuff is well taken care of.

Anonymous said...

I do agree that Joe Grillo is an idiot. Does that count?

He is a liar, and a slimeball too.

He hits on teenage girls who work for him, he covers up fuelspills in the GSP and he has the biggest Napoleonic complex I have ever seen.

my .02

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